In Business With China, The US Will "Take All Eequired Steps" To Protect Itself.

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Trade Representative Catherine Ty said she would seek new talks with Beijing over the failure to deliver on promises made in Part One of Donald Trump's trade deal. It also does not rule out the application of additional trade tariffs. However, the United States will scrap its plans to force China to reform its "non-market economy."

On the other hand, Ms. Tai said America needed to become more competitive in the face of China's growing economic power. "For too long, China's failure to comply with world trade standards has undermined the prosperity of Americans and others around the world," he told a briefing in Washington. "We must - fully - protect our economic interests That means taking all necessary steps to protect ourselves from the wave of damage caused by years of unfair competition."

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Since 2017, the US and China have imposed tariffs on billions of dollars in each other after Washington accused Beijing of blocking access to its markets and stealing American intellectual property.

According to the Phase 1 deal made by Donald Trump, China has pledged to increase purchases of US agricultural and other goods in a bid to rebalance relations. But Ms. Tai, appointed by President Joe Biden in April, said the Chinese government continued to invest "billions dollars" in subsidizing industries such as agriculture, steel, and semiconductors, making it impossible for the United States to compete.

He promised to resume talks with Beijing in the coming days and "enforce" the commitments he had made. It also refused to rule out additional trade tariffs, saying "all available instruments" remained on the table to protect the US economy.

"Position of power"

Tai also said he would continue the process of allowing US industry to apply for a trade tax exemption on Chinese imports paid for by US companies. However, he suggested that this was sometimes detrimental to US economic interests.

He also said he would discard phase 2 of Donald Trump's deal - which has not yet entered into force - which seeks deeper reforms in China's economy and said it was unlikely to work. Instead, he said the United States should work with allies through "bilateral and multilateral channels" to get Beijing on track while investing more in its competitiveness.

"As our economic relationship with China develops, so will our tactics to protect our interests," he said. "Unlike in the past, this government will engage from a position of strength because we invest in our people and our infrastructure. "And we must use and leverage the talents of our employees by investing in team member education and training."