Raimondo visit to Beijing continues Washington’s “de-risking vs. de-coupling” stance towards China

US Commerce Secretary Gina Raimondo’s recent visit to Beijing follows the visits of three other high-level US officials this year as the latter continues to express Washington’s intent to keep trade communication channels open.

Between August 27-30, US Commerce Secretary Gina Raimondo became the fourth high-level US official to visit China this year – after US Secretary of State Antony Blinken, US Special Climate Envoy John Kerry, and US Treasury secretary Janet Yellen. It reflects Washington’s continued strategy to keep the channels of communication open between the two states, which is aimed at minimizing any misunderstandings.

Conflict in no one’s interest

Following the visit, Raimondo pointed out that while the US was in a “fierce competition”, “conflict was in no one’s interest”, and that managing those tensions was in everyone’s best interests.

The visit was put in some doubt a few months earlier when, in July, Raimondo was among senior US officials whose e-mails were allegedly compromised by Chinese hackers. However, she pointed out in a lengthy statement after her return that during the meetings she had “put it right on the table” and “didn't pull any punches".

The visit did not produce any tangible results, save for agreement to establish a communications system that will consist of an annual meeting between the Secretary and her Chinese counterpart: a commercial issues working group that will meet twice a year; and an information exchange mechanism to explain export control policies. The two sides also agreed to convene experts for discussions on strengthening the protection of trade secrets and confidential business information during administrative licensing proceedings.

However, Chinese officials and media were not overtly positive about this, and previous, visits. On this occasion, China’s Commerce Minister urged the US to stop “politicizing and securitizing economic and trade issues,” remove tariffs on Chinese products, and lift semiconductor export restrictions.

Keeping a sober mind

Further, after Raimondo departed China, China’s Ministry of State Security published a lengthy article attacking the US’s China strategy, saying that despite recent overtures by senior officials, the US strategy to contain China had not changed and would probably produce tougher measures against China. The article called for “keeping a more sober mind” about US actions and motives.

From the US perspective, constraints on semiconductor exports to China reflect its policy of “de-risking” rather than “de-coupling”. US Commerce Secretary Raimondo emphasized the importance of US-China economic relations but stressed that the US will not relax export controls on technologies that can aid China’s military advancement and undermine US national security. In media interviews in the US following the visit, Raimondo stated: "We are not going to sell the most sophisticated American chips to China that they want for their military capacity." The US objective is “to choke China’s military development,” she added.

Trade reciprocity

However, she re-emphasized that the US is willing to share trade with China in less risky areas, including less advanced chips. On that note, on 29 August, Chinese telecom giant Huawei started selling its latest 5G cellphone, the Mate 60 Pro, which reportedly is powered by a 7-nanometer chip made by China’s Semiconductor Manufacturing International Corporation (SMIC).

The US blacklisted SMIC in 2020 for the “unacceptable risk” that its products could be used by China for military purposes. Former Samsung engineer and US-educated Dr. Mong-Song Liang is now co-CEO in charge of technology development at SMIC.

Pamir considers that Raimondo’s visit continues the US strategy of keeping communication channels open, while not compromising on national security. The US stance is that it is willing to negotiate on trade deals in less sensitive areas but expects trade reciprocity – “de-risking vs. de-coupling”. However, Beijing still believes that the US and other allies are trying to stymie Chinese economic growth.