US expresses concerns over export control meeting with China as Micron and Intel raise alarms.

U.S.⁢ Commerce Secretary Gina Raimondo Discusses Concerns with Chinese Commerce Minister Wang Wentao

By David​ Shepardson

BEIJING (Reuters) – In a meeting between​ U.S.⁢ Commerce Secretary Gina Raimondo and Chinese Commerce Minister⁢ Wang Wentao, concerns about restrictions on American businesses, ‌including ‍Intel and Micron,​ were discussed.⁣ The​ two‌ countries also agreed to⁤ launch an export control enforcement information dialogue.

The⁢ pair also discussed China’s restrictions on gallium and germanium exports in wide-ranging and candid talks that lasted more‍ than two hours, followed​ by a two-hour lunch, according to a brief ⁢comments ‌from Raimondo and the Commerce Department.

Raimondo⁣ wants to address concerns⁢ from⁢ U.S. businesses that‍ are having difficulties operating in China. “We’re delivering. We will have that formal ‌communication,” she said in a meeting with business⁤ officials.

She is the latest Biden administration ⁤official to travel to Beijing in an effort to strengthened communications, particularly ​over the​ economy and defense, as the economic friction between the world’s two largest economies threatens to shake business relationships on ⁣both sides.

Raimondo told reporters that she had discussed concerns​ over China’s effective ban on⁢ purchases ​of Micron Technology memory chips with her Chinese counterpart.

Shares ‌of ⁤Micron rose 3% and⁤ Intel was up 1.4% in early trading on the news, first reported by Reuters.

As part‌ of the‌ discussions, Washington and Beijing also agreed to a new ⁣formal⁢ working group on commercial ​issues as ⁢well ⁢as the informational exchange⁢ on export ⁤control enforcement, the⁣ U.S. Commerce Department said.

The launch of the ⁣exchange‌ would provide⁤ a “platform to reduce ​misunderstandings of U.S. national security policies,” ⁢Raimondo said, adding: “We are not compromising or negotiating on matters of national security. Period.”

The first in-person meeting of ⁣the export control information exchange ⁤will be led on ⁢the U.S. side by Assistant Secretary for Export Enforcement Matthew Axelrod⁤ at the Ministry of Commerce, in Beijing, on Tuesday, ‍Raimondo added. A senior⁤ official said the exchange will meet at least yearly and emphasized it ‍is not‌ a policy dialogue but an⁢ effort for both sides to answer‌ questions about how⁢ export controls work.

“We’re not⁢ negotiating what our policies⁣ are going to be,” the official added.

“The⁢ United⁣ States is‌ committed ⁤to be transparent about ⁣our export control enforcement strategy,” ⁤she said. “To show you how real this is, the first meeting of that ⁤new information​ exchange is tomorrow in Beijing. We’re wasting‌ no time.”

China has criticized U.S. efforts to block ‌China’s ⁤access to advanced semiconductors ⁣through export controls, but Raimondo has said those are not open ‍for debate.

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.

Earlier this ⁤year,⁤ Raimondo⁢ said more​ than 200 Chinese companies had ⁢been put on a U.S. export control list and has repeatedly ⁢said she not hesitant​ to use the​ power as necessary.

The new ‌commercial issues working group is a consultation mechanism involving U.S. and Chinese government officials and private sector representatives “to seek solutions on trade ​and investment issues and to advance ​U.S. commercial interests in China,” Commerce said ​in a statement⁤ following the ‍two officials’ meeting.

The working group‍ will meet twice⁤ annually at the vice minister level, with the United States hosting the first meeting in early 2024.

The United States and​ China also agree to convene subject matter experts from both sides for technical discussions “regarding‍ strengthening ​the⁣ protection ‌of⁢ trade ⁢secrets and⁢ confidential business information,” Raimondo said.

Commerce also held discussions with the Chinese National Bureau⁢ of Statistics that it is in the interest of ‍U.S. businesses and enacting good policies to have accurate and reliable data, another U.S. ⁢senior official‌ said.

(Reporting by David ⁣Shepardson; Additional writing by⁤ Susan Heavey; Editing by Andrew Cawthorne and ​Mike Harrison)

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