US Commerce Secretary Calls for Predictable Business Environment in China Amid Investment Concerns

Published on : 30/08/2023 – 10:01Modified : 30/08/2023 – 13:32

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“The environment must be predictable, the rules of the game must be fair, the procedures must be regular, transparency must be ensured,” she declared during a press conference in Shanghai, at the end of a four-day visit to China.

“American companies need action to be taken to address these issues or they will view (this environment) as too risky and impossible to invest in,” she warned.

Arriving in China on Sunday, the official came with the intention of trying to ease bilateral tensions between the world’s two leading economic powers.

But that didn’t stop her from tackling “difficult topics,” she said.

“I raised difficult topics such as subsidies, anti-competitive practices by China, searches of American companies, theft of intellectual property”.

And she even mentioned a subject that affects her directly: the alleged hacking of her emails, revealed in July by Microsoft and suspected of being supported by the Chinese government.

“I mentioned the fact that my own mailbox had been hacked, (…) as an example of an action that erodes trust as we try to stabilize the” bilateral relationship, she said during of a conference call.

Ms. Raimondo, who met senior Chinese officials in Beijing on Monday and Tuesday, however wanted to be optimistic: “This trip has been an excellent start”, she assured, stressing that “nothing good comes from the ‘communication stop’.

“But I am very realistic about the challenges that remain.”

Unfair practices

Earlier in the day, she had stressed to Shanghai Communist Party leader Chen Jining that “a stable economic relationship is good for America, good for China, and good for the world.”

American groups established in China have long complained of unfair competition in a country where intellectual property is weakly protected and where local companies generally enjoy preferential treatment.

Their fears have redoubled in recent months, thanks to several searches and interrogations targeting American consulting companies.

A new version of an anti-espionage law also came into force in July, significantly increasing the authorities’ room for maneuver against what they consider to be threats to national security.

Foreign companies are waiting for this legislation with its vague outlines and subject to a number of interpretations.

During a meeting on Tuesday with Deputy Prime Minister He Lifeng, Ms. Raimondo had denounced unfair trade practices in China, according to the minutes of the US Department of Commerce.

Gina Raimondo is the fourth senior American politician to visit China this year, as part of a drive to get closer to Washington, which wants to ease tensions with its most important strategic rival.

In recent months, US Treasury Secretary Janet Yellen, US Climate Envoy John Kerry and US Foreign Minister Antony Blinken have all visited Beijing.

None of these visits led to major advances.

Work group

The Minister of Commerce has obtained some progress: Beijing and Washington have agreed to create a working group to try to iron out the trade disputes between them.

Raimondo has repeatedly said that the trade restrictions imposed by the United States on the export of certain American products, particularly high-tech products, to China should not affect the bilateral relationship.

Washington considers these measures crucial to preserve its national security. But Beijing sees it as a tool to curb its economic growth.

Prime Minister Li Qiang also retorted on Tuesday to the American official that the “politicization” of trade issues by the United States would have a “disastrous impact”, according to the official news agency China news.

Asked by AFP, the president of the American Chamber of Commerce in China Michael Hart confirmed the difficulties of operating in this country.

“In our meetings with the Chinese government, we have been very clear that while some American companies are prospering, certain actions, including raids on businesses and restricting data flows, are not likely to attract more people. ‘FDI (foreign direct investment),’ he said.

© 2023 AFP