Biden is already attacking China and risking a trade war

Under President Biden, Washington has taken the most serious steps yet toward weakening China’s play for economic dominance. He has signed legislation that could lead to the ban of China-owned social media giant TikTok; retained some $360 billion worth of tariffs as well as many sanctions applied by Trump on Chinese individuals associated with human rights abuses in Xinjiang and Hong Kong; introduced unprecedented export controls that restrict Beijing’s ability to obtain advanced technology; and banned some U.S. investment in sensitive technologies that lawmakers fear could be used to aid China’s growing military. He has also quadrupled tariffs on electric vehicles made in China, tripled those on steel and aluminum, and doubled the duty on semiconductors. Meanwhile, several U.S. governors have signed laws preventing state pensions from investing in equities controlled by the Chinese state.

What lies ahead for U.S.-China trade?

Biden’s willingness to continue the economic confrontation with China has raised questions about the future of the trade relationship. Neither U.S. tariffs on Chinese goods (and retaliatory Chinese tariffs on U.S. exports) nor U.S. export controls has shown signs of being rolled back. Some legislators have introduced bills that would expand Biden’s investment restrictions to include more Chinese industries; other proposed legislation would require federal government investment plans to divest from Chinese companies. The renewed pressure on TikTok marks another major escalation. Beijing calls the move “bullying,” and TikTok is suing the U.S. government, arguing that the forced sale is not feasible and violates the First Amendment.