Face the Nation: Sec. Gina Raimondo

Interview

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I think the reality is that inflation still exists and it - it is, you know, something that people see on a daily basis when they go to the grocery store or pay their rent or pay their mortgage. And we have to know that. You know, that's still a challenge for folks.

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Yes, they are worried. They are very worried. They are, I think, in some cases, frustrated that this is how government operates. You know, what businesses need to be successful is - is predictability. You know, predictability. Some semblance of, you know, regular order. And so these sorts of disruptions that are mainly driven by politics, it's a - it's a challenge for the economy and have the potential to set us back. So, I do hope that there will be a speedy resolution.

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I think we made a great deal of progress. In terms of concrete deliverables, I was able to open three specific lines of communication with the Chinese, which is a huge step forward. We haven't really had any contact in more than five years. So, we agreed to share information about export controls. We agreed to open a dialog on commercial issues, which is so important because China has not treated U.S. business fairly and so it's - we've got to put those issues on the table. And we agreed to have exchange around trade secrets, another area where businesses need to -- deserve to know that their trade secrets will be protected in China.

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They said that they would talk to American businesses and begin to address these issues. Like, for example, one of the complaints I hear frequently from U.S. business -- by the way, business who are used to doing business in difficult parts of the world -- they say that, you know, China's regulations are not at all transparent. You know, they'll raid a business in March and not explain what went on for many months. They will arrest folks, but not provide due process or tell you what happened. And so when I expressed these concerns, I was heard. I wasn't given any promises.

But one thing that I think we can take a bit of heart in is, it's in China's interests, it's in their economic interests, to have foreign direct investment and to make sure, you know, they had a very good economy when they were market oriented and reform minded.

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Trust is probably not the word I would use. We need to see action. And until we see action, there can be no trust.

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Exactly. And I said that. You know, hacking my account erodes trust. Undermining American workers by over subsidizing certain industries erodes trust. Treating American businesses unfairly on the ground erodes trust.

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I think there's no question that it is slowing down, and certainly they're having real, real significant challenges in the real estate sector, which they readily acknowledged when I was there. But again, the -- to my mind the facts are quite clear in this regard. When China was more market oriented, open, you know, a little bit more transparent, their economy did very well. And more recently, as they have closed down and become more arbitrarily in the way they administer regulations, the economy is quite challenged. So, time will tell.

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We have to be very, very careful. We have to screen every investment and make a decision as to whether it hurts our national security or not. Not every investment from China into America is -- harms our national security, but many do. And so it's a case-by-case basis, looking into the facts and being as tough as we need to be, but also being, you know, realistic and not hyperbolic, just being -- like I say, practical. It's time it to be practical, pragmatic and serious about managing every aspect of this relationship.

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Thank you. Have a great Labor Day weekend.

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