Obama To Create Task Force That Monitor Chinese Trade Policies
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US President Barack Obama is planning to form a government task force that will enforce US trade rules around the world, though people closer to the matter claim that the task force’s specific purpose would be to target and monitor China for possible trade and commercial violations.
US President Barack Obama is planning to form a government task force that will enforce US trade rules around the world, though people closer to the matter claim that the task force’s specific purpose would be to target and monitor China for possible trade and commercial violations.
According to a report by the Wall Street Journal, President Obama and his White House administration has plans to “get more assertive” with Beijing this year, due in part to the presidential elections this year – where the China debate could emerge as a sticking point.
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The government panel, set to be named the Enforcement Task Force, will include officials from various government agencies, including the Treasury Department, the Commerce Department, the Energy Department and the US Trade Representative’s office; and will be responsible for monitoring Chinese policies over currency, market access and intellectual property rights.
President Obama is expected to announce the initiative during or around his State of the Union address later this month, while the committee is also expected to be present on the White House’s agenda when Chinese Vice-President Xi Jinping visits Washington next month.
“It’s not a surprise to the business community that the administration wants to talk tough on China in an election year,” said Myron Brilliant, senior vice president for international affairs at the US Chamber of Commerce. “We have serious issues that need to be addressed in the commercial relationship and the administration has to walk a fine line between engagement and enforcement.”
[quote]”The administration is sending a direct message to China that all actions are on the table and they won’t hesitate to take trade and enforcement actions that are warranted,” added Brilliant.[/quote]The formation of the new task force will be overseen by the White House deputy national security adviser for international economic affairs Mike Froman. Though the White House has declined to comment on the task force, the details of which officials are to be in the taskforce are said to be in the process of being worked out.
Still, the US must be prepared for a possible backlash or fierce resistance from the Chinese government in regards to the new task force, says Eswar Prasad, a Cornell University professor of trade policy and former head of the International Monetary Fund’s China division.
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Both the US and China face the prospect of political transitions later this year, and neither government will want to be seen by their citizens as backing down against each other given heightened concerns about job creation.
“The relationship is entering a difficult phase,” warns Prasad. “Given the political circumstances on both sides of the Pacific, there is going to be a hardening of positions.”
