US and China expand talks in effort to reduce trade tensions

In the latest move to lowertensions between the world's two largest economies, the United States and China have agreed to undertake frequent talks about commercial concerns and limitations on access to sophisticated technology.

The latest development comesamid U.S. Commerce Secretary Gina Raimondo's ongoing visit to China this week, where she is meeting with senior Chinese authorities in Beijing and Shanghai.

"I think it's a very good sign that we agreed to concrete dialogue, and I would say, more than just kind of nebulous commitments to continue to talk, this is an official channel," Raimondo said in an interview following four hours of talks with China's trade minister, Wang Wentao.

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Raimondo saidthat she had an "open" and "pragmatic" talk with Wang and expressed worries about China's recent steps against Intel and Micron Technology, two American semiconductor companies. The Chinese government has halted a significant purchase planned by Intel and has prohibited Micron from selling in China this year.

She stated that two distinct conversations would be developed. One would be a working committee composed of corporate leaders that would focus on commercial concerns. The other would be federal information sharing on US export control enforcement.

Following the discussion, the Chinese Ministry of Commerce issued a statement saying that Wang voiced severe concerns about US tariffs on Chinese imports as well as the Biden administration's efforts to boost the US semiconductor sector through government subsidies.

Boosting info exchange amid enforcement challenge

Raimondo described the new discussion as an "information exchange" rather than a working group. She stated that the group was formed to provide more information regarding US export limits on sophisticated technology, but that its formation did not imply that the US would compromise on national security matters. The export enforcement group's first meeting was slated for Tuesday in Beijing.

Enforcement has been a challenge for the two nations, partially because it requires American authorities to perform inspections in China. China had suspended such inspections for around two years, but in the last eight months, it has authorised over 100 such checks to take place, according to the official.

The inspections of Chinese sites are intended to ensure that advanced American technology is not transferred to the Chinese military or security agencies.

The Commerce Department reported last week that 27 Chinese businesses had passed such examinations and were once again permitted to import sophisticated technology.

Furthermore, He Weiwen, a former Chinese commerce ministry official who is now a trade specialist at the Center for China and Globalization, a Beijing-based think tank, said the bilateral agreement to have additional talks demonstrated a shared commitment to pragmatism.

"It means that both sides agree on how to solve practical problems," he said, as quoted by the New York Times.

However, suggestions for a formal communication mechanism between the two nations sparked condemnation from some China specialists in the United States, demonstrating how politically delicate ties with China remain.

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