Following Chinese searches on consulting businesses and U.S. export restrictions on semiconductor technology, Commerce Secretary Gina Raimondo and her Chinese counterpart Wang Wentao voiced worry about the actions of their respective countries on Thursday, according to their governments.
The two sides declared little progress in their disagreements about technology and security, but they did say Raimondo and Wang pledged to improve communication on trade-related topics.
Tighter government regulations on the trade of semiconductors and other activities have impacted businesses on both sides for security reasons. Following disagreements over technology, security, China’s territorial claims, and Beijing’s treatment of Hong Kong and ethnic minorities, the two countries’ political relationships are at their lowest point in decades.
According to a statement from her office, Raimondo “raised concerns” about Chinese activities against American businesses in China. It said that they also discussed “areas for potential cooperation” and the current state of trade and investment.
In response to the extension of national security and intelligence regulations, Chinese authorities searched the offices of consulting firms Bain & Co. and Capvision as well as a due diligence company, Mintz Group. The raids’ purpose has not been explained by the authorities.
The British Chamber of Commerce in China said this week that the foreign businesses were shaken by the searches and demanded “greater clarity” on enforcement. Chinese officials have said that businesses must abide by the legislation but have not stated if they have seen any potential infractions.
According to his ministry, Wang “expressed key concerns” over American trade, export, and semiconductor policies. The article was vague.
In March, Chinese leader Xi Jinping accused the United States of attempting to stall China’s development after the country’s government was denied access to equipment needed to produce advanced processor chips, impeding efforts by the Communist Party to establish its own semiconductor manufacturers for smartphones, artificial intelligence, and other cutting-edge applications.
At a time when Beijing is threatening to attack Taiwan and is engaged in territorial disputes with other neighbours, President Joe Biden has tightened the restrictions put in place by his predecessor, Donald Trump, on access to design, manufacturing, and other technologies.
Face-to-face talks between the two countries on averting a trade war have not yet been resumed after Trump raised import levies on Chinese products in response to Beijing’s industrial policies and accusations of intellectual theft. Trump’s actions began the trade war.
According to the Chinese authorities, Wang was scheduled to meet with Kathering Tai, the U.S. trade envoy, later.
Wang is in the US to attend the Detroit summit of the Asia-Pacific Economic Cooperation.