Despite tough US trade strategy: positive response in China

Beijing (dpa) – Despite the unchanged hard line in dealing with China, the US’s new strategy in the trade war of the two largest economies has received an initial positive response from Chinese experts.

The state The newspaper “Global Times”, which often serves as an English-speaking mouthpiece for the leadership in Beijing, quoted experts on Tuesday who saw a “positive signal” that trade talks planned soon could be more constructive.

The plans the US trade representative Katherine Tai for “frank talks” with China could indicate that the US has realized that it needs to resolve trade tensions in a more pragmatic way, the paper quoted Gao Lingyun of the Chinese Academy of Social Sciences as saying. This is in line with China’s strategy, which has always said that the differences must be resolved through frank negotiations.

China also refers to pandemic effects

The US -Proposals also showed the punitive tariffs would not have the intended impact, said Gao Lingyun. The US had not found any alternatives to Chinese products, nor had industrial chains been forced to leave China. Tariffs in bilateral trade harm consumers and manufacturers in the US – and are not helpful in the US government’s fight against inflation. China has also “largely fulfilled” its obligations from the agreement on phase one in the trade conflict of January 2020.

If China achieves the agreed target, 2020 and 2021 to buy goods for an additional 200 billion US dollars, should not fulfill, then it is due to the corona pandemic, the paper quoted another expert . He also warned: “An escalation of the coercive measures in trade by the Biden government will trigger an intensified confrontation and backfire for the US.” National holiday, there was initially no official reaction to the strategy that the US Trade Representative Tai had presented the day before in Washington. After that, the US wants to hold on to the punitive tariffs imposed on China for the time being. However, there should be more exceptions in favor of the US economy in the future. Tai also wants to resume talks with Beijing very soon in order to ensure that China adheres to its commitments from the agreement of 2020.

Further calming down of the conflict?

The trade representative also expressed criticism. China regularly violates international trade rules and fair competition, which harms the US economy. It is also clear that Beijing is not planning any “significant reforms” to address concerns from the US and the international community. According to its own statements, the administration of President Joe Biden intends to maintain a tough course towards Beijing, but to proceed in a more differentiated and coordinated manner than was the case under his predecessor Donald Trump.

The trade war began in June 2018 when Trump imposed punitive tariffs on imports from China of 50 billion US dollars. He wanted to cut the trade deficit with China and accused Beijing of unfair trade practices. The conflict escalated until a year later Trump imposed punitive tariffs on almost all imports from China worth more than 500 billion US dollars. Beijing responded with new taxes.

At the beginning 2020 there was a kind of ceasefire, with which at least new or higher tariffs were prevented. A key point was China’s promise to buy 200 billion US dollars more goods in the US by the end of 2021 – especially oil and gas (50 Billions), Industrial Goods (80 Billions) and Agricultural Products (32 Billions). Trade Representative Tai said China had complied with parts of the deal but not in other areas.

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