Lighthizer Advises Biden to "Continue Pressuring China"
"China Implements Only Part of Phase 1 Trade Agreement"
[Asia Economy Reporter Jeong Hyunjin] Robert Lighthizer, the United States Trade Representative (USTR), urged the incoming Joe Biden administration to continue pressuring China. He emphasized that tariffs should be utilized while adhering to the contents of the Phase One U.S.-China trade agreement announced earlier this year.
On the 16th (local time), Lighthizer made these remarks in an interview with a major foreign media outlet. He stated that regarding China's implementation of the Phase One trade agreement, "some parts are going quite well, but others are not," and said that pressure should be applied to the Biden administration concerning the Phase One trade agreement.
Lighthizer pointed out that China has not purchased some promised goods citing the novel coronavirus disease (COVID-19) as a reason, and said, "I will use the dispute resolution process to address specific issues." He added, "I will maintain the tariffs, and if the tariffs disappear, it will signal that China is not being taken seriously as a strategic adversary."
Earlier, during his candidacy in August, Biden evaluated the Phase One trade agreement as a "failure." However, after his election, he stated in The New York Times (NYT) earlier this month that there are no plans for immediate changes to tariffs or the trade agreement on Chinese goods.
Lighthizer said that President Trump's "America First" trade policy shifted the goal of U.S. trade policy from sending companies overseas to bringing them back to the U.S. He further evaluated that Trump's efforts "changed people's mindset toward China economically" and served as an opportunity to reconsider dependence on China's supply chains.
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Additionally, Lighthizer mentioned that the Trump administration's strong criticism of the World Trade Organization (WTO) for siding with China has led to broad consensus on the need for WTO reform. He added that it seems better for the WTO to introduce a simpler and more binding dispute resolution system than it currently has.
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