U.S. Commerce Secretary Emphasizes Conditional Support for China's Growth, Stresses Adherence to Rules

In the aftermath of the recent meeting between Presidents Joe Biden and Xi Jinping, where the Chinese leader expressed optimism about the coexistence of the two nations, U.S. Commerce Secretary Gina Raimondo sheds light on the intricacies of the U.S.-China relationship. In an interview with All Things Considered host Mary Louise Kelly, Secretary Raimondo addresses the complexities of navigating a path where both nations can thrive as global superpowers.

Raimondo acknowledges the potential benefits of a growing and rule-abiding China, emphasizing that such a scenario could be advantageous for both countries and the world at large. However, she underscores the conditionality of this stance, emphasizing that for constructive engagement to occur, China must adhere to international rules and standards.

The U.S. Commerce Secretary expresses concern over practices that could undermine fair competition, including the subsidization of Chinese companies, reliance on forced labor, violations of labor and environmental standards, and the unauthorized acquisition of technology for military advancements. Raimondo emphasizes the need to safeguard American interests, encompassing the welfare of the American people, the economy, and national security.

The discussion delves into the details of U.S. strategy, with Raimondo highlighting the pivotal role of the CHIPS Act in countering the Chinese threat. The Act aims to fund U.S. manufacturing and support American companies, strategically positioning the nation to offset challenges posed by China's technological and economic advancements. As the U.S. seeks a delicate balance between cooperation and competition with China, Raimondo's insights shed light on the nuanced approach required to navigate this complex global relationship.

Addressing the critical issue of national security, U.S. Commerce Secretary Gina Raimondo provides insights into the multifaceted strategies employed to safeguard sensitive semiconductor technology from reaching the hands of the Chinese military. Emphasizing the non-negotiable nature of this imperative, Raimondo delineates the tools in her arsenal, comprising both offensive and defensive measures.

On the offensive front, Raimondo underscores the significance of the CHIPS Act, a substantial $52 billion investment aimed at bolstering American semiconductor manufacturing. The goal is to outpace China in innovation and maintain a leadership position in semiconductors and artificial intelligence. Raimondo envisions a future where the United States hosts 10 or more cutting-edge semiconductor manufacturing companies, contributing to economic growth and technological advancement.

Simultaneously, the defensive strategy involves restricting China's access to sophisticated U.S. technology. Through the tools at her disposal in the Department of Commerce, Raimondo has the authority to prohibit the sale of specific semiconductor chips, equipment, and artificial intelligence technology to China. This stringent approach is grounded in the conviction that such technology could potentially be utilized to advance China's military capabilities.

Raimondo's resolute stance leaves no room for negotiation on matters of national security. The clarity of purpose is underscored by the unwavering commitment to impede the development of Chinese military capacity. The delicate balance of engaging in areas of mutual interest while hindering potential threats is a cornerstone of the approach outlined by Raimondo, reflecting the complexities and strategic considerations inherent in U.S.-China relations.

In recognizing the global stakes, U.S. Commerce Secretary Gina Raimondo emphasizes the imperative of managing, rather than escalating, conflicts between the United States and China. With an awareness that the world cannot afford heightened tensions, Raimondo underscores the importance of communication in navigating this delicate balance. While acknowledging the need for toughness, she stresses the overarching goal of conflict management to prevent further escalation.

Shifting to another facet of her portfolio, Raimondo addresses the intricate landscape of artificial intelligence (AI) and the implementation of President Biden's executive order on the safety and security of AI. Acknowledging the tech industry's call for guidance and regulation, she candidly admits that the realm of AI is evolving faster than anticipated, requiring ongoing learning and adaptation.

When asked about the tools at her disposal to enforce AI policies, Raimondo delineates the ongoing policy work aimed at fostering innovation while ensuring safety and trustworthiness. However, she highlights the necessity for congressional action to imbue regulations with meaningful enforcement mechanisms. Raimondo envisions legislation as the linchpin, emphasizing that fines and penalties with teeth require the intervention of Congress. While the administration possesses regulatory capacity and is currently garnering support from major companies and venture capitalists, Raimondo contends that legislative action is indispensable for robust, enforceable regulations.

In expressing confidence in congressional efforts, particularly highlighting Senator Chuck Schumer's role, Raimondo underscores the collaborative approach underway. Despite the challenges in the dynamic landscape of AI, her vision sees a future where legislative measures fortify the regulatory framework, ensuring the responsible development and deployment of artificial intelligence technologies.

In conclusion, U.S. Commerce Secretary Gina Raimondo articulates a pragmatic and nuanced approach to managing conflicts with China, recognizing the global ramifications of heightened tensions. Emphasizing the need for effective communication and toughness when required, Raimondo underscores the imperative of conflict management to avert further escalation that the world cannot afford.

Shifting to the realm of artificial intelligence (AI), Raimondo acknowledges the evolving nature of the technology and the industry's call for regulatory guidance. While actively engaged in policy work to balance innovation and safety, she candidly admits that ongoing learning is essential in this rapidly evolving landscape.

Addressing the tools in her regulatory toolbox, Raimondo stresses the need for legislative action to enforce AI regulations effectively. Despite current efforts and support from major players in the private sector, she sees Congress as crucial in providing the necessary teeth, fines, and penalties to ensure compliance and accountability.

In expressing confidence in ongoing congressional initiatives, particularly under Senator Chuck Schumer's leadership, Raimondo reflects a collaborative spirit. As the administration works to fortify regulatory frameworks, her conclusion envisions a future where legislative measures play a pivotal role in guiding responsible AI development and deployment. The multifaceted strategy outlined by Raimondo underscores the complexity of managing global conflicts and emerging technologies, requiring a delicate balance between communication, toughness, and legislative action to ensure a secure and innovative future.