In the latest round of trade negotiations between the United States and China held in Spain, American officials successfully concluded discussions with their Chinese counterparts. Following these talks, several Democratic lawmakers from the U.S. Congress have penned a letter to the Trump administration urging for enforceable provisions in any agreement with Beijing to address and reduce China’s “structural overcapacity” in order to combat their economic model of flooding global markets with cheap goods.
According to a report by Reuters on Monday, members of the House China Task Force from the Democratic Party sent a letter last Friday to Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Commerce Secretary Howard Lutnick. They advocated for future bilateral trade agreements between the U.S. and China to include requirements for Beijing to reduce industrial capacity, particularly in sectors such as steel and solar panels.
The letter highlighted that “the People’s Republic of China (Communist China) has long promoted economic growth through structural overcapacity, which has had a devastating impact on American industries and employment, as well as threatening the global market order.”
In their communication, the Democratic lawmakers urged the Trump administration to prioritize addressing China’s overcapacity in key industries like steel and solar panels in trade negotiations, as well as collaborate with allies to establish an international response mechanism to prevent unilateral impacts on the United States. The letter also warned against solely relying on unilateral tariffs, as it could harm relationships with partners like South Korea and Japan, recommending a “more balanced tariff policy” instead.
Chinese Foreign Ministry spokesperson Lin Jian responded, stating that China “firmly opposes the depiction of China’s overcapacity issue” and accused the U.S. of using this as an excuse for protectionism.
Prior to departing for the negotiations, Secretary Bessent had emphasized his commitment to pragmatically and firmly defend U.S. interests, with a focus on trade balance and capacity issues in the discussions. While the Democratic Party’s actions may not directly influence the policies of the Trump administration, the pressure from Congress reflects a growing consensus in both U.S. political parties towards a hawkish stance in addressing economic challenges posed by China.
Following the conclusion of the first day of negotiations in Madrid, both sides will continue dialogue in the coming days, as reported by Reuters. Secretary Bessent announced on Monday that a preliminary framework deal on TikTok had been reached during the talks in Madrid.