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U.S. trade chief Tai to unveil Biden’s China trade strategy on Monday By Reuters

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© Reuters. FILE PHOTO. U.S. Trade Representative Katherine Tai speaks before the Senate Appropriations Subcommittee at a Capitol Hill hearing, Washington, U.S.A, April 28, 2021. Sarah Silbiger/Pool via REUTERS/File Photo/File Photo

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By David Lawder

WASHINGTON (Reuters] – U.S. trade representative Katherine Tai will present the long-awaited strategy of the Biden administration for troubled U.S. China trade relations in a speech Monday at a Washington thinktank, she said.

Tai will give remarks at the Center for Strategic Studies, Washington on China’s trade policies and take part in a Q-and-A session.

Since taking office in March, Tai has been conducting a top-to-bottom review (https://www.reuters.com/business/us-trade-chief-expects-engage-china-near-term-phase-1-deal-2021-05-05) of Washington’s China trade policy.

U.S. Joe Biden kept the tariffs in place on Chinese imports worth hundreds of billions dollars that were imposed by Donald Trump. However, his administration has not yet revealed how it plans to address China’s “non-market trade” and subvention practices.

At 10 AM EDT (13:00 GMT), Tai will announce the beginning of Phase 1 of the U.S.-China Trade Deal. This deal, which Trump signed with Beijing in January 2019, will end a three-month tariff war. This agreement calls for China’s increased purchases of U.S. farm, manufactured and energy goods and services over the next two years, as compared to 2017.

Biden Administration officials claim China has not fulfilled Phase 1 of its trade deals commitments. They intend to continue to enforce its international trade obligations.

Chad Bown, a senior fellow at the Peterson Institute for International Economics in Washington, estimates https://www.piie.com/research/piie-charts/us-china-phase-one-tracker-chinas-purchases-us-goods that China’s purchases of U.S. exports through August are running at about 62% of the Phase 1 targets, based on U.S. export data.

As sensitive U.S. technology is restricted to Chinese businesses, tensions have grown between the economic superpowers.

Tai has said (https://www.reuters.com/world/us/us-trade-chief-tai-says-us-faces-very-large-challenges-china-2021-05-27) the United States faces “very large challenges” in its trade relationship with China that require engagement across the Biden administration. To counter massive Chinese subsidies in high-tech sectors, she has requested that Congress create new trade laws tools.

Biden has tried to get allies of the USA to stand with Washington to confront Beijing’s alleged abusive trade practices. U.S. and European Union officials met on Wednesday in Pittsburgh to deepen transatlantic cooperation (https://www.reuters.com/article/usa-trade-eu-tech-idCNL1N2QV15N) on technology regulation, protecting sensitive technologies and addressing challenges posed by “non-market economies” — a reference to China.

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