September 11, 2021
China tariff policies flounder without a strategy
The White House is close to announcing investigations into Chinese use of industrial subsidies, the prelude to imposition of tariffs. The probes are known as “301s”, the section of US trade law that allows them.
If you import stuff from China that gets classified as requiring Section 301 import duties, you’ll have to pay that extra margin, which means US importers must either bear the costs on to consumers. They can appeal to the Court of International Trade for a refund, which then burdens the taxpayer and incurs administrative costs.
Rather than dodging strategy in favor of endless crisis management, the White House ought to be asking a series of questions. What problem are we responding to? What are we trying to achieve? How will 301s and tariffs further that?
Former president Donald Trump used tariffs extensively as the main tool of his “trade war” with China and it achieved nothing other than the imposition of reciprocal tariffs from China. President Biden shares some of this economic nationalist sensibility, calling tariffs “the greatest negotiating tool in the history of our country.”
Maybe that’s true. But no tool does everything, and a tool’s value has to be judged against its purpose in context. So what’s the purpose behind wielding tariffs against China?
Read the full article from Asia Times.
More from CNAS
-
How Big Will China’s Nuclear Arsenal Get?
Commentary
China’s nuclear expansion is already feeding an arms race—a contest that is accelerating partly because the finish line remains unknown....
By Jacob Stokes
-
China Military Scholar Elsa Kania on the PLA’s Dramatic Modernisation
Podcast
Today we speak with Elsa B. Kania, adjunct senior fellow at the Center for a New American Security, about China’s military modernisation. How good is the People’s Liberation A...
By Elsa B. Kania
-
Commentary
Indo-Pacific Security / Technology & National Security
Trump’s Crackdown on Foreign Students Is a Gift to ChinaWhen top global talent no longer sees America as a stable, long-term bet — in light of both visa and research funding insecurity — many will vote with their feet....
By Jordan Schneider
-
Assessing China’s Nuclear Decision-Making
Reports
China’s rapid nuclear buildup is raising questions about how the country makes decisions related to nuclear weapons. This policy brief analyzes that trend by presenting three ...
By Jacob Stokes
