China urges US to raise taxes

China says it has pressured the United States to lift tariffs on Chinese goods during talks between the country’s senior trade officials. Washington sees the talks as a test of mutual engagement between the world’s largest economies because China has not complied with previous agreements.

Virtual talks between US Trade Representative Katherine Tai and China’s Deputy Prime Minister Liu last week followed Tain’s announcement that he wanted to hold “honest” talks with China. Among other things, he wants Beijing to abide by the promises 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 taxes. By 2018, the United States has already taxed about $ 550 billion worth of goods that China exported to the United States.

According to Chinese state media, tariffs and sanctions were lifted during talks on Friday. Beijing has also clarified China’s economic growth model and its position on industrial policy. The United States wanted to make it clear during the talks that China was ready to deal with Beijing’s trade and subsidy practices after complaints from Americans. Non-compliance with agreements to purchase U.S. agricultural products, as contained in the trade agreement, was also discussed.

Prior to Friday’s speech, the United States expressed concern about Beijing’s other economic practices. Despite the promised review, US President Joe Biden has not yet made policy changes and is cutting back on unfair trade practices in hopes of increasing US competitiveness.