US targets ‘powerful’ economic deal in Asia in 2022

The government of Biden aims to sign next year what could be a “very powerful” economic framework agreement with Asian nations, focusing on areas including supply chain coordination, export controls and standards for artificial intelligence, the secretary said. of Commerce, Gina Raimondo.

“It’s a priority for the president,” Raimondo said, speaking at a panel discussion Thursday at Bloomberg headquarters in New York on deepening the commitment to U.S with Asia. “USA. it did not appear in that region for four years, “he said, alluding to the record of the Trump Administration.

Raimondo said his trip to Asia last month was designed to “test the appetite” for economic dialogue, on the condition that President Joe Biden’s team does not contemplate resuming traditional trade talks. Raimondo stressed that rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) “as presented” is not an option.

“The demand for a US presence and a new US commitment was out of the ordinary,” said Raimondo, who was in Singapore, Malaysia and Japan last month. What the Administration envisions is a “new kind of economic framework for a new economy,” and the hope is, “early in the new year, the first quarter of next year, officially launch a process,” he said.

The framework will be “flexible,” and some countries may not adhere to all the elements, Raimondo said. He commented that the goal is to involve not only developed nations such as Japan, Singapore, Australia and New Zealand, but also emerging economies such as Malaysia, Vietnam and Thailand.

“I would love to come back here in 12 months with something signed saying that we have made progress,” said the Commerce director, adding that the agreement may not “culminate” in something that requires congressional approval, which is necessary for the traditional trade agreements. “It won’t be a trade deal, but it could be very powerful.”

Supply chains for critical goods, including semiconductors, are a particular focus, Raimondo said. The goal is to create “strong and long-term collaborations around supply chains” that address what has been a lack of coordination between producers and users, he said. On the US home front, Raimondo cited the benefit of the government bringing “stakeholders” together at the same table to increase transparency and trust around supply chains.

Export controls

“It’s a problem for the US to depend so much on Taiwan” for semiconductors today, Raimondo said.

Another element of Asia’s economic framework is working to harmonize export controls to limit sensitive products heading to China “and other autocratic regimes,” Raimondo said.

“If the US puts export controls to China on a certain part of our semiconductor equipment, but our allies don’t do the same, China can then get that equipment from our ally, and that’s not effective,” Raimondo said.

A third area for the new framework is the writing of technical standards and rules for artificial intelligence and cybersecurity, Raimondo said. “Working with our partners to define together the standards of what is ethical and responsible artificial intelligence, that is enormously valuable.”

Wang Wenbin, a spokesman for the Chinese Foreign Ministry, said at a regular press conference in Beijing on Friday that the US has been abusing its power to politicize trade and technology-related issues.

He also accused Washington of trying “to establish barriers to undermine international rules and break up the global market.”

Singapore

It is not clear if what the Biden Administration envisions meets the level of economic commitment that some Asian economies have asked for. Japan and others have urged Washington to reconsider former President Donald Trump’s decision to withdraw from the CPTPP deal, which had been the key economic pillar of a strategy to bolster the US-led opposition to China.