China, U.S. May Find Common Ground on Tariff Exclusions, Chinese Think Tank Says

American and Chinese flags are seen in front of a US dollar banknote with American Founding Father Benjamin Franklin and a Chinese yuan banknote with late Chinese President Mao Zedong in this illustration photo taken on May 20, 2019. REUTERS / Jason Lee / Illustration / File Photo

The Biden administration is unlikely to remove tariffs on Chinese products in the near term, but China and the United States could find common ground by increasing tariff exclusions to reduce tensions, said a Chinese think tank.

Even if proponents of free trade in the United States push for Washington to use tariff cuts as a tool for new trade talks with China, the tariffs will likely remain in place, a China Forum report said on Saturday. Finance 40 (CF40). funding think tank with members of regulators, universities and financial institutions

But with the United States facing inflationary pressures in the first half of this year, Washington may seek to reduce the tariff burden through tariff exclusions, which would avoid resistance in Congress and ease political pressure, according to the report.

The Biden administration is conducting a comprehensive review of U.S.-China trade policy, ahead of the Phase 1 agreement expiring at the end of 2021.

The report notes that the US government still maintains additional tariffs on $ 370 billion of Chinese exports to the United States.

The report also noted that the Biden administration was more concerned about the impact of China’s support for the tech sector and wanted the United States to focus on its own tech support.

“Under 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, predicting increased competition between the two countries for the creation of international rules around emerging technologies.

U.S. Senate Majority Leader Chuck Schumer said on Friday that the Senate would consider a broad set of laws on June 8 aimed at strengthening the country’s ability to compete with Chinese technology.

Our standards: Thomson Reuters Trust Principles.

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