The United States accuses China of withdrawing from free trade commitments
The United States accuses China of withdrawing from free trade commitments

The United States accuses China of withdrawing from free trade commitments

The United States has accused China of failing to meet its obligations to the World Trade Organization and says it is exploring new ways to combat aggressive Chinese trade practices.

In its annual report on China’s compliance with WTO rules, the Office of the US Trade Representative said on Wednesday that China was not keeping its promises to open its markets to foreign competition when it joined the 164-country Geneva-based agency in 2001.

“China has instead maintained and expanded its state-led, non-market approach to economics and trade. “China’s policies and practices challenge the terms of WTO rules and cause serious harm to workers and businesses around the world,” said US Trade Representative Katherine Tai.

Among other things, the United States reiterated long-standing allegations that China uses subsidies and regulations to favor its own companies at the expense of foreign competitors; floods world markets with cheap steel, aluminum and other products; and forcing US and other foreign companies to hand over valued technology as the price of access to Chinese markets.

The US report said: “China’s leadership appears to be confident in its state-led, non-market approach to economics and trade and feels no need to comply with global standards.”

The U.S. Department of Commerce said it continues to talk to China about “achieving real change in its economic and trade regime.” And it is working with allies – and through the WTO – to put pressure on the Chinese government. Without giving details, the report said the U.S. is also exploring new ways “to use domestic trading tools strategically as needed to achieve more equal terms with China for U.S. workers and businesses.”

President Donald Trump has made similar complaints about China, imposing taxes on about $ 360 billion of Chinese imports into the United States – tariffs that the Biden administration still imposes.

To reduce tensions, the United States and China reached a so-called Phase I trade agreement in January 2020. Among other things, the Chinese agreed to step up purchases of American agricultural exports – for the benefit of Trump supporters in the American heartland.

But Chad Bown of the Peterson Institute for International Trade calculated in a report last week that China has bought only 57 percent of U.S. exports it had committed to buying.

Leave a Reply

Your email address will not be published.