US National Security Advisor Jake Sullivan said that America is not looking to separate from China, but to reduce the risk from it. file. , Photo Credit: AP
In a speech outlining the international economic policy of the Biden administration, US National Security Adviser Jake Sullivan said the US is not looking to isolate China, but to reduce risks from it. Mr. Sullivan also highlighted the need for reform of the World Trade Organization (WTO) and said that the primacy of tariff reduction as a driving force of the global trade agenda has been lost. He instead insisted on a paradigm where the US was working with its allies to build manufacturing capacity and resilience in key sectors through supply chains to withstand shocks such as climate change, war and pandemics.
Speaking at the Washington DC-based think tank Brookings Institution on Thursday, Mr Sullivan echoed European Commission President Ursula von der Leyen’s March 30 message on China, saying “we are to de-risk and diversify, not to separate”. He said export controls would remain focused on technologies that could tilt the military balance.
“We are not cutting trade,” Mr. Sullivan said, adding that last year there was a record level of trade between the US and China. Beyond economic ties, Mr. Sullivan reiterated the Biden administration’s position on the China policy of managed competition.
“We do not want confrontation or conflict.
“We are seeking to manage competition responsibly and work together with China,” Mr. Sullivan said, adding that it takes “maturity” for the two interested parties to manage competition and to keep communication lines open. ” Is required.
During his speech, Mr. Sullivan cited examples to show that the US was working not only with other advanced economies, but also with emerging economies – such as India, with which the US ” everything from hydrogen to semiconductors”, or Indonesia, Angola, and Brazil.
He quoted his counterpart, US Trade Representative Catherine Tai, as saying that the US had not “pledged to liberalize trade”, but suggested that tariff reduction, which he called the main economic project of the 1990s, was over. And the US is looking at how its trade policy is compatible with its international economic policy, responding to current challenges.
According to Mr Sullivan, these challenges include creating a diversified and resilient supply chain, mobilizing investment for an “equitable” clean energy transition and sustainable economic growth, an agreement on corporate taxation, labor and environmental standards and jobs that support the middle class . , His speech made several references to policies that were intended to support the American middle class and “working people” in other countries.
In his speech, Mr. Sullivan tried to better frame some of the more internationally controversial parts of the Biden administration’s recent economic policy – such as the Inflation Reduction Act (IRA). He described collaborations with Canada, Japan and said US President Joe Biden and Ms Van der Leyen had started talks on supply chains for critical minerals and batteries.
“That’s why we’re taking advantage of the Inflation Relief Act to build a clean energy manufacturing ecosystem rooted in supply chains in North America, Europe, Japan and elsewhere. In this way we will transform the IRA from a source of friction to a source of strength and credibility,” Mr Sullavan said.
Mr Sullivan said the Biden administration “remains committed to the WTO”, adding that its underlying values were threatened by non-market economic practices. That’s why the US is working with other countries to reform the trading system, he said.
Biden administration’s global strategy to advance workers’ rights unfolds
Mr. Sullivan said that in the “coming weeks,” the Biden administration will unveil a new global strategy that will advance workers’ rights through diplomacy. He said negotiations with the EU on steel and aluminum could be the first major trade deal to tackle both emissions intensity and over-capacity. The EU and the US are working on an agreement to impose tariffs on steel. More than half of the world’s steel is produced by China, although a negligible amount is sent to the US due to existing tariffs and tariffs.
repair of mdb
Mr. Sullivan reiterated the administration’s position that addressing climate change, conflict and fragility requires reform of the operating models of multilateral development banks (MDBs), particularly the World Bank.
“And we’re very excited about [ incoming World Bank President] Ajay Banga’s new leadership at the World Bank to make this vision a reality,” he said.
Mr Sullivan called for debt relief for vulnerable countries, many of which are in debt crisis after the pandemic. He called on China – the world’s biggest official creditor – to “step up” and play a constructive role in relief for debt-ridden countries. Addressing the debt crisis of vulnerable countries was a topic of the international finance community, as the World Bank met in Washington earlier this month for the IMF Spring Meetings. It is also on the agenda of the G20 talks to be chaired by India this year.