Commerce Secretary Gina Raimondo affirms prior to a Senate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies hearing on Capitol Hill in Washington, D.C., U.S., February 1, 2022.
Andrew Harnik|Reuters
It’s now clear to U.S. authorities that China, when thought about a possible financial and political ally, has actually ended up being an emerging hazard to nationwide security, U.S. business and American employees, Commerce Secretary Gina Raimondo stated Wednesday.
“Over the past decade, China’s leaders have made clear that they do not plan to pursue political and economic reform and are instead pursuing an alternative vision of their country’s future,” Raimondo stated in a speech at the Massachusetts Institute ofTechnology “China’s reprioritization away from economic growth toward national security and its assertive military behavior means that we have to rethink how we protect our national security interests while also promoting our interests in trade and investment.”
Raimondo stated Chinese leaders have actually made it evident over the last years that “increasing the role of the state society and economy,” “constraining the free flow of capital” and “decoupling in technology areas of the future” is more crucial than political and financial reform.
“Probably most disturbingly is they’re accelerating their efforts to fuse economic and technology policies with their military ambitions,” Raimondo stated. “And as China’s economy has grown in size and influence, so too, has its commitment to using nonmarket trade and investment practices in ways that are forcing us, compelling us, to defend United States businesses and workers and those of our allies and partners.”
Raimondo stated China is trying to video game the worldwide system by stacking Chinese agents on global innovation standard-setting bodies to promote the nation’s worths and spread its impact. She stated it weakens excellent governance, puts U.S. business at a downside “and puts at risk many of our fundamental values, such as the free flow of information and data privacy.”
Raimondo’s speech happens 2 weeks after President Joe Biden satisfied for about 3 hours with Chinese President Xi Jinping prior to the G-20 top in Indonesia where he challenged China’s growing aggressiveness to surroundingTaiwan The leaders promoted a bilateral relationship in the middle of increasing stress due to China’s intimidation of Taiwan.
Strict procedures were executed under the CHIPS and Science Act, signed into law by Biden in August, to make sure research study and development financial investments “can never be used to benefit China’s military,” statedRaimondo The administration fears that semiconductor chips utilized to make military devices might be utilized versus the U.S.
In October, the Biden administration enforced export constraints on semiconductors made in China by U.S. business. The Commerce Department likewise released license constraints on the export of specific chips that can be utilized in contemporary weapons systems and disallowed U.S. residents from working for China’s chip production market.
Raimondo stated the U.S. federal government looks for to outcompete China in forming the worldwide economy and resist an “increasing and emerging array of practices” targeted at U.S. employees and companies and presenting a hazard to nationwide security.
“China today poses a set of growing challenges to our national security,” she stated. “That is a fact. It’s deploying its military in ways that undermine the security of our allies and our partners and the free flow of global trade.”
But Raimondo likewise acknowledged that the U.S. take advantage of the over $750 billion yearly trade market with China, which is America’s third biggest export market. Exports assistance over 750,000 American tasks amongst big and little markets, she stated.
“We want to continue to promote trade, continue to promote investment. But in areas that have no potential to undermine our interests, our values, our national security, our economic security, and at the same time using every tool in our toolbox to protect our companies and counter unfair economic practices,” Raimondo stated.
