Strong economic ties between the world's two largest economies will play an essential role in their management of differences and in easing political tensions, US Commerce Secretary Gina Raimondo said on Monday as she began talks with Chinese officials in Beijing at a time when both countries are trying to get the foundation for relations on a more firm footing.
Raimondo, the fourth high-ranking US official to visit China this summer, arrived in Beijing on Sunday evening. She was also expected to meet Premier Li Qiang and Vice-Premier He Lifeng, China's lead in the bilateral trade negotiations, during her brief stay in the Chinese capital, according to a source with knowledge of the issue.
"We share US$700 billion of trade, and I concur with you that it is profoundly important that we have a stable economic relationship, which is to the benefit of both of our countries and is, in fact, what the world expects of us," Raimondo said before meeting with her Chinese counterpart, Wang Wentao.
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"It's a complicated relationship; it's a challenging relationship. We will, of course, disagree on certain issues, but I believe we can make progress if we are direct, open, and practical," she said.
On Tuesday she will visit Shanghai and stay overnight.
"It'll be a good sign if Raimondo meets both Premier Li Qiang and Vice-Premier He Lifeng," the source added, speaking on condition of anonymity because they were not authorised to speak to the media.
Another anonymous source with knowledge of Raimondo's itinerary said her Shanghai stop is expected to include visits to New York University Shanghai and Boeing Shanghai.
Her trip came amid rising expectations that Boeing may resume delivery of its 737 MAX jets to China for the first time since 2019 after it was grounded due to two fatal crashes.
Xiamen Airlines, a subsidiary of China Southern Airlines, said on Monday that it is opening up bids to leasing companies to fund four new 737 MAX-8 jets that it needs for this year.
Raimondo was also scheduled to deliver a speech at a women's event in Shanghai on Wednesday morning.
On matters of national security, she said at the meeting with Wang that "there is no room to compromise or negotiate", and that while US moves are "not intended to hinder China's economic progress", the US is seeking "healthy competition with China".
"A growing Chinese economy that plays by the rules is in both of our interests," she added. "That said, we have to make sure there is a level playing field, and we will at all times do what we need to do to protect our workers."
Wang reportedly said at the same meeting that China was ready to work with the US to boost trade and "foster a more favourable policy environment" for US and Chinese businesses, according to wire services.
The US and China are likely to exchange views over a variety of trade issues during Raimondo's trip, including China's ban on the sale of products from US memory chip firm Micron Technology, as well as data security and Beijing's anti-espionage law, the Post reported earlier.
Meanwhile, Beijing is expected to demand a further relaxation of US export controls, in line with China's broad concerns over ongoing containment efforts.
Figures unadjusted for inflation from the US Commerce Department showed that the value of imports from China totalled US$203 billion in the first half of this year, down 25 per cent from a year earlier. And for the first seven months, Chinese customs figures showed a year-on-year fall of 18.6 per cent to US$281.7 billion for its shipments to the US.
Washington has tried in recent months to convey the message that it is de-risking, rather than decoupling, from China. Meanwhile, the US has stepped up technology curbs on China.
The US Commerce Department's Bureau of Industry and Security announced last week the removal of 27 Chinese entities from its unverified list of export control restrictions, and the move was welcomed by the Chinese side as conducive to normal trade between the two countries.
But overall, the US has intensified its "small yard and high fence" strategy to restrict Beijing's access to advanced technologies. US President Joe Biden signed an executive order earlier this month to limit outbound US investment in Chinese companies in artificial intelligence, quantum computing and advanced semiconductors.
Speaking at an event showcasing American health and beauty businesses later on Monday, Raimondo said that most US-China trade has nothing to do with national security, and that it is possible to promote and protect exports, according to Bloomberg.
"The plan and the hope is that our commercial relationship, if done right, can stabilise the political relationship, and this is one small example of that," she said.
The two countries have been increasing communication this year. In the last three months, President Joe Biden sent Secretary of State Antony Blinken, Treasury Secretary Janet Yellen and special envoy for climate change John Kerry to China for talks.
Yet, Raimondo's China itinerary appears different from those of previous US officials, as it includes the stop in Shanghai.
A third anonymous source earlier said Raimondo might also meet Shanghai's Communist Party chief and perhaps visit Shanghai Disneyland.
