Finance

Trade envoy Tai says US not seeking to ‘decouple’ from China

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TOKYO — Washington is not seeking to decouple the American economy from China’s, U.S. Trade Representative Katherine Tai said Thursday while on a visit to Tokyo.

Tai, who is on her fourth visit to Japan after being appointed the top U.S. trade envoy, said all members of President Joe Biden’s administration have been “very clear that it is not the intention to decouple” China’s economy.

U.S. trade sanctions against China are “narrowly targeted,” she said.

Given its huge size and importance, unraveling the ties with China that keep the world economy running is “not a goal or achievable,” Tai said in a news conference at the Foreign Correspondent’s Club of Japan.

Chinese officials have often lashed out at the U.S. over trade sanctions and other restrictions on sharing of advanced technology with China, accusing Washington of trying to “contain” China and hinder its path toward greater affluence.

Tai said that regular trade work between the U.S. and China was continuing and she was “completely open to engaging with my counterparts in Beijing,” though she has no immediate plans to visit China.

At the same time, the United States is seeking to strengthen and expand economic security cooperation with its Asian allies and partners in response to China’s growing assertiveness and its dominance in many manufacturing industries.

Security and stability of supply chains is an issue that has gained urgency after disruptions caused by the pandemic and controls imposed to try to fight outbreaks of COVID-1 resulted in shortages of computer chips and other goods.

The Biden administration is taking a new approach to global trade, arguing that America’s traditional reliance on promoting free trade pacts failed to anticipate China’s brand of capitalism and the possibility that a major power like Russia would go to war against one of its trading partners.

Tai recently gave a speech at American University, where she spoke of “friend-shoring’’ — building up supply chains among allied countries and reducing dependence on geopolitical rivals such as China.

Tai pointed to a new trade partnership with Japan that she said has brought “tangible results for our workers, small businesses, and producers on both sides of the Pacific.” That includes an agreement to lift limits on U.S. exports of beef to Japan and a new biofuels policy to facilitate exports of more ethanol to Japan, she said.

Tai also reviewed the status of negotiations on the…

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