Gina Raimondo is in China as part of an attempt to restore diplomatic relations with America. Credit: Andy Wong/Pool AP
China is becoming 'uninvestable' for a growing number of US businesses who feel it is 'too risky' to do business with Beijing, US Secretary of Commerce has warned.
Gina Raimondo denounced US companies' «traditional concerns» about Intellectual property theft and massive government subsidies have added a «whole new set» of concerns, including new anti-espionage laws.
It comes as James Cleverly flies to Beijing on Tuesday in an attempt to re-establish diplomatic ties in the first official visit by a British Foreign Secretary in five years.
Mr Cleverley is expected to discuss Hong Kong, Ukraine and the climate crisis with Wang Yi, his Chinese counterpart, on the first trip since Jeremy Hunt visited China as Foreign Minister in 2018.
Speaking to reporters during a trip to China as part of America's attempt to restore diplomatic relations Ms. Raimondo insisted that President Joe Biden does not want to «separate» from China.
She added that the dialogue between the two sides vital to improving trade ties, noting that US bosses are often «desperate to get more information» from their Chinese counterparts on business policies. jpg» />James Cleverley will fly to Beijing on Tuesday as part of the first official visit by a British foreign secretary in five years. Photo: Leon Neal/PA
However, Ms. Raimondo warned: «I hear more and more from business people that China is not worth investing because it has become too risky.»
«There are traditional problems with whom they are accustomed to dealing,” she said. «And then there's a whole host of new problems, the combination of which makes China feel too risky to invest in.»
China's sweeping anti-espionage laws will give Beijing even more power to punish those it deems a national security threat, experts warn. The law provides «enhanced legal grounds for accessing and controlling data held by US firms in China.»
Mr. Biden called China a «time bomb» earlier this month as the country faced a number of challenges. economic problems that have caused a number of economists to lower their forecasts for China's economic growth this year.
The ongoing real estate and debt crisis has limited Beijing's ability to revive the economy, and many analysts expect the country to fall short of its 5%. annual growth target for 2023.
In the latest sign of the crisis in the sector, Country Garden, one of China's largest real estate developers, has asked for more time to redeem yuan bonds maturing next week.
Request for a 40-day grace period This comes after the company missed paying interest on $22.5m (£17.8m) on two international bonds earlier this month.
Meanwhile Chinese policymakers are also reportedly preparing to cut interest rates on trillions of pounds of outstanding mortgages for the first time since the financial crisis. The move is intended to ease the burden on households and stimulate consumer spending. The changes will only affect first home loans, according to Bloomberg.
Mr Cleverley is expected to use his trip to China to pressure Mr Wan to lift sanctions on British MPs , and pressure Russia to stop invading Ukraine.< /p>
Rishi Sunak has taken a less belligerent stance towards China since he became prime minister last October. His predecessor, Liz Truss, called China «the biggest threat to the free world we face.»
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