China and the United States – the two largest economies of the world, could find a middle path to reduce trade tensions by increasing the number of goods being tariffed by each other so that tensions can be reduced, said a Chinese think-tank, even though it added it would not likely be possible for the Biden administration of the US to remove tariffs on Chinese goods in the short term.
On Saturday, a report was published by China Finance 40 forum (CF40) which is an economic and finance think tank that comprises of members from regulators, academia and financial institutions, said that tariffs are likely to remain in place even though ere are demand from free trade advocates in the US that the Biden administration should look at using tariff cuts as a tool for restarting trade negotiations with China.
The report however said that since there is inflationary pressure on the US in the first half of this year, the Biden administration could look at reducing the tariff burden by exploding tariffed products which would avoid resistance in congress and ease political pressure.
The Phase 1 deal between China and the US is slated to come to an end at the end of 2021 and the Biden administration is currently conducting a comprehensive review of trade policy between the two countries.
Additional tariffs on Chinese exports to the United States worth $370 billion is still retained by the US government, the report noted. There was more concerns among the Biden administration about the impact of China's support for the technology sector and wants the US to be more focused on supporting its own tech sector, the report also noted.
"During the Biden administration, technological competition and confrontation between China and the United States in cyberspace will intensify, and the possibility of parallel systems will increase," the report said and predicted greater rivalry between the two countries over creating international rules around emerging technologies.
The US Senate would consider a new sweeping package of legislation on June 8 aimed at boosting the ability of the country to compete with Chinese technology, US Senate Majority Leader Chuck Schumer said on Friday.
(Source:www.channelnewsasia.com)
On Saturday, a report was published by China Finance 40 forum (CF40) which is an economic and finance think tank that comprises of members from regulators, academia and financial institutions, said that tariffs are likely to remain in place even though ere are demand from free trade advocates in the US that the Biden administration should look at using tariff cuts as a tool for restarting trade negotiations with China.
The report however said that since there is inflationary pressure on the US in the first half of this year, the Biden administration could look at reducing the tariff burden by exploding tariffed products which would avoid resistance in congress and ease political pressure.
The Phase 1 deal between China and the US is slated to come to an end at the end of 2021 and the Biden administration is currently conducting a comprehensive review of trade policy between the two countries.
Additional tariffs on Chinese exports to the United States worth $370 billion is still retained by the US government, the report noted. There was more concerns among the Biden administration about the impact of China's support for the technology sector and wants the US to be more focused on supporting its own tech sector, the report also noted.
"During the Biden administration, technological competition and confrontation between China and the United States in cyberspace will intensify, and the possibility of parallel systems will increase," the report said and predicted greater rivalry between the two countries over creating international rules around emerging technologies.
The US Senate would consider a new sweeping package of legislation on June 8 aimed at boosting the ability of the country to compete with Chinese technology, US Senate Majority Leader Chuck Schumer said on Friday.
(Source:www.channelnewsasia.com)
