After a seven-month review, the Biden administration has unveiled its trade strategy with China. There was little to show for the months of work; the approach is, in essence, a continuation of the stance of Donald Trump. This may be a reflection of US political realities. But it is a blow to US allies that would like to see Washington once again take a lead role in championing trade and investment deals. Instead, they are witnessing what appears to be a bipartisan urge to walk away. Over time, this threatens to hand a strategic victory to Beijing.
In her first detailed comments on China trade since taking office in March, US trade representative Katherine Tai said Washington would start new talks. But it intended largely to press Beijing on commitments it made in the “phase 1” trade deal agreed in January 2020, after the Trump administration had imposed tariffs on an initial $370bn of Chinese imports.
Beijing promised to boost purchases of US goods and services by $200bn throughout 2020 and 2021. Washington’s Peterson Institute for International Economics estimates China is on track to purchase only a little more than 60 per cent of what it promised.