US attempt to block China’s foreign trade doomed

Chinese Commerce Minister Wang Wentao met with US Commerce Secretary Gina Raimondo on Thursday in Washington, DC. The following day, Wang met with US Trade Representative Katherine Tai in Detroit. US’ economic and trade policy toward China became the primary concern in both meetings.

The main concerns from the Chinese side are: the US’ semiconductor policy, export controls, foreign investment review, Taiwan-related topics in the economic and trade domains, the Indo-Pacific economic framework and tariffs.

These concerns reflect an essential change in US’ strategy toward China: using financial and economic power, as well as a circle of allies to contain China’s global foreign trade. The US is not simply blocking Chinese products being exported to the US any more but has expanded this blockade globally, aiming at the most competitive Chinese products.

For example, the US has asked allies to join forces to block the global market adoption of Huawei’s 5G technology and equipment, citing so-called security concerns.

The US has presumed that all products produced in Xinjiang are tainted with “forced labor” and has banned imports of Xinjiang-related products on the pretext of so-called human rights issues. All exports to the US that include goods made in Xinjiang must declare themselves as “self-proving innocence.”

These blocks have significantly impacted global exports to the US that use intermediate goods manufactured in China. As of March this year, US Customs and Border Protection data shows that 3,237 shipments, valued at $961 million, have been detained under the Uyghur Forced Labor Prevention Act since it took effect in June 2022.– Bloomberg




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