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Katherine Tai has been tipped to be appointed as the new US trade representative in the incoming Biden administration. Photo: USCBC

China’s task ‘may be complicated’ if Katherine Tai lands top US trade job

  • Joe Biden’s reported pick as US trade representative to succeed Robert Lighthizer is a Chinese-American who speaks Mandarin and has worked in China
  • Tai formerly had responsibility for litigation in US disputes against China at the World Trade Organization
Beijing may face a more complex challenge in relations with Washington with US president-elect Joe Biden’s top trade appointment set to be an experienced hand in US-China trade disputes, some Chinese experts believe.
The US media reported that Biden would nominate Katherine Tai – a Chinese-American and the trade lawyer for the House of Representatives’ chief taxation committee – to succeed Robert Lighthizer as head of the Office of the US Trade Representative (USTR).

If confirmed, Tai would be the first woman of colour to fill the position and the second Asian-American to take a cabinet-level post in the upcoming Biden administration.

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Given the pivotal role of the USTR in the US-China trade war and in trade negotiations with China during the Donald Trump administration, the appointment will be watched closely for clues as to Biden’s trade policy on China, with tariffs of up to 25 per cent on US$370 billion of Chinese products in the balance along with future trade talks.

Born in Connecticut to Taiwanese parents, Tai speaks Mandarin fluently and is a graduate of Yale University and Harvard Law School. She taught English for two years at Zhongshan University in Guangzhou, southern China, from 1996 to 1998, as a Yale-China Fellow.

Tai served in the USTR’s General Counsel Office from 2007 to 2014 and for the last three years of that stint was chief counsel for China trade enforcement, with responsibility for litigation in US disputes against China at the World Trade Organization.

Wu Xinbo, director of Fudan University’s American studies centre, said Tai’s previous experience in setting US strategy in trade disputes with China at the WTO meant she was skilled in applying pressure to China on a multilateral platform.

“In contrast to Trump’s and Lighthizer’s approach, which favours bilateral trade war, Biden doesn’t see tariffs as the way to go,” Wu said. “Under Biden, Tai could be instrumental in implementing the strategy of recruiting allies and ganging up on China at the WTO.”

Democratic leaders view Tai as a skilled negotiator, while multiple members of both parties in the US Senate have suggested Tai as a potential US trade representative, arguing that she has the expertise to tackle issues relating to China.

She gained fame as the Democrats’ leading trade counsel in negotiating stronger labour provisions with the Republicans’ Lighthizer-led team in the US-Mexico-Canada trade agreement.

Shi Yinhong, a professor on international relations at Renmin University in Beijing and a government adviser, said Tai’s nomination might be another “negative signal” for China-US relations and might continue Washington’s tough stance on China, given Tai’s experience in handling trade issues with China.

“This might not be good news for China, given that she handled the trade disputes with China,” Shi said. “It is not an issue of her Chinese-language skills or ethnicity. We also need to observe whether she has real political influence on Biden.”

Shi said China might “not be very excited at all” about the choices of Tai as the US trade representative and Pete Buttigieg as US envoy to Beijing, both of whom China knows little about.

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Gary Locke, a Chinese-American, served as US ambassador to China during the Barack Obama administration. Locke’s appointment had been applauded by China as promoting closer ties between the countries, but his emphasis on the rule of law in China and his role in granting US asylum to rights activist Chen Guangcheng angered Beijing.

Chen Long, a partner with independent research firm Plenum, said he did not expect to see an immediate difference in trade relations between Beijing and Washington.

“[We are] unlikely to see a rollback of tariffs on Chinese products at least in the first half of the year,” he said.

Biden has said previously that he will not immediately roll back tariffs imposed on Chinese products without a full review of the interim trade deal signed with China in January, and consultation with US allies.

Chinese Foreign Minister Wang Yi said on Monday that China would fulfil its commitments under the interim deal while also calling for a resumption of dialogue on economic policy coordination and a bilateral investment treaty.

The new US trade representative will also play a key role in repairing trade relations with the US’ allies, including addressing tariffs on European countries and Canada, and bridging a gap with the European Union over its imposition of digital tax on US tech firms.

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Wang Yong, director of Peking University’s international political economy centre, said Tai’s selection was a positive move for future trade negotiations between China and the US.

“Tai is an American-born Chinese who speaks fluent [Mandarin],” he said. “She probably has a better understanding of Chinese culture and negotiating style. This is her advantage and her background and qualities will be conducive to advancing dialogue and exchanges between the two countries.

“The Biden team has already expressed that they think it is unrealistic for China and the US to decouple. So I believe the Biden administration will eventually remove all the tariffs put in place by the Trump administration, because American businesses and consumers have suffered from that.

“The US’ negotiating tactics will also need to change.”

This article appeared in the South China Morning Post print edition as: Beijing’s task ‘complicated’ if Tai lands top US trade post
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