US counts on China’s request for help in solving economic problems

The US authorities believe that China alone will not cope with solving the problems of the country’s economy, because of which it will be forced to ask for help. On August 19, Politico writes about this.

When Commerce Minister Gina Raimondo arrives in Beijing for a visit next week, she is likely to hear an unprecedented request from China: “Help us with our currently struggling economy,” Politico reported.

According to US President Joe Biden and Chinese leader Xi Jinping, the Chinese economy has declined, the newspaper said. According to the latest data, the country’s economy is now experiencing a constant decline in foreign investment and exports, and youth unemployment is actively growing.

Raimondo’s visit puts her in an uncomfortable position. The minister will push China to increase US exports, while Chinese counterparts are likely to push for loosening restrictions on semiconductor exports, as well as easing recent restrictions on US investment in Chinese high-tech industries.

However, colleagues from the cabinet of ministers warn Gina Raimondo that the decisions taken by the US authorities on restrictions on exports and investments are not subject to discussion and there can be no talk of any easing.

Recently, relations between the United States and China have begun to deteriorate again. So, on August 9, US President Joe Biden signed an order to limit US investment in China’s high-tech industries. This measure is expected to be implemented next year. It will concern investments in semiconductors and microelectronics, quantum computing and improving the capabilities of artificial intelligence.

On the same day, The Washington Post published a statement by the representative of the Chinese Embassy in Washington, Liu Pengyu. He stressed that China is disappointed with the White House’s decision. The investment by the United States of America has been of great importance for the development of critical technologies, Pengyu said.

On August 10, Belenkaya, an economist, told Izvestia in an interview that limiting US investment in China’s technology industry would only increase tensions between the two countries. Such moves may slow down China’s technological development in the most advanced areas, but are unlikely to stop it, she said.