US Commerce Secretary: "Companies Feel Investing in China Is Too Risky"

U.S. Commerce Secretary Gina Raimondo said on the 29th (local time), "We are increasingly hearing from companies that China has become too risky to invest in."

[Image source=AP Yonhap News]

According to major foreign media including Bloomberg on the same day, Raimondo, who is visiting China, told reporters, "There are traditional concerns we are used to responding to, as well as completely new concerns, and all of these combined make companies feel that investing in China is too risky."

She pointed out, "Massive fines without explanation, unclear and shocking amendments to the counter-espionage law in American society, and raids on companies represent a completely new level of challenges we must respond to," adding, "All of this creates uncertainty and unpredictability." She continued, "For these reasons, companies are looking for other opportunities, other countries, or other places to go."

Raimondo's statement that investment in China is impossible is the most direct remark made during her visit and may provoke a backlash from China.

[Image source=EPA Yonhap News]

Following the Commerce Ministers' meeting in Beijing the previous day, she met with Premier Li Chang and Vice Premier He Lifeng on the same day and expressed dissatisfaction with China's sanctions on U.S. technology companies. She conveyed specific difficulties faced by U.S. companies, such as China blocking Intel's mergers and acquisitions (M&A), banning sales of Micron products in China, and halting Boeing sales.

Regarding China's sanctions on Micron in particular, she said, "They are baseless, and we raised issues because of limited due process," adding, "U.S. export controls are clear and transparent."

Raimondo also said she was asked to reduce export controls on technologies that could have military applications and to lift restrictions on U.S. companies' investments in China. She stated, "Of course, I said no," emphasizing, "We do not negotiate on national security issues."

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