US-China Stability Is ‘Profoundly Important,’ Raimondo Says

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(Bloomberg) — US Commerce Secretary Gina Raimondo harassed the significance of steady financial ties between the world’s largest economies on a go to to Beijing as she tries to develop enterprise ties throughout her go to to China this week.

Addressing Chinese language counterpart Wang Wentao on Monday, Raimondo stated the US sought “wholesome competitors” and had no intention to hinder China’s financial progress.

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“It’s profoundly vital that we’ve got a steady financial relationship, which is to the advantage of each of our nations and actually what the world expects of us,” Raimondo stated. “It’s a sophisticated relationship, it’s a difficult relationship. We are going to in fact disagree on sure points, however I consider that we are able to make progress if we’re direct, open and sensible.”

Raimondo arrived in Beijing on Sunday, turning into the fourth high-profile US official to go to the world’s second-largest financial system previously three months. Her go to is seen as one that will have a greater probability of bettering ties as a result of the Commerce Division’s mandate is to advertise US commerce overseas in addition to to fight practices the US considers unfair or harmful to nationwide safety. 

Regardless of the a number of visits from main US officers to China this 12 months, no high-level Chinese language officers have visited the US. “That offers Secretary Raimondo a variety of strain by way of what she will be able to obtain throughout her journey,” stated Zongyuan Zoe Liu, fellow for China research on the Council on Overseas Relations, in an interview on Bloomberg Tv.

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Whereas the US wouldn’t bend on nationwide safety, Raimondo stated Monday that a lot of the commerce between the 2 nations shouldn’t be affected and there have been many areas for cooperation. 

“In fact in issues of nationwide safety, there isn’t any room to compromise or negotiate,” she stated. 

On the identical assembly, Wang stated China was able to work with the US to spice up commerce and “foster a extra favorable coverage surroundings” for US and Chinese language companies.

Raimondo additionally stated the US and China have “labored over the summer time to ascertain new info exchanges and dealing teams that can allow us to have extra constant engagement in our relationship.” Bloomberg Information earlier reported she was anticipated to announce working teams on export controls and business points. 

“The incentives and priorities on either side are completely different,” Liu stated. “China most likely could be very a lot occupied with additional stress-free of export controls and letting tariffs expire, however none of these issues may be determined by Secretary Raimondo.”

For all of the strife in relations, China stays among the many US’s largest commerce companions. Commerce in items between the US and China climbed to a document $690.6 billion in 2022. US imports from China have dropped this 12 months, although, because it purchases extra from Mexico and Canada.

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Raimondo additionally cited local weather change as an space during which the US and China can cooperate. US local weather envoy John Kerry visited Beijing in July for a number of days of hours-long negotiations together with his Chinese language counterpart, Xie Zhenhua. Whereas the talks yielded little by way of motion, either side promised to maintain speaking — a optimistic signal after Beijing halted talks final 12 months within the wake of former Home Speaker Nancy Pelosi’s controversial go to to Taiwan.

Whereas tensions between the world’s two largest economies have grown lately, local weather has been one of many uncommon areas the place they’ve been capable of work collectively on a world stage. The 2015 Paris Settlement — the spine of world local weather efforts — was made attainable by an accord the earlier 12 months between Presidents Barack Obama and Xi Jinping. On the 2021 United Nations local weather summit in Glasgow, Kerry and Xie brokered a deal that included chopping emissions of methane.

Raimondo’s go to can also assist Boeing Co. resume transport its 737 Max jets to China for the primary time since 2019. The jetliner is the planemaker’s primary supply of money because it rebuilds funds devastated by Covid and a world grounding of its Max airplane. Rival Airbus SE has constructed a commanding lead in China, and across the globe, whereas Boeing’s workhorse jet has been shut out of its largest abroad market.

—With help from Lucille Liu, Dan Murtaugh and Nasreen Seria.

(Updates with further particulars.)

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