US USTR Representative: "China Causes Global Economic Instability... Concerns Over Information Control"

Concerns Over China's Supply Chain Dominance
"Information Sovereignty Must Be Established"
Emphasis on the Need for WTO System Reform

Catherine Tai, United States Trade Representative (USTR), criticized on the 12th (local time) that "China is causing concerns and instability to the global economy."

At a discussion hosted by the Council on Foreign Relations (CFR) on the same day, Representative Tai warned, "When a specific player like China gains dominance over supply, it can distort the market and raise prices." She added, "We also secure key supply points, and the world is uneasy about the resulting confrontations," emphasizing the importance of supply chain flexibility.

Regarding the criticism that supply chain diversification caused by China leads to short-term price increases, she said, "From a supply chain perspective, such changes may not be good for prices," but stressed, "However, concentrating production and supply in specific players is a good tool for managing inflation in the mid to long term."

Katherine Tai, United States Trade Representative
Photo by Yonhap News

Representative Tai also spoke about China's information control. She stated, "All information flowing into China is controlled by the government," and appealed, "Therefore, information related to the global digital economy must be localized in each country." She continued, "Data entering China is not re-exported by the government, which ultimately means that the Chinese government can access or own all data," criticizing, "This conflicts with the values we uphold."

Tai repeatedly mentioned the need to reform the current World Trade Organization (WTO) system. She argued, "Unlike the early days of the WTO's establishment, the number of member countries has greatly increased, and international relations have diversified with confrontations with China and the growth of India, so a system reflecting all these changes is necessary." She added that especially regarding dispute settlement procedures, additional institutional mechanisms beyond litigation are needed.

Regarding the possibility that such reforms might disrupt relations with allies, she explained, "This presupposes cooperation with allies, not moving away from them," and clarified, "How much I prioritize traditional alliances is proven by the significant amount of time I spend in Brussels and the Indo-Pacific."

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