The discussions between the US Secretary of Commerce and the Chinese Minister of Commerce in November 2023 shed light on the intricate dynamics of the ongoing US-China trade relationship. Secretary Gina Raimondo emphasized that US export controls are in place to safeguard national security while also acknowledging China’s economic growth aspirations. However, Minister Wang Wentao criticized these controls for impeding normal trade practices, particularly within China’s semiconductor industry.
The introduction of stringent export controls by US President Joe Biden aimed to restrict Beijing’s access to advanced technologies and curb military advancements. Despite these measures, the dual-use nature of chip technology presents potential unintended consequences. China’s response to these controls involves a comprehensive strategy to achieve technological self-sufficiency, aligning with its dual circulation initiative to reduce reliance on foreign technologies and mitigate global supply chain risks.
The escalating strategic competition between the US and China in the technology sector has global ramifications, impacting multinational corporations and altering production patterns. As export controls and embargoes loom over the economic relationship, the focus shifts towards balancing national security concerns with international trade obligations. In navigating these complexities, fostering cooperation through mutual interests, research, and innovation could pave the way for a more constructive and strategic approach to export controls and technology policies between the US and China.