Whether you lean towards conservatism or liberalism, it is hard to overlook the isolated trade relations set forth in motion by former U.S. President Donald Trump. With a new administration comes a new hope to restore the flawed global trade policy, including trade relations with China.
Ideally, a multi-lateral trade deal with China would work in the interests of global trade. Furthermore, the Biden administration intends to improve the bilateral ties between China and U.S. in order to alleviate the tension.
However, the fact remains that President Biden’s Administration will have to do a lot of damage control of the precious controversial China-U.S. trade policy. Financial analysts and experts concur that there is a good chance of an integrated international trade deal approach under the Biden Administration.
Shift in the U.S. Trade Policy
It would be fair to say that the last four years have been chaotic for US trade policy. Despite a progressive and broadminded approach from the new administration, China will showcase aggression over previous controversial trade deals and relations.
Strict Trade Policies and Conflicts
The truth is that U.S. companies do, in fact, find it hard to operate in central China because of the country’s strict trade policies and authoritative actions infused within capitalism. Not to mention there is a growing cause of concern over the alleged prosecution of Uighurs that might delay the hope for a reformed trade deal.
More Transparent and Liberal Trade Approach
Biden’s liberal internationalist trade approach would help the U.S. forge a trans-pacific trade partnership. It is an essential trade agreement between 12 countries that Trump had decided to abandon back in 2017. In addition, Biden hopes to restart trade relations with the EU on the Transatlantic Trade and Investment Partnership and as well as negotiate revised trade terms in post-Brexit Europe.
More Cooperation and Pragmatism
At the moment, the current focus of the new administration is to protect the existing unilateral trade deals and then push for new trade approaches. Biden administration also wants to be pragmatic and make more cooperative international trade deals.
Possible New Global Trade Deals
In fact, Biden Administration will likely be more agreeable to international trade deals that may have been not aligned with President Trump. The new leadership will also take steps and improve the economic impact of trade deals due to the onslaught of the pandemic crisis.
Non-Confrontational Trade Approach
There is always a flip side to the coin, and at some point, President Biden and his administration might condemn China over its unfair breach of sea routes and violation of human rights. The new administration wants to tend to the old wounds rather than confront the abuses and mistakes of the past.
A defined, broader, and well-thought-out global trade policy has become the center of attention for the new administration. As more international trade agreements take place, President Biden will focus on domestic trade policies. Of course, the idea to increase the export of U.S. products will require more participation and promotion.
In retrospect, President Biden’s administration wants to create more centrist and balanced trade relationships with China and the rest of the world. Even if the new administration does not reverse the populist policies, it will prioritize U.S. economic and trade interests through constrained internationalism.