U.S. Commerce Secretary Urges China to Improve Business Environment for American Companies
In a recent interview, U.S. Commerce Secretary Gina Raimondo emphasized the need for China to enhance predictability in the business environment to facilitate American companies’ operations in the country. Raimondo stated that while there is a desire to conduct business in China, there is a lack of predictability, due process, and a level playing field. She further highlighted that the current business environment in China is unlevel and unpredictable, which poses challenges for U.S. businesses.
During her visit to China, Raimondo met with government officials in Beijing and Shanghai, making her the first U.S. Commerce Secretary to travel to the country in five years. Over this period, the bilateral relationship between the U.S. and China has become increasingly tense. Foreign companies in China have long complained about difficulties in accessing the market, including forced technology transfers and preferential treatment for local companies, particularly state-owned enterprises.
These issues, along with China’s trade surplus with the U.S., were key factors leading to the imposition of tariffs on China by the Trump administration in 2018. The administration also restricted certain Chinese companies’ ability to purchase from U.S. suppliers, citing national security concerns. Raimondo reaffirmed the importance of protecting national security interests, stating that advanced technology from the U.S. should not be used to advance China’s military goals.
Last year, the U.S. Department of Commerce’s Bureau of Industry and Security implemented export controls to limit Chinese access to advanced semiconductors. Recently, the Biden administration proposed restrictions on U.S. investment in high-end Chinese tech.
Calls for More Action
China also considers national security in its policies. This year, the Chinese government updated its counter-espionage law and conducted high-profile raids on international consulting firms, causing concerns among foreign businesses.
“They said that China wants to embrace American business. So now, let’s back that up with concrete actions to create a more predictable business environment.”
Gina Raimondo
U.S. Commerce Secretary
Raimondo expressed concern about the updated Chinese counter-espionage law and suggested that clarifying its new aspects would be a concrete action to improve the business environment. She emphasized the need for actions to support China’s stated desire to embrace American business and create a more predictable environment, which would enhance confidence among foreign investors. Foreign business organizations have recognized improvements in China’s protection of intellectual property and efforts to enhance its court system. Recent statements by high-level Chinese government officials have also emphasized the goal of creating a more predictable environment and encouraging foreign investment.
According to a translation of the Chinese-language readout of Raimondo’s meeting with Vice Premier He Lifeng, both China and the U.S. agreed to maintain communication and support practical cooperation between businesses from both countries. The U.S. and China also agreed to establish regular communication channels on commerce, export controls, and protecting trade secrets.
“China will continue to believe that the U.S. is determined to block its rise, and the U.S. will continue to believe that China is determined to usurp the post-war global order.”
Stephen Olson
Hinrich Foundation
Stephen Olson, a senior research fellow at the Hinrich Foundation, cautioned against expecting significant breakthroughs solely from increased communication. He highlighted the contradiction in the Biden administration’s China strategy, which aims to restrict China’s access to critical technologies while seeking to maintain or expand trade and investment opportunities in areas that serve U.S. interests. Olson noted that China and the U.S. continue to hold opposing beliefs about each other’s intentions.
A Boeing Deal?
Raimondo concluded her trip to China with a visit to Boeing executives at a facility in Shanghai. Bloomberg reported earlier this month that Boeing is preparing to resume 737 Max deliveries to China after a four-year pause. When asked about a potential Boeing deal, Raimondo deferred to the company but referred to it as an example of an action. She expressed hope that the Chinese government would take possession of the planes it had purchased. However, Boeing did not immediately respond to ‘s request for comment.