The President Joe Biden-led United States government has started defining its China trade policy, noting that it aims to launch new talks with Beijing but will keep existing tariffs in place, while also restoring the ability of U.S. importers to seek exemptions from those levies.
It was gathered that the new policy, outlined by U.S. Trade Representative Katherine Tai, largely builds on the China trade policy initiated by former President Donald Trump, who launched the biggest trade war since the 1930s in an attempt to get China to buy more U.S. goods and to stop it from pressuring American companies to hand over their trade secrets.
In her words, Tai said the U.S. would pester China to carry out pledges it made as part of the Phase One accord signed in January 2020—including by maintaining steep tariffs put in place by Trump on what is currently about half of China’s exports to the U.S.
Delineating on the development she said there were no plans to launch an investigation into Chinese trade practices, which had been under discussion within the administration.
In a speech at the Center for Strategic and International Studies, a Washington think tank, she “We will use the full range of tools we have and develop new tools as needed to defend American economic interests from harmful policies and practices”.
But, she stated that the U.S. will reopen a process for U.S. companies to seek exemptions from tariffs. It would be recalled that exemption process ended after President Biden took office, drawing complaints from manufacturers and others who say they have no cost-effective alternatives to certain Chinese components.
However, she clarified that the U.S. wouldn’t take any specific new actions until after she has talked with her Chinese counterpart, Chinese Vice Premier Liu He.
Multiple reports have it that Tai’s remarks were received in Beijing with a mix of relief and caution. Some officials reportedly saw positive signs in that she didn’t outright accuse China of failing to meet the Phase One agreement and wants to restart trade talks with her Chinese counterpart.
But, reports have it that Beijing has been disappointed with the Biden administration’s China policy so far. President Xi Jinping and his underlings wanted the new White House to reverse the anti-China measures put in place by Trump.
