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2021 m. spalio 4 d., pirmadienis

What action are the US and China taking against each other in the economy


"Katherine Tai, the United States trade representative, is expected to begin talking with her Chinese counterparts in the coming days about the country’s failure to live up to its agreements, senior administration officials said. Officials did not rule out the possibility of imposing further tariffs on China if talks with did not produce the desired results, warning Beijing that they would use all available tools to defend the United States from state-directed industrial policies that harm workers of the United States.

The Biden administration has been drawing up an investigation into China’s use of subsidies under Section 301 of U.S. trade law. If it is carried out, that inquiry could result in additional tariffs on China, according to people familiar with the plans.

In excerpts that were released on Monday morning in Washington from a planned speech later in the morning, Ms. Tai said that, “For too long, China’s lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world.”

“We continue to have serious concerns with China’s state-centered and nonmarket trade practices that were not addressed in the Phase 1 deal,” she added.

Last week, Gina Raimondo, the commerce secretary, pointed to China’s blocking of its airlines from buying “tens of billions of dollars” of products from Boeing.

“The Chinese need to play by the rules,” Ms. Raimondo said in an interview with NPR last week. “We need to hold their feet to the fire and hold them accountable.”

In addition to the tariffs on Chinese goods, the president has maintained restrictions on the ability of Chinese companies to access U.S. technology and expanded the list of Chinese officials under sanctions by the United States for their role in undermining Hong Kong’s democratic institutions.

Mr. Trump’s deal halted the trade war, but it did not put an end to economic hostilities. China still maintains tariffs on 58.3 percent of its exports from the United States; the United States imposes tariffs on 66.4 percent of the products it brings in from China, according to Mr. Bown.

China’s leaders have also doubled down on the kinds of domestic industrial subsidies that the United States has long objected to. They have greatly expanded programs, started more than a decade ago, aimed at eliminating their need to buy computer chips and passenger jets — two of the United States’ main exports to China — among other industrial products.

The Biden administration has been exploring ways to persuade China to limit its broad industrial subsidies, but that will be difficult. The George W. Bush, Obama and Trump administrations all tried with little success for ways to coax China to abandon its long-running use of subsidies to domestic producers as a tool to wean itself from any reliance on imports.

China’s leader, Xi Jinping, has called for making sure that other countries remain dependent on China for key goods, so that they will not threaten to halt their own sales to China. The United States has done so over issues like surveillance, forced labor and the crackdown on democracy advocates in Hong Kong.

“The dependence of the international industrial chain on our country has formed a powerful countermeasure and deterrent capability for foreign parties to artificially cut off supply,” Mr. Xi said in a speech last year.

In the call on Sunday, Biden administration officials acknowledged that talks might not persuade China to abandon its increasingly authoritarian, state-centered approach. So instead, they said, the administration’s primary emphasis will be on building the competitiveness of the U.S. economy, working with allies and diversifying markets to limit the impact of Beijing’s harmful trade practices."

 Why does not the European Union fight for the well-being of our workers against communist China by diversifying our supply chains and imposing tariffs on Chinese goods? Kubilius, what, are you sleeping in the European Parliament again?

 

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