U.S. trade chief Tai says getting ‘traction’ with China in ‘Phase 1’ deal talks -Breaking
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© Reuters. FILE PHOTO. Katherine C. Tai speaks at the Senate Finance Committee hearings. She is being questioned about her nomination as United States Trade Representative. Bill O’Leary/Pool via REUTERS/File PhotoWASHINGTON (Reuters] – Biden’s administration is gaining momentum with China during talks about Beijing complying with a Trump trade agreement, U.S. Trade Representative Katherine Tai reported on Wednesday. But, while she did not predict a result, the U.S. Trade Representative declined to comment.
Washington reporters heard her tell them that the Obama administration is determined to hold China responsible for the bilateral “Phase 1”, two-year trade agreement signed January 2020. She also said the government will be looking into all areas of weakness in China’s performance including the lack of purchasing commercial aircraft.
China is running far behind in its promises in the deal to boost purchases of U.S. goods by $200 billion during 2020 and 2021, compared to 2017 levels, reaching only 60% of the target through Sept. 30 https://www.piie.com/research/piie-charts/us-china-phase-one-tracker-chinas-purchases-us-goods, according to data compiled by trade economist Chad Bown of the Peterson Institute for International Economics.
Asked if she was pushing in the talks for China to take steps to allow for purchases of Boeing (NYSE:) commercial aircraft – a purchase category identified in the Phase 1 agreement https://ustr.gov/sites/default/files/files/agreements/phase%20one%20agreement/Economic_And_Trade_Agreement_Between_The_United_States_And_China_Text.pdf – Tai said: “If you’re looking at where the weaknesses might be, in terms of Phase 1, you should expect that we are talking through it and exploring all of it.”
Xi Jinping and Joe Biden, the United States President, have a virtual meeting set for next week in response to rising tensions between China’s largest two economies.
Tai claimed that they would find it helpful to meet and that their mutual understanding would improve a complicated relationship. However, she stated that leaders were not needed to facilitate trade talks.
Tai stated, “I don’t want anyone in the room to think that we aren’t getting traction together with our Chinese counterparts.” We’re speaking and working. “So we don’t need Dads to get in,” she explained, referring also to Biden, Xi, and others.
Tai was asked if Trump administration would consider easing Chinese import tariffs in an effort to decrease inflationary pressures. Tai replied that USTR views the Section 301 Chinese tariffs as part of a strategy to position itself to be more competitive with China.
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