National flags of China, the United States, and the Chinese Communist Party are displayed on flag stalls at the Yiwu Wholesale Market in Yiwu, Zhejiang Province, China, May 10, 2019.
Ally Song | Reuters
The communication “seeks to create a good environment for economic and trade cooperation between the two countries, especially in stabilizing business expectations,” Wang said in Mandarin at a press conference translated by CNBC.
He did not mention U.S. high-tech regulations, but said sanctions would create uncertainty for businesses and “significantly increase” compliance costs.
Over the past two years, the Biden administration has imposed export controls that limit the ability of Chinese companies to buy high-end semiconductors and other advanced technologies from U.S. companies. The US government argued that this was a way to prevent the Chinese military from accessing cutting-edge technology while preserving areas of cooperation.
“I have always believed that the common interests of China and the United States in economy and trade are far greater than our differences,” Wang said.
U.S. and other foreign companies in China have long complained of challenges in doing business in the Asian country, including unequal treatment of foreign companies compared to local companies. In recent days, international companies have said that the Chinese government's vague rules on transferring data abroad are making their operations difficult.
In the fall, the Cyberspace Administration of China (CAC) released new draft rules stating that data exports that regulators have not deemed “critical” do not require government oversight. The move is widely seen as an improvement for foreign companies, but no formal policy has yet been decided.
When asked for an update on the data rules on Friday, Wang said only that “the Ministry of Elementary Affairs is stepping up efforts to make the rules public.”
He said China is acting on a 24-point plan to support domestic and foreign businesses announced last summer, and that “more than 60%” of the measures have been implemented or are progressing. Mr. Wang also said the ministry is establishing regular channels for foreign companies to share feedback.
During a visit to China last year, Raimondo called for more action to make U.S. companies more predictable in China. Of her 24-point plan, she said, “You can work on any of them as a way to demonstrate action.”
China's economic growth is set to grow by 5.2% in 2023, slowing from the double-digit pace of previous decades. Growth is expected to slow further this year.
Wang told reporters on Friday that the international trade situation will be “even more complex and tough” this year, pointing to factors such as rising geopolitical tensions.
Foreign direct investment fell 8% to 1.13 trillion yuan ($160 billion) in 2023, the lowest level in three years, according to data from the Ministry of Commerce. The report did not say how much the United States invested in China, but noted that France and the United Kingdom had the largest increases in such investments last year.
China aims to increase foreign investment into the country.
At the World Economic Forum's annual conference in Davos, Switzerland, earlier this month, Chinese Premier Li Qiang gave a speech that portrayed China as an opportunity rather than a risk.
Eurasia Group founder and president Ian Bremer said in a Monday memo that “Davos has been exposed to a number of issues including intellectual property rip-offs, sudden contract changes, and arbitrary legal decisions favoring local competitors. There are a lot of CEOs talking about it.”
“But I have also seen an increase in access over the past few months, as well as a wide range of CEOs across a variety of sectors (finance, healthcare, insurance, manufacturing, technology, luxury goods, transition energy, etc.) speaking to me. “We were impressed with the new business terms, licenses and partnerships that they were legitimately enthusiastic about,” Bremer said.
He said that “almost every CEO of a Fortune 500 company with operations in China” he met there was planning to travel to China more this year than last year.
“Even with 2-3% growth, the shift in political impulses from the world's second-largest economy, with its large industrial infrastructure and huge consumer base, cannot be ignored.”
