Washington [US], Jan 20 (ANI): President Joe Biden said that he is not ready to lift the tariffs imposed on Chinese imports, despite calls from US businesses to remove the tariffs.
US Trade Representative Catherine Tai is “working on that right now,” Biden said on Wednesday, marking his first year in office. But “the answer is uncertain,” he said.
“I want to be able to be in a position where I can say that they are meeting their commitments – exceeding their commitments – and being able to take some of it, but we are not there yet, Biden said during a news conference at the White House.
President Biden was referring to China’s commitments under a Phase 1 trade deal signed by his predecessor Donald Trump. US businesses have long complained about the harmful effects of punitive US tariffs on Chinese goods imposed by the Trump administration and some have even stressed the need for a more comprehensive strategy to deal with China.
China has fallen far short of its pledge under a two-year Phase 1 trade agreement to buy USD 200 billion in additional US goods and services during 2020 and 2021, and it is unclear how the shortfall will be addressed. That raises questions about how the Biden administration will hold back China for commitments that haven’t been met, as well as tariffs on hundreds of billions of dollars worth of Chinese imports.
Like the Trump administration, the current US administration has called out Chinese leaders and even businesses against abuse in Hong Kong and ethnic Muslims in the Xinjiang region.
Last year China received a smaller share of foreign investment than in previous years, a trend that began with former US President Trump’s trade war with China.
Although his successor, Joe Biden, campaigned on a promise to end the trade war, asserting that heavy tariffs on Chinese imports were hurting American consumers, farmers and manufacturers, his administration is now pursuing the so-called “Phase One” move by China. Continuing to implement the Agreement”. With the Trump administration in early 2020.
Among other things, the first phase commits China to purchase an additional USD 200 billion in exports of not only US agriculture, but manufacturing, energy and services by the end of 2021. So far, China has estimated that it has bought only a little more than that. He had promised 60 per cent of the goods.
The Phase One agreement also commits China to make progress in enforcing intellectual property rights, removing non-tariff barriers to agricultural imports, and liberalizing its financial services sector.
The US-China trade war is not the only factor affecting investment in China. Human rights violations in Xinjiang, erosion of Hong Kong’s autonomy, China’s zero-COVID strategy, supply chain challenges and rising costs have resulted in many global companies leaving China’s shores.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)