Trump China tariff policy ill-suited to supply chain problems, US panel told
Donald Trump's tariff policy is proving ill-suited, and even counterproductive, for the US supply chain in dealing with China's expanding global manufacturing dominance, witnesses said in a government hearing in Washington Thursday.
Testifying before the US-China Economic and Security Review Commission, which monitors national security implications of bilateral trade and economic relations, they called for an increase in comprehensive and structural responses, including rebuilding US industrial capacity in such sectors as defense and chips, and working to ensure China is not part of crucial supply chains.
Emerging markets economist Adam Wolfe of Absolute Strategy Research said Beijing's efforts to strengthen high-tech and other manufacturing capacity with state incentives and subsidies have become long-term policy and that US trade sanctions and restrictions are accelerating it.
'One of the main motivations for China adopting this ... development model of targeting a relatively stable manufacturing share of GDP [gross domestic product] was US sanctions and
US tariffs on China , and fear of their own choke points being exploited by the US,' he said.
05:19
How are Chinese citizens feeling the effects of the US-China tariff war?
How are Chinese citizens feeling the effects of the US-China tariff war?
'So Xi Jinping has made that a priority to say that China will never be beholden to US choke-point technologies, which means that they need to make everything basically domestically,' he added, referring to the Chinese leader.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
41 minutes ago
- South China Morning Post
Trump says he hasn't thought about pardon for Epstein's ex Ghislaine Maxwell
US President Donald Trump said on Friday he has not considered granting a pardon or commutation for Ghislaine Maxwell, the former girlfriend and long-time associate of convicted sex offender Jeffrey Epstein who is back in the news amid a political furore over the case. 'It's something I haven't thought about,' Trump told reporters when asked about the possibility of a pardon for Maxwell. 'I'm allowed to do it, but it's something I have not thought about.' Maxwell is serving a 20-year sentence at a federal prison in Tallahassee, Florida, after being found guilty in 2021 of helping Epstein sexually abuse teenage girls. She is currently appealing against her sentence. Maxwell completed a second day of interviews with Deputy Attorney General Todd Blanche in Tallahassee, Florida, on Friday after the US Justice Department reached out to her lawyers to see if she had additional information about the case. David Markus, a lawyer for Maxwell, told reporters she answered questions truthfully, but declined to detail what was discussed. 'The truth will come out about what happened with Mr Epstein, and she's the person who's answering those questions,' Markus said.
The Standard
3 hours ago
- The Standard
Wall St opens steady as investors prepare for August 1 deadline
A Wall Street sign hangs in front of a U.S. Flag outside the New York Stock Exchange (NYSE). REUTERS/Andrew Kelly/File Photo
South China Morning Post
4 hours ago
- South China Morning Post
US-India trade talks seen unlikely to produce deal by August 1 deadline
Months of intense negotiations appear unlikely to produce a trade deal between the US and India before the August 1 deadline, despite US President Donald Trump having teased one for months as 'coming soon', according to three people familiar with the situation. One person described the current state of discussions as a 'total mess' behind the scenes as Trump and his trade representative, Jameison Greer, continue to push for a pact that would secure greater market access for American produce, dairy, and poultry in India. 'Despite bullish comments by India's trade minister, securing a deal by August 1 seems nearly impossible', said Rick Rossow, chair in US-India Policy Studies at the Center for Strategic and International Studies, a Washington think tank. He said that while 'negotiations seemed to move pretty fast in the early days', the closing stages are 'always the most difficult'. Indian Minister of State for External Affairs Kirti Vardhan Singh on Thursday told the Indian Parliament that negotiations with the US were 'active' and revolved around 'enhanced mutual market access, reduction of tariffs and non-tariff barriers and closer integration of supply chains'. Rajesh Agarwal, India's chief negotiator and Commerce Department special secretary, was in Washington last week for trade talks but the July 14-17 negotiation ended without any announcement.
