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Interesting news-US Trade Representative: Tariffs on China will not be abolished in the near future, this is a bargaining chip.
U.S. Trade Representative Katherine Tai (Chinese name Daiqi) said that the United States is not ready to remove tariffs on Chinese imports in the near future, but may be open to trade negotiations with Beijing.
Dai Qi said in an interview for the first time after the Senate nomination confirmation hearing that she acknowledged that the above tariffs would cause losses to American companies and consumers, but some supporters said that the tariffs also help protect companies from foreign subsidy competition.
Dai Qi said that she heard someone say "please remove these tariffs." But she also warned that the removal of tariffs may harm the economy unless "proper communication can allow actors in the economic field to make adjustments." Whether it is a company, a trader, a manufacturer or their workers, it is important to be able to plan for changes that will affect the business.
Dai Qi also mentioned some tactical reasons for her unwillingness to remove the above tariffs. She said that no negotiator would give up his bargaining chip.
Dai Qi, 47, is the first Asian American to serve as the U.S. Trade Representative and the first woman of color. Her nomination has won superb support from both parties. Among them, her nomination was passed by a 98-0 vote in the Senate. It is the best performance of all Biden cabinet nominees.
Dai Qi took office at a time when violence against Asian Americans was frequent. A gunman recently opened fire in Atlanta, killing eight people, including six Asian women.
Dai Qi said in an interview that at the moment, "our social structure seems to be cracked." As a cabinet member, she feels shouldering the heavy responsibility of leading and representing the Asian American community.
She said: "The extraordinary thing about our country is that children of Asian immigrants like me who were born here can be selected based on my experience and qualifications to represent our country in handling affairs around the world."
Dai Qi also said that she thought she would not see too many counterpart officials from other countries with her background.
As a trade representative, Dai Qi needs to deal with many difficult issues at home and abroad. She has faced pressure from American companies eager to resolve the US-China trade conflict.
During the administration of former U.S. President Donald Trump, the United States imposed tariffs on approximately US$370 billion of Chinese exports to the United States each year, accounting for about three-quarters of China’s total exports to the United States. Barriers are part of the trade war. China’s countermeasure is to impose tariffs on 110 billion U.S. dollars of U.S. goods, which means that the total taxed goods account for a higher proportion of U.S. exports to China.
Although the United States and China signed an agreement to end the trade war in 2020, tariffs are still being implemented. This is mainly because the United States wants to use tariffs as a bargaining chip to ensure that China abides by the terms of the agreement, including intensifying procurement American products, better protection of American intellectual property clauses.
Beijing hopes to persuade the new Biden administration to remove tariffs. Those tariffs made Chinese goods more expensive and prompted American companies to switch to purchasing some products from Vietnam, Mexico and other countries.
According to Chad Bown, an economist at the Peterson Institute for International Economics, although U.S. agricultural exports to China have expanded from their lows during the trade war, the overall U.S. export distance to China is in the agreement. China’s promised goal of increasing imports of US$200 billion in U.S. goods and services within two years falls far short of the goal. The Peterson Institute for International Economics advocates free trade.
At the nomination confirmation hearing, Dai Qi said that she would implement the trade agreement, but did not say how it would be implemented. The 2020 agreement also requires the Office of the United States Trade Representative to meet with a Chinese Vice Premier of the State Council every six months. The meeting has been overdue for two months, but the date of the meeting has not yet been determined.
A spokesperson for the Office of the United States Trade Representative said that Dai Qi had consulted with 14 foreign officials in charge of trade during her first week in office, but she did not call China.
Dai Qi said that "the time is right" that she would call, which is consistent with the attitude of others in the US government; other officials often try to win the support of allies before dealing with China.
The National Foreign Trade Council (National Foreign Trade Council) is an industry association that represents large exporters. The Council has convened more than 30 industry associations representing different industries such as automobiles, beer, and retailers to form an alliance to urge the abolition of tariffs. .
The organization called the "Tariff Reform Coalition" said: "The practice of imposing tariffs has been hurriedly introduced without careful analysis. Tariffs alone cannot effectively prompt China to change its practices. It has also caused serious economic problems for U.S. companies. damage."
Dai Qi acknowledged that tariffs may cause economic damage, but said that the levy of tariffs is to "remedy an unbalanced and unfair trade situation."
She hinted that she has some interest in the proposals made by free trade advocates such as former Treasury Secretary Hank Paulson and the business roundtable organized by large companies. These proposals believe that the abolition of tariffs should be used as a countermeasure for subsidies, state-owned enterprises and China. Part of the renegotiation of other structural issues.
"Good negotiators will hold their chips and use them," she said, "good negotiators will not just give up any option."
Dai Qi is a Democrat and previously served on the House Ways and Means Committee. She worked closely with the Trump administration when the United States, Mexico, and Canada were negotiating a new version of the North American Free Trade Agreement.
This earned her the praise of former trade representative Robert Lighthizer, but now she must take care of all requirements. Myron Brilliant, executive vice chairman of the National Chamber of Commerce in the United States, expressed the hope that there will be a detailed agenda for trade liberalization.
William Spriggs, chief economist of the American Confederation of Labor and the Confederation of Industrial Unions (AFL-CIO), said that he is looking for ways to fundamentally change trade and abandon the “spending money to sit on the negotiating table, The old model of "inside trading can be achieved by anyone with a network."
Dai Qi said that the trade policy she is committed to implementing will focus on workers as individuals, not just as consumers. Dai Qi once stated at the hearing to approve her nomination that from a practical perspective, this trade policy focuses on employment and wages, not just lowering prices and increasing product options.
So far, in the Biden administration, the National Security Council and the U.S. State Department have led the policy affairs. Under this circumstance, it is not clear how much influence Dai Qi will have on China policy.
The major economic departments of the U.S. government have yet to appoint senior officials of international affairs in their departments. These departments include the U.S. Department of Commerce, the U.S. Department of the Treasury, and the Office of the U.S. Trade Representative, and they often play an important role in formulating strategies for China.
In the first three years of Trump's administration, Lighthizer and then Treasury Secretary Steven Mnuchin were the main traders of China policy.
Dai Qi’s Chinese background brings a new dimension to US-China relations. During the Barack Obama administration, she was in charge of the implementation work involving China in the Office of the United States Trade Representative and has a deep understanding of China's trade issues.
She grew up in Washington, DC and is fluent in Mandarin. After graduating from university, she taught English in China for two years.
Because of this, the Chinese treat her like a beautiful jade; the literal meaning of Qi is a kind of beautiful jade.
The appointment of Dai Qi triggered different reactions on Chinese social media. Some comments stated that her Chinese proficiency and knowledge of China should make it easier for both parties to communicate and understand each other.
But some people say that precisely because she has Chinese ancestry, her attitude towards China may be as tough as her predecessor, Lighthizer.
A post in March stated that this trade representative with Chinese descent has been unfriendly to China and cited Dai Qi’s previous lawsuit against Beijing at the World Trade Organization as evidence.
Dai Qi’s parents were born in mainland China and grew up in Taiwan, and later went to the United States to study for graduate students. Dai Qi was born in the United States. Her mother is an opioid addiction researcher at the National Institutes of Health. Her late father was a researcher at Walter Reed National Military Medical Center.
Dai Qi is not ready to discuss what help or hindrance her background will bring, but she said: "This is a challenging time."
