Gina Raimondo, the U.S. Secretary of Commerce who recently visited China, stated on the 3rd (local time) that if necessary, the U.S. is ready to take measures against China including export controls, overseas investment regulations, and tariffs at any time. She also reaffirmed the Biden administration's policy that export controls, including those on cutting-edge artificial intelligence (AI) semiconductors, will be implemented narrowly and strongly from a national security perspective rather than for economic benefits.
Secretary Raimondo appeared on CNN's "State of the Union" that day and said, "We have many tools including export controls, overseas investment regulations, and tariffs," adding, "We have a big stick. We are ready to use it whenever necessary."
She explained, "The U.S. exports billions of dollars worth of semiconductors to China every year. This is good for the U.S. economy and companies, and we will continue this," but added, "However, what we will never compromise on is the export of the most precise and powerful semiconductors that China intends to use for military purposes." Furthermore, she said, "Export controls cannot be used for economic benefits. We will limit their use to national security concerns," and emphasized, "There will never be exports of AI semiconductors that could be used for military purposes to China."
Earlier, Secretary Raimondo visited China for four days starting from the 27th of last month. This was the fourth visit by a senior official to China under the Biden administration. The visit attracted particular attention because the Department of Commerce is responsible for U.S. sanctions against China, including export controls and tariffs. It was the first time in about five years that the Secretary of Commerce visited China.
She evaluated the significance of the visit by saying, "Maintaining a stable and meaningful trade relationship between the U.S. and China is a global concern," and added, "We know that not engaging in dialogue leads to escalation, misjudgment, and misunderstanding," emphasizing, "This is bad for Americans and national security."
On the same day, Secretary Raimondo also appeared on CBS's "Face the Nation," describing the visit as "a tremendous step forward." She said, "In terms of concrete achievements, we were able to open three specific lines of communication with China," calling it "a big step." However, she also stressed the need to observe China's future actions. Raimondo said, "The message I delivered is more about actions than words," and added, "Chinese officials verbally confirmed that they will treat U.S. companies fairly and will not engage in non-market practices that harm U.S. workers. My message is to wait and see." When asked if she trusts Chinese officials, she responded, "The word I use is not 'trust.' There can be no trust until we see actions."
Regarding regulations on Chinese companies' investments in the U.S., Raimondo expressed concern, saying, "Not all Chinese investments in the U.S. harm national security, but many do." She emphasized, "All investments must be reviewed, and decisions must be made on whether they harm national security." She reiterated this stance on NBC on the same day. Additionally, she confirmed, "We want to block China's military capabilities and will not sell advanced semiconductors that could be used to enhance military power."
Furthermore, Secretary Raimondo mentioned growing concerns in the industry about a potential federal government shutdown ahead of the U.S. 2024 fiscal year starting October 1. She pointed out, "What businesses need to succeed is predictability," and criticized, "This kind of disruption is mainly driven by politics. It is a challenge to the economy and could set us back."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
