World Trade

China Responds After U.S. Calls It a No-Go for Investments

It seems like there’s been a bit of a ruckus between China and the U.S. recently. So, here’s the lowdown: China’s been on the defensive after Gina Raimondo, the U.S. Commerce Secretary, spilled the beans. She said American companies whispered in her ear, saying China’s becoming a no-go for investments. Ouch! With all the big players turning their backs on China, the stakes are high.

Guess who decided to hop on a plane and see what’s cookin’? That’s right! Raimondo herself. She’s the latest official from Team Biden making a pit stop in China. The big goal? To keep the chatter going, especially when it comes to money and defense matters. No one wants the tension between these heavyweights to hit a boiling point.

Now, Gina’s clear – she’s not saying “It’s over!” with China. But she did shine a spotlight on some rocky trade and investment ties. Oh boy, that sure stirred the pot!

But wait, there’s a twist! Liu Pengyu, the dude speaking for China in Washington, dropped some truth bombs. He said, “Hey, most U.S. businesses? They wanna stick around here.” Plus, he claims almost 90% are making a pretty penny. And guess what? China’s not shutting its doors; they’re swinging them wide open for more.

On the other hand, global investors are, well, getting cold feet. They’re hightailing it outta China. And the numbers? They’re kinda grim. With record-breaking outflows and shrinking investments, things aren’t looking peachy.

Now, Gina didn’t just come to sip tea. She’s been busy, meeting and greeting, and urging China to step up their game for businesses. Meanwhile, Michael Hart, the big cheese at the American Chamber of Commerce in China, chimed in. He said businesses have made their worries loud and clear. Raids and restrictions? Not exactly the welcome mat for more investments.

But here’s where it gets messy. Gina said U.S. businesses are dodging curveballs left and right. She pointed to unexpected fines, sudden law changes, and surprise business checks. Yikes! And don’t even get her started on the Micron Tech saga. She’s standing firm, saying there’s no comparing it to the U.S. moves.

Despite the bumps, Gina’s trying to keep things on an upbeat note. In her chat with Shanghai’s head honcho, Chen Jining, she talked about working hand in hand. All for a brighter and fairer business scene.

Chen, on the other hand, got all sentimental. He said, “The world’s kinda topsy-turvy right now.” But he believes the U.S. and China are the glue holding things together. And that? It’s a win-win for everyone.

Before wrapping up her trip, Gina’s got a packed day. She’ll be hitting up NYU’s Shanghai campus, taking a whirl at Disneyland, and then heading over to a Boeing spot for a press gig. Speaking of Boeing, she’s been pretty vocal about China holding back on plane deliveries. But so far? No promises made.

Whew! That’s a lot to take in, right? Fingers crossed these two giants can smooth things out. For now, we’ll just have to wait and see!

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