Trade Wars

Biden administration “strike force” to act against unfair Chinese trade

WASHINGTON DC: In response to China’s unfair trade practices, the United States will target China with a new “strike force,” the Biden administration announced on Tuesday.

In Tuesday’s announcement, the White House revealed the findings of a review of U.S. access to critical products, from semiconductors to electric vehicle batteries.

The newly formed “trade supply chain strike force” will look for specific violations that have contributed to a “dump” of supply chains, which could then be addressed through trade remedies, including targeting China, they said. administration officials told the media.

In addition, U.S. officials said the Commerce Department plans to initiate an investigation into the national security impact of imports of magnets used in engines and other industrial applications, which the United States largely buys. to China.

President Joe Biden ordered the inquiry into the specifically named supply chains, requiring executive agencies to report on risks to the United States’ access to critical goods, including those needed for pharmaceuticals, as well as ‘to rare earth minerals, on which the United States depends. foreign sources.

Beyond China, the review is part of a strategy by the Biden administration to strengthen U.S. competitiveness in the face of economic challenges coming from China.

The United States faces serious bottlenecks in a number of areas, including computer chips, which have slowed the production of goods, such as automobiles.

U.S. agencies are also required to issue full reports within a year of Biden’s order, identifying gaps in domestic manufacturing capabilities and policies to address them.

“Clearly, a number of Chinese industrial policies have contributed to the vulnerability of US supply chains,” an official said. “I think you will see this strike force focus on some of our political developments in China,” quoted by Reuters.

The United States was not seeking “to wage trade wars with our allies and partners,” the official added, noting that the strike force would focus on “highly targeted products.”

Recently, Biden said China will not overtake the United States as a world leader while he is president. Confronting Beijing has become one of the few bipartisan issues that members of Congress agree on.