State-backed unfair competition by China, particularly with outsized subsidies to exporters, requires that the United States shift from a policy of engagement to one of strategic competition, the US Export-Import (EXIM) Bank said in a report
WASHINGTON (Pakistan Point News / Sputnik - 01st July, 2020) State-backed unfair competition by China, particularly with outsized subsidies to exporters, requires that the United States shift from a policy of engagement to one of strategic competition, the US Export-Import (EXIM) Bank said in a report.
"Guided by a return to principled realism, the United States is responding to the CCP's [Chinese Communist Party] direct challenge by acknowledging that we are in a strategic competition and protecting our interests appropriately," the report said on Tuesday. "United States policies are designed to protect our interests and empower our institutions to withstand the CCP's malign behavior and collateral damage from the PRC's internal governance problems."
From 2015 to 2019, China's official medium-and long-term credit activity alone was at least equal to 90 percent of that provided by all G7 countries combined, the report said.
The report also noted that China uses several other official government entities to finance its exports and trade practices through a variety of means, including export credits.
The report's bottom line is that Beijing has repeatedly demonstrated that its actions are not constrained by prior commitments, such as the country's repeated violations of rules it accepted when joining the World Trade Organization.
As a result, United States needs to respond to China's actions instead of its stated commitments, the report said.
In effect, the report forces Trump administration policy of challenging Beijing's by using US laws to impose duties on government-subsidized exports in a bid to cut an annual US trade deficit of more than $500 billion.
EXIM is a federal agency that promotes and supports US jobs by providing export credits to support sales of US goods and services to international buyers.
