U.S. Sets Strategic Vision for China Trade Policy – Yahoo Finance

Trade war flame throwing has given way to a new kind of tough talk on China under the administration of U.S. President Joe Biden.
After months of reviewing the U.S.-China trade relationship — when Washington pushed through pandemic-focused measures and worked on the nation’s infrastructure — U.S. Trade Representative Katherine Tai sought to reset the conversation with China in an address on Monday.
More from WWD
Emerging Chinese Fashion Influencers to Know in 2021 [Photo]
Yu Prize Award Ceremony in Shanghai
All the Looks from China's Spring Festival Gala 2021
Trade with China remains a key topic for the industry — particularly with importers still paying trade war tariffs on apparel made in the country. Tai said the USTR’s office will start a “targeted exclusion process” that would remove tariffs on some types of goods, but apparel was not specifically mentioned.
China is the largest exporter of apparel to the U.S., accounting for 36.9 percent of the market valued at nearly $17 billion for the 12 months ended July 31, according to Commerce Department data.
Still, fashion is just part of a much larger economic equation that also includes steel, semiconductors, the treatment and detainment of the Uyghur people in Xinjiang and more.
“The U.S.-China trade and economic relationship is one of profound consequence,” Tai said at the Center for Strategic and International Studies in Washington. “As the two largest economies in the world, how we relate to each other does not just affect our two countries, it impacts the entire world and billions of workers.”
While not in the fiery rhetoric that former President Donald Trump preferred, Tai’s speech still emphasized more stick than carrot when it came to China.
“For too long, China’s lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world,” she said. “In recent years, Beijing has doubled down on its state-centered economic system. It is increasingly clear that China’s plans do not include meaningful reforms to address the concerns that have been shared by the United States and many other countries.
“We have a lot of work to do,” she said.
In addition to excluding some goods from trade war tariffs, Tai said that work starts with:
Engaging China to make sure it keeps its agreement under the “Phase One” trade agreement Tai inherited.
Addressing China’s “state-centered and non-market trade practices.”
Working with allies to “shape the rules for fair trade in the 21st century, and facilitate a race to the top for market economies and democracies.”
“We need to take a new, holistic and pragmatic approach in our relationship with China that can actually further our strategic and economic objectives — for the near-term and the long-term,” Tai said.
It’s a general approach that is tied into the Biden administration’s plans to also make America more competitive by upgrading its infrastructure. It has a little bit of everything — some tariffs cuts, holding China’s feet to the fire to make sure it keeps its Phase One promises and then addressing broader concerns that cut to the heart of how China operates.
There are real questions over how much China really will change, especially since it is in the process of cracking down on some of its citizens’ more Western impulses — like celebrity culture.
But the tone and the process — following months of internal mulling — marks a night and day change from the last administration’s go it alone and fly by the seat of its pants approach.
“Our goal is to bring deliberative, stable, long-term thinking to our approach — and to work through bilateral and multilateral channels,” Tai said. “The core of our strategy is a commitment to ensuring we work with our allies to create fair and open markets.”
MORE FROM WWD:
Retail’s Silver Linings and Dark Clouds
The IPO Mania Transforming Fashion and Retail
In Fashion: A Direct-to-consumer Mirage?
Having waited eight months for U.S. Trade Representative Katherine Tai's promised "top-to-bottom" policy review of trade with China, some U.S. industries and experts were complaining over the plan's lack of specifics on negotiations or timing. Unveiling her plan on Monday, Tai, President Joe Biden's top trade official, pledged to hold talks with Chinese officials over their failure to meet the terms of former President Donald Trump's "Phase 1" trade deal, and to revive a process to grant exclusions from tariffs on Chinese imports. "She's going to re-engage with China and that's a good thing," said Mary Lovely, a Syracuse University trade economist who attended Tai's speech in Washington.
After a summer of extraordinarily bad news on the exponential growth of China’s strategic nuclear forces, recent public statements by U.S. government officials indicate Beijing isn’t only building out its nuclear forces, but also diversifying it, by considering new, nontraditional weapons, as well as possibly reconsidering its nuclear deterrent doctrine.
BRUSSELS (Reuters) -The European Union said on Wednesday it will examine the way its power market is run and consider proposals to revamp regulations within the bloc, as it seeks to keep plans to tackle climate change on track amid record-high energy costs. European electricity and gas prices have rocketed this year as tight gas supplies have collided with strong demand in economies recovering from the COVID-19 pandemic. Energy prices topped the EU's political agenda on Wednesday, with environment ministers and the European Parliament each debating the issue after country leaders discussed possible responses on Tuesday.
General Motors Co on Tuesday said it will open a battery cell development center in southeast Michigan to help it drive down the cost and boost the driving range of electric vehicles with lithium ion and solid-state battery cells. The Wallace Battery Cell Innovation Center, to be located on the No. 1 U.S. automaker's technical campus in Warren, Michigan, is expected to open in mid-2022 and begin building prototype cells in the fourth quarter, GM said. "The key to making these vehicles affordable is going to be the cell cost in the battery packs," Ken Morris, GM's vice president of electric and self-driving vehicles, said on a conference call with reporters.
One America News, the far-right network whose fortunes and viewership rose amid the triumph and tumult of the Trump administration, has flourished with support from a surprising source: AT&T Inc, the world's largest communications company. A Reuters review of court records shows the role AT&T played in creating and funding OAN, a network that continues to spread conspiracy theories about the 2020 election and the COVID-19 pandemic. OAN founder and chief executive Robert Herring Sr has testified that the inspiration to launch OAN in 2013 came from AT&T executives.
We’ve now entered the phase of the (perpetually) tortured debate over the debt ceiling that invokes apocalyptic economic imagery, namely “recession” and “default.”
Brian Cheung joins the Yahoo Finance panel to discuss Senator Elizabeth Warren’s continued opposition against Fed Chairman Powell’s renomination and what this intensified pressure could mean for the future of the Fed.
A generous new entitlement isn't proving as popular as liberal Democrats expected.
(Bloomberg) — With winter fast approaching and a stunning energy price surge pummeling Europe, Russian President Vladimir Putin chose an opportune moment to use his country’s leverage as an oil and gas superpower. Most Read from BloombergLeft-Wing Rage Threatens a Wall Street Haven in Latin AmericaChristmas at Risk as Supply Chain ‘Disaster’ Only Gets WorseBefore Interstates, America Got Around on InterurbansReshaped by Crisis, an ‘Anti-Biennial’ Reimagines ChicagoThis Is What Europe’s Green Fu
The Russian president said the country’s gas supplies to Europe are set to reach a record this year.
If Congress fails to raise the debt limit, each and every government program could be at risk.
The Federal Reserve won't sit on the sidelines if the Treasury Department runs out of money this month. Here are the possible ways they might try to mitigate the damage to the economy and financial markets.
Former President Donald Trump was not included in Forbes’s 400 list of the richest people in the United States for the first time in 25 years.
Stocks traded mixed on Wednesday, with the S&P 500 and Dow lower as concerns over inflation and spiking energy and commodity prices outweighed optimism over the pace of the economic recovery.
ADP released its monthly report on private payrolls Wednesday morning.
(Bloomberg) — Outgoing German Chancellor Angela Merkel dismissed charges that Russian leader Vladimir Putin is partly to blame for the record spikes in European gas prices. Most Read from BloombergLeft-Wing Rage Threatens a Wall Street Haven in Latin AmericaChristmas at Risk as Supply Chain ‘Disaster’ Only Gets WorseBefore Interstates, America Got Around on InterurbansReshaped by Crisis, an ‘Anti-Biennial’ Reimagines ChicagoThis Is What Europe’s Green Future Looks Like“To my knowledge, there ar
President Joe Biden urged quick action on raising the U.S. debt limit as he met with a group of top U.S. business leaders on Wednesday amid a brawl over the borrowing limit.
The Labor Department is set to release its weekly jobless claims report Thursday morning.
The SEC Chair laid out his stance on crypto regulation during a House Financial Services Committee hearing on Tuesday. CoinDesk breaks it down.
WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen, JPMorgan Chase &Co Chief Executive Jamie Dimon and Nasdaq CEO Adena Friedman warned on Wednesday of financial and economic catastrophe if Congress fails to raise the debt ceiling. The three and other business leaders met U.S. President Joe Biden at the White House to pressure Republicans in Congress to vote for a debt ceiling increase, saying their opposition will take America "right to the brink."

source