I would do anything for trade (but I won’t do that)

Washington is ready to cooperate with Beijing on commerce.

• Just not in the areas that matter most to China.

On Tuesday, US Commerce Secretary Gina Raimondo met with:

• Premier Li Qiang
• Vice Premier He Lifeng
• Minister of Culture and Tourism Hu Heping

Per the official readout, Li made a pitch for cooperation (Xinhua):

• “China is willing to strengthen dialogue and cooperation with the United States on the economy and trade.”
• “Politicizing economic and trade issues and overstretching the concept of security will…undermine the interests of enterprises and people of the two countries.”

Raimondo disavowed decoupling and expressed Washington’s willingness to cooperate with Beijing on issues related to (NYT):

• Artificial intelligence
• The fentanyl crisis
• Climate change

But some of China’s asks were a bridge too far.

During a press conference after the meetings, Raimondo said she shut down her interlocutors when pressed on tech restrictions (AP):

• “Their asks were to reduce export controls on technology.”
• “Of course, I said no. We don’t negotiate on matters of national security.”

Get smart: Choking off access to desperately needed semiconductors and other advanced technology is by far the most damaging action Washington has taken against Chinese economic interests.

• The US refusal to relax such measures means there is little room for bilateral relations to improve.

The upshot: Geopolitical risks will remain elevated for MNCs.