US Trade Rep.: There is no plan to break up the economies of the US, China

Washington does not seek to isolate the American economy from China, US Trade Representative Katherine Tai said Thursday while visiting Tokyo.

Tai, who is on his fourth visit to Japan after being appointed the top US trade envoy, said that all members of President Joe Biden’s administration “are very clear that the intention is not to dismantle” China’s economy.

US trade sanctions against China are “narrowly targeted,” he said.

Because of its great size and importance, the unraveling of relations with China that keeps the world economy running “is not a goal or an achievement,” Tai said at a news conference in Foreign Correspondent’s Club of Japan.

Chinese officials have always beaten by the US of trade sanctions and other restrictions on sharing advanced technologies with China, accusing Washington of trying to “contain” China and block its path to greater wealth.

Tai said regular trade work between the US and China continues and he is “fully open to engaging with my counterparts in Beijing,” although he has no plans to visit China.

At the same time, the United States seeks to strengthen and expand economic security cooperation with its allies in Asia and partners in response to China’s growing strength and its dominance in many manufacturing industries.

The security and stability of supply chains is an issue that has gained urgency following the disruptions caused by the pandemic and controls imposed to try to combat the outbreaks of COVID-1 that have resulted in shortages of computer chips. and other things.

A recent agreement on trade in critical minerals will allow electric vehicles that use metals sourced or processed in Japan to qualify for tax breaks under the Inflation Reduction Act. That agreement is evidence of the US’s commitment to “building collective stability and security,” Tai said.

“We have all experienced the vulnerability of our fragmented supply chains in recent years, particularly through the pandemic and Russia’s brutal, unjustified attack on Ukraine. And we have become over-reliant, our discovered, in some countries for the supply of critical minerals needed to increase our clean energy future,” said Tai.

The Biden administration has adopted a new approach to global trade, arguing that America’s traditional reliance on promoting free trade agreements has failed to anticipate China’s brand of capitalism and the possibility that a major power like Russia will go to war against one of its trading partners.

Tai recently gave a speech at American University, where he talked about “friend-shoring” — building supply chains with allied countries and reducing dependence on geopolitical rivals like China.

Tai pointed to a new trade partnership with Japan that he said has brought “tangible results for our workers, small businesses, and producers on both sides of the Pacific.” That includes an agreement to lift limits on US beef exports to Japan and a new biofuels policy to facilitate the export of more ethanol to Japan, he said.

Tai also reviewed the status of negotiations on the Indo-Pacific Economic Framework, or IPEF, a new trade pact proposed by Washington.

He said the third round of agreement negotiations is planned for two weeks in Singapore.

The framework has 13 members, including the US, accounting for 40% of global gross domestic product: Australia, Brunei, IndiaIndonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam.

The US is stepping up diplomacy across the region, with Secretary of State Antony Blinken weekend stop in Vietnam, which Washington sees as a key part of its strategy for the region because of the country’s traditional rivalry with its larger neighbor China.

Tai’s visit to Tokyo follows a trip to the Philippine capital, Manila, to help strengthen trade ties between the three countries as they build economic and defense ties.

During his stay in Japan Tai met with Japanese Foreign Minister Yoshimasa Hayashi and discussed making supply chains more stable and secure, the Japanese Foreign Ministry said in a statement.

He also met with the Minister of Economy, Trade and Industry Yasutoshi Nishimura. The trade ministry said the two also spoke about strengthening supply chains — an issue that has gained urgency amid shortages of computer chips and other goods during the pandemic. They also discussed ways to cooperate in protecting human rights in business, the ministry said.

Japan and the United States have established a taskforce aimed at eliminating human rights violations in international supply chains and banning the use of materials from suppliers that subject their workers to inhumane treatment. conditions.

To promote such efforts, Tai visited an outlet of outdoor equipment and clothing retailer Patagonia in Tokyo’s popular Shibuya shopping and business district.

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Associated Press reporter Haruka Nuga and AP Business Writer Elaine Kurtenbach contributed.



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