Introduction: Hong Nong, Executive Director, ICAS

Moderator: Sourabh Gupta, Senior Fellow & Head of ICAS Trade n’ Technology Program

Panelists: 

- Mary Lovely, Anthony M. Solomon Senior Fellow, Peterson Institute for International Economics

- Tu Xinquan, Professor & Dean, China Institute for WTO Studies, University of International Business and Economics

Aggravated trade tensions are once again rising to the fore in U.S-China relations. In mid-May, President Biden confirmed the Trump administration’s Section 301 tariffs on China and proceeded to heap additional tariff raises on semiconductors, EVs, batteries, and solar cells. In late-May, Treasury Secretary Yellen sounded the alarm on Chinese ‘overcapacity’, calling it a “threat to the development of clean energy industries around the world”. The recent G7 Finance Ministers statement vows to “ensure a level playing field, in line with WTO principles” to counter China’s “comprehensive use of non-market policies and practices”. China strenuously denies these charges, pointing to its competitive edge in many clean energy industries. How will it respond to the U.S.’ tariff measures? Will it continue to maintain a low-key approach?

Later this June, Trump and Biden will square off in their first presidential debate, vowing to be tougher than the other in responding to the ‘Second China Shock’. What is the outlook for U.S. trade policy in the months and years ahead? Is protectionism here to stay? How are U.S.-China trade and industrial policy tensions expected to play out during this election year? Across the Atlantic, the European Commission is priming its trade defense instruments against Chinese EV imports. Will it also use its Foreign Subsidies Regulation rulebook to push back against the likely torrent of Chinese greenfield EV investment that has begun to wash up on the EU’s shores? Is there a difference in approach between the U.S. and the EU in dealing with the ‘Second China Shock’? China has initiated WTO dispute settlement proceedings against the Inflation Reduction Act’s trade-distorting EV subsidies. What is the outlook for third-party dispute settlement and for the multilateral trade system, more broadly, particularly as the U.S. reverts to its pre-WTO era usage of its Section 301 instrument? To listen to these pressing bilateral and multilateral trade and tariff-related questions, tune in to the ICAS Trade ‘n Technology Program event on June 13.

An event summary and recording is now available on the event website.