ANOTHER CHAT BETWEEN Xi Jinping and US President Joe Biden is reportedly in the offing as the United States mulls easing Trump-era tariffs on Chinese imports of solar panels and household goods like washing machines and bicycles.
Helping to suppress domestic inflation appears to be more of a motivation for easing tariffs than improving China-US relations. If anything, US attitudes towards Beijing are hardening.
There is also a division of opinion within Biden’s economic team over tariff easing. Trade officials argue for the retention of tariffs to give the US leverage in trade discussions.
Tariffs on steel and aluminium will likely stay regardless, and while tariffs make goods more expensive for US consumers, lifting them will not make much of a dent in US inflation. However, Biden will undoubtedly be considering, if he does ease sanctions, what he can extract from Xi in return.
Rising tensions over Taiwan are complicating the issue. A particular point is Chinese officials repeated assertions to US counterparts of late that the Taiwan Strait is not international waters. While that stops short of saying the strait is an internal waterway, it still implies that US warships should not be freely sailing through it as they have been doing around once a month.
Update: Taiwan’s defence ministry said that the PLA Air Force flew 29 warplanes including six H-6 bombers towards the island’s airspace, its third-largest such sortie this year, after Washington rejected Beijing’s suggestions that the Taiwan Strait was not international waters.