US Commerce Secretary: US Companies Leaving China Will Turn to IPEF Member Countries

Hurry Up Legislative Bill Processing to Seize Investment Opportunities for Samsung and Others
Further Review of Adding Chinese Companies to Blacklist

[Asia Economy International Desk Reporter] Gina Raimondo, U.S. Secretary of Commerce, stated on the 31st (local time) that countries joining the recently launched Indo-Pacific Economic Framework (IPEF), led by the United States, may be in a favorable position to attract U.S. companies.

[Image source=Yonhap News]

At a virtual briefing that day, Secretary Raimondo said that when the media asks why IPEF is important, "If we do it right, IPEF will strengthen our economic relationships in the region and create a platform that maintains high standards for labor and the environment," calling this a perfect and concrete example of IPEF's potential power.

She added, "For example, when U.S. companies want to leave China, they will look more favorably upon IPEF member countries," explaining that "IPEF member countries have a more transparent business environment and higher labor and environmental standards where companies can operate."

The Wall Street Journal (WSJ) also reported that Apple is considering relocating some of its facilities in China to other countries such as India and Southeast Asia to reduce its dependence on China.

Secretary Raimondo's remarks expressed the view that if U.S. companies relocate their facilities from China to other countries, IPEF member countries could be prioritized for consideration.

Referring to her recent trip accompanying President Joe Biden to South Korea, Raimondo said, "Upon arrival, I had the opportunity to tour Samsung's semiconductor plant, the world's largest, and it was unbelievable," adding, "It was an incredibly impressive facility."

She stated, "This emphasized the risk that if we do not move quickly on the semiconductor bill, the bipartisan Innovation Act, we could miss out."

Raimondo reiterated, "If Congress does not pass this within a few months, we will lose that opportunity," explaining, "Because such companies will have no choice but to build such facilities in other countries."

The U.S. Senate passed an innovation bill last July focusing on fostering key industries such as semiconductors and artificial intelligence (AI) to counter China, but it is undergoing a combined review process with a semiconductor industry promotion bill separately introduced by the House of Representatives. This bill includes $52 billion in support for the U.S. semiconductor industry, and President Biden has urged its swift passage.

Meanwhile, Secretary Raimondo said she is investigating attempts by China to evade U.S. export sanctions and is considering adding new Chinese companies to the blacklist.

Raimondo explained that China is finding new ways to evade existing sanctions, such as establishing separate companies, and efforts are underway to add such companies to the blacklist, stating bluntly, "We do not expect to ease sanctions on China in the near future."

This content was produced with the assistance of AI translation services.