The United States Secretary of Commerce, Gina Raimondo, stated in an interview with CNBC that America’s economic engagement in the Indo-Pacific region aims to strengthen the US presence in the area, emphasizing that it is unrelated to China (CCP).
Raimondo led a delegation to Singapore this week to participate in the Ministerial Meeting of the “Indo-Pacific Economic Prosperity Framework” (IPEF), which involves 14 countries.
The framework was launched by President Biden approximately two years ago to promote economic and trade cooperation among member countries. It is also seen as a means for the US and its allies to counter the CCP in the region.
Raimondo explained that a robust “active” presence by the US in the Indo-Pacific region contributes to its security and stability. She highlighted that the framework primarily aims to strengthen the relationship between the US and its regional allies.
“China (CCP) is doing what China (CCP) does. They are investing here, that’s their approach,” Raimondo told CNBC during the IPEF Ministerial Meeting in Singapore, “but we are here, it’s not about China (CCP), it’s about the US presence in the region.”
Alongside the IPEF Ministerial Meeting, the “IPEF Clean Economy Investor Forum 2024” was also held this week.
According to a statement from the US Department of Commerce, IPEF member countries signed a “clean economy” agreement on Thursday, announcing $23 billion in investment opportunities to accelerate sustainable infrastructure projects in the region.
During her visit to the Indo-Pacific, Raimondo also engaged in bilateral meetings with partner countries. She emphasized that the US does not seek to prevent regional countries from deepening economic ties with China.
“We are not here to tell these countries what to do,” she said, adding that the US will significantly enhance economic support to the region through technology, technical assistance, and capital.
At a recent G7 meeting, US Treasury Secretary Janet Yellen issued a warning regarding the issue of overcapacity driven by industrial policies of the Chinese government.
China’s industrial overcapacity, or excess production of goods, has been undermining global competitors’ prices and drawing increasing global scrutiny. Other countries have pointed out that such production often receives substantial government subsidies.
During a trip to Europe, the Chinese Minister of Commerce denied the notion of “overcapacity,” calling it “unfounded.”
Raimondo asserted that when China floods the market with its subsidized products, “no matter what the product is, it disrupts global prices,” leading to a collective sense of insecurity.
She mentioned that while each country must make its own decisions, “if we act together, I think that’s a way of sending a message to China (CCP).”