Raimondo’s China Tour Offers Glimmer of Hope to Battered U.S. Businesses
airport, was a reminder of the difficulty U.S. companies face. Chinese airlines resumed flights with the 737 MAX in January, but the simmering U.S.-China trade dispute has limited deliveries to a handful of other Boeing aircraft in recent years and all but halted new orders.
Boeing has stored 85 MAX jets built for Chinese airlines, and the resumption of deliveries would unlock much-needed cash. Despite some earlier hopes, Raimondo didn’t touch on the resumption of MAX deliveries. Raimondo’s visit comes amid the most fractious U.S.-China commercial relations in recent years.
American companies have been caught in the geopolitical tit for tat between the two countries, while Beijing’s harsh anti-Covid measures, a slowing economy and greater domestic competition have eaten into the margins of U.S. businesses there. After the Biden administration slapped export controls preventing American chip technology from entering China’s chip industry, China banned major domestic firms from buying from chip-maker Micron Technology, citing “significant security risks." This month, an Intel deal to acquire Israeli company Tower Semiconductor also fell through after Chinese regulators failed to approve the deal.
China has also increased scrutiny on consulting and due diligence firms, questioning staff at Bain & Co. and slapping Mintz Group with a $1.5 million fine for alleged illegal work. Some in the U.S.
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