October 09, 2021
Cautious welcome for Biden administration's new China trade policy
Cautious welcome for Biden administration's new China trade policy By Target Language Translation Services | Updated: 2021-10-09 15:00 Trade groups and experts have given a cautious welcome to the Biden administration's new China trade policy, which includes "recoupling" with the world's second-largest economy instead of "decoupling", but they said it was "distressing" that US tariffs on Chinese goods would remain. In a highly anticipated speech on Monday, the Biden administration's top trade official, Katherine Tai, said that she plans to hold "frank" talks with Chinese officials in the coming days, and that the tariffs are to remain in place and could be bolstered by additional rounds, but a "targeted tariff exclusion process" would be reinstated for companies hard hit in the trade war. She also put forward a new phrase to frame the future of the trade relationship-"durable coexistence", and called for a "recoupling" of the two economies, a clear swerving from the calls for "decoupling" that US trade hawks have advocated for years. "We liked her focus on dialogue with her Chinese counterparts and the desire to continue targeted tariff exemptions. Overall, her remarks ...were pragmatic, especially the desire to recouple, not decouple the world's largest economies," said Doug Barry, director of communications at the US-China Business Council. The council, a trade association representing more than 200 US companies doing business in China, is among a multitude of US organizations calling for an end to the punitive tariffs imposed on goods flowing between the two countries. "The exclusion process is important to both US and China businesses and to supporting workers. We hope the promise of more high-level talks will eventually create conditions for lifting the tariffs," Barry said on Tuesday. The United States retains tariffs imposed by the Trump administration covering over $135 billion-or 93 percent-of imports of intermediate inputs from China, noted Chad Bown, a senior fellow with the Peterson Institute for International Economics in Washington. Tariffs on such parts and components increase costs for US companies seeking to compete not only for business from US consumers, but also globally and in China through exports. The Trump administration granted some product exclusions, but most of the waivers have expired, according to Bown. Gary Hufbauer, a senior fellow and trade expert at the institute, said the nuances of Tai's speech on China trade policy were constructive, as she offered reopening the exclusion process, with no rhetorical decoupling, which set a constructive tone for upcoming talks. But new tariff exclusions will be narrow, which is "very different" from repealing the Trump tariffs. "My guess is that the best we can hope for is no new tariffs or export restrictions," Hufbauer said in an email interview. Jake Colvin, president of the National Foreign Trade Council, a Washington-based business organization, said it was "encouraging" t...
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