U.S. Commerce Secretary Gina Raimondo told CNBC that U.S. economic participation in the Indo-Pacific region is “not for China,” but to strengthen the U.S. presence in the region.
President Joe Biden Launching the Indo-Pacific Economic Prosperity FrameworkAbout two years ago, it involved 14 countries and engaged in economic and trade cooperation among member countries. IPEF is also seen as a means to counter China in this area.
Raimondo said the Indo-Pacific is more secure and stable when the United States has a strong and “active” presence in the region, adding that the framework is more about solidifying relationships in the region.
“China is doing what China is doing. They’re investing here, that’s what they do,” Raimondo, who was in Singapore for the IPEF ministerial meeting, told CNBC’s Eunice Yoon.
“But we are here. This is not about China. This is about the American presence in the region.”
IPEF member states on Thursday signed a “clean economy” agreement and announced $23 billion in investment opportunities to accelerate sustainable infrastructure projects in the region, According to a statement from the Ministry of Commerce.
During his visit, Raimondo also participated in bilateral meetings with partner countries to address multiple issues, including climate goals.
“Singapore has long advocated active US engagement in the region, particularly in Southeast Asia, and we have always acted in line with this belief,” Singapore’s Ministry of Foreign Affairs said. Prime Minister Lawrence WongAfter meeting with the U.S. Secretary of Commerce.
Raimondo stressed that the United States will not prevent countries in the region from deepening economic ties with China.
“We are not here to tell these countries what to do,” she said. “They all trade with China, they all trade with China for electric vehicles…and that’s good.”
The United States has also stepped up economic support for the region “on a massive scale” by providing technology, technical assistance and capital, she added.
exist Recent G7 meetingU.S. Treasury Secretary Janet Yellen warned China over its state-driven industrial policies.
China’s industrial overcapacity – or overproduction of goods that undercuts global rivals on price – is a growing concern around the world. Other countries claim that such production is often heavily subsidized.
China’s commerce minister dismissed accusations of “overcapacity” during a trip to Europe, calling them “baseless”.
Raimondo said that when China dumps its subsidized products onto the market, “no matter what the product is, it destroys overall prices around the world,” adding that it makes “all of us less safe.”
While each country has to make its own decision, “if we act together, I think that’s the way to send the message to China.”
—CNBC’s Evelyn Cheng contributed to this report
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