Trump’s top trade negotiator calls China ‘unprecedented’ threat

China’s economic model represents an “unprecedented” threat to the world trading system that can’t be addressed under current global rules, President Donald Trump’s top trade negotiator said.

“There is one challenge on the current scene that is substantially more difficult than those faced in the past, and that is China,” U.S. Trade Representative Robert Lighthizer said last night in a speech in Washington. “The sheer scale of their coordinated effort to develop their economy, to subsidize, to create national champions, to force technology transfers and to distort markets in China and throughout the world is a threat to the world trading system that is unprecedented.”

The World Trade Organization and the rules that underlie the international trade arbitrator weren’t designed to deal with China’s current approach to its economy, he said.

Lighthizer said he doesn’t want to jump to any conclusions from an ongoing investigation the USTR is leading on alleged intellectual property violations by China under Section 301 of the Trade Act. The provision allows the president to unilaterally impose tariffs and other restrictions to protect U.S. industries from unfair trade practices by outside nations.

Lighthizer said that he doesn’t want to prejudge the investigation’s outcome, but he gets “an awful lot of complaints,” especially from American chief executives from major companies about having to create joint ventures to operate in China then hand over their technology.

It was the first major public speech by Lighthizer, 69, who was confirmed in May as USTR. He worked for decades as a trade lawyer, representing clients including U.S. Steel Corp. He served as a deputy USTR under Ronald Reagan, earning a reputation as a hard-nosed negotiator. He also has deep political experience from his time as a senior aide to former Senate Finance Committee Chairman Bob Dole.

Lighthizer’s remarks come as the U.S. prepares for the third round of negotiations with Canada and Mexico on a revised North American Free Trade Agreement from Sept. 23-27 in Ottawa. Lighthizer has said the U.S. is seeking a major overhaul of the deal that will benefit American workers.

“We’re moving at warp speed, but we don’t know if we’ll get to a conclusion,” he said. Robert Lighthizer, Bloomberg

Categories China