US USTR Nominee: "Will Cooperate with Allies to Counter China's Aggressive Trade Policies"

Public Trade Pressure and Tariff Barriers Likely to Continue
Avoiding Responses on Sensitive Issues Like TPP Revival

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Katherine Tai, the nominee for the United States Trade Representative (USTR), stated that she will build an anti-China coalition with allies and strongly lead the US-China trade dispute. It is expected that President Joe Biden's long-standing campaign promise to restore alliances and strengthen the encirclement strategy against China will be put into full effect.

According to foreign media including the Associated Press on the 25th (local time), Tai said at the confirmation hearing held by the Senate Finance Committee, "I will work to rebuild international alliances and partnerships to demonstrate a united front of allies against China," emphasizing, "As a founding member of the World Trade Organization (WTO), the United States needs to engage in constructive dialogue to strengthen this organization going forward." This is interpreted as her intention to continue strengthening alliances to build a containment network against China.

Tai stated, "China is a competitor, a trade partner, and a mega player with whom we must cooperate to solve certain global challenges," and argued that the US must strongly control China's deviant actions such as intellectual property rights violations to maintain the international trade order. She said, "We must convey the values and rules that lead global trade and enforce these conditions strongly," adding, "Regarding issues like intellectual property protection, I want to create regulations other than the frequently used Section 301 during the Trump administration." She further emphasized, "There are commitments China must fulfill, and we will urge sincere implementation," highlighting that she will strongly demand the enforcement of the trade agreement between the US and China made during the Trump administration.

However, she avoided answering sensitive questions about whether to revive the Trans-Pacific Partnership (TPP) from the Obama administration era. Regarding the TPP, Tai said, "I will work on trade cooperation with Asian countries," but avoided a precise answer by adding, "However, the world looks very different from 2015 when the TPP negotiations took place." The TPP, led by the US during the Obama administration, disappeared after former President Trump announced withdrawal in 2017. Subsequently, 11 Asia-Pacific countries formed a new economic alliance called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

She also did not clearly answer whether tariffs imposed on imported steel and aluminum during the Trump administration would be lifted. However, Tai mentioned, "Tariffs are a legitimate tool for trade policy and a very important part of fair trade," indicating her support for the active use of tariff barriers.

Meanwhile, Tai, who comes from a Taiwanese immigrant family, is regarded as a hardliner on China and an expert on China. She is well known in the US as the person who oversaw the US-China trade dispute strategy during the Trump administration. She is expected to easily pass the confirmation hearing as she has strong support not only from the Democratic Party but also from the Republican Party.