Raimondo recently concluded a visit to China where she affirmed that talks are important in preventing escalation, miscalculation, and misunderstanding.
She also asserted that discussions should not be viewed as a sign of weakness. However, it should be an approach to protecting US workers, national security, and the economy.
She acknowledged the intricacies of the $700bln bilateral relationship, underlining its significance for the two countries and the global economy.
Trade Disputes Over Semiconductors
The focus of the US-China relationship has been a trade dispute over semiconductors, vital components used in manufacturing smart chips. Those chips are employed in the manufacturing of automobiles, smartphones, advanced computers, and weapon systems.
Last year, the Biden administration introduced comprehensive export controls, prohibiting Chinese firms from purchasing advanced chips and chipmaking equipment.
Additionally, the controls restricted “US persons” from supporting chip development or production in specific Chinese facilities.
China responded with its own export controls on gallium and germanium, essential raw materials for chip production, earlier this summer. However, Raimondo clarified during her China visit that the United States does not intend to entirely sever ties with the Asian State.
Military Use of Smart Chips by China
She affirmed the US stance that it will promote the sale of its advanced semiconductors to China for military use.
Raimondo reiterated the use of multiple tools at their disposal, including export controls, outbound investment screening, tariffs, and countervailing duties, to safeguard American interests.
One significant outcome of Raimondo’s visit was the establishment of a working group dedicated to facilitating discussions on trade and investment issues between the two countries. This group will convene every two years, exemplifying the commitment to maintaining open channels of communication between the US and China.