The Biden administration is unlikely to remove tariffs on Chinese products in the near term, but China and the United States could find common ground by increasing tariff exclusions to reduce tensions, said a Chinese think tank.
Even as free trade advocates in the United States push for Washington to use tariff cuts as a tool for further trade talks with China, tariffs are expected to remain in place, a China Finance 40 forum report said on Saturday. (CF40), an economic research and finance think tank with members of regulators, academia and financial institutions.
But with the United States facing inflationary pressures in the first half of this year, Washington may seek to reduce the tariff burden through tariff exclusions, which would avoid resistance in Congress and ease political pressures, the report says. .
The Biden administration is conducting a comprehensive review of U.S.-China trade policy, ahead of the Phase 1 agreement expiring at the end of 2021.
The report notes that the US government still maintains additional tariffs on US $ 370 billion of Chinese exports to the United States.
The report also noted that the Biden administration was more concerned about the impact of China’s support to the tech sector and wanted the United States to focus on its own tech support.
“During the Biden administration, technological competition and confrontation between China and the United States in cyberspace will intensify and the possibility of parallel systems will increase,” the report said, predicting increased competition between the two countries. for the creation of international rules around emerging technologies.
U.S. Senate Majority Leader Chuck Schumer said on Friday that the Senate would consider a broad set of laws on June 8 aimed at strengthening the country’s ability to compete with Chinese technology.
Our standards: Thomson Reuters Trust Principles.