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  • 16 - Small Steps toward the Next Phase of U.S.-China Trade Relations

  • from Part IV - Responses of China’s Trading Partners
  • Edited by Henry Gao, Singapore Management University, Damian Raess, University of Bern, Ka Zeng, University of Arkansas
  • Book:
    China and the WTO
    Published online:
    14 September 2023
    Print publication:
    28 September 2023, pp 381-399
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  • Summary

    The Trump administration’s four years in power were tumultuous and confrontational for US-China trade relations, and have put the Biden administration in a difficult position: It will either have to pick a new direction, or maintain the legacy it was left. US Trade Representative Katherine Tai has begun to lay out her vision for a US trade policy as it relates to China, but so far, it has been more words than actions. It appears that Tai and the administration have decided to stick with Trump’s Phase One agreement as the framework of its China trade policy rather than break from it in a significant way and to publicly put the onus on China to change its trade practices and see how China reacts. The practical result is that the status quo could stay in place for a while. However, the Biden administration may see this as the short- and long-term approach that works best in terms of domestic politics. As a result, although the administration’s statements could suggest tentative first steps on China trade issues, the relationship may end up standing still for a while.