(Shanghai) U.S. Commerce Secretary Gina Raimondo on Wednesday called for a more “predictable” business environment in China, which could otherwise end up being considered “too risky” to invest there.
“The environment must be predictable, the rules of the game must be level, the procedures must be regular, transparency must be ensured,” she said at a press conference in Shanghai, after a four-day visit to China.
“American businesses need action to be taken to address these issues or they will view (this environment) as too risky and impossible to invest in,” she warned.
Arriving in China on Sunday, the official came with the intention of trying to ease bilateral tensions between the world’s two leading economic powers.
But that didn’t stop her from tackling the “difficult topics,” she said.
“I brought up the difficult topics such as subsidies, anti-competitive practices from China, raids on American businesses, intellectual property theft.”
And she even brought up a topic that affects her directly: the alleged hacking of her emails, revealed in July by Microsoft and suspected of being supported by the Chinese government.
“I mentioned the fact that my own email was hacked, […] as an example of an action that erodes trust as we try to stabilize the relationship” bilateral, she said during a conference call.
Ms. Raimondo, who met with senior Chinese officials in Beijing on Monday and Tuesday, was optimistic, however: “This trip has been a great start,” she said, noting that “nothing good comes from ‘communication stop’.
“But I am very realistic about the challenges that remain.”
Earlier in the day, she had stressed to Shanghai Communist Party leader Chen Jining that “a stable economic relationship is good for America, good for China, and good for the world.”
American groups established in China have long complained of unfair competition in a country where intellectual property is weakly protected and where local companies generally benefit from preferential treatment.
Their fears have redoubled in recent months, thanks to several searches and interrogations targeting American consulting companies.
A new version of an anti-espionage law also came into force in July, significantly increasing the authorities’ leeway against what they consider to be threats to national security.
Foreign companies are waiting for this legislation with vague outlines and subject to a number of interpretations.
During a Tuesday meeting with Vice Premier He Lifeng, Ms. Raimondo had exposed unfair trade practices in China, according to the US Department of Commerce minutes.
Gina Raimondo is the fourth senior American politician to visit China this year, as part of a drive to get closer to Washington, which wants to ease tensions with its most important strategic rival.
In recent months, US Treasury Secretary Janet Yellen, US climate envoy John Kerry and US Secretary of State Antony Blinken have all come to Beijing.
None of these visits led to major breakthroughs.
The Commerce Secretary achieved some progress: Beijing and Washington agreed to create a working group to try to iron out trade disputes between them.
Ms. Raimondo has repeatedly said that the trade restrictions imposed by the United States on the export of certain American products, especially high-tech products, to China should not affect the bilateral relationship.
Washington considers these measures crucial to preserve its national security. But Beijing sees it as a tool to curb its economic growth.
Premier Li Qiang also retorted on Tuesday to the American official that the “politicization” of trade issues by the United States would have a “disastrous impact”, according to the official news agency China news.
Asked by AFP, the president of the American Chamber of Commerce in China Michael Hart confirmed the difficulties of operating in this country.
“In our meetings with the Chinese government, we have been very clear that while some American companies are thriving, certain actions, including raids on companies and restricting data flows, are not likely to attract more ‘FDI (foreign direct investment),’ he said.