US Commerce Secretary admits that sanctions against China are ineffective

The United States may reconsider relations with China. Commerce Secretary Gina Raimondo said the country should focus on investing in its own innovation rather than on restrictions and sanctions against China. “Trying to contain China is pointless,” she said.

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Despite existing export restrictions, Chinese companies are finding ways to circumvent sanctions using the black market and unofficial channels. Moreover, many Chinese enterprises continue to develop their technologies despite the obstacles created by American sanctions. In this regard, Raimondo emphasizes that the main strategy for the United States should be to get ahead of China through its own development. “The only way to beat China is to be one step ahead. We must move faster as this is the only way to success,” she said.

Interestingly, the minister’s statements came against the backdrop of Donald Trump’s approaching return to the White House. And even though the CHIP Act has received bipartisan support in Congress and some traditionally Republican-leaning states have already seen positive results from federal investments, Trump said in October that “the chip deal is a very bad deal.” Trump spokesman Kush Desai said that instead of direct government funding, Trump prefers to “impose tariffs, cut taxes, reduce regulations and develop American energy.”

Due to uncertainty regarding the future of the Law, many subsidy applicants are rushing to receive funding before January 20. However, Trump plans to speed up approvals for companies that plan to invest at least $1 billion in the United States, while reducing or completely eliminating some regulations.

Despite calls for less regulation, Raimondo believes the government should not allow companies to operate without restrictions, even if they have significant financial resources. In her opinion, a balance between supporting business and complying with regulations is necessary to maintain the competitiveness of the American economy.