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Biden Admin Weighing Trade Investigation Against China: BBG

US-CHINA

Bloomberg reporting that the Biden administration is considering launching a trade investigation into Chinese trade practices in an attempt to place pressure on Beijing. Comes after the second phone call between US President Joe Biden and his Chinese counterpart Xi Jinping, which took place last night.

  • Unclear what the aim of a trade investigation would be, risks inflaming tensions once again between the US and China with the resumption of a trade war between the countries seen as a risk should the two sides prove unable to come to an agreement or understanding on trade.
  • "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, people familiar with the matter said."
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