Chinese experts urge US to take action after Yellen proposes cutting tariffs – Community News
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Chinese experts urge US to take action after Yellen proposes cutting tariffs

foreign trade Photo:VCG

foreign trade Photo:VCG

US Treasury Secretary Janet Yellen’s comments about the US eventually cutting some tariffs on Chinese goods mark another positive sign in China-US trade relations and could be an important step for the two countries to of their biggest and most damaging trade disputes: tariffs, Chinese analysts said Monday.

However, analysts also pointed to the lack of specific actions by US officials, despite their increasingly positive tone on trade issues, and called on US officials to honor their commitments and take concrete steps to unilaterally reverse harmful trade policies under the previous US administration.

Yellen said in an interview with Reuters published Monday that “the US expected China to honor its obligations under the phase one trade deal signed under former President Donald Trump, but may consider eventually agreeing some tariffs on a reciprocal basis.” to lower”. Yellen said lowering rates will help address inflationary concerns in the US.

Her comments came against the background of more frequent trade talks between senior officials in recent weeks and increasing positive signals in bilateral trade relations.

US Trade Representative Katherine Tai said at a meeting of the US National Chicken Council on Oct. 28 that her engagement with China is aimed at lowering the temperature of a trade relationship between the world’s two largest economies that has become dangerously heated, Reuters reported.

These comments followed two trade talks between Chinese and US senior officials in October, during which Tai and Yellen had both met with Chinese Vice Premier Liu He.

Chinese analysts who monitored China-US trade relations pointed out that Yellen’s comments showed that the US may be beginning to accept the idea of ​​tariff cuts, which China has repeatedly and persistently pushed for.

Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, told the Global Times on Monday that comments about tariffs by senior Biden government officials have shown an interesting trend in that tariffs, traditionally mainly a concern for the Chinese side, have now also become an American concern.

Li Haidong, a professor at the Institute of International Relations at China Foreign Affairs University, told the Global Times on Monday that Yellen’s comments reaffirmed the fact that Washington’s trade friction approach and China’s unilateral suppression are not solving the problems facing the US. could solve.

“Such understanding comes from the fact that trade and economic cooperation between China and the US is a win-win situation,” Li said.

Li said those comments showed that the US has come to realize it needs to lift or lower the tariffs Trump has levied on Chinese goods. “It’s a positive case for the removal of Trump’s tariffs, which are roadblocks that stand in the way of trade and economic cooperation between China and the US,” Li said.

Calls for tariffs to be lifted reverberated across the Pacific.

“Tariff easing by China also helped fuel US goods exports in many parts of the country. USCBC continues to advocate for both the US and China to repeal and permanently eliminate all of their respective tariffs,” said Craig Allen, president of the US China Business Council (USCBC), noting that trade between China and the US has real implications for businesses, workers and communities across the country and in nearly every industry.

Exports from most US congressional districts to China rebounded in 2020, following a record low in China-US trade in 2019 and the conclusion of the phase one deal in January 2020, a USCBC survey found on Monday. .

Sixty-four percent of U.S. congressional districts exported more goods to China in 2020 compared to 2019, and 72 districts increased their exports by more than $100 million, the survey found. The rebound was especially sharp in the Midwestern farming communities, oil-exporting regions of Texas and Louisiana, and the semiconductor hub of Oregon.

In October, Tai also spoke of “a targeted tariff exclusion process” for tariff exemptions imposed by the Trump administration on Chinese goods worth billions of dollars.

Growing signals from US officials for potential tariff cuts also came amid disappointing US economic data. The U.S. economy grew just 2 percent in the third quarter after the Delta rose, official U.S. data showed Thursday. The growth rate contracted sharply from 6.7 percent in the second quarter, and Americans face empty shelves for the Christmas season due to crippled supply chain and logistical disruptions.

Analysts said the frequent exchanges between senior officials and positive comments pave the way for future interactions and are conducive to achieving better results.

Li said Tai probably already had a blueprint on how to implement tariff cuts and that the plan could be announced this year.

Foreign Ministry spokesman Wang Wenbin said during a regular press conference on Monday that resuming dialogue and avoiding confrontation are an important consensus reached in two telephone conversations between top leaders in both countries, and he urged implementation by the US side, so that political preparations are made for exchanges in the next phase.

Rate cuts are more likely to happen in sectors where US companies rely heavily on China or where demand for Chinese products is particularly high, analysts noted.

Gao said China has largely honored its trade commitments and predicted that tariffs are more likely to be cut based on a lockout process.

“We’ve heard them talk, now it’s time to see if they can walk the walk,” Gao said, pointing out that while the comments from senior US officials are positive, they also lack details.

China-US trade grew 35.4 percent year-on-year to $543 billion in the first nine months of 2021, Chinese customs statistics show. The US was China’s third largest trading partner.

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