The Select Committee on the Chinese Communist Party hosted a debate on trade relations between the U.S. and China, moderated by Chairman Mike Gallagher, R-Wis., and Ranking Member Raja Krishnamoorthi, D-Ill.
During the event, former Under Secretary for International Trade at the U.S. Department of Commerce Christopher Padilla and senior fellow at the Peterson Institute of International Economics Mary Lovely argued in favor of “limited decoupling” from China during. On the other side, former Undersecretary for Industry and Security at the U.S. Department of Commerce Nazak Nikakhtar and international trade attorney Elizabeth Drake argued in favor of “broader decoupling.”
“China has shown no willingness to seriously reform its non-market state-led mercantilist policies and American workers and industries have paid the price. Endless negotiations, dialogues and dispute settlement cases simply have not worked,” Drake said during the debate.
After China entered the World Trade Organization 20 years ago, trade between the U.S. and China has increased significantly, according to a report from the Council on Foreign Relations. China is the US.'s largest source of imports and one of its largest export markets. The trade relationship has brought lower prices for some consumer goods in the U.S., but has resulted in millions of Americans losing their jobs.
“We’ve paid tens of millions of dollars in tariffs over the last five years, which is just added cost. In fact, tariffs on intermediate goods create incentives for American manufacturers to move their production outside the United States where they can get cheaper non-terrorist inputs from China,” Padilla said in the debate.
The U.S. exported approximately $164.9 billion worth of goods and services to China in 2020 and imported approximately $450.4 billion worth of goods and services, according to the Office of the U.S. Trade Representative. Top U.S. exports to China in 2020 included electrical machinery, oilseeds and produce such as soybeans, mineral fuels and medical instruments.
