In China, Gina Raimondo vows US will ‘protect our workers’ as it pursues healthy competition

US Commerce Secretary Gina Raimondo described the current state of relations between the world’s two largest economies as complicated and challenging, when she met with Chinese counterpart Wang Wentao in Beijing on Monday to discuss mutual concerns and attempt to get the foundation for those relations on a more firm footing.

Raimondo, the fourth high-ranking US official to visit China this summer, arrived in Beijing on Sunday evening. She was also expected to meet Premier Li Qiang and Vice-Premier He Lifeng, China’s lead in the bilateral trade negotiations, during her brief stay in the Chinese capital, according to a source with knowledge of the issue.

“We share US$700 billion of trade, and I concur with you that it is profoundly important that we have a stable economic relationship, which is to the benefit of both of our countries and is, in fact, what the world expects of us,” Raimondo said before meeting with Wang.

“It’s a complicated relationship; it’s a challenging relationship. We will, of course, disagree on certain issues, but I believe we can make progress if we are direct, open, and practical,” she said.

A growing Chinese economy that plays by the rules is in both of our interests

Gina Raimondo

On Tuesday she will visit Shanghai and stay overnight.

“It’ll be a good sign if Raimondo meets both Premier Li Qiang and Vice-Premier He Lifeng,” the source added, speaking on condition of anonymity because they were not authorised to speak to the media.

Another anonymous source with knowledge of Raimondo’s itinerary said her Shanghai stop is expected to include visits to New York University Shanghai and Boeing Shanghai, and she could attend an American Chamber of Commerce event.

Raimondo also said “there is no room to compromise or negotiate” on matters of national security, and that while US moves are “not intended to hinder China’s economic progress”, the US is seeking “healthy competition with China”.

“A growing Chinese economy that plays by the rules is in both of our interests,” she added. “That said, we have to make sure there is a level playing field, and we will at all times do what we need to do to protect our workers.”

‘Expansive’ range of topics on the table for Raimondo’s China trip

The US and China are likely to exchange views over a variety of trade issues during Raimondo’s trip, including China’s ban on the sale of products from US memory chip firm Micron Technology, as well as data security and Beijing’s anti-espionage law, the Post reported earlier.

Meanwhile, Beijing is expected to demand a further relaxation of US export controls, in line with China’s broad concerns over ongoing containment efforts.

Figures unadjusted for inflation from the US Commerce Department showed that the value of imports from China totalled US$203 billion in the first half of this year, down 25 per cent from a year earlier. And for the first seven months, Chinese customs figures showed a year-on-year fall of 18.6 per cent to US$281.7 billion for its shipments to the US.

Washington has tried in recent months to convey the message that it is de-risking, rather than decoupling, from China. Meanwhile, the US has stepped up technology curbs on China.

The two countries have been increasing communication this year. In the last three months, President Joe Biden sent Secretary of State Antony Blinken, Treasury Secretary Janet Yellen and special envoy for climate change John Kerry to China for talks.

Yet, Raimondo’s China itinerary appears different from those of previous US officials, as it includes the stop in Shanghai.

A third anonymous source earlier said Raimondo might also meet Shanghai’s Communist Party chief and perhaps visit Shanghai Disneyland.

South China Morning Post