China’s Minister of Commerce Wang Wentao met with Sanjay Mehrotra, president and CEO of the US chip giant Micron Technology on Wednesday, the Ministry of Commerce (MOFCOM) said on Friday via its official Wechat account, which experts said sent a strong signal that China-US ties are getting warmer amid frequent bilateral exchanges at the level of the central or federal government and local governments.
Wang noted that China has been unswervingly promoting high-level opening-up, continuously optimized the business environment for foreign investment, and provided services and guarantees for foreign-funded enterprises.
Micron Technology is welcome to continue to take root and deeply cultivate the Chinese market and realize better development under the premise of complying with Chinese laws and regulations, Wang noted.
Mehrotra expressed his willingness to expand investment in China.
According to Micron’s official Wechat account, the two parties discussed Micron’s business development in China, as well as previously announced plans to increase capital for its Xi’an plant operations in Northwest China’s Shaanxi Province.
Mehrotra said that Micron appreciates the strong support from the MOFCOM for the company’s growth in China. “We will continue to strengthen our close cooperation with all sectors in China, including communities, universities, industrial companies and the Chinese government.”
In June, Micron announced that it would invest over 4.3 billion yuan ($603 million) in its packaging and testing plant in Xi’an in the next few years, which the company said “showcased its unswerving commitment” to the Chinese market.
Ren Hongbin, president of the China Council for the Promotion of International Trade, met with Mehrotra on Thursday. The two sides exchanged views on Micron’s business development in China and strengthening pragmatic cooperation between China and the US business community in the field of digital economy.
The meetings came after the company announced to attend the 6th China International Import Expo from November 5 to 10 in Shanghai. This would be the first time the US chipmaker attends the event, and the firm is actively making relevant preparations, according to media reports.
“It has always been China’s policy to maintain good China-US relations and normal economic and trade exchanges and cooperation. Following the security review on Micron in May, this meeting reflects the company’s willingness to comply with the Chinese law and its attitude to continue developing in the Chinese market, which is valuable for both sides,” Xiang Ligang, a veteran telecom industry observer, told the Global Times on Friday.
In May, Micron failed to pass a seven-week cybersecurity review by Chinese regulators, who concluded that Micron’s products have serious network security risks that pose a significant security threat to China’s critical information infrastructure supply chain and affect China’s national security.
Xiang noted that the US suppression will make policy adjustments if it fails to achieve results. The meeting is seen as a signal of the gradual easing of China-US relations.
US Treasury Secretary Janet Yellen said on Thursday that a full decoupling of the US and Chinese economies was “simply not practical,” especially given the complexity of Asian supply chains and deep economic linkages to China in the region, Reuters reported.
Since this year, China and the US have made intensifying official and business exchanges despite some US politicians’ “decoupling” push.
California Governor Gavin Newsom paid a visit to China in October, aiming to enhance cooperation on environmental protection, climate change response and clean energy development with China.
The American Chamber of Commerce in Shanghai announced on Thursday that it will co-host the American Food and Agriculture Pavilion with the US Department of Agriculture at the upcoming CIIE, marking the first official US participation in China’s major import fair since its first edition in 2018.
(Global Times)
