US Trade Representative Catherine Tai and Vice Premier of the State Council of the People’s Republic of China Liu has agreed to hold additional consultations on issues related to bilateral trade relations during conversation through the videoconference. According to the US Department of Trade, both leaders acknowledged the importance of bilateral trade relations and the impact they have not only on the United States and China, but also on the global economy. According to US media, the American trade Representative highlighted US concerns about Chinese government non-market policies and practices that are damaging American workers, farmers, businesses and also expressed her desire for a meeting with Vice Premier Liu in the near future.
The former US President Donald Trump has initiated a trade war with China during 2018 by imposing tariffs on Chinese imports by almost 25 % on all goods, which badly affected the GDP of both nations during the last three years. According to a report, due to imposition of massive tariffs, Chinese exports to the US fell by 5% during 2019 and the situation is worsening gradually for both countries.
The United States and China signed a trade deal in January 2020, under which China agreed to increase purchases of American products during the first and second years of the agreement by $ 76.7 billion and $ 123.3 billion, respectively. However, the Biden administration is of the view that the first phase of the trade deal with China had failed to bring satisfactory results.
US Trade Representative has outlined US’s priorities regarding America’s trade with China during a recent think tank discussion at CSIS. Tai accused China for not fulfilling its obligations during the first phase of the 2019 trade deal. She also hinted at a targeted tariff exclusion process which can benefit US industry, farmers and other producers in the long run. USTR intended to compel China to bring fundamental changes in its state-centred and non market trade practices in the days to come. However, all these are dreams of USTR and for changing them into reality she has to learn the recipes of Liu, which may distaste her. However, the Tai-Liu meet-up would decide the future of US-China Trade Relations.