During a Sunday interview, US Commerce Secretary Gina Raimondo issued a warning to China, expressing that the patience of American businesses was wearing thin. She stressed that American companies deserved a stable and equitable business environment.
Once the two largest trading partners, the United States and China have seen shifts in their trade patterns, with the US now trading more with Canada and Mexico than with China, while China has increased its trade with Southeast Asia.
Raimondo recently visited China, where she observed a strong desire among US businesses to improve relations between the two countries. While acknowledging some positive actions by the Chinese government, Raimondo emphasized the need for on-the-ground realities to match the rhetoric.
“China is making it more difficult,” Raimondo told CBS’s Face the Nation. “I was very clear with China that we need to—patience is wearing thin among American businesses. They need and deserve a predictable environment and a level playing field. And hopefully, China will heed that message so we can have a stable growing commercial relationship.”
She also pointed out new challenges faced by US companies, including unexplained large fines, business raids, and changes to counterespionage laws.
In her conversations with Chinese counterparts, Raimondo was straightforward and firm, avoiding sugarcoating. She even raised the issue of her email being hacked ahead of her August trip to China.
“They suggested that they didn’t know about it and they suggested that it wasn’t intentional,” she mentioned. “But I think it was important that I put it on the table and let them know and let them know that it’s hard to build trust when you have actions like that.”
China is currently experiencing an economic slowdown that has sent ripples through global markets, with the focus on the debt crisis of troubled developer Country Garden. The real estate sector, where this crisis is unfolding, contributes approximately a quarter of China’s economy.
Raimondo noted the slowdown in China’s economy and the significant challenges in the real estate sector, emphasizing that China performed better economically when it was more transparent and market-oriented. As regulations became more arbitrary and the government less transparent, the economy faced greater challenges.
In summary, Raimondo emphasized the importance of a stable and predictable business environment for American businesses and addressed ongoing issues in the US-China relationship, including economic challenges and transparency concerns.
Post Your Comments