2021-10-04 11:08:03 U.S. Signals Little Thaw in Trade Relations With China
U.S. Signals Little Thaw in Trade Relations With China
“Against the backdrop of worldwide opposition to a new Cold War and division, the United States blatantly violated its policy statement of not seeking a new Cold War and banded together to form an Anglo-Saxon clique,” Wang Yi, China’s foreign minister, said on September 28 in response to the Australian submarine deal.
The release of Meng Wanzhou, a Huawei executive detained in Canada at the request of the United States, and China’s subsequent release of two Canadians and two Americans, have done little to alleviate tensions.
Mr. Trump’s tariffs have discouraged imports of some Chinese goods, but exports to the US have increased significantly as a result of the coronavirus pandemic, as Americans purchased workout equipment, furniture, toys, and other products while the country was shut down.
China’s leaders have also expanded the types of domestic industrial subsidies that the United States has long opposed. They have significantly expanded programs that began more than a decade ago with the goal of eliminating their need for computer chips and passenger jets, two of the United States’ main exports to China, among other industrial products.
The Biden administration has been investigating ways to persuade China to limit its generous industrial subsidies, but this will be difficult. The administrations of George W. Bush, Barack Obama, and Donald Trump all attempted, but failed, to persuade China to abandon its long-standing practice of subsidizing domestic producers as a means of weaning itself off of reliance on imports.
China’s leader, Xi Jinping, has urged other countries to continue relying on China for critical goods in order to avoid threatening to halt their own sales to China. The United States has done so in response to issues such as surveillance, forced labor, and Hong Kong’s crackdown on democracy advocates.
“The international industrial chain’s reliance on our country has formed a powerful countermeasure and deterrent capability for foreign parties seeking to artificially cut off supply,” Mr. Xi said in a speech last year.