US Commerce Secretary warns of the need to monitor Chinese investors purchasing farmland and businesses.

U.S. Commerce Secretary Stands Firm on China-Related Semiconductor Restrictions

In⁢ a recent interview with CNN, U.S. Commerce Secretary Gina Raimondo acknowledged the “legitimate concerns” surrounding Chinese investments in the United States. She emphasized⁢ that the Biden administration is committed to not compromising on China-related semiconductor restrictions.

“We have to be real about those concerns,” Ms. Raimondo stated. “So to the extent that Chinese investors, buying‍ farmland, buying U.S. businesses,⁤ erodes our national security, then we​ should ‌stop it.”

While recognizing the benefits of investment, the Biden administration‍ remains vigilant in preventing Chinese investment that could harm national security, she added.

Ms. Raimondo also addressed allegations of the‌ government diluting the U.S. semiconductor ban on​ China. Last year, the Biden administration unveiled⁣ export controls to‌ restrict China’s access to advanced semiconductor chips made ‌with U.S. technologies. These chips are used in various applications, from pickup⁣ trucks to hypersonic missiles.

The administration ⁤has faced criticism for potentially undermining ⁢the semiconductor ban policy by granting “carve outs” to certain major firms. These exemptions are​ set to expire in October.

For example,‍ Taiwan Semiconductor Manufacturing Co. obtained an ⁢exemption, allowing them to continue expanding their facilities in China.

Addressing this issue, Ms. Raimondo clarified, “No one ever said we want⁣ to decouple from China as‍ it relates to semiconductors. We ship billions of dollars of semiconductors every year to China, which is good⁣ for the American economy and ⁣businesses. ⁤We will continue to do that. Those are chips that​ are ‌readily available around the world.”

She emphasized, “What ‍we are going to do, ⁢and we will not⁤ compromise on, is preventing the sale of our most sophisticated, most ​powerful semiconductors to China, which China wants for its military.”

Ms. Raimondo highlighted her tough ⁤stance on China, stating, “No Commerce Secretary⁢ has been tougher than⁢ I on China. Almost a third of the companies from China on the Entity List have been put there under President Biden’s administration and my leadership of Commerce.”

Recently, Ms. Raimondo spoke at ‍an event held by the⁣ American Chamber ​of Commerce in Shanghai, urging‍ U.S. businesses to continue investing‍ in China despite the challenges they may face.

Concerns‌ about Chinese ⁤companies are growing among U.S. ‍lawmakers. In a bipartisan meeting ⁢at Stoughton Trailers in Wisconsin, ​Republicans, Democrats, industry representatives, and labor representatives recognized the threat posed by the Chinese Communist Party (CCP) to American manufacturing.

Stoughton Trailers, which had built a plant in the 1990s, faced challenges when the CCP’s subsidies to ‌domestic firms affected their business. The company’s marketing manager, Ron Jake, explained that the situation improved after anti-dumping duties were imposed on Chinese manufacturers.

Mike Gallagher (R-Wis.), chair of the House Select ‍Committee on the CCP, highlighted the unfair ‌competition American companies face from Chinese firms that cannot go bankrupt or be underpriced.

Last⁢ year,‍ a group of House ⁢Republicans expressed concerns about foreign investment in American farmland and its impact on national security, trade, and ‌food security.