US corporations have complained to US Commerce Secretary Gina Raimondo that China has become "uninvestable," she said, citing fines, raids, and other steps that have made doing business in the second-largest economy in the world dangerous.
The bluntest remarks Raimondo has made on her tour were delivered to reporters as her party of US officials was traveling from Beijing to Shanghai. The remarks painted a gloomy picture of how American businesses see China.
She claimed that American businesses were saying more frequently now that investing in China was risky. American businesses, according to Raimondo, are encountering additional difficulties, including "exorbitant fines without explanation and revisions to the counterespionage law, which are unclear and shocking the US community."
She disputed any similarities to US export restrictions, saying that "no rationale given" had been provided for Chinese steps against chipmaker Micron Technology MU.O, whose exports were blocked by Beijing early this year. Due process hasn't been given much weight, which is why I brought it up.
The commerce secretary is the most recent member of the Biden administration to travel to China in an effort to improve relations, notably in the areas of economy and defense, amid worries that tension between the two superpowers could get out of hand.
The United States, according to Raimondo, does not wish to sever ties with China. She continued, "We can't put all of our eggs in one basket.
Prior to Raimondo's remarks, John Ramig, a partner at the law firm Buchalter with decades of experience in international commercial transactions, including the structure of international sourcing and manufacturing operations, stated that many companies do not intend to expand in China.
"I have no clients who want to make investments in China. Not even one customer. Everyone is trying to sell their Chinese business or, if they're sourcing goods from China, both. That has changed significantly from even five years ago.
In a statement to Chinese Premier Li Qiang earlier in the day, Raimondo said, "There are other areas of global concern, such as artificial intelligence, where we want to work with you as two global powers to do what's right for all of humanity."
