US Commerce Secretary Gina Raimondo’s four-day trip to China began on August 27 at the invitation of Chinese Commerce Minister Wang Wentao.
The visit is considered an important step to improve the commercial relationship between the two countries.
“Secretary Raimondo looks forward to constructive discussions on issues related to the US-China trade relationship, the challenges facing US businesses, and areas of potential cooperation,” reads a statement released by the US Department of Commerce. Joined.
After China and the US officially agreed to expand the volume of flights between the two countries, trade relations continue to soften this week ahead of Raimondo’s visit. The US Department of Commerce has removed 27 Chinese entities from its “unverified list” of export controls, and the Chinese Ministry of Commerce has declared that the move is in line with the common interests of both parties and favors normal bilateral trade.
Despite this, the Biden administration threatens to undermine the relationship between the two countries. This month, US President Joe Biden signed an executive order that will ban US investment in China in sensitive technologies such as computer chips. Since last year, the United States has implemented a series of measures aimed at limiting the development of China’s chip industry.
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The US measures hurt not only global supply chains, but also the revenues of US chipmakers. Nvidia’s chief financial officer, Colette Kress, warned on Wednesday that new sanctions on chip exports to China will lead the US chip industry to “permanently lose business opportunities” in the world’s largest semiconductor market.
The US Department of Commerce has removed 27 Chinese entities from its “unverified list” of export controls, and the Chinese Ministry of Commerce has declared that the move is in line with the common interests of both parties and favors normal bilateral trade
Research presented at the Federal Reserve’s economic symposium also noted that US trade has shifted away from China due to policies enacted by successive administrations, but US reliance on China-linked supply chains has not necessarily been reduced. while consumers have faced higher costs, Reuters reported on Saturday.
In August, China released its first report on US WTO compliance, expressing concern about US policy actions that undermine the multilateral trading system and disrupt global industrial and supply chains. China urged the US to make its due contribution and promote the multilateral trading system, the report said.
Article republished from the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to the original article: https://news.cgtn.com/news/2023-08-27/US-sanctions-on-chip-export-to-China-threaten-global-supply-chain-1mBV4ANTs52/index.html
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