U.S. Secretary of Commerce Gina Raimondo is embarking on a crucial trip to Beijing to meet with senior Chinese officials and U.S. business leaders as part of ongoing high-level talks between the two countries. Raimondo’s visit comes at a time when U.S.-China economic ties are hanging in the balance, adding pressure to an already challenging journey.
According to Susan Thornton, a former senior U.S. diplomat who previously served at the State Department, Raimondo’s trip will be tricky due to the need to address Chinese concerns about U.S. efforts to contain their economy and hinder their development. In an interview with CNBC’s “Squawk Box Asia,” Thornton highlighted the difficulty of balancing business objectives for U.S. companies alongside promoting and stabilizing trade relations with China.
Raimondo’s trip began on Sunday night when she arrived in Beijing at the invitation of her Chinese counterpart, Minister of Commerce Wang Wentao. Wang expressed China’s readiness to collaborate in creating a more favorable policy environment for businesses from both countries.
On Raimondo’s agenda is likely to be discussions about improving tourism, export controls, and cross-border data flows, according to Thornton. The U.S. Travel Association reported that China was the largest source of overseas travelers to the U.S. in 2019, but travel numbers have only recovered to 30% of pre-pandemic levels.
However, Thornton cautions against the possibility of a reversal of tariffs imposed by former President Donald Trump, stating that it is unlikely to happen as a result of this trip. She notes that the Chinese economy is facing significant difficulties and that the United States also recognizes the risks associated with a faltering Chinese economy, which would have global repercussions.
China recently reported second-quarter gross domestic product figures below expectations and record high youth unemployment, shedding light on the challenges it currently faces. Thornton emphasizes the importance of stabilizing the trading relationship between the two largest economic powers in the world for the benefit of both countries.
Raimondo’s visit is anticipated with interest, as both sides seek positive outcomes and progress in their economic relations. The discussion between Raimondo and Chinese officials aims to find common ground and pave the way for a more stable and mutually beneficial future between the two countries.
– CNBC’s Evelyn Cheng contributed to this report.