“Our strategy must extend beyond simply pressuring China to change and include vigorously defending our values and economic interests against the negative impacts of the PRC’s unfair economic policies and practices,” Tai will say, according to prepared remarks.
Tai started talks with his Chinese counterpartVice Premier Liu He in October after promising that the Biden administration would hold Beijing accountable for its commitment to buy $200 billion in additional US goods over a two-year period under the phased deal one of former President Donald Trump.
Data shows China breached this obligation, whom he was to meet by the end of last year. Tai will tell the committee that his talks revealed that Beijing “would only comply with trade obligations that correspond to its own interests.”
“It’s a familiar pattern with the PRC – from their actions to [World Trade Organization] and in various high-level bilateral dialogues,” Tai added. “The United States has repeatedly requested and obtained commitments from China, only to find that follow-up or real change remains elusive.”
The door remains open to new conversations, Tai will say, while calling on the United States to both challenge Beijing’s practices and strengthen American competitors through domestic investment.
China is striving for global dominance in critical technologies, such as electric vehicles, batteries and semiconductors. In the past, U.S. competitors have suffered from Beijing’s industrial subsidies and other market-distorting actions, which existing trade remedies were “too slow or ill-suited to deal with effectively,” Tai claims in his testimony.
“To ensure that our industries remain competitive, we must develop new national tools aimed at defending our economic interests and making strategic investments in our economy,” Tai said.
She will ask Congress to approve $52 billion for domestic semiconductor production and research through legislation now known as the Bipartisan Innovation Act. The House and Senate are currently preparing to launch a conference committee to reconcile competing versions of this bill.