US-China Trade Representatives Hold First Phone Call Since Biden Took Office: "Honest and Constructive Dialogue"

USTR Representative Katherine Tai's First Call with Vice Premier Liu He
"Overall Difficulties in US-China Relations" Trade Dispute Likely to Continue

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] It has been reported that the trade negotiation representatives of the United States and China held a phone call for the first time since the Biden administration took office. Both sides explained that it was a candid conversation sharing concerns regarding the ongoing US-China trade dispute, but it is understood that the US side conveyed concerns that the existing trade agreement between the US and China might not be upheld, indicating that the resolution of the trade dispute itself still has a long way to go.

According to foreign media including Bloomberg on the 26th (local time), Katherine Tai, the US Trade Representative (USTR), held her first phone call with Liu He, China’s Vice Premier and trade representative. This meeting was the first high-level talk since the US and Chinese foreign ministers met in Alaska last March, and it was the first conversation between trade negotiation representatives since the Biden administration took office. The USTR explained in a statement that "Representative Tai discussed the Biden administration’s worker-centered trade policy principles and the US-China trade relationship, while conveying concerns."

The concerns conveyed by Representative Tai to the Chinese side are interpreted as a warning that compliance with the US-China Phase One trade agreement signed by both sides in January 2020 may be difficult. According to the trade agreement, China was supposed to purchase at least $200 billion worth of US products or services over two years starting last year, but US government data revealed that China achieved only about 60% of the target purchase amount last year. The Phase One trade agreement is scheduled to end in December this year, seven months from now, and with China’s economic and fiscal conditions worsening due to COVID-19, there are concerns that full compliance with the trade agreement will be difficult.

Meanwhile, China gave a positive evaluation of the phone call. The Chinese Ministry of Commerce stated in a release that "We had candid and constructive talks based on equality and mutual respect," and "Both sides value trade development and agreed to exchange views on each other’s concerns and continue communication."

This content was produced with the assistance of AI translation services.