US seeks 'frank' talks on trade with China
October 4, 2021
US Trade Representative Katherine Tai on Monday announced that Washington will seek new trade talks with China.
Washington believes Beijing has not honored its commitments under an agreement signed with the former US President Donald Trump in January 2020 known as the "phase one" trade deal.
US President Joe Biden had also kept in place the tariffs imposed by his predecessor as Tai conducted a review of US trade strategy toward China.
What could be expected from the US-China talks?
In a speech about the review on the US-China trade relationship, Tai said the US "will discuss with China its performance under the phase one agreement."
"In the coming days, I intend to have frank conversations with my counterpart in China," she said.
Tai also announced the launch of "a targeted tariff exclusion process" for exemptions from customs tariffs imposed during the Trump era.
Tai also reiterated Washington's concerns over China's "state-centered and non-market trade practices," which were "not addressed in the phase one deal."
"As we work to enforce the terms of phase one, we will raise these broader policy concerns with Beijing," she said.
Still, Tai said the goal was "not to inflame trade tensions with China."
Generally, the US sees a bleak outlook. A Biden administration official told the AFP news agency that Washington was aware "that China is unlikely to make meaningful reforms right now," and that there was no push for starting long-awaited "phase two" negotiations.
What is the 'phase one' trade deal?
Signed by Trump and China's Vice Premier Liu He, the trade agreement included stronger Chinese legal protections for intellectual property rights, seeking to combat online infringement, pirated and counterfeit goods.
Under the deal, China pledged to add an extra $200 billion (€172 billion) in purchases of US exports, including energy, agricultural and manufactured products through 2021.
Those targets are far from being met, trade analysts say.
What about tariffs?
In retaliation for Chinese trade practices, Trump had imposed customs tariffs on $370 billion (€318 billion) worth of Chinese goods.
The punitive tariffs, however, were criticized by many US companies.
In August, some of the most influential US businesses urged Biden to reduce the surcharges. They said US industries faced "increased costs" as the tariffs were ultimately paid by importers.
fb/msh (AFP, Reuters)