Key Points

  • China’s Ministry of Commerce could respond to Biden’s executive order to restrict investments in advanced Chinese technology
  • US Commerce Secretary Gina Raimondo is set to visit the country amid a souring business relationship.

US Commerce Secretary Gina Raimondo is set to visit China as reports spread that the Asian nation could announce countermeasures to Bidens Executive Order against its advanced technology.

US Commerce Secretary Gina Raimondo to tour China following Biden’s Executive Order

The US and China have been experiencing deteriorating business ties lately as the two major world economies remain opposites in political spectrums. China has been associated with Russia and other non-Nato nations that seek to dethrone the dollar and have thus been under multiple economic sanctions.

As such, the Asian nation seeks to completely break away from the dollar, a sentiment the US shares. In Q2, the US asked the EU to follow suit and reduce its dependence on Chinese global supply chains. The EU and the US have depended on China’s advanced technology supply chains for items like chips.

President Biden has released an executive order seeking to cut the dependency on such Chinese items. As a retaliation plan, China’s Ministry of Commerce said on Thursday that it would also respond to the executive order with its restrictions against the US Economy.

“On that basis, we are making a comprehensive assessment of the executive order’s impact and will take necessary countermeasures based on the assessment’s results,” The ministry’s spokesperson said.

Bidens executive order over security concerns restricts our investments in Chinese quantum computing, artificial intelligence, and semiconductors industries. The targeted industries have been the Asian nation’s strongest ones globally, prompting a response from the nation as its economy is stalling.

While the two nations remain at each other’s necks, it could be catastrophic for global supply chains if they alienate each other as such. The US Commerce Secretary Gina Raimondo is set to travel to China to hold bilateral talks and find a way forward for the two nations weeks after Treasury Secretary Janet Yellen traveled there for similar purposes. 

Keep watching Fintech Express for updates on macro-finance and other fintech-related developments.