Biden takes a hard line on trade with China

Biden takes a hard line on trade with China

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Islam News – The Biden administration offered its strongest signal yet that the U.S. would maintain the combative economic approach toward China that was adopted under former President Trump, using trade barriers and other punitive measures.

The New York Times reported today that Senior administration officials said before U.S.-China trade talks that President Biden would not immediately lift tariffs on Chinese goods and that he would hold Beijing accountable for trade agreements made during the Trump administration.

Katherine Tai, the U.S. trade representative, said she would begin talks in the coming days with her Chinese counterpart. “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,” she said in a speech on Monday.

Officials did not rule out more tariffs if talks did not go well.

Details: The strategy will require China to uphold commitments from an initial trade deal reached in 2020, including its promise to buy an additional $200 billion worth of American goods and services by 2021. China is on pace to fall short of its purchasing commitments, according to one expert tracking the purchases.

But in a move that would provide some relief for businesses that import Chinese products, U.S. officials said they would bring back a process that excludes certain companies from tariffs.

Context: Biden’s hard-line approach to China comes at a moment of extraordinary tension between the world’s largest and second-largest economies and remarkably little interchange between their governments.

Related: Shares of China Evergrande were halted on Hong Kong’s stock exchange on Monday, pending an unspecified deal, as doubts swirled over whether the struggling property giant would be able to meet its huge financial obligations.

Source: The New York Times