US sanctions on China 'disastrous' to global economy: Premier

By Al Mayadeen English
Source: Agencies
29 Aug 2023 19:02

During a meeting with the US Secretary of Commerce, the Chinese Premier Li Qiang stresses the drawbacks of US trade policy on bilateral relations.

China's Premier Li Qiang (R) speaks with US Commerce Secretary Gina Raimondo (L) during their meeting at the Great Hall of the People in Beijing, China, on August 29, 2023. (AFP)

US Commerce Secretary Gina Raimondo met with Chinese Premier Li Qiang on Tuesday in an effort to improve relations between the world's two largest economies.

However, the meeting was overshadowed by disagreements over trade policy.

Li criticized US trade curbs against China, saying they were "politicizing economic and trade issues and overstretching the concept of security will... seriously affect bilateral relations and mutual trust," he told Raimondo, according to China's official Xinhua news agency.

Li said the US policy on trade with China undermines the interest of companies, as well as the people of the two largest economies in the world

On her part, Raimondo claimed that the US policy is necessary to protect national security. She also asserted the importance of open communication between the two countries, which has been an empty statement repeated by multiple US officials, from the viewpoint of the Chinese government.

Raimondo also reaffirmed the stance of the United States, emphasizing that their intention wasn't to decouple their economy from China's. Rather, Biden's administration aims to sustain its $700 billion trade relationship with China, with the aspiration that this economic connection could contribute to the overall stability of the bilateral relationship.

In her discussions with China's Vice Premier, He Lifeng, earlier that day, Raimondo acknowledged the significance of the economic ties between the two nations, describing it as one of the most pivotal connections globally. She stressed the importance of responsible management of this relationship for the benefit of both countries and the world at large.

US urges dialogue, then pushes sanctions

While Raimondo stressed the United States' commitment to safeguarding "national security", she clarified that there was no intention to hinder China's economic progress. This assertion contrasts the actions the US has taken, particularly concerning its treatment of the Chinese tech sector.

The two sides agreed to set up a working group to discuss trade disputes and to establish an "export control enforcement information exchange" to reduce misunderstandings about US national security policies.

However, Beijing has not reciprocated Raimondo's positive outlook on the visit, saying Wang had raised "serious concerns" about the US trade curbs.

The US has implemented sanctions on several vital sectors and leading officials in China under the guise of "national security" and "human rights violations."

Sanctions targeted Chinese technology giant Huawei since 2018, as well as the sale of semiconductors to the Chinese market, in an attempt to hinder the country's technological growth and development. They have also targeted the Chinese industrial sector forcing the US Department of Defense to cut relations with several Chinese companies.

Moreover, following the launch of Russia's Special Military Operation in February 2022, Washington imposed sanctions on two Chinese tech companies for providing Moscow with satellite and network services.