Washington will realign trade policies towards Beijing, US Trade Rep Katherine Tai to condemn China's 'unfair trade' practices

By Reena Bhardwaj
Washington [US], October 4 : Trade Representative Katherine Tai plans to give a major speech on the US-China trade relationship and will announce on Monday that China is not complying with the so-called phase one trade deal reached under former President Donald Trump's administration, according to a senior administration official.
"Today, I will lay out the starting point of our Administration's strategic vision for realigning our trade policies towards China to defend the interests of America's workers, businesses, farmers and producers, and strengthen our middle class," according to remarks prepared for delivery at the Center for Strategic and International Studies.
The announcement will represent some of the Biden administration's most forceful pushback against China including possible additional tariffs actions against China for its non-compliance
Tai will deliver remarks at the Center for Strategic and International Studies (CSIS) outlining the Biden-Harris Administration's new approach to the US-China bilateral trade relationship. Tai will cite examples of how practices have allegedly "hurt our workers and our industries" and "given Beijing an unfair advantage in the global trading system," the official told reporters Sunday. The official added that Tai will also "point to China's failure to reform its non-market policies or follow through on the commitments it made during high-level dialogues with US officials over the last 15 years."
Tai is likely to highlight that global trading norms adversely impact the prosperity of Americans, "For too long, China's lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world."
Tai's speech will mark the last three months of the deal, which was signed by Trump in 2019. It called for China to expand purchases of certain US goods and services from January 1, 2020, through December 31, 2021. Under the agreement, China was supposed to purchase an additional USD 200 billion in US goods over a two-year period, but the nation has not lived up to that pledge.
The official added that the US Trade Representative (USTR)'s office will begin "a targeted tariff exclusion process," while also pledging to "keep open the potential for additional exclusion processes in the future".
"First, we will discuss with China its performance under the Phase One Agreement. China made commitments intended to benefit certain American industries, including agriculture that we must enforce," She is likely to stress the point to point clauses on the agreement signed.
"Second, we will start a targeted tariff exclusion process. We will ensure that the existing enforcement structure optimally serves our economic interests. We will keep open the potential for additional exclusion processes, as warranted," Tai is expected to say in her address.
"Third, we continue to have serious concerns with China's state-centred and non-market trade practices that 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," Tai is expected to announce.
A senior administration official told reporters that US President Joe Biden believes the phase one deal "did not meaningfully address our fundamental concerns with China's trade practices."
"Unlike his predecessor, President Biden is going to hold China to account where China is falling short of its commitments," the official said during a background call.