The Biden administration is coming to grips with China in talks over Beijing’s compliance with a Trump-era trade deal, US Trade Representative Katherine Tai said Wednesday, but she declined to predict an outcome as talks continue. She told reporters in Washington that the government is committed to holding China accountable for the two-year “Phase 1” trade deal signed in January 2020, and is investigating all weaknesses in China’s performance, including the lack of commercial aircraft purchases.
China is lagging far behind in its deal promises to increase purchases of US goods by $200 billion in 2020 and 2021 compared to 2017 levels, reaching only 60% of its target by September 30 https://www .piie.com /research/piie-charts/us-china-phase-one-tracker-chinas-purchases-us-goods, according to data collected by trade economist Chad Bown of the Peterson Institute for International Economics. Asked if she pushed talks for China to take steps to enable the purchase of commercial Boeing aircraft – a purchase category identified in the Phase 1 agreement https://usr.gov/sites/default/files/files /agreements/phase %20one%20agreement/Economic_And_Trade_Agreement_Between_The_United_States_And_China_Text.pdf – Tai said, “If you look at the weaknesses, in terms of Phase 1, you would expect us to talk about it and explore everything.”
US President Joe Biden and Chinese President Xi Jinping have already scheduled a virtual meeting next week amid mounting tensions between the world’s two largest economies. Tai said the meeting would be helpful and their understanding of each other would benefit a complex relationship. But she said the leaders’ involvement was not necessary to facilitate trade talks.
“I don’t want any of you in this room thinking we can’t get a handle on our Chinese counterparts,” Tai said. “We talk and we work. So we don’t need fathers to come in,” she added, referring to Biden and Xi. Asked whether the government is considering cutting tariffs on Chinese goods as a way to ease inflationary pressures on the US economy, Tai said USTR views “Section 301” tariffs on Chinese goods as part of a strategy to advantageous position to compete more effectively with China.
(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)