China Trip Yields Little Substance

U.S. Commerce Secretary Gina Raimondo concluded a four-day visit to China this week, meeting with her counterpart, Chinese Commerce Minister Wang Wentao. The trip aimed to revive economic dialogue between the world's two largest economies, despite persistent tensions over trade issues and national security.

According to a statement from the Chinese Commerce Ministry on Thursday, China has urged the U.S. to extend "equal treatment" to Chinese companies investing in the United States. "China demands the U.S. give equal treatment to Chinese enterprises investing in the U.S. in terms of market access, regulatory enforcement, public procurement, and policy support," said Shu Jueting, a commerce ministry spokesperson.

China also raised "serious concerns" over the U.S. imposition of Section 301 tariffs, describing them as "discriminatory."

Wang and Raimondo have agreed to engage in regular dialogue, scheduling at least one meeting per year. Raimondo disclosed plans for a commercial issues working group that will involve both private sector and government representatives. The group is slated to meet twice annually, with the inaugural session to be hosted in the U.S. next year.

Observers note such a group already exists, the US-China Joint Commission on Commerce and Trade (JCCT) has been in place since 1983, although Commission activity has not been publicized in recent years.

During her visit, Raimondo toured Shanghai Disneyland and a Boeing facility, spotlighting key American exports. She also visited New York University's campus in Shanghai. While not securing commitments on contentious issues such as the stalled deliveries of Boeing 737 MAX jets to Chinese airlines, Raimondo said she had raised the topic during her meetings.

"Of course, in matters of national security, there is no room to compromise or negotiate," Raimondo clarified, indicating Washington's firm stance on the issue. Nonetheless, she emphasized that "a strong Chinese economy is a good thing" and stated that the majority of trade and investment between the two nations does not involve national security concerns.

As part of the talks, the two countries agreed to set up an "export control enforcement information exchange," aimed to "reduce misunderstanding of U.S. national security policies," according to U.S. officials.

The trip comes at a time when U.S. efforts to tighten restrictions on technology-related exports and investments in China have triggered a backlash from Beijing, exacerbating an already fragile investment climate both domestically and abroad for China.

Raimondo's tour began with a warning that Washington would not yield on national security but underscored the necessity for stable economic ties. She ended her trip expressing "some optimism" after engagement with top Chinese leaders, although no specific agreements were reached on the more contentious issues.