[News Figures] He Is at the Forefront of US Semiconductor Policy... Raimondo, US Secretary of Commerce

Last May, when U.S. President Joe Biden visited Samsung Electronics' semiconductor plant in Pyeongtaek, U.S. Secretary of Commerce Gina Raimondo was by his side. While it may seem natural for the Secretary of Commerce, who is responsible for industrial policy, to accompany the president to a foreign industrial site, the Biden administration at the time was focusing on passing the CHIPS Act as a key policy to pressure China. The person in charge of this role was Raimondo, a powerful secretary often regarded as President Biden's "right hand."

Three months after her visit to Korea, in August of the same year, President Biden was able to sign the CHIPS Act, which had passed through the U.S. Congress. According to The Wall Street Journal (WSJ), when the passage of the CHIPS Act was delayed due to partisan conflicts between Democrats and Republicans in Congress, Secretary Raimondo even met directly with former Trump administration officials to seek their help. It is undeniable that Raimondo played a significant role in the passage of the CHIPS Act.

Last May, Gina Raimondo, U.S. Secretary of Commerce (from left), U.S. President Joe Biden, and President Yoon Suk-yeol visited Samsung Electronics' Pyeongtaek semiconductor plant. The second from the right is Samsung Electronics Vice Chairman Lee Jae-yong.
[Image source=Yonhap News]

On the 1st (local time), Bloomberg News highlighted Raimondo, stating, "From the CHIPS Act to the Chinese social networking service TikTok, she is at the center of the Biden administration's China policy." Bloomberg noted, "Generally, the Department of Commerce is not a place sought after by those looking to make a name in U.S. politics, but Secretary Raimondo is injecting energy into the Biden administration."

◆ The Center of Biden Administration's 'China Policy'

"The CHIPS Act is fundamentally a national security initiative. We will not give any company a blank check." Secretary Raimondo said this on the 28th of last month as the Department of Commerce began accepting applications for subsidies under the CHIPS Act. Since Congress passed the CHIPS Act on a bipartisan basis last year, it granted the department the authority to establish guardrails to prevent taxpayers' money from simply enriching companies, and Raimondo appeared determined to actively use this authority.

In fact, the Department of Commerce announced strict conditions for semiconductor companies receiving subsidies, including ▲ sharing excess profits ▲ refraining from stock buybacks and dividend payments for five years ▲ mandatory establishment of childcare facilities ▲ restrictions on expanding manufacturing capacity in certain countries such as China for ten years. Due to these stringent subsidy conditions, global companies have shown signs of confusion and resistance.

Secretary Raimondo explained in detail in interviews with several major media outlets why these conditions are necessary. She said, "By introducing stock buyback regulations, companies will only apply for the funds they need, preventing taxpayer money from going into shareholders' pockets," emphasizing, "Not a single dollar will be wasted outside the project's intended purpose." Regarding childcare facilities, she mentioned, "It is impossible to secure a workforce without affordable childcare services."

Gina Raimondo, U.S. Secretary of Commerce
[Photo by AP News]

Secretary Raimondo decides on the distribution of semiconductor subsidies based on company applications. She also oversees the China guardrails that the Department of Commerce will release within this month. Additionally, she is responsible for cooperation with allies such as Korea, Europe, and Japan to secure semiconductor supply chains and pressure China. She is also expected to influence the Biden administration's decisions on canceling export licenses for U.S. semiconductor companies like Qualcomm and Intel that supply parts to China's Huawei.

Bloomberg reported, "Secretary Raimondo oversees most of the China policy," adding that the Department of Commerce not only compiles export control lists but has recently taken on the task of devising strategies to address potential national security threats arising from TikTok.

◆ Passionate Raimondo, Even Speculated as Biden's Next Running Mate

Born in 1971, Secretary Raimondo is an Italian-American from Smithfield, Rhode Island. She majored in economics at Harvard University, graduating summa cum laude, and earned a doctorate from Yale Law School. From 2000 to 2010, she worked at a venture capital (VC) firm, gaining insight into how companies and capital markets operate. In 2010, she began her political career in her home state of Rhode Island. Starting as Rhode Island's Treasurer, she became the state's first female governor five years later.

She joined the Biden administration in 2021. At that time, she was considered a candidate for Secretary of Health and Human Services, Treasury Secretary, and Secretary of State, but President Biden appointed her as Secretary of Commerce. Ahead of the U.S. midterm elections last November, when rumors circulated about Treasury Secretary Janet Yellen's resignation, Bloomberg reported that Raimondo was seen as a potential successor.

Gina Raimondo, U.S. Secretary of Commerce (center)

Some speculate that when President Biden runs for re-election in 2024, Raimondo could replace current Vice President Kamala Harris as his running mate. When asked about rumors suggesting her interest in the presidency, Raimondo responded, "It's annoying," but when asked if that meant she was not interested in the presidency, she replied, "I didn't say that."

According to Bloomberg citing testimonies from close associates, Raimondo is regarded as an ambitious and passionate boss who demands a lot from her staff. One close aide shared that when Raimondo disembarks from a plane and is able to work online, an "email bomb" floods in. Another aide joked that Raimondo always makes time to attend important personal events of her staff and is so disappointed if she is not asked to officiate or give a speech at a staff member's wedding.

◆ Evaluated as the 'Best Friend' of Private Companies

Although the subsidy implementation conditions under the CHIPS Act are somewhat unfavorable to companies, Secretary Raimondo is generally regarded as a business-friendly Secretary of Commerce. Given her experience working in venture capital, she pays attention to concerns from the private sector and is known to continuously meet with CEOs.

In May last year, the U.S. economic media Business Insider described her as the "Best friend" of American companies within the White House.

Notably, at the end of 2021 and early last year, Secretary Raimondo publicly criticized the European Union's regulations on U.S. big tech companies. This drew criticism from Democratic Senator Elizabeth Warren, who called it inappropriate. In response, Raimondo emphasized in an interview with WSJ last year, "I am the Secretary of Commerce. My job is to cooperate with companies, listen to their opinions, and work with the private sector."

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