Follow us on social

2022-11-14t095855z_1492784992_rc2llx9gq91g_rtrmadp_3_g20-summit-biden-xi-scaled

Biden's 'de-risk' from China policy has a few flaws

In order to ‘walk, chew gum, and play chess’ at the same time, the US will have to both invest at home and sign more trade deals.

Analysis | Asia-Pacific

A speech late last month by Jake Sullivan, President Biden’s national security adviser, on “Renewing American Economic Leadership” clarified that the administration wants to build resilience to “de-risk” from China.

But dealing with Beijing will require more than investing at home. Washington also needs to re-engage in negotiations with China to manage difficulties in the bilateral relationship. And to better compete, the United States should get back into the business of signing trade deals.

As Trade Representative Katherine Tai quipped during her 2021 confirmation hearing, the United States can “walk, chew gum, and play chess” at the same time. The Biden administration should not only invest in domestic resilience, but also participate in new trade agreements and negotiate directly with Beijing.

Over the past two years, China joined the Regional Comprehensive Economic Partnership (RCEP), began acceding to the Digital Economy Partnership Agreement (DEPA), and applied to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). China’s integration into these new frameworks will create efficiencies in its own economy, while binding Beijing closer to the rest of Asia.

Meanwhile, the United States does not expect to see the first “real outcomes” from the Indo-Pacific Economic Framework (IPEF) until the end of 2023, more than one year after its announcement. IPEF, moreover, lacks the market-access agreements characteristic of other, more substantive economic agreements.

It is not surprising, then, that the 2023 Lowy Institute Asia Power Index ranks China 100 out of 100 on its “economic diplomacy” index, while the United States receives a ranking of only 34.6. The 2023 State of Southeast Asia survey similarly shows that only 21.9 percent of respondents view the United States as a leader in championing free trade, down from 30.1 percent in 2022.

To be fair, Beijing has significant ground to cover before its markets become as free and as open as those in the United States. What many trade partners care about, however, is not where China and the United States have been, but where they are going. To many, it appears as if Washington is turning inward while Beijing continues to open its markets.

This leads to the second error in Jake Sullivan’s “new consensus” on international economic policy. He expresses fatalism about China’s economic trajectory without giving credence to the possibility that China may change, or that the United States can play a role in influencing Beijing’s behavior. Sullivan explains, when “President Biden came into office, we had to contend with the reality that a large non-market economy had been integrated into the international economic order in a way that posed considerable challenges.”

In response, Sullivan focuses on building domestic “resilience” and “capacity” to reduce America's dependence on China. Washington appears to have given up on addressing the non-market practices contributing to U.S. dependence on China in the first place, including state subsidies and dumping. The administration also seems to have forgotten that access to low-priced imports is an important factor in the competitiveness of U.S. firms and the standard of living of American consumers.

Fatalism about China’s trajectory tracks with the Biden administration’s overall Indo-Pacific Strategy, which does not seek to “change the PRC but to shape the strategic environment in which it operates.” Fortunately, Treasury Secretary Janet Yellen has bucked the trend by stating that she hopes to “engage” with Beijing “in an important and substantive dialogue on economic issues.” Not trying to influence Beijing, on the other hand, would give up an essential element of any effective China policy.

Of course, prior negotiations were by no means unqualified successes. The Trump administration’s “phase one” trade deal largely failed to change Beijing’s behavior, in part, because the bilateral purchase agreements effectively, as Yukon Huang and Jeremy Smith of the Carnegie  Endowment for International Peace put it, “prescribed state-managed trade over market forces.”

Other negotiations, however, have seen more success. Former Treasury Secretary Hank Paulson was able to persuade Beijing to revalue its currency by more than 20 percent in the late 2000s, helping to level the trade relationship. China’s WTO accession negotiations also moved the needle on the country’s economic policy. While Beijing failed to carry out many of its WTO commitments, China did reform key aspects of its economy and, notably, slashed its average tariff level from 15.3 percent in 2001 to 9.8 percent over the next decade. U.S. policymakers should learn the lessons of past negotiations rather than standing by as U.S.-China economic relations deteriorate further.

One way to pressure Beijing to continue along the path of reform and opening up would be to carry out negotiations in concert with U.S. friends and allies. The Trump administration gave up significant leverage by dealing with Beijing bilaterally, outside the parameters of the international trade system. Plurilateral negotiations with U.S. partners — many of whom share U.S. grievances — may be more effective at convincing China to change course.

The consequences of not having an effective economic dialogue with Beijing will become more apparent over time. Despite Washington's wishes, China is simply not going away. Beijing will continue to join new trade agreements and integrate itself deeper into the global economy, even as the United States focuses on building resilience at home.


U.S. President Joe Biden shakes hands with Chinese President Xi Jinping as they meet on the sidelines of the G20 leaders' summit in Bali, Indonesia, November 14, 2022. REUTERS/Kevin Lamarque
Analysis | Asia-Pacific
Eisenhower and Nasser
Top photo credit: President Eisenhower and Egyptian President Nasser on sidelines of UN General Assembly in Waldorf Astoria presidential suite, New York in 1960. (public domain)

If Israel goes it alone is it risking another 'Suez'?

Middle East

Israeli Prime Minister Benjamin Netanyahu wants to accelerate his war against Iran with direct, offensive assistance from Washington — at a moment when there is less support for it than ever among the American people.

Netanyahu must expect that Washington will be compelled to accommodate and, if necessary, implement Israel’s expansive war aims – notably the complete destruction of Iran’s nuclear program, its ballistic missile capabilities, and even regime change itself. U.S. assistance is widely considered to be critical to Israel’s success in this regard.

keep readingShow less
US Navy Taiwan Strait
TAIWAN STRAIT (August 23, 2019) – US Naval Officers scan the horizon from the bridge while standing watch, part of Commander, Amphibious Squadron 11, operating in the Indo-Pacific region to enhance interoperability with partners and serve as a ready-response force for any type of contingency. (U.S. Navy photo by Mass Communication Specialist 2nd Class Markus Castaneda)

Despite setbacks, trends still point to US foreign policy restraint

Military Industrial Complex

It’s been only a few days since Israel first struck Iranian nuclear and regime targets, but Washington’s remaining neoconservatives and long-time Iran hawks are already celebrating.

After more than a decade of calling for military action against Iran, they finally got their wish — sort of. The United States did not immediately join Israel’s campaign, but President Donald Trump acquiesced to Israel’s decision to use military force and has not meaningfully restrained Israel’s actions. For those hoping Trump would bring radical change to U.S. foreign policy, his failure to halt Israel’s preventative war is a disappointment and a betrayal of past promises.

keep readingShow less
iraqi protests iran israel
Top photo credit: Iraqi Shi'ite Muslims hold a cutout of Israeli Prime Minister Benjamin Netanyahu as they attend a protest against Israeli strikes on Iran, in Baghdad, Iraq, June 16, 2025. REUTERS/Ahmed Saad

Iraq on razor's edge between Iran and US interests in new war

Middle East

As Israeli jets and Iranian rockets streak across the Middle Eastern skies, Iraq finds itself caught squarely in the crossfire.

With regional titans clashing above its head, Iraq’s fragile and hard-won stability, painstakingly rebuilt over decades of conflict, now hangs precariously in the balance. Washington’s own tacit acknowledgement of Iraq’s vulnerable position was laid bare by its decision to partially evacuate embassy personnel in Iraq and allow military dependents to leave the region.

This withdrawal, prompted by intelligence indicating Israeli preparations for long-range strikes, highlighted that Iraq’s airspace would be an unwitting corridor for Israeli and Iranian operations.

Prime Minister Mohammed Shia’ al-Sudani is now caught in a complicated bind, attempting to uphold Iraq’s security partnership with the United States while simultaneously facing intense domestic pressure from powerful, Iran-aligned Popular Mobilization Forces (PMF) factions. These groups, emboldened by the Israel-Iran clash, have intensified their calls for American troop withdrawal and threaten renewed attacks against U.S. personnel, viewing them as legitimate targets and enablers of Israeli aggression.

keep readingShow less

LATEST

QIOSK

Newsletter

Subscribe now to our weekly round-up and don't miss a beat with your favorite RS contributors and reporters, as well as staff analysis, opinion, and news promoting a positive, non-partisan vision of U.S. foreign policy.