The United States and China have agreed to hold regular discussions on commercial issues and restrictions on access to advanced technology. This marks another step towards reducing tensions between the two largest economies in the world. Gina Raimondo, the U.S. commerce secretary, announced the agreement during her visit to Beijing, where she is meeting with senior Chinese officials.
The agreement to hold regular discussions is part of the ongoing efforts to rebuild the relationships between the two countries. In the past 10 weeks, senior American officials, including Secretary of State Antony J. Blinken, Treasury Secretary Janet L. Yellen, and John Kerry, the president’s climate envoy, have made three trips to China, initiating the process of repairing the frayed links.
During her visit, Raimondo had a productive discussion with Wang Wentao, China’s commerce minister, where they discussed the concerns raised by the American business community regarding China’s actions against Intel and Micron Technology, two semiconductor companies based in the U.S. Raimondo announced the establishment of two separate dialogues, one involving business representatives to focus on commercial issues, and the other for governmental information exchange on U.S. enforcement of export controls.
Bilateral talks on trade, technology, and other economic issues used to be the norm between the U.S. and China but have deteriorated in recent years. However, both countries have shown willingness to resume diplomatic ties as they recognize the interdependence of their economies.
China expressed its concerns about U.S. tariffs on Chinese imports and the Biden administration’s efforts to bolster the U.S. semiconductor industry through government subsidies. The Chinese government criticized these subsidy programs as discriminatory and also expressed concerns about U.S. sanctions on Chinese companies.
The announcement of the new dialogue structure has faced criticism from some analysts, highlighting China’s actions such as its unwillingness to stop the flow of fentanyl into the U.S., its alliance with Russia, and hacking attempts on Raimondo’s email account. However, the move is seen by others as a sign of mutual commitment to pragmatism.
Raimondo assured that the creation of the information exchange group does not compromise national security issues. The first meeting of the export enforcement group was scheduled to take place in Beijing on Tuesday. The aim of inspections in China is to ensure that advanced American technologies are not diverted to the Chinese military or security services.
Raimondo and the Chinese commerce minister also agreed to meet with each other at least once a year. This bilateral agreement reflects the shared approach to solving practical issues and acknowledges the importance of a Chinese economy that adheres to international rules.
As the Chinese economy has faced challenges in recent months, Chinese officials have demonstrated a willingness to discuss these issues. Michael Hart, the president of the American Chamber of Commerce in China, noted a change in the direction of Chinese officials, with a reduced tendency to blame the U.S. for everything. The importance of U.S.-China trade is increasingly recognized by government officials.
In addition, the Chinese Foreign Ministry announced that starting Wednesday, travelers to China would no longer need to undergo Covid testing. This move indicates a softening stance by Chinese officials amidst the ongoing pandemic.
Overall, the negotiations between the U.S. and China aim to alleviate tensions and establish a more productive and cooperative relationship.
