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US companies are finding China increasingly 'uninvestible', commerce secretary Gina Raimondo says

Joseph Wilkins   

US companies are finding China increasingly 'uninvestible', commerce secretary Gina Raimondo says
  • US companies are finding China increasingly "uninvestible", according to commerce secretary Gina Raimondo.
  • They're contending with new anti-spying laws and greater competition from subsidized Chinese firms.

American companies are viewing China as an increasingly difficult place to do business as the Asian nation struggles to deal with a slew of economic headwinds, Commerce Secretary Gina Raimondo said Monday.

Speaking to reporters on a bullet train between Beijing and Shanghai, Raimondo highlighted the difficulties that firms are facing when it comes to the world's second-largest economy.

"Increasingly I hear from businesses, China is uninvestible because it's become too risky," she said, according to Bloomberg.

"There are the traditional concerns that they've become accustomed to dealing with. And then there's a whole new set of concerns, the sum total of which is making China feel too risky for them to invest," Raimondo added.

US firms are contending with new anti-spying laws introduced by Xi Jinping's Politburo, as well as more competition from state-funded Chinese companies.

China is also struggling to restart its economy after three years of harsh zero-COVID lockdowns and has failed to shore up its crisis-hit property sector.

Stocks are reeling from the longest stretch of capital outflows on record – and investors pulled a staggering $11 billion in an 11-day stretch earlier this month.

Government officials said over the weekend that they would slash stamp duty taxes and eliminate certain restrictions on share sales in a bid to revive the country's faltering market, which provided a short-lived boost to the benchmark CSI 300 index.

Raimondo is tasked with improving trade relations between the US and China.

Secretary of State Anthony Blinken, Treasury Secretary Janet Yellen, and Joe Biden's climate envoy John Kerry have all made high-profile trips to Beijing in recent months – but Raimondo herself has also placed several Chinese companies on an export control with the US clamping down on its rival's access to key semiconductor chips.

"The very fact that now we would have informal communication, be able to pick up the phone and talk, is a step forward," she said Tuesday.

"It doesn't mean when we talk, I'm going to compromise or concede," Raimondo added. "It means we have a shot at reducing miscalculation and sharing information."



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