No Major Change of US-China Trade Policy

Commentary U.S. Trade Representative Katherine Tai largely embraced the Trump administration’s muscular approach, while indicating possible consideration of shifts on some specific tariff issues, during her first formal statement of the Biden administration’s trade policy on China on Oct 4. While indicating that the Biden team might consider lifting some tariffs on imports of goods from China, Tai emphasized that China has never played the game of globalization according to the rules. She pointed out that in industries from steel to solar panels, huge subsidies and preferences for state-owned enterprises have unfairly shifted comparative advantage and enormous quantities of production to China, while destroying these industries in free world, free market countries like the United States, Japan, Australia, and the European Union. Tai added that efforts to change China’s trade practices and policies, or to halt its mercantilist subsidies of targeted high-tech industries, have not been effective in the past …

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