On May 14, the Biden administration announced a significant increase in tariffs on Chinese electric vehicles (EVs), semiconductors, steel and aluminum products, lithium batteries, solar panels, and medical supplies.
The White House officials stated that the tariff hike would apply to goods imported from China worth about $18 billion annually and would gradually increase to 25% between 2024 and 2026, triple the current level.
Officials also mentioned that all tariffs imposed on approximately $300 billion worth of goods annually from China during the Trump administration would remain unchanged, with no further increases.
According to data released by the U.S. Bureau of Economic Analysis and the Census Bureau, the total U.S. imports from China in 2023 amounted to around $430 billion.
U.S. Trade Representative Katherine Tai emphasized that reliance on China’s supply chain makes the entire U.S. economy “vulnerable” to threats from the Chinese Communist Party (CCP), as the CCP intends to weaponize this dependency.
The new tariffs do not apply to Chinese-branded goods imported from third countries, such as Chinese EVs produced in Mexico. Tai told reporters on May 14 that they will continue to “monitor” this issue, hinting that further actions by the government may be taken.
James Lewis, director of the Strategic Technologies Program at the Center for Strategic and International Studies in Washington, D.C., expressed that the idea of engaging in unrestricted free trade with the CCP without risks is no longer viable.
He stated that the Biden administration realizes that “technology and economics are as important as traditional military power, if not more so,” necessitating restrictions on the CCP’s access to them.
Lael Brainard, Chair of the White House National Economic Council, stated before the president’s announcement of increased tariffs that imposing tariffs aligns with President Joe Biden’s policy of “responsibly managing competition with China (CCP).”
She noted that the U.S. government is cooperating with other countries to collectively address concerns arising from the CCP’s unfair practices.
Brainard emphasized that “China is continuing to grow using previous tricks, and this growth is at the expense of other countries. China’s method is to continue investing despite overcapacity, and due to unfair practices, they export products at low prices to the global market.”
“The United States may not be able to act according to China’s rules because China is too big,” Brainard added.
Stephen Ezell, Vice President of Global Innovation Policy at the Washington, D.C.-based public policy think tank Information Technology and Innovation Foundation, said to the Epoch Times that increasing tariffs undoubtedly indicates the Biden administration’s willingness to take a tougher stance against the CCP, especially in critical advanced technology industries for the U.S. economy and national security.
He mentioned that the new tariff policy signifies a “significantly tougher stance towards China by the Biden administration compared to the beginning of their term.”
During the 2020 presidential campaign, Biden criticized President Trump’s imposition of tariffs on Chinese goods and vowed to eliminate them if elected. However, once in office, he retained all the tariffs.
Christopher Balding, a China economy expert at the Henry Jackson Society in the UK, stated that the new tariffs are “understandable” as tariffs are one tool among limited tools to address the CCP’s unfair trade practices.
Ezell and Balding both believe that increasing tariffs is a step in the right direction, but tariffs are only part of a larger strategic plan.
Ezell expressed the hope for a “coherent and consistent grand geopolitical strategy” guiding the U.S. and its allies in addressing the threats posed by the CCP.
“I believe the current government still lacks an overarching strategy that combines economic, national security, and trade policies. I hope they can achieve that,” Ezell said.
Apart from shortages of medical supplies, the COVID-19 pandemic also exposed the U.S.’s reliance on China for semiconductors—a key component ranging from smartphones to fighter jets. During the pandemic, CCP’s control measures led to transportation delays, port congestion, and subsequently reduced supplies, slowing down U.S. domestic auto manufacturing due to a lack of microchips.
In August 2022, Congress passed the bipartisan “Chip and Science Act” supported by Biden, promising nearly $53 billion in funding to domestic semiconductor manufacturers. Subsequently, the Chip Office announced providing around $30 billion in funding and $25 billion in loans to semiconductor manufacturers.
Increasing domestic semiconductor production capacity is a critical step for the Biden administration to “overtake” China.
Concurrently, the White House bolstered national security efforts to prevent sensitive technologies from flowing to China.
In October 2022, the Biden administration issued comprehensive new export control measures, restricting CCP access to advanced semiconductor chips made using American technology, regardless of where they are manufactured. The aim is to prevent the CCP military from accessing crucial technologies for advanced weapons systems.
A year later, the U.S. government significantly tightened semiconductor export controls, lowered performance thresholds to restrict more chips, and expanded the controlled semiconductor equipment list in line with trilateral agreements with Japan and the Netherlands.
In early 2023, a report revealed that due to U.S. semiconductor export controls, the CCP’s top nuclear weapons research institute had to purchase personal computers through third parties to use their computer chips. Ezell considers this a “victory.”
“We are slowing the CCP’s ability to design nuclear weapons. This is a victory for U.S. export control,” he said.
The “Chip Act” also spurred private investment in semiconductors in the U.S., with over $200 billion estimated by the Semiconductor Industry Association.
Micron Technology, Inc. invested $100 billion in building a chip manufacturing campus in Upstate New York, a milestone investment. Last month, Micron secured $6.1 billion in federal funds for the project.
However, William Lee, Chief Economist at the Milken Institute in California, believes that government-chosen winners may not necessarily succeed in the market.
Over the years, massive CCP subsidies have made it challenging for U.S. companies to compete with state-owned enterprises.
Lee told the Epoch Times, “Each administration, whether Biden or Trump, or the winner of the next administration, if they want to counter competition from China through subsidies or domestic manufacturing, they will have to spend a significant amount of money because there are almost no manufacturers in the U.S.”
The U.S. pioneered the semiconductor industry but later outsourced manufacturing and packaging to other countries. Currently, Taiwan, South Korea, and Japan are the primary countries for chip manufacturing, while the Netherlands possesses the most advanced chip manufacturing equipment. The Semiconductor Industry Association notes that U.S. chip companies remain leaders or highly competitive in research and design.
Lee mentioned that imposing tariffs on imported goods may not sufficiently raise prices to incentivize U.S. manufacturers to produce more products. Therefore, tariffs need to be accompanied by additional subsidies and relaxed regulations to enhance the competitiveness of domestic businesses.
On the diplomatic front, Ray Powell, Director of the Center for National Security Innovation at Stanford University, praised the Biden administration for achieving a long-standing U.S. goal: building a close network of allies.
He told the Epoch Times, “Transforming our alliance relationships, especially our relationships in the Indo-Pacific region, from a hub-spoke alliance system centered around the United States to a mesh, almost like a net of mutually supportive alliances networked around each other, is commendable.”
The “National Security Strategy” launched by the Trump administration in 2017 shifted focus from the global war on terror to competition with China and Russia—a strategy continued by the Biden administration. Trump’s strategy aimed to strengthen alliances in the Indo-Pacific, while Biden goes a step further.
Powell highlighted the significance of the U.S.-Japan-South Korea summit in 2023, which led to the first trilateral Indo-Pacific security dialogue held in Washington in January 2024. Although symbolic, it was a significant development as these two Asian countries needed to overcome longstanding grievances since World War II.
He further noted the importance of the U.S.-Japan-Philippines summit held in Washington last month. These three countries expressed “serious concerns” about the CCP’s “dangerous and aggressive actions in the South China Sea.”
The CCP illegally claims sovereignty over disputed waters in the South China Sea and has built artificial islands in the region with military installations. Chinese vessels have taken increasingly aggressive actions against neighboring countries, especially the Philippines.
In the days leading up to the summit, the Philippines, Australia, Japan, and the United States conducted their first joint patrol in the South China Sea.
By combining security projects to establish economic partnerships, the U.S. plans to open a development bank branch in Manila and is negotiating with the Philippines on global infrastructure and investment initiatives to counter the CCP’s “Belt and Road” initiative with America’s global infrastructure plan.
Beyond Asia, the Biden administration has established a series of global partnerships, including the trilateral security partnership (AUKUS) with Australia and the UK and the U.S.-EU Trade and Technology Council.
The Quad, established during the Trump era (comprising the U.S. and Australia, India, and Japan) had its first online summit under the leadership of the Biden administration in March 2021.
In September 2021, Australia, the UK, and the U.S. announced the creation of a new trilateral security partnership (AUKUS), with the U.S. and Australia sharing technology to build nuclear-powered attack submarines. Both the Quad and AUKUS focus on defense security in the Indo-Pacific region, while the U.S.-EU Trade and Technology Council enhances economic security and competitiveness.
Lewis noted, “This is not a global alliance against China, but a willingness to say ‘If pushed to choose, we would choose America, not China (CCP).’ This is a big deal for China.”
Following the 9/11 attacks, the U.S. spent $6 trillion in two wars in Iraq and Afghanistan.
Lewis underscored that people often underestimate how these two wars have influenced how the CCP, Iran, and other hostile nations perceive the U.S. and its influence. “So Biden has to rebuild that influence,” he said.
He emphasized that a less advanced aspect of the Biden administration is how to “replace or repair existing global institutional organizations such as the UN Security Council’s five permanent members, the World Trade Organization, or the International Monetary Fund, or all of these international organizations that invited China in and were exploited by it.”
Regarding Biden’s imposition of tariffs on China, there are varying views among experts on how much this move is driven by this year’s elections.
However, they unanimously agree that whether for election purposes or not, Biden is implementing his policy towards China as the U.S. public increasingly recognizes the threat posed by the CCP, reaching a new level compared to four years ago when executing his China policy.
A recent Pew Research Center poll showed that 81% of Americans now have a negative view of China, up from 73% a month before the 2020 presidential election. Lee also pointed out the increasing prevalence of themes related to the threat posed by the CCP in popular culture like novels.
Powell stated that while foreign policy may not be a primary concern for voters in presidential elections, “It is clear people perceive the world now as more dangerous than four years ago.”
Ezell suggested that the government’s actions are both about taking a firmer stance against the CCP and gaining more votes in the elections.
However, Lewis disagrees.
He mentioned that countering the CCP has been a consistent theme among members of the Biden administration’s national security advisory group, even before the 2020 presidential election.
“People realize that the old structures and old security threats do not reflect the reality,” Lewis said. “I think this is where the Biden team is working to modernize U.S. foreign policy.”
Lee stated that compared to the $300 billion tariffs levied on Chinese goods, the $18 billion in tariffed imported goods is insignificant. He said this move is purely for gaining votes in the upcoming elections.
However, he believes President Biden has returned to a more traditional Democratic agenda supporting workers and their rights. He noted that President Trump followed this agenda and expanded it to include job opportunities in the U.S.
“Biden and Trump are singing the same tune on China,” Lee said. “Biden is singing the first and third verses, while Trump sang the second verse; it’s the same song.”