US proposes new round of tariffs on China, cites ‘unfair’ tech transfer policies that ‘burden’ US commerce

Tai specifically called out “cyber intrusions and cyber theft” as transfer-related problems.

Before Tuesday’s announcement, some of Biden’s economic officials had indicated concerns about manufacturing overcapacity in China and a possible overflow flooding American markets.

 

Previous tariffs have helped encourage China to take steps on issues identified by the US on acts, policies, and practices that Washington says violate international trade agreements, Tuesday’s statement said.

Biden has followed the lead of former US president Donald Trump, who is also a presidential candidate this year, in restricting imports from China. Trump has said he would raise all tariffs on China by 60 per cent if he won the November election and took office in January.

Chinese authorities have rejected claims that they are exporting excess industrial capacity, calling suspicions in the West a reason to pursue trade protectionism.

China is likely to follow up any US tariffs with its own, analysts said on Tuesday, though it might push Washington for negotiations and is sure to focus exports on third countries.

Tuesday’s proposal suggests establishing a process to exclude machinery used in domestic manufacturing, including 19 types of solar manufacturing equipment, from the tariff hikes.

Next week, the Office of the US Trade Representative will issue a notice allowing public comment on the proposed tariff hikes.

More to follow...