China-U.S. Business Engagement: Raimondo Seeks Predictability
Gina Raimondo, the US Commerce Secretary, has made a significant call for China to improve the conditions under which American businesses operate within its borders.
In essence, Raimondo is emphasizing that American companies need more consistency, fairness, and transparency in their dealings in China.
She’s highlighting the fact that even though there’s a desire among American firms to engage in business activities in China, the environment in which they operate is often characterized by imbalances and uncertainty.
During her visit to China, Raimondo engaged in discussions with Chinese government officials. The primary topics of concern revolved around practices like forced technology transfers, wherein foreign companies feel compelled to share their technological know-how with Chinese partners, and preferential treatment for local companies, especially those owned by the government.
These issues have significant implications not only for business competition but also for national security, as some advanced technologies have dual-use applications, potentially benefiting China’s military.
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Raimondo Calls for Concrete Action: China’s Commitment to Business Environment Improvement
Raimondo’s focus on “concrete actions” reflects the need for China to demonstrate its commitment to improving the business environment through tangible steps.
While China has expressed intentions to foster foreign investment and collaboration, Raimondo’s point is that actions speak louder than words.
The establishment of communication channels is a positive step, but experts caution that deeper issues related to the broader US-China strategy might limit the effectiveness of such measures.
The fundamental dilemma lies in the coexistence of efforts to restrict China’s access to critical technologies while simultaneously seeking avenues for mutually beneficial trade and investment. This inherent contradiction creates skepticism on both sides, with China fearing containment and the US suspecting China’s intentions to challenge the global order.
Additionally, Raimondo’s discussions in China also encompassed the potential revival of Boeing 737 Max deliveries to the country. This serves as an example of tangible progress in the bilateral relationship, reflecting economic interactions that can contribute positively to both nations’ interests.
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Source: CNBC
