The US has recommended higher tariffs on a range of Chinese goods and called for expanded enforcement to address – what it calls – technology theft. U.S. Trade Representative Katherine Tai has released a long-awaited four-year review of tariffs imposed by former President Donald Trump. The review shows that the tariffs have been effective in encouraging China to address some issues, but further action is needed.
A statement reads: “Instead of pursuing fundamental reform, (China) has persisted, and in some cases become aggressive, including through cyber intrusions and cyber theft, in its attempts to acquire and absorb foreign technology, which further burden or restrict U.S. commerce”. Reuters is reporting that the research shows that previous tariffs imposed on China had a minimal impact on the U.S. economy-wide prices and employment.
But they were effective in reducing U.S. imports of Chinese goods, while increasing imports from other countries. Tai has also called for increased funding for U.S. Customs and Border Protection to beef up enforcement and urged greater collaboration between the private sector and government to combat what it called “state-sponsored technology theft.” The report also recommended establishing exclusions from the tariffs for certain machinery used in domestic manufacturing, including 19 specific types of solar manufacturing equipment, and continued work on efforts to diversify U.S. supply chains.
Artificial Intelligence has also been at the forefront of the technology race with the U.S. saying they are trying to restrict information so as not to pass on trade secrets. This comes with the news that the U.S. and China have been meeting in Geneva to discuss artificial intelligence. U.S. officials have stressed that Washington’s policies will not be up for negotiation as talks explore how to mitigate risks from the emerging technology.
President Joe Biden’s administration has sought to engage China on a range of issues to reduce miscommunication between the two rivals. U.S. Secretary of State Antony Blinken and China’s Foreign Minister Wang Yi broached the topic of AI in April in Beijing, where they agreed to hold their first formal bilateral talks on the subject.
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