China Trade War 2.0? Biden Launches Probe To Quantify Damage From Beijing Subsidies
It appears the Biden administration is pulling out all the stops to distract from the Afghan shitshow.
First, it unveils the most authoritarian health mandates since the pandemic began.
And now, following what appears to have been a completely useless call with China’s Xi (that reportedly lasted 90 minutes – can anyone really see President Biden speaking coherently that late at night for that long?), Bloomberg reports that, according to people familiar with the matter, the Biden administration is weighing a new investigation into Chinese subsidies and their damage to the U.S. economy as a way to pressure Beijing on trade.
Top Biden economic advisers, including U.S. Trade Representative Katherine Taiand Commerce Secretary Gina Raimondo, are reportedly meeting Friday afternoon to discuss the potential probe and enforcement options along with a path forward for roughly $300 billion in tariffs imposed on Chinese imports.
USTR has reportedly asked outside consultants to help quantify the damage from Chinese subsidies in order to measure the kind of response that’s appropriate should the investigation proceed.
Bloomberg adds that one of the anonymous sources confirmed that The White House is taking into account any collateral damage that may result from taking action on China, and how potential Chinese retaliation could impact American workers and farmers.
For now, no major reaction in stocks but the Yuan is being sold…
Did ‘detente’ with China not poll well with the Biden base?
Of course, the result of this probe into Beijing’s actions will not in any way look like Trump’s trade war actions… nothing like it at all, completely different.
Oh, and one more thing, perhaps, as @StanphylCap noted satirically, an alternative headline for this story could be: “Biden trade team looks to create even MORE inflation than we already have.”
Fri, 09/10/2021 – 11:19