“The US-China trade and economic relationship is one of profound consequence. As the two largest economies in the world, how we relate to each other does not just affect our two countries. It impacts the entire world and billions of workers.”

She added: “For too long, China’s lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world.”

“In recent years, Beijing has doubled down on its state-centred economic system. It is increasingly clear that China’s plans do not include meaningful reforms to address the concerns that have been shared by the United States and many other countries. We have a lot of work to do.”

Comprehensive review

In recent months the Biden-Harris Administration has conducted a comprehensive review, which has resulted in a strategic vision for realigning the US’s trade policies towards China to “defend the interests of America’s workers, businesses, farmers and producers, and strengthen our middle class”.

“First, we will discuss with China its performance under the Phase One Agreement,” Tai told delegates. “China made commitments that benefit certain American industries, including agriculture, that we must enforce. “

A targeted tariff exclusion process will then begin to ensure the existing enforcement structure optimally serves US economic interests.

“Third, we continue to have serious concerns with China’s state-centred and non-market trade practices that were not addressed in the Phase One deal.  As we work to enforce the terms of Phase One, we will raise these broader policy concerns with Beijing,” Tai continued. “And we will use the full range of tools we have and develop new tools as needed to defend American economic interests from harmful policies and practices.

“Finally and critically, we will continue to work with allies to shape the rules for fair trade in the 21st century, and facilitate a race to the top for market economies and democracies.”

The National Council of Textile Organizations (NCTO) president and CEO Kim Glas welcomed the decision by the administration to enforce the Phase One deal with China and maintain tariffs on finished textile and apparel products.

She said: “We believe it’s important to hold China accountable for pervasive intellectual property theft and persistent predatory trade practices that have undermined US manufacturers and its workforce.”

She added: “China’s rampant abuse of intellectual property rights and other illegal trade activity has gone on for far too long at the direct expense of US manufacturers and the loss of millions of US manufacturing jobs.”

Glas continued: “The US textile industry supports the president’s authority to use Section 301 to address China’s unfettered practice of intellectual property theft, which has had a damaging impact on the entire US textile and apparel production chain and other manufacturing industries for decades.”

National Association of Manufacturers CEO Jay Timmons, also voiced his support.

He said: “Manufacturers agree with Ambassador Tai that we need a new, holistic and pragmatic approach to our relationship with China. We are pleased that the Biden administration’s approach reflects key priorities for manufacturers in the US, including holding China accountable on the ‘Phase One’ deal, allowing manufacturers to seek tariff relief, stepping up direct US engagement with Chinese officials and working with our allies to ensure that the US shapes the global rules for trade.”