Biden to Inherit Trump’s U.S.-China Trade War Upon Entering Office

Joe Biden will not immediately revoke President Donald Trump‘s Phase 1 trade agreement with China and will not take steps to lift trade duties on Chinese exports, The New York Times reported Wednesday, citing the President-elect..

In an interview with the Times columnist Thomas Friedman, which explained how the new administration would act in relation to foreign policy, Joe Biden said his top priority was to get a generous economic stimulus package through Congress even before he came to power.

Reuters reported this week that Trump is considering additional measures to force Biden to take a tough stance on Beijing. This is fueled by anti-Chinese sentiment in Congress, which has often unnerved financial markets over the past four years..

«I am not going to take any immediate steps and the same goes for trade duties. I’m not going to limit my options», – President-elect Biden told Friedman.

Biden said he would pursue a policy against «abuse» China such as «theft of intellectual property, dumping goods, illegal subsidies to corporations» and forcing to «technology transfer» from American companies to Chinese partners.

But he also stressed the need to develop intraparty consensus and focus government efforts on investment in research and development, infrastructure and education that will enable companies to better compete with the Chinese..

«I want to make sure we fight with all our might, investing primarily in America, ”Biden said. – I think that the best Chinese strategy is the one that allows us to gather all of our, or at least once our allies on the same side».

Biden does not intend to immediately abolish duties and end the trade war

Under a Phase I agreement signed this year, China has agreed to increase purchases of American products and services by at least $ 200 billion during 2020 and 2021..

The deal also upheld 25% tariffs on a $ 250 billion set of Chinese manufactured goods and components used by U.S. manufacturers, and China’s reciprocal levy on more than $ 100 billion of U.S. goods..

As for Iran, Biden is of the opinion that his administration will lift sanctions if Tehran returns to «strict adherence to the terms of the nuclear deal».

Iranian Foreign Minister last month Mohammad Javad Zarif said his country would fully comply with its 2015 nuclear deal if Biden lifted the sanctions, adding that it could be done quickly with the help of «three decrees».

«In consultation with our allies and partners, we are going to negotiate and conclude follow-up agreements to tighten and extend Iran’s nuclear restrictions, as well as tackle the missile program.», – added Biden.

Best articles

By admin