On May 14, President Biden revealed during the announcement of tariffs on unfair trade products from China that Chinese Communist Party leader Xi Jinping had complained to him about the unfair treatment China received from the United States. Biden retorted, “If you are willing, we can play by the same rules. Doing business in China means Chinese entities must have 51% ownership and must acquire intellectual property. Do you want me to do the same in the United States?” This response left Xi Jinping speechless.
Biden criticized China for relying on non-competitive strategies, such as forcing American companies to transfer technology if they want to do business in China. He highlighted China’s practice of providing significant subsidies to companies as “not competition but cheating.” Biden announced tariffs on $18 billion worth of Chinese goods, including electric cars, steel and aluminum products, port cranes, solar panels, certain medical products, starting this year; semiconductor tariffs will take effect from 2025.
This little-known anecdote shared by Biden has sparked significant public interest. People are curious about why Xi Jinping did not respond to Biden. Various interpretations have emerged, from Xi being unaware to his lack of preparedness on the issue.
On May 17, Chinese American economist Li Hengqing, residing in the United States, pointed out in an interview with Epoch Times that China, since joining the WTO, has not fulfilled many promises and has instead resorted to opportunistic practices, taking advantage in the international community. Xi Jinping is “well aware but unable to answer” to this.
Li Hengqing explained that Americans trust first and then verify. Once they discover deception, it becomes problematic.
U.S. Trade Representative Katherine Tai stated in a White House press conference on the same day that the tariff increase on China was in accordance with President Biden’s request, based on Section 301 of the Trade Act of 1974 following an investigation into China’s trade practices. She emphasized that the tariff was “strategic,” aimed at ensuring fair competition and safeguarding American workers’ interests.
Li Hengqing praised Trump as the first person to wield a heavy hand against the Chinese Communist Party, and Biden, continuing Trump’s policies, has been precise and collaborative with multiple allies in countering the CCP.
Since China’s entry into the World Trade Organization, its government subsidies have flooded international markets with cheap goods, disrupting market order and regulations, resulting in what is termed the “China shock.”
Li Hengqing highlighted several issues in U.S.-China trade relations, including China’s failure to abide by trade agreements with the U.S., Chinese companies fraudulently listing in the U.S. stock market without providing financial and operational information, the lack of reliable data from the Chinese government, intellectual property theft from the U.S., and other deceptive practices.
To rectify longstanding unfairness in U.S.-China economic interactions and safeguard American interests, Trump opted for tariff increases, catching the CCP off guard.
Li Hengqing noted that within the Trump administration, several officials well-versed in dealing with the CCP advocated for a tough approach, with Secretary of State Mike Pompeo playing a significant role in policy formulation, stressing the importance of verifying statements made concerning the CCP.
In his speech titled “The Chinese Communist Party and the Future of the Free World” at the Nixon Library in July 2020, Pompeo emphasized that China is not a normal country, and if the free world does not alter its approach to the CCP, the CCP will change the world. He concluded by quoting President Nixon, stating, “Until China changes, the world cannot be safe”; hence, it was imperative to act accordingly.
In a March 2023 interview with Voice of America, Pompeo underscored that the CCP poses a greater threat than the Nazis, with Xi Jinping being the most dangerous individual worldwide.
As a private individual, Pompeo called Xi Jinping an “evil dictator” ahead of President Lai Ching-te’s inauguration on May 20 concerning the Taiwan Strait issue.
During his presidential campaign, Biden sharply criticized Trump’s China policies on trade but has found himself continuing and escalating the trade war upon assuming office.
In the upcoming fall, both candidates will clash in the elections again, with issues like imposing tariffs and sanctions on China likely to remain focal topics of policy debates.
There exist differences in the future trade policy plans of the two regarding China. Trump pledged severe new restrictions if re-elected in 2025, prohibiting Chinese ownership of various U.S. assets, barring U.S. investment in China, and gradually enacting a comprehensive ban on importing critical Chinese products such as electronic goods, steel, and pharmaceuticals.
Building upon Trump’s tax policy, Biden has restricted the export of American semiconductors and chip manufacturing materials to China, along with combatting the sale of Chinese-made intelligent cars in the U.S. Additionally, Biden focuses on green energy projects and seeks to ally with partners in countering the CCP. The recent announcement of increased tariffs on Chinese goods reflects Biden’s future policy direction.
On the day Biden imposed $18 billion in tariffs on Chinese goods, Trump publicly questioned Biden, asking, “Where have you been for the last three years?”
Trump stressed the need for the Biden administration to raise tariffs not only on Chinese electric vehicles but on other automobiles and products as well because “China is eating our lunch, and they have more plans than just electric cars.”
If re-elected, Trump pledged to levy tariffs of over 60% on all Chinese products, far exceeding the target set during the initiation of the U.S.-China trade war in 2018.
On May 16, Trump remarked on Putin’s visit to Beijing, implying that Xi Jinping and Putin’s meeting aimed at causing disruption as they plotted to cause harm jointly. Trump further suggested that from Xi’s speech, it appeared he had intentions to take over Taiwan.
Looking ahead, both potential presidential candidates hold firm stances against the CCP, particularly concerning economic and trade matters. Concerns, however, arise regarding the continuity of these policies once the dust settles after the elections.
Li Hengqing believed that surprises were unlikely and that the U.S.’ actions against the CCP could intensify. The latest polls show that 86% of Americans hold negative views of the CCP, with 60% having extremely negative perceptions. This strong sentiment, along with the upcoming elections for the U.S. House, Senate, state governors, and legislators, cannot be overlooked.
He noted that in addressing the CCP issue, political officials without clear stances would be considered liabilities, while those expressing views for personal gain would shy away from openly supporting the CCP, becoming pariahs. “This is the prevailing trend that cannot be altered.”