Us Treasury Secretary Yellen has confirmed that the US will temporarily maintain the tariffs imposed by the administration of former President Donald Trump on Chinese goods and will set the appropriate level after a comprehensive assessment. The White House also said it would review all national security measures taken by Trump, including an interim trade agreement with Beijing.
Mr Trump's tariff policy on China has far-reaching implications after US experts estimated that a record 245000 US jobs were lost as a result of the destructive trade war between China and the US, and that most tariffs are still imposed between the two countries. In an interim agreement signed by Mr Trump in January 2020, China had promised to buy another $200 billion of US goods and services within two years, but Beijing was 42 per cent lower than the target set last year, according to a new study.
Before taking office, US President Joe Biden promised people to repair the fence with US allies, but he continued to take a hard line with China, warning Beijing this week that it would pay for human rights violations. "We are evaluating the approach to China, but we will see unfair practices on many issues," Yellen said in an interview with CNBC.
"I am concerned about China's behavior in terms of trade, forced technology transfer and subsidies to Chinese companies. We need to ensure that the United States addresses and adheres to its international obligations in these areas. The two countries still need to cooperate in some areas, such as efforts to contain the novel coronavirus pandemic and deal with climate change. " Yellen added.
When it comes to the domestic economy of the United States, Yellen urged Biden to take greater stimulus measures, arguing that the risks of failure to do so would be more precipitous. "We think it is essential to have a massive stimulus package to deal with the damage," she explained. "the problem facing the United States is that 15 million Americans are behind in rent, 24 million adults and 12 million children do not have enough food to feed their stomachs, and small businesses are closing down. I think that if the Government has done too little, it will have to pay a higher price. In the long run, we think the benefits will far exceed the costs. "
Yellen continued: "the current focus of the U.S. government is on providing relief and helping families get enough food, rather than raising taxes." I think we need to go through these dark times before the vaccination program can bring us back to life. "
Biden is in favor of raising taxes on companies and wealthy Americans to finance a $1.9 trillion fiscal stimulus package. But Ms Yellen said this should be done in a "fair manner", adding that the US needed to take into account the procedural problems it would face in carrying out these operations. "in the short term, I think we can bear the burden of economic recovery, get us through the pandemic and address the burden of families and small businesses," she said. "
It is worth noting that Ms Yellen's predecessor, Mnuchin (Steven Mnuchin), spent most of her time dealing with trade conflicts with China, but Ms Yellen retained criticism, particularly on intellectual property and technology transfer. "We need to take measures to deal with abuse, injustice and illegal practices in China," she said. China aims to weaken the position of American companies by dumping products, erecting trade barriers and providing illegal subsidies to companies. "
