The National Association of American Manufacturers, a Washington-based trade association representing the manufacturing sector, wrote to President Joe Biden requesting that he adopt a tougher policy with the Chinese regime on trade to ensure a level playing field for U.S. companies to improve the domestic economic situation.
“For manufacturers, China has long been a hub for unfair industrial subsidies and government-fueled overcapacity in areas like steel and aluminum that distort global markets,” the group stated in a letter sent to Biden on March 17.
The letter goes on to warn, “China continues to promote discriminatory industrial policies, forced technology transfer, and intellectual property theft that harm manufacturers and workers in the United States.”
Former President Donald Trump based his national growth strategy precisely by seeking, and largely succeeding, in reducing the competitive advantages of Chinese-origin companies due mainly to the exploitation of labor and slave labor under the Chinese Communist Party (CCP).
Trump pushed tariffs on a long list of Chinese imports, including aluminum and steel, which subsequently led to a real “trade war” between the United States and the CCP.
The two sides eventually signed a phase one trade agreement in January 2020, which stipulated that the CCP purchase an additional $200 billion in U.S. goods and services during 2020 and 2021, compared to levels recorded in 2017. However, a report released in January of this year confirmed that the CCP had purchased only 58% of what it had committed to buying under the agreement.
The agreement was further undermined due to the emergence of the CCP Virus, which forced Trump to speak out against the role the Chinese communist regime was playing, blaming it for denying information to the world and causing such a catastrophe.
Tensions increased after the CCP’s outrages in Hong Kong, territorial disputes in the South China Sea, the emergence of espionage cases by the CCP and other no less important issues that affected the relationship to such an extent that in August President Trump announced that talks on the trade agreement with the CCP were on hold.
“The new strategy must include all available tools, including targeted bilateral engagement, assertive U.S. leadership in global institutions, and close, coordinated engagement with allies and partners,” the association wrote.
“Strategic use of legislative and enforcement tools will be critical to pressure China [the CCP] to change its economic behavior and to level the playing field for manufacturers and workers in the United States,” it added.
In short, the group is calling on President Biden to resume policies whereby the United States applies “clear and consistent pressure” on the CCP to comply with its trade and economic commitments under the phase one trade agreement.
In this way the United States, not the CCP, can write the rules for the global economy and the post-pandemic trade structure by virtue of generating a fairer and more balanced economic system for the United States and the world.