Katherine Tai, the Chinese-American trade representative nominated by U.S. President Biden, attended the Senate Finance Committee’s nomination hearing on Thursday (25) and promised to require China to fulfill the China-U.S. number one signed last year. Phased trade agreements and support the use of tariffs as a "legal tool" to counter China's "government-led" economic model. China announced yesterday that it will continue to extend the tariff exemption for 65 US products until September. Scholars pointed out that the Biden administration has revised its protectionist policy of "America First", but if it still binds economic policy to ideology, it will be "changing the soup without changing the medicine."

Reuters reported that most lawmakers were concerned about China’s challenges at the hearing. Dai Qi pointed out in response that China needs to implement the first phase of the Sino-US trade agreement signed in January last year. "China has made some promises that need to be fulfilled," and the United States should cooperate with other countries to "explore all options and push China to make necessary structural reforms." She did not specify how to achieve this goal. Dai Qi also expressed support for using tariffs as a "legal tool" to deal with China's "government-led" economic model.

No denying that the U.S. priority will be labor-centric
In addition, Dai Qi also called for reforming the global trade rules led by the World Trade Organization (WTO) and cooperating with other countries to eliminate the "gray area" used by China. She did not deny former President Trump’s "America First" trade policy, but said that she would revise these policies into a "labour-centered" trade model, safeguarding the livelihoods of the American people through investment and trade law enforcement. Dai Qi said that the United States needs to make more strategic investments, enhance supply chain flexibility and trade law enforcement to respond to China's strategy and ambitions, and will develop multilateral trade cooperation with other Asia-Pacific countries.

Trade lawyers: postpone the last position
Reuters: Echoing the tough attitude of nominated officials Bloomberg pointed out that the new US government has so far issued signals that it will continue to build on the trade agreement reached last year. The former U.S. trade representative Lighthizer's chief aide and trade lawyer, Jamieson Greer, said he interpreted Dai Qi's views on tariffs as a continuation of the Trump administration's position. Reuters believes that the policy stance expressed by Dai Qi at the hearing echoes the tough attitude of other nominated officials of Biden towards China. China’s commitment to purchase American products and services in a trade agreement last year was still 42% unfulfilled.

According to Xinhua News Agency’s report last night, the State Council’s Tariff Commission yesterday announced the third exclusion and extension list for tariffs imposed on the United States and Canada, extending the exclusion period for 65 items to September 16, and continuing to avoid imposing counter tariffs.

Scholar: If trade is tied to politics, the soup will not be changed
Sun Lijian, a professor at the School of Economics at Fudan University in Shanghai, told this newspaper that based on the global trade tensions caused by the previous government, the Biden administration has revised its protectionist policy of "America First" after taking office, but if it still binds economic policy to ideology. To decide and pull together allies and groups (partnership) is to return to the "TPP (Trans-Pacific Partnership Agreement) era of thinking." The form has changed, but "the soup is not changed."

Sun Lijian also pointed out that the Sino-US trade surplus emphasized by the United States in the "tariff war" is essentially the result of economic globalization and international trade cooperation and the division of labor. It is the cost advantage of China's human resources in the development stage. "Behind the US is the huge trade in services. The deficit depends on which account." He believes that there is no specific economic policy of the Biden administration, but the United States can only return to complete globalization to be the best choice for international resources and American consumers.

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