Biden Admin Favors Balanced Approach on China Trade, Official Says

The Biden administration believes it has struck the right balance in managing technology trade with competitors such as China, White House National Security Adviser Jake Sullivan said Oct. 23.

In taking a “de-risking, not decoupling" approach, the administration has been "targeted" in the exports it restricts, generally controlling only technology vital to national security, Sullivan said at the Brookings Institution.

“When it comes to a narrow set of sensitive technologies, yes, the fence is high, as it should be,” Sullivan said. “And in the context of broader commerce, the yard is small, and we’re not looking to expand it needlessly.”

Some lawmakers, however, have called for tighter restrictions, such as for the export of U.S.-made advanced computing chips to China (see 2409030029).

Sullivan said that when the administration believes new export constraints may be needed, it seeks to coordinate with a “widening group of allies and partners," resulting in an “extremely constructive set of dialogues." Those discussions have diagnosed threats and examined the trade-offs of imposing controls.

“Does it mean we agree on everything?" Sullivan asked. "Not necessarily, but are we broadly aligned on the methodology for how to approach this issue? I believe we are, and then it really comes down to the issue of practical application, which is an intense give and take within the respective governments of our allies and partners and then across those governments and then between us and them. So we will continue to work on that as we go forward.”

The administration, however, hasn't always been able to consult with allies before imposing restrictions. A Bureau of Industry and Security official said in November that while the agency prefers to implement chip controls alongside allies, national security concerns meant that it couldn’t afford to delay its most recent controls as other nations considered them (see 2311150029). A Belgian think-tank later criticized the new controls, saying they might be causing more harm than good for Western companies (see 2405020065).

With the administration nearing the end of its four-year term, Sullivan declined to say whether he might serve in the next administration if Vice President Kamala Harris wins the Nov. 5 presidential election. Sullivan has been in his current role since President Joe Biden took office in January 2021.