The Biden administration is gearing up to address the threats posed by China’s trade and economic policies, with U.S. Trade Representative Katherine Tai set to testify before lawmakers on Tuesday. Tai will emphasize the need to review existing trade defense tools, including the Trump-era tariffs on Chinese imports, in order to tackle the dependencies and vulnerabilities created by China’s policies.
In excerpts of her testimony released ahead of the hearing, Tai highlighted the harm caused to American workers and businesses by China’s practices, emphasizing the risks to supply chains. This comes on the heels of a warning from Treasury Secretary Janet Yellen about China’s overinvestment in clean energy goods, which could lead to a flood of exports that would hurt producers and workers in the U.S. and beyond.
Tai’s testimony also touches on the possibility of opening a new Section 301 investigation into China’s alleged unfair acts in the maritime logistics and shipbuilding sector, in response to a petition from five U.S. unions. The Biden administration’s focus on reducing dependence on China and diversifying sources of supply is a key priority, particularly in light of the disruptions caused by the COVID-19 pandemic.
Overall, Tai’s testimony underscores the administration’s commitment to addressing the challenges posed by China’s trade practices while also prioritizing strong labor standards in trade negotiations with other countries. As the U.S. continues to navigate its economic relationship with China, the focus remains on competition rather than conflict, with a keen eye on strengthening supply chains and protecting American workers and businesses.