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U.S. trade negotiator Katherine Tai said she will seek a meeting with Chinese Vice Premier Liu He to review China's failure to comply with the "Phase 1" trade deal launched in February 2020. Tai also said she would revive a "targeted" process of approving exclusions for certain Chinese imports from punitive U.S. tariffs, offering some relief to U.S. industry.
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Tai said the U.S. would keep all options open as it continues to push China to stop pouring billions in state subsidies into its semiconductor, steel and other industries that Washington says harm U.S. companies. She rejected the idea of separate "Phase 2" talks envisioned by Trump to tackle issues such as massive subsidies to domestic industries.
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The Trump-era trade deal, which help defuse a trade war that heaped tariffs on hundreds of billions of dollars worth of goods from both countries, also called for China to improve protections for some U.S. intellectual property and market access for U.S. biotechnology and financial services firms. President Biden kept in place the tariffs imposed by Trump.