USTR Defends Approach to China

U.S. Trade Representative Robert Lighthizer defended the increasing pressure on China with tariffs while speaking at the 2018 Concordia Annual Summit in New York on Sept. 25. Asked about the approach and its effect on consumer prices, Lighthizer said that "first you have to start with the proposition that we have a problem." He suggested that a lot of people in the business community don't believe that China's theft of intellectual property and a $342 billion trade deficit with China are a big deal. "They inform that judgment because they’re making money in the short term in that environment, so they’re defensive of that. If you start off with the proposition that this is a major, major threat to the future of the U.S. economy, then you have to do something."

Lighthizer said the U.S. has tried for more than 15 years to convince China to change its ways through diplomacy. He said the dozens of dialogues have "all been very successful for China and basically not made any real difference for the United States. These are smart, patriotic people who were doing this; it hasn’t worked, so you try something else."

Now the administration is trying tariffs, Lighthizer said, an action it entered into soberly. President Donald Trump, speaking at the United Nations General Assembly an hour later, also talked about tariffs. Trump said: "Many nations in this hall will agree that the world trading system is in dire need of change. For example, countries were admitted to the World Trade Organization that violate every single principle on which the organization is based. While the United States and many other nations play by the rules, these countries use government-run industrial planning and state-owned enterprises to rig the system in their favor. They engage in relentless product dumping, forced technology transfer, and the theft of intellectual property.

"The United States lost over 3 million manufacturing jobs, nearly a quarter of all steel jobs, and 60,000 factories after China joined the WTO. And we have racked up $13 trillion in trade deficits over the last two decades. But those days are over. We will not allow our workers to be victimized, our companies to be cheated, and our wealth to be plundered and transferred.

"The United States has just announced tariffs on another $200 billion in Chinese-made goods for a total, so far, of $250 billion. I have great respect and affection for my friend, President Xi, but I have made clear our trade imbalance is just not acceptable. China’s market distortions and the way they deal cannot be tolerated."

Myron Brilliant, head of international affairs at the U.S. Chamber of Commerce, pressed Lighthizer during the summit, asking if the U.S.'s leverage is going to get the Chinese back to the table. "It’s not going to be easy, change is never easy," Lighthizer replied.