The United States will establish a new task force” to combat what it says unfair predatory trade practices by competitors such as China. The Biden government announced on Tuesday that the new committee will probe into rule infractions that have harmed global supply networks. It stated in a statement that it will “fight back on unjust foreign competition that diminishes the resilience of essential supply chains in the United States.” It follows a review of product supply including computer chips.
President Joe Biden commissioned the evaluation in February, instructing federal departments to report on the country’s availability to critical items such as rare earth elements used in phones and electric car batteries. The new task force led by the US Commerce Department, would investigate violations of trade regulations and devise countermeasures.
In their first discussion under Biden’s leadership, the US and China’s key trading negotiators had “frank and honest, constructive” discussions. Katherine Tai the US Trade Representative, and Liu He the Chinese vice Premier, conducted a video meeting to examine the situation. All parties stated that they addressed the significance of the two nations’ trade relationship. The talks come in the wake of the Trump administration’s hostile approach against China and the ensuing trade war.
Ms. Tai and Mr. Liu “addressed the underlying fundamentals of the Biden-Harris Government’s worker-centered trade policy including her continuing evaluation of the U.S.-China trade relationship, whilst still expressing topics of concern,” according to the Office of the U.s. Trade Representative. All parties stated that they had consented to resume discussions.
The United States government has introduced a dozen more Chinese firms to its list of restrictive trade partners, alleging national security and foreign policy grounds. According to Washington, several of the companies are assisting the Chinese military’s computational advancement activities. This latest move comes amidst tensions between the two sovereign states over Taiwan’s status and other concerns. Trade was one of the topics covered at a virtual summit held earlier this month between President Joe Biden and his Chinese counterpart President Xi.
Eight Chinese-based tech organizations were included in the “Trade Blacklist” for allegedly supporting the Chinese military’s quantum computing activities and obtaining or seeking to purchase the United States sourced items including chips in furtherance of military objectives. Since the previous Trump administration, this entity list has been increasingly used for national security purposes.
The US Department of Commerce Department additionally stated that 16 persons and businesses working in Pakistan and China had been placed on the list as a result of participating in the unprotected Pakistani nuclear operations or missile programs. A sum of 27 institutions including Singapore, China, Japan, and Pakistan were added to the list.
Likewise, the Moscow Institute of Physics and Technology has been placed on the department’s database of military end-users, however, the entry provided no more information besides the fact that it had developed military gear.
The latest listings would effectively protect American technology from being used to promote Chinese and Russian military advances and non-proliferation concerns, such as Pakistan’s unguarded nuclear operations or nuclear weapons program, as mentioned by Gina Raimondo the Commerce Secretary.
Prospective suppliers to enterprises on the list must now obtain a license before they are authorized to sell to them, and requests are likely to not be granted. Huawei, the Chinese telecommunications giant, was put on the list in 2019 following allegations that it constituted a threat to US national security. It was cut off from several of its main suppliers as a result of the relocation, making it harder for the business to make mobile phones. Formerly, industrial espionage was denied by the Chinese state which stated that it had no intentions in or involvement in activities of that sort.
The United States, like so many other nations, had difficulty obtaining medical equipment during the epidemic and is currently experiencing disruption in a variety of industries, including a computer chip deficit and a halt in vehicle manufacture. Following the evaluation, the US Department of Commerce is contemplating conducting an inquiry into the national security implications of neodymium magnetic imports, the majority of which come from China and can be used in motors and defense. Many businesses have faced production delays as a result of a shortage of computer chips.
While people were stranded at home, the shortfall was worsened by rising demand for Televisions, phones, and video game consoles, all of which need semiconductor chips. CEOs of major corporations also including Cisco and IBM projected that disruption might continue up to 2 years. A series of phases were revealed as part of the assessment to reduce dependency on commodities from outside the United States.