US, China to discuss export controls, officials say

U.S. Secretary of Commerce Gina Raimondo announced Monday that she and her Chinese counterpart agreed to discuss export controls in an ongoing effort to ease tensions between the two global economic powerhouses.

In a statement Monday, Raimondo said she met with People’s Republic of China Minister of Commerce Wang Wentao, and they agreed to take several concrete steps in an effort “to deepen bilateral discussions.”

Raimondo and Wang agreed to launch the “export control enforcement information exchange,” which will hold its first in-person meeting Tuesday. Raimondo said the information exchange will “serve as a platform to reduce misunderstanding of U.S. national security policies.” 

Raimondo also announced the establishment of a new “commercial issues working group” among government and private-sector officials “to seek solutions on trade and investment issues and to advance U.S. commercial interests in China.” That group will meet first in early 2024 and then meet twice annually. 

Export controls have been a key source of frustration for Chinese officials.

Washington has taken several steps to boost domestic production of semiconductors while curbing China’s access. The administration last year banned Chinese companies from buying U.S. semiconductors or the necessary manufacturing equipment without a license — a move that has been fiercely criticized by Chinese government officials. 

The bipartisan CHIPS Act also sought to boost domestic production of semiconductors and discouraged investments in Chinese technology by blocking companies that accept federal funds from investing in the Chinese technology. 

Recently, the White House announced further restrictions, blocking Americans from investing in certain Chinese sectors, citing national security concerns. 

In the meeting with Wang, Raimondo stressed opportunities to “promote economic exchange where it aligns with U.S. interests and values,” according to the Commerce Department readout.

“Secretary Raimondo reinforced the Administration’s commitment to taking actions necessary to protect U.S. national security and reiterated the Administration’s ‘small yard, high fence’ approach, underscoring that export controls are narrowly targeted at technologies that have clear national security or human rights impacts and are not about containing China’s economic growth,” according to the readout. 

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

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

Raimondo also defended Washington’s steps recently to boost domestic production of semiconductors and to produce additional supply to reduce chances of disruption, the AP reported.

“It is not intended to hinder China’s economic progress. We believe a strong Chinese economy is a good thing,” Raimondo told Wang, the AP reported. “We seek healthy competition with China. A growing Chinese economy that plays by the rules is in both of our interests.” 

Raimondo’s meeting follows visits from other Cabinet officials in recent months, including Treasury Secretary Janet Yellen in July. President Biden met with Chinese President Xi Jinping in November 2022.