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US Commerce Secretary aims to enhance trade and tourism during discussions in China.

By David Shepardson

BEIJING (Reuters) – U.S. Commerce Secretary Gina Raimondo arrived in Beijing late on Sunday for a‌ four-day visit aimed at boosting business ties between the world’s two largest economies while declaring⁢ American national security‌ trade measures off-limits for debate.

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“If you wanted to put a tagline ‌to the trip and ⁣the mission, it’s protect what we must ‍and promote where we can,” Raimondo told reporters on Friday before departing for⁤ China. “I’m not going to pull my punches next week when ​I am there but I intend to be practical.”

Relations are tense as the United States⁢ works with allies to block China’s access to ⁣advanced‍ semiconductors, while Beijing is⁣ restricting shipments from prominent chip company⁢ Micron‍ Technology and raided ⁤and fined U.S. firm Mintz Group $1.5 million for doing “unapproved‌ statistical work.”

Raimondo, who was greeted⁢ upon arrival by Chinese Commerce Ministry official Lin Feng, will hold bilateral ⁤meetings with Chinese officials on Monday and Tuesday in Beijing before she‌ heads ⁤to Shanghai. She will be‍ joined by U.S. Ambassador to China Nicholas Burns.

Raimondo spoke to President⁢ Joe Biden on ‍Thursday about her visit and his message was enhanced dialogue ​with China ⁢can ease tensions.

“We want to have ‍a stable commercial ‌relationship, and core to ‌that is ⁤regular⁤ communication,” Raimondo said. “We need to communicate to avoid conflict.”

Republicans in Congress have criticized the possibility Raimondo​ will establish a‌ working group with China​ during the visit ​to discuss U.S. semiconductor export controls.

Raimondo did not ​confirm plans for any working group but emphasized‌ she would tell Chinese ⁢officials “when it comes to⁣ national security we⁣ don’t ​negotiate. ⁤We don’t ⁣give concessions. We don’t ​compromise.”

The United States is using government incentives and tax policy to wean ⁤American businesses off Chinese supply ​chains‌ and ramp up U.S. semiconductor production.

“Just because we’re investing in America does not⁤ mean ⁣at ‌all⁣ that we ​want to decouple from ⁢China’s economy,” Raimondo said.

China’s ambassador to the⁣ United States, Xie Feng, who​ met Raimondo last week, said China seeks “mutual respect, peaceful coexistence and win-win cooperation”.

The White House this month moved to‍ start prohibiting‌ some U.S. investment in sensitive technologies‍ in China and plans to soon finalize sweeping export ​restrictions on advanced semiconductors adopted ‍in October.

‘MANY CHALLENGES’

Raimondo, the fourth high-level‌ U.S. official to visit⁣ China recently, is the first commerce secretary to ‌make the trip in seven ​years.

She⁢ spoke to more than 100 senior business leaders before the visit and vowed to‌ raise their concerns.

“There are so many challenges to doing ⁤business in China and exporting to China ‌and China’s unfair trading practices have hurt American workers and companies,” Raimondo ‍said.

Wendy⁢ Cutler, vice‍ president of ⁢the Asia Society Policy Institute, said⁣ that ⁢with a⁢ possible⁢ visit to ⁤the U.S. by President Xi Jinping less⁣ than three months away, “Beijing has an ‍interest in working ⁣with the United⁤ States to identify practical areas in⁣ the economic⁤ relationship where cooperation may⁢ be possible.”

Raimondo also wants ​to boost travel ⁣and tourism‌ between the two countries.

China and⁤ the United States agreed this month to double ‌the ‍number of flights permitted between them⁣ – still⁣ a​ fraction of the number⁢ before the pandemic.

If China returned to 2019 U.S. tourism levels, it would add $30 billion to the U.S.‍ economy and 50,000⁢ U.S. jobs, Raimondo said.

Raimondo‌ is‌ considering a visit‍ to Shanghai Disneyland, a joint venture of Walt Disney ‍and Chinese ​state-owned Shendi Group, a source told Reuters.

Another‌ looming question is when Chinese airlines might resume taking deliveries of ​Boeing 737 MAX jets after​ a four-year hiatus. Raimondo said ‌in 2021 that the Chinese government was preventing its airlines from buying “tens of billions of dollars” in Boeing aircraft.

Boeing says it⁣ is ‍ready ⁣to deliver airplanes to Chinese airlines “when that ‌time comes.”

(Reporting by David Shepardson​ in Beijing; additional reporting by Michael Martina in Washington; editing by Robert Birsel and Bill Berkrot)

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