Article Summary –
The U.S. Trade Representative’s Office is investigating China’s activities in various sectors of the U.S. economy after receiving a petition from a group of labor unions which claim China’s “aggressive intervention” in the maritime, logistics, and shipbuilding sector discriminates against U.S. companies, disrupts supply chains, and undermines national security. In response to perceived unfair practices, President Biden is calling on the trade representative to consider tripling the tariff on steel and aluminum imported from China and will work with Mexico to prevent China from avoiding these tariffs by importing steel through Mexico. Since taking office, Biden has increased efforts to boost domestic iron and steel production, and in March, the Department of Energy announced $1.5 billion had been allocated to six projects aimed at producing these materials using environmentally friendly methods.
US Trade Representative Investigates China’s Economic Activities
The Office of the U.S. Trade Representative on April 17, initiated an investigation into China’s activities in several U.S. economic sectors and asks for public feedback.
Labor Unions File Petition Against China
The probe follows a petition filed by labor unions in March. The unions condemned China’s “aggressive intervention” in the shipbuilding, maritime, and logistics sector, alleging it as a threat to U.S. national security interests.
Unions and U.S. Trade Representative Express Concerns
The unions involved include major industry groups like the International Brotherhood of Electrical Workers and United Steel, Paper, and Forestry. U.S. trade representative, Katherine Tai, reflects on China’s undermining of fair competition and domination in the market, pledging a comprehensive investigation into the matter.
President Biden’s Remarks on China’s Steel Industry
President Joe Biden addressed the issue, critiquing China’s steel production overcapacity and unfair trade practices. He vowed his administration would protect Pennsylvania and Ohio from experiencing job losses similar to those in the early 2000s.
Proposed Tariffs and Domestic Production Efforts
The White House announced Biden’s call to triple the existing tariff on imported Chinese steel and aluminum. He will work with Mexico to prevent China from circumventing these tariffs. Biden has also signed legislation to boost domestic iron and steel production, with the Department of Energy announcing $1.5 billion awarded to six projects for environmentally friendly methods.
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