[Text/Observer Network Li Li]
With the Federal Reserve unable to control inflation, US President Biden , Treasury Secretary Yellen , and Commerce Secretary Raimondo are interested in promoting measures to relax China's tariffs. . However, U.S. Trade Representative Dai Qi still "sings the opposite tune" with them. She issued her latest statement on June 22, saying: "In my opinion, China's tariffs are an important bargaining chip, and trade negotiators never give up their bargaining chip." As for why she always refuses to let go of China's tariffs, her explanation is that "the effect of removing tariffs on controlling short-term inflation may be limited."
Screenshot of Bloomberg report
According to a Bloomberg report on June 22, U.S. Trade Representative Dai Qi responded to a question about "China tariffs" raised by Tennessee Republican Senator Bill Hagerty at a Senate hearing on June 22: "In my opinion, China's tariffs are an important bargaining chip, and trade negotiators never give up their bargaining chip."
Dai Qi also added that the key challenge for the Biden administration is to translate "this leverage into a strategic package to strengthen U.S. competitiveness and defend U.S. interests in a global economy in which China will continue to play a role." ".
She acknowledged that tariffs and other trade tools can help improve the competitive position of the U.S. economy in the medium and long term, but she was pessimistic that "the effect of removing tariffs on controlling short-term inflation may be limited."
Live footage of the hearing
Dai Qi is at On May 2, it said that inflation caused by soaring food and energy prices can be dealt with through monetary, tax or policy adjustments.
"We need to maintain our focus within this larger scope," Dai Qi stressed. At present, it is important to focus on protecting U.S. trade interests and opposing China's "plan" to dominate important industries such as semiconductors.
Dai Qi told senators that they are currently waiting for Biden's reply.
According to Reuters 21 report, sources told Reuters that Biden is stepping up White House discussions on whether to lift tariffs on a range of Chinese goods to curb inflation , but will not be ready for next week’s Group of Seven leaders No decision can be made before the summit.
sources also revealed that the cuts may be significant, but the scale has not yet been decided.
Reuters reported that the United States imposed punitive tariffs of up to 25% on approximately US$370 billion worth of Chinese goods in 2018 and 2019 (these years were years of low inflation). Only about $50 billion of the total is directly related to what former President Trump’s administration claimed was “the Section 301 investigation into China’s ‘misappropriation’ of U.S. technology and intellectual property.”
As for the U.S. accusation that China "steals intellectual property rights," the Chinese Ministry of Foreign Affairs has issued a statement on relevant issues earlier, refuting the U.S. fallacy. The United States constantly accuses China of stealing intellectual property rights, but it has never provided strong evidence.
The source also said that Biden is inclined to take quick action on the tariff issue and hopes to use all means to cool down the soaring prices caused by domestic inflation before the congressional midterm elections on November 8.
Dai Qi’s remarks on June 22 showed that she is still relentlessly pushing Biden to maintain tariff leverage against China, and she does not seem to want the outside world to have too high expectations for Biden’s “deflationary actions.” "Inflationary pressures will eventually subside, but the United States will still face long-term strategic challenges from China's state-led economic policies."
Bloomberg noted that Dai Qi's remarks were in line with those of U.S. Treasury Secretary Yellen earlier this month. contrast. Yellen said tariffs have hurt U.S. consumers and businesses and led to the fastest inflation in 40 years. Yellen also noted that cutting tariffs could help lower prices. Yellen also said that some tariffs on China during the Trump era had "no strategic significance."
Commerce Secretary Gina Raimondo (Gina Raimondo) also said earlier this month that it "could make sense" to eliminate tariffs on some goods as a way to curb inflation.
“We may one day find ourselves on the other side of these challenges.I think it's very, very important that what we do now does not undermine our need to make ourselves more competitive and to defend our economic interests in a global system that, over the past several decades, has It has weakened our leadership position in many, many different economic areas," Dai Qi said on June 22.
"South China Morning Post" pointed out on the 22nd that Dai Qi's office's budget request for fiscal year 2023 is US$76.5 million, an increase of US$6.5 million from the previous year.
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