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On Wednesday, Secretary of Commerce Gina Raimondo told CNBC's Eunice Yoon that the U.S. is willing to engage in commerce with China, provided there is predictability, due process, and a fair business landscape. Raimondo shared, “[Chinese officials] said that China wants to embrace American business. To make that a reality, there must be tangible measures taken in order to establish a more predictable business environment.”
Gina Raimondo, U.S. Commerce Secretary, conveyed her desire for American businesses to succeed in China, but highlighted the need for predictability, fairness, and due process. In an interview on Wednesday, she declared that “It’s an unlevel playing field for U.S. business. It’s unpredictable.” During her visit to Beijing and Shanghai, she discussed these issues with Chinese government officials. This was her first trip to China in five years, which has seen an increasingly tense bilateral relationship. U.S. firms in China often complain about the forced tech transfers and advantages granted to domestic firms, especially state-owned enterprises.
The U.S. government's decision to impose tariffs on China in 2018, and to subsequently restrict the access of certain Chinese entities to procure items from U.S. suppliers was due to a variety of issues, as well as China having an ongoing trade surplus with the U.S. Secretary Raimondo insisted that the purpose was to maintain national security, expressing her commitment to fulfill this task. To this end, the Department of Commerce's Bureau of Industry and Security declared export controls to prevent Chinese access to high-tech semiconductors in the past year, and just recently President Biden proposed to limit U.S. investment into advanced Chinese technology.
Beijing has a focus on national security, resulting in the Chinese government revising its counterespionage law this year as well as carrying out some prominent searches of global consulting companies - an occurrence that has alarmed foreign enterprises.
Raimondo expressed "great concern" over the updated law and suggested that Beijing take a concrete action to clarify it. She declared that "actions speak louder than words," and that in her meetings with Chinese officials they were "gracious" and "open," expressing the sentiment that China wanted to "embrace American business." Despite foreign business organizations noting improvements to intellectual property protection and the Chinese court system, Raimondo stated that concrete actions are needed to build confidence and create a more predictable environment for foreign investment.
Look into China further with CNBC Pro - Goldman has named stocks from the country that could see a surge while Morgan Stanley has identified six top Chinese stocks including one semiconductor maker that is anticipated to jump 80%. Note the products that China's persistent spenders are buying and the equities that they are boosting. The competition among chip makers is intensifying and recently one specific Chinese stock rose 30% within five days.
Goldman Sachs identifies Chinese stocks that could bounce back, including two that are its top buy-rated picks. Morgan Stanley discovers six of the best China stocks, with one chipmaker anticipated to jump 80%. Consumers in China continue to display strong spending habits, leading to certain stocks profiting from it. Additionally, the chip competition is intensifying and one particular Chinese stock leaped by 30% in a span of five days.
CNBC reported that China and the U.S. have vowed to keep up communication regarding their bilateral activities, as well as back commercial collaboration between their respective businesses. Furthermore, in their latest discussion, the two countries concurred to create sustained dialogue paths with regard to commerce, export regulations, and safeguarding trade secrets. Vice-Premier He Lifeng, the Chinese leader in charge of China-U.S. trade and economic affairs, was present at the meeting.
Stephen Olson, a senior research fellow at the Hinrich Foundation, noted the particular dilemma presented by the Biden administration’s approach to China policy. He warned against thinking that an increase in communication could result in major progress. Olson stated, “The Raimondo trip highlights the fundamental contradiction at the heart of the Biden administration's China strategy. On the one hand, they are trying to limit China's access to essential technologies while also seeking to keep or even expand trade and investment opportunities with China in areas beneficial to the U.S. This creates an impasse, where China remains convinced that the U.S. is determined to impede its progress, and the U.S. continues to believe that China is attempting to overthrow the post-war global order.”
Raimondo concluded her China trip with a meeting with Boeing executives at their Shanghai center. In line with news from Bloomberg on the same month, Boeing is prepared to renew deliveries of the 737 Max to China after a gap of four years.
When questioned regarding a conceivable Boeing agreement, Raimondo left the choice to the organization, yet called it "a case of an activity.""I am aware that the Chinese government has bought these planes and we're expecting them to take ownership. I trust that that occurs."When reached by CNBC, Boeing didn't affirm details yet imparted an announcement:"We keep on supporting our customers in China, with more than 95% of their current 737 MAX armada in activity," the organization said. "For conveyances, we will be prepared to convey for our customers when the time comes."
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