Senior US officials are debating whether to open an investigation into China’s use of industrial subsidies, in a move that could spark an escalation in trade tensions between Washington and Beijing.
The discussions within Joe Biden’s administration could ultimately lead America to impose a new round of punitive tariffs on products from China, although such a step is still a long way away.
According to people familiar with the matter, Katherine Tai, the US trade representative, and Gina Raimondo, the US commerce secretary, have considered launching a probe of China’s subsidies under section 301 of the 1974 Trade Act.
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