U.S. Trade Chief Tai to Unveil Biden’s China Business Strategy on Monday
WASHINGTON (Reuters) – U.S. Trade Representative Katherine Tai will unveil the Biden administration’s long-awaited strategy for the troubled U.S.-China trade relationship on Monday in a speech to a think tank in Washington, DC, announced his office.
Tai will speak on his review of China’s trade policy at the Center for Strategic Studies in Washington and participate in a question-and-answer session, USTR said in a statement on Thursday.
Since taking office in March, Tai has conducted a top-down review of Washington’s trade policy in China.
U.S. Joe Biden has maintained tariffs on hundreds of billions of dollars in Chinese imports imposed by former President Donald Trump, but his administration has so far revealed little about the how she would approach what she calls China’s trade and non-market subsidy practices.
Tai’s remarks on Monday at 10:00 a.m. EDT (2:00 p.m. GMT) will mark the start of the final three months of the US-China “Phase 1” trade deal that Trump struck with Beijing in early 2019, mitigating a tariff war between the two largest economies in the world. He called on China to increase its purchases of U.S. agriculture and manufactured goods, energy and services by $ 200 billion over the two years through the end of 2021 from 2017 levels.
Officials in the Biden administration have said that China has failed to live up to its commitments in the Phase 1 trade deal and that they intend to honor its international trade commitments.
Chad Bown, a senior researcher at the Peterson Institute for International Economics in Washington, estimates that Chinese purchases of U.S. exports through August represent about 62 percent of Phase 1 targets, based on U.S. export data.
Tensions between the two economic powers also increased as the United States restricted Chinese companies’ access to sensitive American technologies.
Tai said the United States faces “very great challenges” in its trade relationship with China that require commitment from the entire Biden administration. She called on Congress for new trade law tools to counter massive Chinese state subsidies to high-tech sectors.
The Biden administration has sought to rally U.S. allies in Washington to deal with what it says are Beijing’s abusive trade policies. Officials from the United States and the European Union met in Pittsburgh on Wednesday to deepen transatlantic cooperation on technology regulation, protect sensitive technologies and address challenges posed by “marketless economies” – a reference to the China.
Reporting by David Lawder; Editing by Edwina Gibbs