China’s ‘unfair’ trade practices, ‘distortions’ in focus with US to stress economic independence

When US Trade Representative Katherine Tai speaks to the House of Representatives, it is expected to mark a significant shift in Washington’s approach to China

‘Strategic investments’ in the United States could help it no longer depend on China

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US Trade Representative Katherine Tai says it’s time to “turn the page on the old playbook with China”. Photo: Bloomberg

Published: 12:24pm, 30 Mar 2022Updated: 12:52pm, 30 Mar 2022

The United States should focus on achieving economic independence from China rather than pressuring Beijing to change “unfair” trade practices, US Trade Representative Katherine Tai will suggest on Wednesday, marking a shift in strategy toward the Asian giant.

The new approach takes into account Washington’s inability to force fundamental changes in business practices under a trade agreement signed by the previous administration, she will argue, according to an advance copy of her speech shared with the media.

“While we continue to keep the door open to conversations with China … we also need to acknowledge the agreement’s limitations, and turn the page on the old playbook with China, which focused on changing its behaviour,” she will tell the House of Representatives.

The phase-one trade deal, signed by former president Donald Trump, went into effect in early 2020 and expired at the end of last year.

In her appearance before the US Congress, Tai will stress that the strategy must now “expand beyond only pressing China” into abandoning trade practices that Washington deems unfair.