A high-ranking US trade representative, Ambassador Katherine Tai, has emphasised the necessity for Europe and America to seek a more effective strategy in order to protect their economies against the vigorous Chinese economic activity. The tension between the US and China has escalated in recent years, largely due to China’s aggressive economic advancements over the past two to three decades, states Ms Tai, a member of President Joe Biden’s executive team. This rapid progress has exerted significant stress on Western economies.
According to the ambassador, the US and the EU will need to collaborate on the reinforcement of protective measures. These may encompass tariffs and proactive strategies to counterbalance an unfavourable market dynamic. She points out the significance of establishing a different defence approach to prevent severe economic and political consequences.
Meanwhile, US Treasury Secretary Janet Yellen is ready to communicate to the Chinese officials that their country’s overproduction, particularly in the clean energy sector, is not beneficial. Yellen aims to express her viewpoint during upcoming discussions with senior Chinese economic figures, amid mounting apprehensions in the US, Europe, and other chief economies.
Speaking in Brussels prior to a meeting of the EU-US Trade and Technology Council, an organisation developed in recent years to enhance cooperation, Ms Tai likened the EU-US relationship to a long-standing partnership, describing the bonds as ‘very, very strong’. The focus should not be transactional, says the ambassador, as that perspective sets the stage for further disappointment.
Regarding the upcoming US presidential election, Rosa Balfour, director of Carnegie Europe, stated that many in the EU were uneasy about the potential outcomes of Donald Trump being re-elected. Responding to these concerns, Ms Tai acknowledged that partners are seeking ‘reassurance’ about future developments.
“At this juncture in history, democracies must determine the methods to bolster one another,” she stated. She expressed an urgency to propose a superior rendition of the prevailing economic world structure.
She emphasised that the US and EU joined forces effectively and without delay to impose penalties on Russia post their intrusion in Ukraine. A quick, cross-Atlantic response was executed regarding an event that was undesirable, nevertheless occurred, she explained.