Trevor Hunnicutt and Steve Scherer (NYSE:).

WASHINGTON/OTTAWA/MEXICO CITY (Reuters) – When U.S. President Joe Biden gathered the leaders of his closest neighbors at the White House on Thursday, far-off rival China was top of mind.

Biden is trying to bring together a group of democracies that will challenge China’s economic and military might. He has revived his so-called Three Amigos workgroup, which was abandoned by Donald Trump.

Even though he was not able to say “China” directly in front of reporters at the time, his close aides claimed that his private discussions were focused on strategies designed against a nation which could by some estimations overtake the United States within the next ten years as the largest economic country.

Biden and Justin Trudeau (Canadian Prime Minister) and Andres Manual Lopez Obrador (Mexican President), agreed Thursday to contribute millions to vaccines for third countries and work with each other to repair their dependency on unreliable supply chains. Also, they will prohibit the import of products made from forced labor which China says it uses in its northwest Xinjiang. Beijing denies it.

These three men also suggested that it was high time to stop the decades-long trend towards global trade and regain manufacturing from China.

Lopez Obrador stated, “It is a paradox that there are so many moneys in North America while the Pacific ports have become saturated with goods imported from Asia.” Why can’t North America produce what it consumes?

Lopez Obrador explained that the only way to stop competition from China is to integrate economically between these three countries. They account for 28% of the global gross domestic product.

Washington, under Biden is the largest supplier of world vaccines. It works hard to boost infrastructure development overseas and to secure the raw materials and supplies that it needs to become a global leader in electric cars.

Each case has China having a competing program. This includes its Belt and Road initiative.

Biden’s new initiative, a Democrat representing the Democratic Party, is a sharp departure from Republican Trump’s “America First” policies, which upset some Washington allies.

NAFTA

The United States, Canada and Mexico have had their economies tightly linked since 1994 when they implemented the North American Free Trade Agreement. This agreement was then replaced later under Trump.

The original agreement was based on the idea that North American trade would be fair and open to all three parties. This would allow them to become richer and more connected, and help them compete internationally, even with China’s rising power.

China emerged as the clear winner in the subsequent years. China gained greater market access through its entry to the World Trade Organization in 2001. The United States was dependent on Chinese exports and manufacturing jobs began moving to China and low-cost countries like Mexico.

The level of China-dependent lawmakers in both political parties is now seen as a serious mistake. The United States has been facing shortages in goods since the COVID-19 epidemic. Some of these products are dependent upon East Asian manufacturing and raw materials.

Inflation and Americans’ declining view of Biden’s economic management have been a result of shortfalls this year.

Biden sees China as an enemy and has allies in Canada, Mexico, and the United States.

Since the end of a three-year standoff over the arrest https://www.reuters.com/world/china/china-welcomes-huawei-executive-home-silent-freed-canadians-2021-09-25 of a Huawei Technologies Co executive in September, diplomatic exchanges between Canada and China have been tense.

Canada’s rich supply of crucial minerals such as rare earths, which are essential for electric vehicle batteries, is being promoted to help the West reduce its dependence on China.

Trudeau, who spoke Wednesday at Washington said that “Many of these crucial minerals have been captured by…certain parts of this world that are somewhat more reliable these days.”

A statement following their meeting stated that Trudeau, Biden and “underscored [their] commitment to supply chain safety” on Thursday.

Lopez Obrador also agreed that Mexican customers are still waiting on household appliances or cars because there is a shortage of semiconductors.

Ildefonso Guajardo was a former Mexican economic minister and oversees trade negotiations with Trump’s administration.

He said, “The new reality in the supply chains and logistics disruptions caused COVID to international commerce obviously means that we have to give greater priority to North America.”