U.S.-China tensions over House Speaker Pelosi’s trip to Taiwan now raises questions over whether the growing dispute will impact U.S. trade with China.
China fell short of its first-year Phase I deal obligations to buy U.S. farm goods by some $11 billion, and Biden U.S. Trade Representative Katherine Tai told House appropriators recently.
Tai; “Since last year, we have pressed the PRC to live up to its commitments under the Phase I agreement. Several rounds of difficult discussions made clear, the limits of the PRC’s interest in delivering on those obligations.”
Now, China has launched massive military exercises around Taiwan that alter a delicate security balance across the Taiwan Strait and threaten to upend relations with the United States.
American Farm Bureau trade adviser Dave Salmonsen said earlier, AFB still wants Phase I commitments completed and US and Chinese tariffs eased.
Salmonsen; “They could put some of these high tariffs back on U.S. products anytime. And not all tariffs, all U.S. ag products to China have been granted waivers, think about ethanol, dry distillers grains-, there’s still some things that face high tariffs. And we haven’t got much in the way of sales to China because of that.”
While President Biden had earlier directed his Commerce Secretary to review U.S. tariffs on Chinese goods, including steel, driving up prices for farm and other equipment.
Bottom line according to Tai; “The PRC’s non-market industrial policies, unfairly target US workers, and key sectors.”
For now, China-Taiwan watchers expect Beijing to target trade with Taiwan, announcing China will suspend imports of citrus fruits and some fish from Taiwan.
Though China is also breaking off military and climate talks with the U.S. as the mood for cooperation on trade doesn’t seem to be getting any better.