Trade War
Welcome to the 166th edition of Trade War.
Top US and China commerce officials hold talks, a sign some say of a “thaw” in the tense bilateral relationship. But a meeting in Beijing between Xi Jinping and Russia’s prime minister highlighting “core interests” between the two authoritarian powers, suggests otherwise.
Chip makers lobby Washington to loosen restrictions on China investment. Nvidia CEO warns that export controls could cause “enormous damage” to American companies. And Commerce Secretary Gina Raimondo calls restrictions on purchases of Micron’s chips “intolerable.”
Youth unemployment high as country struggles with jobs mismatch. Factory strikes this year already more than double those in 2022. Bulls in retreat as China stock market gains erased. And TikTok sues the state of Montana saying its ban is based on “unfounded speculation.”
Trade talks sign of Biden’s 'thaw’?
Coming fast after the G7 meetings in Hiroshima, Japan, where U.S. president Joe Biden predicted a coming “thaw” in relations with China, top commerce officials from the two countries met in Washington.
“The talks between Chinese commerce minister Wang Wentao and U.S. commerce secretary Gina Raimondo on Thursday came with Washington and Beijing showing tentative signs of efforts to stabilize relations, which have hit their lowest point in 50 years,” reports the Financial Times.
In the first visit by a senior Chinese official to the U.S. capital since 2020, Wang raised concerns about Washington’s export controls on semiconductors and U.S. plans to begin a security review of outbound investment into advanced technology industries.
“The two sides agreed to establish channels of communication and maintain and strengthen exchanges on economic and trade concerns and other co-operation matters,” China’s commerce ministry said.
The U.S. commerce department called the talks between Raimondo and Wang “candid and substantive” touching on the “overall environment in both countries for trade and investment and areas for potential co-operation.”
“Secretary Raimondo also raised concerns about the recent spate of PRC actions taken against U.S. companies operating in the PRC,” the commerce department said.
The talks were followed just a day later by a meeting between China’s Wang and top U.S. trade representative Katherine Tai in Detroit. “Analysts are now calling on Washington and Beijing to capitalize on a rare opportunity for high-level bilateral discussions,” says the Financial Times.
Here is the Commerce Department readout of the Raimondo-Wang meeting.
The efforts to make nice by both sides could be part of a joint effort to pave the way for constructive talks between Biden and Xi at the Group of 20 in India in September and at the Asia-Pacific Economic Cooperation Forum leaders summit in San Francisco in November.
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