America's allegation – China is harming the companies of the world with its business

Posted on 17th Feb 2022 by rohit kumar

The US has accused China of causing "serious harm" to workers and companies around the world with its trade policy.

 

The US Trade Representative accused China of repeatedly failing to meet trade commitments.

 

On Wednesday, the US Trade Representative issued an annual review of compliance with the agreement reached between China and the organization for members of the World Trade Organization (WTO), which it was said.

 

China says that it is a supporter of this agreement and is also an important ally of the WTO.

 

Catherine Tai was appointed as the top US trade negotiator in President Biden's administration. This is the first report since Katherine Tai took office. The report expressed US concerns about China's trade policies.

 

Indeed, China subsidizes industries it considers important, as well as restrictions on the ability of foreign companies to do business in China and the lack of protection for intellectual property rights is a cause of concern for the US.

 

China says it is building "a socialist market economy" that allows market forces to determine the allocation of resources and allows the government to "play a better role".

 

"As China has adopted a state-led and non-market approach to its economy, China's trade has increased over time. And the resulting trade deficit severely hurt American companies and workers," the report says. Is."

 

The report also said that the US had made 27 lawsuits against China in the WTO and America has won in all, yet China did not make any reforms.

 

In this trade war that started during the time of former President Donald Trump, the world's two largest economies started imposing more and more tariffs on each other's imports and exports.

 

Despite this, trade between the two countries increased and last year it increased to $ 657.4 billion.

 

'Everyone will be affected by US and China trade'

 

Chris Morris is the BBC's Global Trade Correspondent and has been following the trade war between the two countries for a long time.

 

He says, "The trade relationship between China and the US is arguably one of the most important bilateral relations in the world. It is affecting all countries of the world, and the relationship between the two countries is only getting worse."

 

America says that China is buying less from America than it was five years ago.

 

If we look at this bilateral trade relationship on a multilateral trading forum like the World Trade Organization, then the relationship between the world's two largest economies does not seem to be moving forward but seems to be stuck.

 

There is no evidence that both countries have benefited from the tariffs, nor are there any prospects of the end of the tariffs from either side.

 

America and China are countries with two very different economic systems and this enmity between the two countries will determine the new definition of the 21st century.

 

Did the first phase trade deal have an effect?

 

Dennis Shea, who was the US ambassador to the World Trade Organization during Donald Trump's administration, told the BBC that a trade deal was reached between the two sides in 2020.

 

He says, "In this agreement of the first phase, our effort was that China should do the same for America and give the same freedom as America gives Chinese companies in terms of trade."

 

"It's interesting that Ambassador Tai and the Biden administration are still working to implement the same deal."

 

In the deal signed in the year 2020, the US reduced some of the tariffs imposed on China and China agreed to increase imports from the US by $ 200 billion compared to 2017.

 

Chinese government spokesman Liu Pengyu has said that trade with the US is increasing and the US and the rest of the world are benefiting from the first phase of the deal.

 

He said that any differences can be resolved through talks.

 

He said, "China is working on a joint agreement despite Covid-19, global economic slowdown, supply as well as continued sanctions from the US government."

 

According to research by Chad Bown of the Peterson Institute of International Economics in Washington, China has not bought any of these extras.

 

"There is no indication that US-China trade relations will improve anytime soon, but that doesn't mean they are on the verge of deteriorating," Chad Bown told the BBC.

 

"Unlike President Trump, the Biden administration is not threatening to escalate the trade war and impose new tariffs on billions of dollars in trade."

 

It does not seem that the WTO will be able to resolve the differences between these two countries.

 

The WTO's main dispute resolution system, the appellate body, has not been able to function since December 2019 as the US has been repeatedly blocking the appointment of new judges.

 

The USTR report said, "Many problems arising from China's non-market approach to the state-led economy and trade require new strategies, including the need for independent solutions from the WTO."

 

need for a multi-pronged approach

 

Shia says that the increasing Chinese exports to the US and the resulting US trade deficit are not only because American consumers are used to cheap Chinese goods.

 

Another commitment that China will have to show is that it should build its economy based on the spending capacity of the consumer.

 

"Part of the imbalance is the fact that China has not yet moved to a consumption-based economy. It is still an export-based, production-based economy," he says.

 

Chad Bown of the Peterson Institute says other countries are expressing similar concerns.

 

"This includes the European Union, Europe has also raised this concern through the US-EU Trade and Technology Council, and Japan has also raised this issue," he says. 'Tripartite' group has been formed which can solve the problems caused by the economies being state-led.

 

"Any improvement in US-China trade relations will take time and will probably result not only from talks between those two economies but other major countries as well," Bown says.