“New Approach” to US/China Trade

According to US Trade Representative, Katherine Tai, in a speech before the Center for Strategic and International Studies, the Biden Administration is seeking a new approach to the U.S.-CHINA TRADE RELATIONSHIP.  The changes may include the possibility of new 301 Tariffs and exclusions.

Here are a few highlights of Ambassador Tai’s comments:

• The U.S. will restart a targeted China 301 tariff exclusion process to mitigate the effects of certain Section 301 tariffs that have not generated any strategic benefits and raised costs on Americans. Such an exclusion process (a time frame for which has not yet been announced) would seek to ensure that the current China 301 tariffs align with such priorities as boosting American workers’ wages and job opportunities, securing the resilience of critical supply chains, sustaining the U.S. technological edge, and protecting national security interests.
• The U.S. expects China to carry through on the commitments it made during the “Phase One” Agreement to purchase additional U.S. products.
• The U.S. has serious concerns with China’s state-centered and non-market trade practices that were not addressed in the Phase One deal. The U.S. will use the full range of available tools (to potentially include additional tariffs) to defend American economic interests.  When asked whether additional tariffs would require a new China 301 investigation, Ambassador Tai indicated that she would defer to her legal team.
• The U.S. will work with its allies to shape the international rules for fair trade in the 21st century.

While all of this sounds logical and practical, it will be interesting to see what China’s reaction will be when the two sides begin negotiations.  As far as we’re concerned, we would not bet the ranch on a slam dunk here! Learn more by reaching out.