U.S. Democrats have reportedly called on the Trump administration to address China’s “structural overproduction” as part of any future bilateral trade agreement.
Democrats Urge Binding Rules In US-China Trade Deal Talks
Democratic members of the House of Representatives committee on China have urged the Trump administration to incorporate “binding requirements” in any potential trade deal with China. These requirements would compel Beijing to reduce its industrial overcapacity, as reported by Reuters.
The letter, sent to Treasury Secretary Scott Bessent as well as other top trade officials, highlights the concerns about China’s overproduction, which leads to excessive exports and price wars.
The letter, echoing the arguments made by the Biden administration, particularly by former Treasury Secretary Janet Yellen, emphasizes the need to address China’s overcapacity, particularly in industries such as steel and solar panels, which have a significant impact on the U.S. and global markets.
In August, Bessent cautioned that China's expanded production capacity during COVID-19, along with its progress up the value chain, may pose challenges for countries such as Japan and South Korea. The Treasury Secretary also called China’s overproduction a sort of employment program in China.
High-stakes US-China talks amid probes, TikTok deadline
This development comes in the wake of Bessent’s high-stakes talks with China led by Vice Premier He Lifeng in Madrid, marking their fourth round of in-person discussions this year amid unresolved disputes over tariffs, agriculture, and the looming TikTok deadline.
Furthermore, China initiated two investigations against the U.S. semiconductor sector, including an anti-dumping probe, potentially affecting the trade talks. The investigations reportedly follow Washington’s recent move to add 23 more China-based companies to its entity list, imposing restrictions on firms considered to be acting against U.S. national security or foreign policy interests.
Amid these trade tensions, U.S. agricultural producers are preparing to travel to China, aiming to strengthen ties with Beijing. This is the third year in a row that the U.S. Department of Agriculture (USDA) has organized such a trip, but officials say this year's mission carries greater significance due to tense bilateral trade relations.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
