The situation on both sides of the U.S.-China trade relationship continues to prove dynamic. The U.S. is attempting to craft a revised strategy to combat Beijing's economic influence, while still sticking with many of the fundamental policy decisions of the Trump administration. Meanwhile, China continues to evaluate the new Biden administration's every move, testing and prodding it along the way.
This week, U.S. trade chief Katherine Tai went before Congress to expound on the need for new strategies in the trade war, stressing protecting American industries under attack from rivals across the Pacific and calling China's trade practices "unfair," a refrain frequently heard during the Trump administration.
The U.S. federal government continues to hedge against China's rise, moving forward with a $110B proposal to strengthen America's tech sector, including AI and semiconductors. The Pentagon's bid to blacklist Xiaomi from U.S. investments on the grounds of military ownership was defeated in courts, striking down another Trump-era order against the Chinese tech industry.
Also, rumors that Vice Premier Liu, China's top economic envoy to the U.S., would soon be replaced were denied in an official statement from the Chinese Communist Party. Liu was the primary negotiator in the "Phase One" trade deal between China and the Trump administration, drawing domestic criticism for his perceived weakness in addressing U.S. tariffs. Read more on the Biden administration's strategy towards China in Canada, China and the U.S.—Has the Advent of the Biden Administration Changed Anything?, from Hugh Stephens, Distinguished Fellow, Asia Pacific Foundation of Canada.
Prepared by China-US Focus editorial teams in Hong Kong and New York, this weekly newsletter offers you snap shots of latest trends and developments emerging from China every week, while adding a dose of historical perspective.