The best way the United States can compete against China is with more “smart” investments in the US, said Katherine Tai, the US trade representative.
“As the United States trade representative, I intend to deliver on President Biden’s vision for a worker-centered trade policy in the U.S.-China trade dynamic” Tai said Monday in a speech at the Center for Strategic and International Studies (CSIS).
The United States is a powerhouse in several fields, both in the economy and the military, innovation, education and services in general, among others, while China is emerging as a strong rival in international trade, certain technologies, manufacturing production, services such as 5G and the development of solar energy, among other fields.
“We need to show that trade policy can be a force for good in the lives of everyday people. We will create durable trade policy that benefits a broad range of stakeholders by rebuilding trust with our workers and aligning our domestic and foreign policies.” said Tai.
Then the official said that US President Joe Biden has been clear, highlighting that the key to the United States’ global competitiveness and the creation of shared prosperity “begins at home.”
“We have to make smart domestic investments to increase our own competitiveness,” concluded Tai.
From Tai’s perspective, the United States should invest in clean energy research and development and technology, strengthen its manufacturing base, and incentivize companies to purchase American products throughout the supply chain.
The United States has already accomplished some of that work with the American Rescue Plan, the administration’s focus on supply chain resilience, and investments in its technology leadership.
The administration is working closely with the US Congress to build on those actions with the bipartisan infrastructure agreement and build back better agenda.