Trading places

The US and China are talking – and that’s a start.

On Monday, US Commerce Secretary Gina Raimondo met Minister of Commerce Wang Wentao in Beijing.

The headline: The pair agreed to establish a commercial issues working group and an export control enforcement information mechanism (US Commerce Department 1):

• The former, comprising representatives from government and the private sector, will meet twice a year starting in early 2024.
• The latter aims to “reduce misunderstanding of U.S. national security policies,” and had its first meeting on Tuesday.

Raimondo said the US and China need to get along (US Commerce Department 2):

• “It is profoundly important that we have a stable economic relationship.”

Wang agreed (MofCom):

• “Economic and trade relations are the ballast of China US relations.”

It wasn’t all rainbows and kittens, though.

• Wang warned that “generalizing national security is not conducive to normal economic and trade exchanges” (MofCom).
• Raimondo retorted that “there is no room to compromise or negotiate” on issues of national security (US Commerce Department 2).

Get smart: The establishment of new communication channels is unquestionably a positive for bilateral ties.

The problem: One man’s economic suppression is another woman’s reasonable security.

• That fundamental mismatch in perceptions will stymie meaningful economic cooperation.