U.S. Commerce Secretary Gina Raimondo stated on Monday that she spoke with Chinese Commerce Minister Wang Wentao about her worries on a number of US corporate difficulties, such as Intel (INTC.O) and Micron (MU.O).
In a brief conversation with two reporters, Raimondo revealed that in-depth and frank discussions with Wang included topics such as limits China has placed on the exports of germanium and gallium. She spent more than two hours with Wang, followed by a two-hour lunch.
In May, Raimondo stated that the US “won’t tolerate” China’s actual prohibition on the acquisition of Micron Technology (MU.O) memory chips and that the US is collaborating closely with partners to confront this “economic coercion.”
After failing to obtain clearance from China’s government, Intel halted its $5.4 billion acquisition of Tower Semiconductor earlier this month.
With more than 60% of the world’s supply coming from China, the largest producer of germanium, limits on the export of eight gallium and six germanium products—both used in the production of semiconductors—were announced in July and would take effect on August 1 due to national security concerns.
China has agreed to establish a new official working group to address trade disputes with the United States, Raimondo said earlier on Monday.
The purpose of the new commercial problems working group is to “seek solutions on trade and investment issues and to advance U.S. commercial interests in China.” It consists of representatives from the U.S. and Chinese governments as well as the private sector.
As part of their agreement, the US and China would bring together subject matter experts for technical conversations “regarding strengthening the protection of trade secrets and confidential business information,” according to Raimondo.
