China calls on US to lift sanctions

Stable China-United States business ties would contribute to the security and stability of global industrial supply chains, fostering a favorable policy environment for collaboration between companies from both sides, said market watchers and business executives on Wednesday.

China's Ministry of Commerce said on Tuesday that China has called on the US to promptly lift sanctions on Chinese companies and enhance the business environment for its firms operating in the US.

During a phone call with US Secretary of Commerce Gina Raimondo on the same day, China's Minister of Commerce Wang Wentao expressed serious concerns over US policies on semiconductors, targeting China, and restrictions on Chinese intelligent connected vehicles.

It is necessary to clarify national security boundaries in the economic and trade fields, as it is conducive to maintaining the security and stability of global industrial supply chains and creating a favorable policy environment for cooperation between the business communities from the two countries, Wang stressed.

This conversation was part of the institutional communication arrangement between the commerce authorities of both countries, said the Ministry of Commerce.

As many global industries, such as electronics, automotive and pharmaceuticals, rely on components and materials sourced from both China and the US, a stable relationship can minimize disruptions and prevent production delays and supply shortages in many business areas, said Wang Zhongmei, a researcher at the Institute of World Economy of Shanghai Academy of Social Sciences.

Zhang Yongjun, a researcher at the China Center for International Economic Exchanges in Beijing, warned that given various factors such as the upcoming US election in early November, it is critical to view Sino-US economic and trade relations with caution.

In the short term, there will be challenges, but in the long run, the trend of mutually beneficial cooperation between China and the US remains unchangeable, said Zhang.

"For US companies, China is an indispensable market," he added. "If trade tensions escalate, these companies may once again urge the US government to adopt a more proactive and balanced economic and trade policy. Business needs can, to a certain extent, influence government actions."

According to the 2024 Kearney FDI (foreign direct investment) Confidence Index, reflecting investors' expectations for FDI over the next three years, China's global ranking has risen from seventh to third place.

"Multinational companies initially looked at China as a supplier and then as a huge market. But now, increasingly, we are looking at China as an innovation center," said Andrew Wu, general manager of the China branch of US-based commercial data and analytics firm Dun & Bradstreet.

Also viewing China as crucial to its global business strategy, Willie Tan, CEO of Skechers China, South Korea and Southeast Asia, said that despite external challenges, China remains a crucial market for global brands. Its vast consumer base, strategic importance in global supply chains and ongoing commitment to reform and innovation create significant opportunities.

With over 3,500 stores in China, the US footwear brand plans to continue market expansion in the coming years.

Mark Jaffe, CEO of the Greater New York Chamber of Commerce, said that no one wants to halt cooperation and exchange between the two countries. China and the US have already established long-term partnerships in fields such as artificial intelligence and pharmaceuticals.

In the face of increasingly intense global competition, Jaffe said it will be necessary for the two sides to further expand and deepen trade relations in the future.

In the first eight months of 2024, the US remained China's third-largest trading partner, with the total trade value between the two countries reaching 3.15 trillion yuan ($446.21 billion), up 4.4 percent year-on-year and accounting for 11 percent of China's total foreign trade value, statistics from the General Administration of Customs showed.