U.S. Trade Chief Tai to Reveal Biden’s China Trade Strategy on Monday, Reports Reuters

By David Lawder

WASHINGTON – U.S. Trade Representative Katherine Tai is set to reveal the Biden administration’s long-anticipated strategy for the challenging U.S.-China trade relationship in a speech on Monday at a research institution in Washington, D.C., according to her office.

In her address at the Center for Strategic Studies, Tai will discuss her assessment of China trade policy and will engage in a question-and-answer session.

Since her appointment in March, Tai has been undertaking a thorough review of the United States’ trade policy towards China. President Joe Biden has maintained tariffs on hundreds of billions of dollars in Chinese imports that were put in place by former President Donald Trump. However, the administration has yet to disclose specific plans for addressing what it describes as China’s non-market trade practices and subsidization.

Tai’s remarks at 10 a.m. EDT on Monday will coincide with the conclusion of the "Phase 1" trade agreement between the U.S. and China, which was initiated by Trump in early 2019. This agreement aimed to ease the tariff conflict between the two largest global economies and required China to increase imports of U.S. agricultural, manufactured goods, energy, and services by $200 billion by the end of 2021 based on 2017 figures.

Officials from the Biden administration have asserted that China has not fulfilled its commitments under the Phase 1 agreement and intend to ensure compliance with international trade standards.

Chad Bown, a senior fellow at the Peterson Institute for International Economics, estimates that as of August, China’s imports of U.S. goods are at approximately 62% of the targets established in the Phase 1 deal, based on data from U.S. exports.

The economic rivalry has intensified as the U.S. has restricted access to its sensitive technologies for Chinese companies.

Tai has acknowledged the "very large challenges" in the trade relationship with China, emphasizing the need for collaborative engagement across the Biden administration. She has also called on Congress for new trade law powers to combat substantial Chinese state subsidies in high-technology sectors.

The Biden administration is working to unite U.S. allies in addressing perceived unfair trade practices by Beijing. Recently, U.S. and European Union officials convened to enhance transatlantic cooperation on technology regulation, safeguard sensitive technologies, and tackle issues related to "non-market economies," referring specifically to China.