U.S. Trade Representative Katherine Tai said at a hearing of the House of Representatives’ Accounting Committee on Wednesday (30th) that the U.S. strategy of imposing large-scale tariffs on China has not forced China to change its unfair trade practices, and the U.S. should Adjust the trade policy towards China.
The United States and China signed the first phase of the trade agreement in 2020. China promised to purchase an additional $200 billion in goods and services from the United States between 2020 and 2021. However, China only fulfilled regarding 60% of the purchase amount, while Dai Qi is in Talks with Chinese Vice Premier Liu He began last October.
Dai Qi pointed out on Wednesday that China will only abide by those trade obligations that are in its own interests, and that the US has imposed large-scale tariffs on China, which has little impact on Beijing’s policy.The U.S. side must admit that the U.S.-China phase one trade deal has limitations.
Dai Qi believes that the future US strategy towards China will not only be limited to urging China to make changes, but also need to vigorously defend American values and economic interests from the negative impact of China’s economic policies and practices.
Dai Qi mentioned that the United States should no longer be entangled in making China change its practices in the past, but should instead seek policies to encourage domestic manufacturing in the United States, which will be more beneficial to the US economy.
The Chinese government is aggressively pursuing global dominance in key technology areas such as electric vehicles, batteries and semiconductors. Dai Qi pointed out that the Chinese industry has benefited from excessive and unfair trade subsidies, and the US trade remedies are too slow or cannot be effectively resolved. Therefore, in order to ensure that the United States remains competitive, the United States must develop new tools to defend its own economic interests. And make strategic investments in the U.S. economy.
Dai Qi called on the U.S. Congress to pass a bill to provide $52 billion in subsidies for U.S. semiconductor manufacturers, and the U.S. Senate and House of Representatives are forming a joint panel to resolve differences between the two versions.
