The US Commerce Department is raising concerns about business conditions in China, calling investments in its economy too risky.
The general attitude of American investors toward the business climate in the world’s second-largest economy has been voiced by US Commerce Secretary Gina Raimondo. During her recent visit to China, the head of the department expressed serious worries about unreasonably high risks for foreign investors.
"Increasingly I hear from American business that China is uninvestible because it's become too risky," Raimondo said. According to the commerce secretary, US companies are facing new challenges, including "exorbitant fines without any explanation, revisions to the counterespionage law, which are unclear and sending shockwaves through the US community; raids on businesses – a whole new level of challenge and we need that to be addressed."
Raimondo cited the situation with US chipmaker Micron Technology, noting that there was "no rationale given" for the Chinese authorities to introduce tight export control measures. Notably, China banned its local operators of critical information infrastructure from purchasing Micron products in May.
"All of that creates uncertainty and unpredictability. So businesses look for other opportunities, they look for other countries, they look for other places to go," Raimondo noted.
In an attempt to protect domestic investors, US President Joe Biden signed an executive order prohibiting certain US investments in China's technology industry. The document seeks to "address the national security threat posed by countries of concern" that advance sensitive technologies critical to military, intelligence, surveillance, or cyber-enabled capabilities.
