Beijing, 29 Aug: US Commerce Secretary Gina Raimondo said she rebuffed an appeal Tuesday by Chinese leaders to reduce US export controls on technology with possible military uses but the two governments agreed to have experts meet to discuss disputes over protecting trade secrets.
During a visit to revive frosty relations, Raimondo said she conveyed compla-ints to officials including China’s No. 2 leader, Premier Li Qiang, about Chinese restrictions on US techno-logy companies. She said conditions for foreign com-panies are getting worse following an expansion of an anti-spying law and raids on consulting firms.
Raimondo joined a series of American officials including Treasury Secretary Janet Yellen who have visited Beijing in the past three months. They are trying to restore relations that are at their lowest level in decades due to disputes over technology, security, Taiwan and other issues.
A key Chinese complaint is limits on access to processor chips and other US technology on security grounds. That threatens to hamper the ruling Communist Party’s ambition to develop artificial intelligence and other industries. The curbs crippled the smartphone business of Huawei Technologies Ltd, China’s first global tech brand.
“Their asks were to reduce export controls on technology” with possible military uses and to retract an order by President Joe Biden that restricts US investment in Chinese companies that might be involved in military develo-pment, Raimondo said.
“Of course, I said no,” Raimondo said. “We don’t negotiate on matters of national security.”
The two governments agreed Monday to exchan-ge information about US export controls. Raimondo said Washington hopes that “will increase compliance”.
Meanwhile, the two governments agreed to have experts meet to “start to resolve trade secrets issues,” Raimondo said.
“That is one of the big things I hear constantly from business, protection of trade secrets,” she told reporters.
Earlier, Raimondo met with Premier Li, who appealed for “concrete actions” by Washington to improve relations, a refer-ence to Chinese pressure for changes in US policy on Taiwan, technology and other issues.
“We do hope that the US side will work in the same direction as the Chinese side, show sincerity and take concrete actions,” Li said.
Raimondo said the meeting, which the American Embassy earlier said would be a 10-minute “courtesy call”, lasted one hour and 15 minutes.
Chinese leader Xi Jinping’s government is trying to revive investor interest in China and reassure foreign companies as part of efforts to reverse an economic slump. Raimondo said, however, she didn’t discuss the Chinese economy during her meetings and didn’t get the sense her Chinese counterparts were motivated by the downturn.
Beijing broke off dialo-gues with Washington about military, climate and other issues in August 2020 in retaliation for a visit by then-Speaker Nancy Pelosi of the US House of Representatives to Taiwan. The Communist Party claims the self-governed island democracy as part of its territory.
Relations already were at a low due to a tariff war launched by then-President Donald Trump over complaints about Beijing’s industrial development strategy. Its trading partners complain China protects its fledgling industries from competition in violation of market-opening commitments and steals or pressures foreign companies to hand over technology.
Conditions for foreign companies have worsened following the expansion of an anti-spying law that some say leaves them unclear about what consumer and other information they can gather. A research firm, Mintz Group, was fined
1.5 million this month on charges it improperly gathered data.
Raimondo said American companies complained to her that they face a “whole new level of challenge” in China. She said she had 120 to 150 phone calls with CEOs and labour leaders in preparation for her trip.
“We need that to be addressed,” Raimondo said. “Any one of those could be addressed as a way to show action.”
Raimondo said she also pressed Chinese leaders to disclose more information about restrictions on US technology companies that appeared to be arbitrary and too unpredictable, but said she received no commitments.
Beijing this year ordered makers of equipment that handles information deemed sensitive to stop using products from the biggest US maker of memory chips, Micron Inc. It said the American company failed a security review but gave no details, fuelling suggestions the ban was retaliation for US curbs on technology access. (AP)