President Joe Biden has criticized Beijing’s actions as xenophobic and accused the regime of unfair trade practices towards America. In a recent speech at the United Steelworkers headquarters in Pennsylvania, Biden contrasted China’s faltering economy with that of the United States, stating that China’s population has more people in retirement than working. He referred to China as “xenophobic” and highlighted the country’s real problems.
Biden’s remarks are among the harshest criticisms of China yet from the administration. They come at a time when China is grappling with an ongoing property crisis, weak domestic demand, and mounting local government debt. These economic challenges have led to an influx of low-priced Chinese goods in international markets, which is raising concerns in the West.
Chinese state media has been touting the surge in exports of “green energy” products such as electric vehicles, lithium batteries, and solar-powered products as a way to drive the country’s economic growth. However, experts argue that these narratives also highlight the gravity of China’s economic reality. Beijing wants desperately to escape its current economic predicament, according to Frank Tian Xie, a business professor at the University of South Carolina Aiken and an analyst on Chinese economics.
President Biden, while campaigning in Pennsylvania, sought to convince blue-collar workers of America’s strength by comparing it to China. He rejected the notion that China is on the rise and America is falling behind, stating that America has the best economy in the world. Biden called for tripling tariffs on Chinese steel and aluminum products, blaming Beijing for dumping steel on global markets at unfairly low prices. He accused Chinese steel companies of not needing to worry about making a profit because they are heavily subsidized by the Chinese government.
Treasury Secretary Janet Yellen also expressed concern about China’s dumping practices during her recent visit to China. She highlighted how artificially cheap Chinese products flooded U.S. markets after China’s entry into the World Trade Organization in 2001, which resulted in the destruction of 2 million American manufacturing jobs. Yellen stated that it would not be acceptable to President Biden to allow this to happen again.
Major U.S. industries have also raised concerns about Chinese anticompetitive practices. The Alliance for American Manufacturing warned that cheap Chinese electric vehicles coming into the United States via Mexico could render the U.S. auto sector extinct. Chinese components were bypassing U.S. tariffs through the United States’ free trade agreement with Mexico. In response to these concerns, a U.S. delegation met with Mexico’s president to address the issue.
Additionally, five national labor unions have filed a petition requesting an investigation into Chinese policies that have helped Beijing dominate maritime, logistics, and shipbuilding sectors. The Office of the U.S. Trade Representative has initiated a probe into these allegations.
Overall, President Biden’s criticisms of Beijing’s actions as xenophobic and accusations of unfair trade practices towards America reflect growing concerns about China’s economic challenges and its impact on international markets. The United States is taking steps to address these concerns, including proposing increased tariffs and initiating investigations into Chinese policies. The ongoing tensions between the two countries are likely to continue as they navigate their economic relationship.
