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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

U.S. Trade Representative 2020 Report to Congress on China

01/27/2021

The 2020 report to Congress on China trade policy was compiled and submitted by the Office of the U.S. Trade Representative (USTR).  Following accession of China to the World Trade Organization, there was an expectation that the Nation would adhere to international rules.  China failed to comply with an anticipated change in policy to pursue a market-oriented approach to trade.  In contrast, China intensified state-owned manufacture, followed coercive policies on investment, engaged in corporate espionage, ignored intellectual property rights, pursued central control of the economy and engaged in currency manipulation.  Unfair competition was evident in predatory pricing of steel, aluminum and solar panels collectively distorting trade to the detriment of the economies of trading nations.

 

The U.S. alone or in combination with other members of the WTO resorted to available measures including tariffs, bilateral negotiations and litigation in an attempt to restrain nonconforming practices exercised by China.

 

Following the Phase One trade agreement concluded in mid-January 2020, the USTR considers that there is evidence that China is moving forward “in good faith with the implementation of its commitments.”  Issues that have yet to be resolved include state subsidies, maintaining excess capacity in state-owned enterprises, illegal cyber-acquisition of intellectual property and lack of regulatory transparency. The USTR believes that negotiation should continue for a Phase -Two agreement.  Concurrently restructuring of the WTO is underway and should result in more rapid resolution of conflicts possibly restraining China.

 

It remains to be seen whether the Biden Administration with Amb. Katherine Tai as the USTR will be able to make progress in curbing the excesses of China.  This will require the support of major industrialized nations since cooperation was not considered a priority during the tenure of her predecessor, Robert Lighthizer. He followed a more isolationist approach to world trade, relying on tariffs and where indicated or not, bluster from Presidential Advisor and Sinophobe, Dr. Peter Navarro.


 
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