WASHINGTON : U.S. Commerce Secretary Gina Raimondo visits China for four days starting Sunday, aiming to boost business ties between the world's largest two economies even as the Biden administration has taken a series of steps to prevent exports of sensitive American technology.
Tensions are high as the United States works with allies to block China's access to vital equipment needed to keep its chip industry competitive and Beijing restricts shipments from prominent U.S. firms like planemaker Boeing and chip company Micron Technology. The two biggest economies in the world used to be each other's largest trade partners, but Washington is now trading more with neighboring Canada and Mexico, while Beijing is trading more with Southeast Asia.
The semiconductor chip industry is eager to protect its profits in China as the Biden administration considers another round of restrictions on chip exports to China. Last year, China accounted for $180 billion in semiconductor purchases, more than a third the worldwide total of $555.9 billion and the largest single market, according to Semiconductor Industry Association.
Restrictions should not be so broad"that you deny American companies revenue and China can get the product elsewhere, or China can get the product from other countries," Raimondo said. Rules"will deny some revenue to American companies, but we think it's worth it."