China urges US to raise tariffs

China says it pressured the United States to cancel tariffs on Chinese goods during talks between the two countries’ top trade officials. Washington views the negotiations as a test of mutual engagement between the world’s largest economies, also because China does not abide by previous agreements.

The virtual talks between US Trade Representative Catherine Tai and Chinese Vice Premier Liu He follow Tai’s announcement last week that she is seeking “candid” talks with China. Among other things, it wants Beijing to abide by the commitments made under the “Phase 1” trade agreement concluded under former President Donald Trump. As part of the deal, the United States withdrew from a new round of tariffs. In 2018, the United States already imposed duties on $550 billion in goods that China exported to the United States.

According to Chinese state media, talks on Friday included scrapping tariffs and sanctions. Beijing also made clear its stance on China’s economic development model and industrial policy. The United States wanted to make clear during the negotiations whether China was willing to deal with Beijing’s trade and support practices after complaints from the Americans. Non-compliance with US agricultural purchase agreements, such as those in the trade agreement, was also discussed.

Ahead of Friday’s talk, the United States also expressed concerns about Beijing’s other economic practices. US President Joe Biden has yet to make policy changes despite a promised review and is cracking down on unfair trade practices in hopes of boosting US competitiveness.