To counter China, US trade rep seeks closer ties to allies

WASHINGTON (AP) — The Biden administration is pressing its case for a new approach to global trade, arguing that America’s traditional reliance on promoting free trade pacts failed to anticipate China’s brass-knuckled brand of capitalism and the possibility a major power like Russia would go to war against one of its trading partners. 

In a speech Wednesday at American University, U.S. Trade Representative Katherine Tai called for a strategy of what's known as “friend-shoring’’ — building up supply chains among allied countries and reducing dependence on geopolitical rivals such as China. Rising tension with Beijing and supply-chain bottlenecks arising from the COVID-19 pandemic have highlighted the risks of relying too heavily on Chinese suppliers. 

“Trade policy cannot solve all the wrongs in the world, but it can help more people both at home and abroad share the benefits of increasing economic growth,” Tai said. “Let us not be content with reruns of the old. Let us write a new script for a brighter tomorrow.” 

The rethinking of trade goes beyond the simple issue of lowering tariffs and signing broad pacts. In her speech, Tai noted the elimination of regulatory barriers last year that allowed U.S. farmers to export potatoes to Mexico, ongoing talks to form an Indo-Pacific Economic Framework that could possibly counter China in Asia, and the recent agreement on critical minerals with Japan.