What does the US want from China?
I guess this 365 billion dollar question has been lingering in everyone's mind since Trump took office a year ago. Now the USTR finally made it clear in its 2017 Report to Congress on China’s WTO Compliance, which it launched to great fanfare yesterday:
"In November 2017, further discussions took place when President Trump met with President Xi in Beijing. The U.S. side explained that it had no interest in engaging in the types of bilateral discussions pursued in the CED and in past dialogues like the JCCT and the S&ED’s Economic Track, which have only achieved isolated, incremental progress on problematic Chinese trade and investment barriers. Instead, the United States made clear that it is seeking fundamental changes to China’s trade regime, including the overarching industrial policies that have continued to dominate China’s state-led economy. "
In other words, no petty, piecemeal deals, we want sweeping changes in China's trade system, industrial policy and economic system.
To make this happen, however, I think two questions need to be answered first:
- Is the WTO the best place for demanding such sweeping changes in the economic system of a major Member?
- If it is, what does the US can offer in exchange?