On Monday, March 1, the Office of the U.S. Trade Representative released the Biden Administration’s first trade policy agenda and annual report, stating that it will use “all available tools” to combat China’s (CCP) unfair trade practices.
The report states that the Biden Administration recognizes that China’s (CCP) coercive and unfair trade practices hurt American workers and businesses, threaten U.S. technological superiority, weaken U.S. supply chain resilience and undermine U.S. national interests, including theft of intellectual property, forced technology transfers and industrial subsidies. Therefore, the U.S. Trade Office needs to have a comprehensive, systematic and strategic approach and use all available tools to address the Chinese (CCP) challenge.
Under the Trump administration, the United States has taken an unprecedentedly tough approach to the trade practices of the CCP. The two sides negotiated the first phase of a trade agreement that requires China to increase its purchases of U.S. goods and services by $200 billion over two years and to remove some market barriers. At the same Time, on top of a ban on imports of forced labor products, the Trump Administration went on to introduce sanctions under the Forced Uighur Labor Prevention Act.
But one year into the trade agreement, China (CCP) has not met its promised procurement targets, in part because of the New Coronavirus (CCP virus) outbreak that has affected the economy. The Biden administration therefore needs to decide whether to retain the tariffs imposed on some $370 billion in Chinese goods to pressure Beijing (CCP) to comply with the terms of the agreement. The Biden administration is currently conducting a comprehensive review of U.S. trade policy toward China (the Chinese Communist Party).
Biden’s nominee for U.S. trade representative, Katherine Tai, said during her Senate confirmation hearing last week that she will continue to pursue the first phase of the trade agreement and promote the Chinese side’s compliance with its commitments. She argued that tariffs are a very important part of a fair trade remedy tool. In addition, the U.S. will explore “every possible option” to address China’s (CCP) intellectual property theft and lack of market access to the United States. She also noted that the United States needs to have a strategic and coherent trade policy with China.
In addition to addressing the Chinese Communist Party’s trade challenges, the Biden administration noted that combating the New Coronavirus (CCP virus) Epidemic and ensuring economic recovery are priorities for the administration. The Biden administration will ensure that the country is better prepared for future public health crises by increasing domestic investment and strengthening the manufacturing supply chain. The report also said the United States will work closely with allies to restore Washington’s global leadership in addressing labor issues, climate change and unfair trade practices.
The report specifically mentions that the Biden administration will make it a priority to address the issue of forced labor by the Chinese (Communist) government against the Uighurs and other ethnic and religious minority groups in Xinjiang, noting that “Americans and consumers around the world do not want products made with forced labor on store shelves. Workers should not be disadvantaged by the oppression of state power.”
The U.S. Congress requires the U.S. Trade Representative to submit the President’s Trade Policy Agenda and Annual Report detailing his trade policy by March 1 of each year.
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