US business trust in China is 'wearing thin', Commerce Secretary warns

Gina Raimondo made comments after recent visit to Beijing

US Commerce Secretary Gina Raimondo in Shanghai last month. Bloomberg

Commerce Secretary Gina Raimondo has warned China that the patience of American businesses was “wearing thin", saying US companies deserved a “predictable environment and a level playing field".

The two biggest economies in the world used to be each other's largest trade partners, but Washington now trades more with neighbouring Canada and Mexico, while Beijing trades more with South-East Asia.

Ms Raimondo said in interviews broadcast on Sunday that her recent visit to China produced “a great deal of progress", although “there can be no trust” unless Beijing takes action in areas such as more predictable regulations.

She told Chinese officials that there was strong appetite among US businesses to make the relationship work and that, while some actions of the Chinese government were positive, the situation there needed to match the talk.

“China is making it more difficult,” Ms Raimondo told CBS.

“I was very clear with China that … patience is wearing thin among American business. They need and deserve a predictable environment and a level playing field.

"And hopefully China will heed that message so we can have a stable, growing commercial relationship.”

Ms Raimondo has said US companies faced new challenges, among them unexplained large fines, raids on businesses and changes to a counter-espionage law.

“I was very clear, direct and firm in all of my conversations with my Chinese counterparts,” she told CNN. “I didn't pull any punches. I didn't sugar-coat anything.”

Ms Raimondo also said that she had brought up to Chinese officials that her email account was hacked before her late August trip to China.

“They suggested that they didn't know about it and they suggested that it wasn't intentional,” she told CNN.

“But I think it was important that I put it on the table and let them know that it's hard to build trust when you have actions like that.”

China is dealing with a slowdown that has unnerved global markets, with the spotlight now firmly focused on troubled developer Country Garden's debt crisis in a sector that contributes to about a quarter of the economy.

Agencies contributed to this report

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