Here are the US companies protesting Biden’s approach to China
Biden's policy on China closely resembles Trump's: the new administration has kept tariffs, but would like to give American companies relief. Because in the US the electronics or clothing sectors are snorting
US companies snort at Biden. Here because.
WHAT THE WALL STREET JOURNAL WRITES
The Wall Street Journal writes that the trade policy adopted by the Joe Biden administration towards China has not been welcomed by US companies. Many of these – operating in the electronics or apparel sector, for example – cannot find alternatives to Chinese suppliers that are equally advantageous. The tariffs imposed by Washington on Chinese goods, in short, are proving harmful to their business.
THE WAR OF DUTIES BETWEEN THE UNITED STATES AND CHINA
This is not new. Biden's trade policy towards China is similar to that of his predecessor Donald Trump, who in 2018 had started a "trade war" against Beijing based on the mutual imposition of tariffs.
These tariffs have had a negative impact on American companies importing miscellaneous components from China: a study by the Federal Reserve, the US central bank, showed that the exchange of tariffs caused a reduction in the employment rate in the manufacturing sector. investments in the United States and raised prices for end consumers.
NEGOTIATIONS AND CLUTCHES
Experts did not expect from Biden substantial breakthroughs in the approach to China, which was and remains the United States' main political rival. But a more rational and "targeted" approach, yes.
The negotiations between the two sides have indeed resumed – recently the American representative of the trade Katherine Tai spoke with the Chinese counterpart Liu He – but the differences have not disappeared. The commercial frictions concern in particular compliance with the 2020 "Phase 1" agreement that put the trade war on hold : Washington accuses Beijing of violating the agreed terms (the purchase of US assets for 200 billion dollars).
BIDEN'S COMMERCIAL POLICY ON CHINA
Quartz also thinks Joe Biden's trade policy towards China looks a lot like Trump's, but it's not exactly the same.
Biden's America will continue to press China to comply with the Phase 1 agreement. exemption from tariffs on imports of Chinese products. It is not yet clear how these decisions will be made, and the implications of this "semi-dirigiste" line for free trade will have to be taken into account. For the moment, however – says the Wall Street Journal – this relief to companies does not seem to have come.
In addition to protecting American intellectual property from embezzlement, the Biden administration is also concerned about the dominant position occupied by Chinese state-owned companies (which receive public subsidies) in critical sectors such as steel or solar panels . Washington also wants to prevent Beijing from increasing its relevance in the semiconductor industry; China is currently lagging behind in the development of microchips and is dependent on foreign supplies.
In addition to trying to contain China, Biden wants to improve American competitiveness through large domestic investments in infrastructure and advanced technologies .
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/joe-biden-cina-politica-commerciale-dazi-aziende/ on Tue, 12 Oct 2021 09:37:14 +0000.