US, China agree to discuss export controls as commerce secretary visits to warm up chilly ties

U.S. Commerce Secretary Gina Raimondo, second right, speaks during a meeting with Chinese Minister of Commerce Wang Wentao, second left, at the Ministry of Commerce in Beijing, Monday, Aug. 28, 2023. (AP Photo/Andy Wong, Pool)

BEIJING — Commerce Secretary Gina Raimondo said she and her Chinese counterpart agreed Monday to exchange information on U.S. export controls that frustrate Beijing and set up a group to discuss other commercial issues, but neither side appeared ready to make concessions on disputes that have plunged relations to their lowest level in decades.

Raimondo joined American officials including Treasury Secretary Janet Yellen in July who have visited China in hopes of reviving chilly relations. They expressed optimism about improving communication but no progress on conflicts over technology, security, human rights and a lingering tariff war.

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For its part, Chinese leader Xi Jinping’s government wants to revive foreign investor interest in China as it tries to reverse a deepening economic slump.

Raimondo said she and Commerce Minister Wang Wentao agreed during a four-hour meeting to launch an “information exchange” on export controls. She said they also will set up a “working group” of officials and private sector representatives to “seek solutions on trade and investment issues.”

A key Chinese complaint is limits on access to processor chips and other U.S. technology on security grounds that threaten to hamper the ruling Communist Party’s ambition to develop artificial intelligence and other industries. The curbs crippled the smartphone business of Huawei Technologies Ltd., China’s first global tech brand.

Raimondo said the information exchange will hold its first meeting Tuesday.

“The United States is committed to being transparent about our export control enforcement strategy,” Raimondo told reporters at Ambassador Nicholas Burns’s official residence.

“We are not compromising or negotiating in matters of national security,” she said. “But this is meant to be a dialogue where we increase transparency.”

Earlier, Wang told Raimondo that Beijing is ready to work together to “foster a more favorable policy environment for stronger cooperation” and “bolster bilateral trade and investment.” Wang gave no details of possible initiatives.

Beijing broke off dialogues with Washington on military, climate and other issues in August 2022 in retaliation for a visit to Taiwan by then-Speaker Nancy Pelosi of the House of Representatives. The Communist Party claims the self-ruled island democracy as part of its territory and objects to foreign governments having contact with it.

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