US strengthens tech ties with India but doesn’t seek decoupling from China, Raimondo says

US strengthens tech ties with India but doesn’t seek decoupling from China, Raimondo says

The U.S. authorities isn’t searching for to “decouple” from China, neither is it searching for “technological decoupling,” but Washington “wish to see India obtain its aspirations to play a bigger position within the electronics provide chain,” U.S. Commerce Secretary Gina Raimondo stated on Friday.

On its half, the U.S. signed a memorandum of understanding with India on Friday to cooperate within the semiconductor sector.

The semiconductor industries in each the nations are starting to evaluate the resiliency and gaps within the provide chain community, stated Raimondo, whose division is overseeing pouring of about $52 billion into the U.S. semiconductor trade.

“You don’t need to imagine me once I say that it is a consequential relationship and the U.S. authorities is happy to lean into this relationship with the federal government of India… the truth that ten main CEOs from the U.S. got here right here and have pledged to do extra enterprise in India… I feel that’s a testomony,” she advised reporters at a press convention in New Delhi.

India, the world’s second most populous nation, holds key significance within the ever-shifting geopolitical relationships amongst many highly effective nations. The U.S.’s growing alliance with India, with whom it additionally maintains a strategic dialogue by means of a Quad group with Japan and Australia, is emblematic of the rising issues from American policymakers to chop reliance on China.

But at the same time as India and the U.S. tighten their tech ties, Washington isn’t seeking to reduce reliance on China, she insisted. “We see India as a trusted expertise associate and we wish to proceed to deepen our technological relationship with India. But I additionally wish to make it clear that the US doesn’t seek to decouple from China.”

“What we seek to do is be sure that sure applied sciences the place the US is forward and the place China’s express technique is to have these applied sciences and deploy them in Chinese language army equipment, these are applied sciences that now we have used export management to ban the sale to China. So we take pleasure in commerce with China. The overwhelming majority of commerce with China is in benign merchandise and that can and may proceed.”

The nearer ties with India isn’t about decoupling, but it’s about protecting “eyes broad open to the truth that China is explicitly attempting to get entry to American applied sciences to be used in its army and we have to defend ourselves and our allies and companions,” she added.

The partnership comes as India is aggressively providing $10 billion in incentives to win manufacturing initiatives from worldwide chip companies. New Delhi has been in a position to appeal to a lot of companies to develop their presence in India, but many trade leaders together with Intel and TSMC have but to make a broader play.