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Further, external affairs minister S Jaishankar and Raimondo launched “strategic trade dialogue” to address export controls, explore ways of enhancing high technology commerce, and facilitate technology transfer between the two countries.
Significantly, Raimondo had an unscheduled meeting with PM Modi. The talks cover the concern, heightened by Chinese expansionism and Russia’s war on Ukraine, over the need to cut dependence on self-aggrandising players by diversifying supply chains and restrict the supply of dual use technologies to unfriendly powers.
While semiconductors seemed to be the immediate focus, the US commerce secretary also said there was scope for the supply chain to expand to other electronic goods. Besides, she disclosed that her discussions with NSA Ajit Doval focused on working with a “trusted vendor base” in what was seen to be a reference to the realisation to move away from Chinese equipment manufacturers like telecom majors Huawei and ZTE, which have been seen a security risk.
The MoU on semiconductors is seen to be crucial given that the US is trying secure supply chains in the post-Covid period and enacting the CHIPS and Science Act to channelise investments of over $50 billion, the statement is seen to be an attempt to develop a supply chain that feeds into each other.
Gina Raimondo, Piyush Goyal hold India-USA Commercial Dialogue in Delhi
It also comes amid curbs imposed by the US commerce department on American companies from exporting to China technology, software and equipment used in producing advanced computing chips and supercomputers. There have been reports of the Biden administration working on possible investment restrictions as well in the coming months.
Asked if the deal with India was part of efforts to decouple from China, Raimondo said that the benign elements of trade with Beijing will continue but shared the fears over use of technology for military use by the communist regime. “The US does not seek to decouple from China, nor does it seek a technological decoupling from China. What we seek to do is ensure that certain technologies, where the US is ahead, and where China’s explicit strategy is to have these technologies and deploy them in the Chinese military apparatus, those are technologies that we have used export controls to ban sales to China… what it is about though is keeping eyes wide open to the fact that China is explicitly trying to get access to American technologies for use in its military ,” she said.
India, US sign MoU on semiconductor supply chain, in boost for New Delhi to attract investment in chip-making
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