Washington, April 8: The United States has characterized its trade relations with China as “stable,” while cautioning that without necessary reforms, the global trade system risks becoming “less relevant.”
U.S. Trade Representative Jamison Greer stated on Tuesday at the Hudson Institute that Washington is maintaining a careful balance with Beijing. He emphasized the need to protect economic and national security interests while preventing escalating tensions. Currently, economic and trade relations between the U.S. and China remain stable, and the U.S. is not seeking a major confrontation.
Greer highlighted that the U.S. continues to impose heavy tariffs on Chinese goods, particularly in advanced manufacturing sectors, as part of efforts to address the growing trade deficit.
He noted that last year, the trade deficit in goods with China decreased by $130 billion, a 30% drop, which he described as evidence of “real change.”
Greer also mentioned that Washington is working to secure supply chains, including access to rare earth materials, which have become a focal point in ongoing discussions with Beijing.
“We are almost always discussing rare earth metals with the Chinese. The U.S. is also working on partnerships to enhance domestic self-sufficiency and reduce dependency,” he stated.
In response to a question, Greer pointed out vulnerabilities in the pharmaceutical supply chain. He acknowledged that while India remains a major supplier of active pharmaceutical ingredients, crucial raw materials often come from China.
“People might say, ‘Well, we get most of our APIs from India.’ That may be true, but key starting materials are sourced from China. I have discussed solutions to this issue with Indian counterparts multiple times,” he explained.
Discussing the global trade structure, Greer criticized the World Trade Organization (WTO) and warned that its inability to adapt could push it further to the margins.
“If the WTO fails to adjust, it will become even more irrelevant,” he said.
He cited a recent ministerial meeting in Cameroon, where countries could not agree on extending long-standing tariffs on digital goods.
Describing this issue as a “litmus test,” Greer noted that the U.S. proposed to make this ban permanent or extend it for four years, but “Brazil and Turkey were not willing to do so.”
“This symbolizes how outdated the WTO is,” he added.
Greer also shed light on structural imbalances in global trade, particularly excess production capacity driven by state-supported economies. He stated that the administration is focused on revitalizing domestic manufacturing as part of a broader trade policy strategy that includes tax, energy, and regulatory measures.
“All these indicators are moving in the right direction. After a long decline, positive job growth was recorded in the manufacturing sector in February. Trade policy is just one part of a comprehensive strategy,” he concluded.
Greer mentioned tensions with the European Union over digital trade rules, warning that U.S. companies face “discriminatory” regulations under measures like the Digital Markets Act.
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