China Expresses Concerns to US Regarding Export Controls, Sanctions, and Tariffs

In a meeting between China’s commerce minister, Wang Wentao, and U.S. Commerce Secretary Gina Raimondo in San Francisco, concerns were raised over the U.S.’s restrictions on semiconductor exports to China, as well as sanctions on Chinese firms and tariffs on Chinese imports. The meeting took place on Thursday, and China’s commerce ministry released a statement on Friday highlighting the importance of discussing the boundary between national security concerns and trade and economic cooperation.

The trade relationship between the world’s two largest economies has undergone significant changes, with China now trading more with Southeast Asia and the U.S. focusing on neighboring Canada and Mexico. Despite both governments publicly opposing decoupling, the shift in trading patterns is noticeable.

Wang Wentao expressed concern about the final rules of the U.S. semiconductor export controls against China, as well as sanctions against Chinese companies, two-way investment restrictions, and Section 301 tariffs, according to China’s commerce ministry.

Under President Joe Biden, the U.S. has maintained additional tariffs imposed on various Chinese exports during the previous Trump administration. In addition, new restrictions have been implemented, prohibiting the export of advanced semiconductors and the equipment used in their production, citing security concerns.

In 2021, two-way trade reached a record high of $690 billion, driven by increased U.S. demand for Chinese consumer goods and Beijing’s growing demand for U.S. agricultural products and energy. However, trade flows in 2022 have slowed down significantly, with a decrease of $104 billion, or 19%, in two-way trade through September compared to the first nine months of 2021, according to data from the U.S. Census Bureau.

During the meeting, Wang and Raimondo agreed to hold the first meeting of a commerce working group at the vice minister level in the first quarter of 2024, as stated by China’s commerce ministry.