Will the Biden Administration Continue the Trade War with China?

The Governor of Rhode Island, Gina Raimondo, who has been nominated by President of the United States Joe Biden to lead the U.S. Department of Commerce, has vowed to be tough against unfair trade practices from China.

Speaking in testimony in front of the U.S. Senate Commerce Committee, Raimondo said that she will protect Americans from any Chinese influence in the telecommunications domain, Reuters reported.

“I would use the full toolkit at my disposal to the fullest extent possible to protect Americans and our network from Chinese interference or any kind of back-door influence.”

When asked by Republican Senator Ted Cruz if she would keep Huawei on a U.S. blacklist, Raimondo explained that she plans to “review the policy, consult with you, consult with industry, consult with our allies and make an assessment as to what’s best for American national and economic security.”

The comment has led to criticism from Republicans in Congress, including from Republican Representative Michael McCaul, the top Republican on the House of Representatives Foreign Affairs Committee, as they believe that the new administration must continue with the tough policy against China that was adopted by the previous administration.

Meanwhile, Republican Senator Ben Sasse said that “Huawei is still the Chinese Communist Party’s tech puppet and a serious threat to national security.”

The previous administration took many measurements against Chinese telecom giants, especially Huawei and ZTE.

Last December, Congress approved a $1.9 billion budget to allow the replacement of components manufactured by ZTE and Huawei within networks across the U.S.

In addition, Raimondo said that she would take aggressive action against unfair trade practices from China.

“China’s actions have been anticompetitive.”

A recent report by The Economic Times, an Indian daily newspaper, suggested that the Biden administration could focus less on hiking tariffs and reducing the trade deficit with China and more on opening the Chinese market to the Americans.

The report cited a number of economists and market experts, suggesting a slow shift in trade policies and a long-term focus on structural reforms.

Yesterday, the White House Press Secretary, Jen Psaki, said that the Biden administration will approach its relationship with Beijing with patience, Bloomberg reported.

“We’re starting from an approach of patience as it relates to our relationship with China.”

“So that means we’re going to have consultations with our allies, we’re going to have consultations with Democrats and Republicans, and we’re going to allow the interagency process to work its way through to review and assess how we should move forward with our relationship.”

It is worth noting that Biden has picked Katherine Tai, an expert on Chinese affairs, to be the next U.S. Trade Representative.

Tai was quoted by the Economic Times as saying that “we face stiffening competition from a growing and ambitious China.”

In December, Biden ruled out any sudden changes in trade policies with China in an interview with the New York Times.