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| US Commerce Secretary Gina Raimondo will be the latest member of the Biden administration to travel to Beijing in an effort to "warm up" US-China relations. (Source: Bloomberg) |
Previously, US Secretary of State Antony Blinken and Treasury Secretary Janet Yellen visited China in June and July respectively.
“Secretary Raimondo looks forward to having constructive discussions on issues related to the US-China trade relationship, challenges facing US businesses, and potential areas of cooperation,” the US Department of Commerce said in a statement on its official website on August 22.
Relations between Washington and Beijing have recently fallen to their lowest point in decades, with US trade restrictions on China being one of the most contentious issues.
This month, US President Joe Biden also issued an executive order restricting US investment in China’s high-tech sector. The new US regulations will take effect from 2024, with sectors affected including semiconductors and artificial intelligence (AI).
Paving the way
Analysts say Ms. Raimondo's visit will be a step forward, paving the way for a meeting between Chinese President Xi Jinping and US President Joe Biden in San Francisco on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting in November 2023.
However, Ms. Raimondo's itinerary is somewhat different from that of previous US officials. Accordingly, she will visit Shanghai and Beijing, where she is expected to meet with senior officials from the two cities.
Ms. Raimondo is expected to meet with the Shanghai Party Secretary and leaders of the American Chamber of Commerce in Shanghai; visit New York University Shanghai campus and Shanghai Disneyland.
Considered the capital of China's foreign trade and investment, Shanghai is home to more than 1,000 American companies doing business here.
“The itinerary shows that Ms. Raimondo's visit is aimed at strengthening and maintaining a stable communication channel between the US and China ahead of the upcoming APEC Summit,” an anonymous source revealed.
Raimondo’s visit to Beijing is the fourth high-level meeting between the two powers this summer, following visits by Secretary of State Antony Blinken, Treasury Secretary Janet Yellen and climate envoy John Kerry. Veteran diplomat Henry Kissinger was also warmly welcomed back to Beijing last month.
“Raimondo’s visit is a continuation of gestures that show both sides are willing to continue communication, which is better than nothing,” commented Professor Ren Xiao, director of the Center for Chinese Foreign Policy Studies at Fudan University.
During a meeting with Ms. Raimondo in Washington on August 22, Chinese Ambassador to the United States Xie Feng raised concerns and called on the White House to take “substantive actions” to resolve trade and economic issues and put bilateral relations on a stable track.
Earlier this week, Chinese Premier Li Qiang also expressed concerns about relations between the world's two largest economies when receiving a delegation from the US-China Business Council led by President Marc Casper.
“Currently, China-US relations and economic and trade cooperation are facing some difficulties, requiring both sides to show sincerity… and make joint efforts,” Li Qiang said.
Reality Check with America
China's economy is recovering more slowly than expected. Gross domestic product (GDP) in the world's second-largest economy grew just 0.8% in the second quarter from the first quarter - down from 2.2% in the first three months of 2023. Total foreign direct investment (FDI) into China also fell 9.8% in the first seven months of 2023, according to the Chinese Ministry of Commerce.
Notably, for the first time in the 25-year history of the AmCham China Business Climate Survey conducted earlier this year, the Northeast Asian country is no longer the “top investment priority” of American businesses.
Ms. Raimondo's trip comes at a time when American businesses are considering leaving China due to concerns about political tensions between the two countries and the bleak outlook for the domestic economy, said Pang Zhongying, a professor of international political economy at Sichuan University in Chengdu.
This expert commented: "By choosing Shanghai, Ms. Raimondo wants to work with representatives of large American businesses in China to learn about their operations and make new assessments of the business environment of the Asian country."
While Ms. Raimondo and many other senior officials of the US government have affirmed that the world's number one power is only looking to "minimize risks" instead of "decouple" from China in the supply chain - Professor Pang commented that American businesses can still leave China for economic reasons.
“In a way, Ms. Raimondo’s trip could very well be a reality check for the US — to prepare for a future where more and more US businesses are withdrawing from the Chinese market,” Professor Pang said.
Ms. Raimondo is considered one of the most powerful Commerce Secretaries in US history as she currently holds full authority over high-tech industrial policy, export and investment decisions made by the Biden administration.
Her visit is also considered appropriate in the context of Beijing's efforts to regain growth momentum while exports are declining, industrial production is slowing down and unemployment is alarmingly high after reopening the economy.
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