US to press Thursday on Convention Agreement, Keep Taxes in place

WASHINGTON – The United States has planned to start trade talks with China, but will continue to impose tariffs on Chinese imports as it forces Beijing to meet its US pledges.

The new plan was announced in a legal hearing on Monday by a U.S. ambassador to the United States. Trade, Katherine Tai, in her inaugural introduction to trade between the two richest countries since taking office in March.

Ms Tai said the US would also open the way for US companies to seek tax exemption. Trump’s administration paved the way for leaving companies that could show they had no alternative to China’s trade, but Biden’s management allowed these practices to end.

Biden officials have spent months reviewing Chinese law, including taxes imposed by the Trump administration that began charging as much as $ 350 million in Chinese goods, including consumer goods such as electronics, clothing and equipment, as well as thousands of items that are part of the distribution. chain of many US factories.

In a statement on Sunday, Biden officials said they planned to keep taxes – and plan to impose more taxes – as a mandate for China to implement the 2020 trade agreement with the US.

In an interview with WobJ Bob Davis, US Secretary of Commerce Gina Raimondo discusses the importance of strengthening American technology and manufacturing components, at a “full” time in US-China relations. Photo: Zach Wood

Following her speech Monday at the Center for Strategic and International Study in Washington, Ms. Tai was asked if she was considering future investigations into China’s trade policy, as did the Trump administration, to impose more taxes.

Ms Tai said this was in line with China’s response to performance improvements, but said such an investigation was “a very important one. We will look at all the tools available.”

The head of management said ahead of his speech that “we do not want to take any action on the table or force ourselves to do a set course of action.”

Central to the trade agreement was Beijing’s commitment to boost its US agricultural purchases, electronics and manufactured goods. The agreement called on China to increase purchases of goods and services with an additional $ 200 billion between 2020 and 2021.

China missed out on a target of consumer spending by up to 40 percent by 2020, as read from Chad Bown, one of the executives at the Peterson Institute for International Economics has been looking to try. With data for the first eight months of the year, China is on the verge of being 30% shorter than its target in 2021.

In May, Ms. Tai and Chinese Vice President Liu He, who served as China’s trade chief during the US-China trade war, had a phone call described as the first meeting. Both sides described the negotiations as clear, and Chinese officials have repeatedly called for the U.S. to refund the remaining taxes on Chinese goods.

From then on, Ms. Tai had no direct contact with Chinese business leaders.

Business groups have been pushing Biden’s management to move faster, giving China a greater market value to US companies.

“We are pleased that the leadership is taking a step forward in articulating its Chinese policy,” said Myron Brilliant, vice president and chief of staff at the US Chamber of Commerce. “Partnering with sponsors is important, but it can’t be about collaborating with donors. Holding a meeting with China is important. ”

In her remarks, Ms. Tai stressed that China’s trade patterns are hurting US workers and industries.

“We will utilize the full range of resources we have and develop new tools when needed to protect America’s economic interests from harmful practices and practices,” said Ms. Tai. Biden’s leaders will also “work with allies to create a fair trade policy in the 28th century, and to drive the race on top of market economics and democracy.”

The Chinese ambassador to Washington did not respond to a request for comment.

A new trade deal follows a call last month between President Biden and President Xi Jinping which was set up in a bid to secure negotiations as tensions between the two countries escalated since Mr Biden took office. Mr Biden said countries should compete but also focus on co-operation on issues such as climate change.

Biden officials have taken a number of steps to anger Beijing, including punishing officials over the repression of Muslim Uyghurs in China’s northwestern Xinjiang region by extending Trump’s ban on Americans investing in Chinese companies with suspected ties to Chinese forces.

The US is also looking to recruit allies in the face of Beijing, a goal that has been received differently. Another goal has been to strengthen the use of curtains to rely less on China and to better deal with the severe shortages during the Covid-19 epidemic.

Mr Biden recently convened a public-sponsored Quadrilateral Security Dialogue, a partnership with the US, Australia, Japan and India aimed at security in the Indo-Pacific and to challenge China’s growing strength. Beijing described efforts such as the Cold War ideology.

Biden’s management also worked to resolve trade ties with the European Union, which has been embroiled in controversy over tariffs on steel and aluminum and as part of a long-running dispute between the US and Europe over pay for aircraft manufacturers.

The EU and the EU have invested in the summer market dispute, agreed to settle their dispute over steel and aluminum, and met at a conference in Pittsburgh last week to discuss cooperation on a wide range of trade and technology issues.

Chinese import tariffs have been a source of frustration for many American companies that claim to have limited Chinese means. That left many companies in a situation where they were forced to pay taxes but their Chinese competitors were not.

If the Trump administration signs its agreement with China in January 2020, the so-called “first part” trade agreement, it means talks will begin in the second phase. Officials from Bidenen management, however, said that although they wanted to force China on the issues left out of the agreement, they speculated that China would need to consider serious negotiations in the second phase.

Write to Josh Zumbrun at Josh.Zumbrun@wsj.com and Alex Leary palex.leary@wsj.com

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