U.S. Trade Representative: "U.S.-China Trade Scale Needs to Be Smaller"

25% Reduction in Trade With China... "A Step in the Right Direction"
No Desire for Full-Blown Conflict With China

Jamieson Greer, a representative of the United States Trade Representative (USTR), said on December 4 (local time) that the scale of U.S.-China trade needs to be smaller than it is now, according to Reuters.

He stated this while assessing that a 25% reduction in U.S. goods trade with China is a move "in the right direction."

At the "American Growth Summit" conference held in Washington, D.C. that day, Greer said, "Where we need to get to in U.S.-China trade is a point where the relationship is more balanced," adding, "Perhaps the scale of trade needs to become smaller so that we are not so dependent on each other. It should focus on non-sensitive items."

He also said that President Donald Trump's policies are helping to create a more balanced U.S.-China trade relationship and that the overall situation is better than before his term began. He added, "No one wants a full-blown economic conflict with China, and that is not the situation we are in now."

Greer noted that the United States has many tools at its disposal in its relationship with China, ranging from software to semiconductors, and that many allies are interested in joint responses. He continued, "But the decision right now is that we want stability in this (U.S.-China trade) relationship," adding that it is necessary to strengthen domestic production of strategic goods, including critical minerals.

He said that while the relationship with China is currently stable, the U.S. government is monitoring the situation on a daily basis.

Meanwhile, Greer pointed out that Canada and Mexico should not be used as export hubs to the United States for other countries such as China, Vietnam, and Indonesia, noting that some of this is already happening in Mexico.

He stated that there are issues with the United States-Mexico-Canada Agreement (USMCA), but added that certain measures, such as imposing tariffs on foreign-made automobiles, are helping to address these problems.