ITIF President Rob Atkinson testified before the Senate Small Business Committee on the issue of unfair Chinese trade and technology policies and practices and what the federal government should do in response. In his testimony, Rob discussed the importance of a new framework from Senator Rubio for how to think about the economic challenge from China, the nature of the economic challenge posed by “Made in China 2025” (MIC25), and components for more robust trade, innovation and competitiveness strategies, including to help small businesses.
Trump said on Sunday that he’d delay additional tariffs on Chinese goods originally scheduled to begin on Mar 1. He cited “substantial progress” in trade talks between the US and China in several of his Twitter posts in a series of posts on Twitter.
Saturday marked the fifth straight day of the negotiations between the world’s two biggest economies. Talks were extended through the weekend after both sides reported progress in narrowing their differences. The Chinese delegation is scheduled to leave for Beijing on Monday, according to a person familiar with their itinerary. This is the fourth round of negotiations since Washington and Beijing agreed to a ceasefire in their trade war.
Will the US and China enter a long-term technological arms race? The Economist Intelligence Unit (The EIU) said it’s highly likely. “The likelihood that the US and China will make some progress in the ongoing trade talks has increased as a result of mounting domestic pressure in both economies,” said Cailin Birch, Global Economist at The EIU. “Nonetheless, we do not expect a meaningful agreement, as the US and China enter into a strategic competition for economic--and particularly technological--dominance."
Chinese government makes their goal clear. China aims to become the global leader in innovation and manufacturing. This would be an unacceptable outcome for American workers. To drive our own development in a competitive, global economy, we must prioritize the high-wage industries of the 21st century, to the benefit of American businesses, workers, and their families.
The latest round of high-stakes talks to resolve trade and economic disputes between the U.S. and China is scheduled to resume in Beijing this week. The American side will be led by United States Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin; China will be led by Vice Premier Liu He. The U.S. has threated to impose new tariffs on $200 billion of Chinese goods if an agreement isn’t reached by March 1.
China has reportedly extended an olive branch to the US ahead of the talks. Treasury Secretary Steven Mnuchin told US TV network CNBC last month: “They put on the table an offer of over $1.2 trillion in additional commitments. But the details of that still need to be negotiated. … This isn’t just about buying things. This is about opening markets to US companies and protecting US technology. Those are very important structural issues to [US President Donald Trump].”
With just about one month to go before the U.S.-China trade truce comes to an end, some in the American business community have expressed concerns that many questions remain on whether the two countries can make enough progress before the early-March deadline lapses.
China promised to “substantially” expand purchases of U.S. goods after the latest round of trade talks, and both sides planned further discussions to reach a breakthrough with only a month to go before the Trump administration is set to ratchet up tariffs. President Donald Trump said Thursday he will dispatch two of his top negotiators to China following two days of talks with Chinese officials in Washington.
The USMCA is the right deal for the U.S. because it puts innovation, and all those who help drive our technological and productivity advances, front and center. Key to the continued promotion of U.S. innovation is the establishment of critical intellectual property (IP) protections that safeguard and reward U.S. innovations. While Canada and Mexico remain some of our closest economic allies, too often relaxed IP protections in both countries have undermined U.S. incentives to innovate and compete fairly in those markets.