Trans-Pacific View

Getting Energy Right in US China Policy

Recent Features

Trans-Pacific View

Getting Energy Right in US China Policy

The U.S. energy sector will be central to any economic compromise or confrontation between Washington and Beijing.

Getting Energy Right in US China Policy
Credit: Official White House Photo by Shealah Craighead

By all accounts, U.S. President Donald Trump is gearing up to make good on his campaign promises to redress a range of grievances in the United States’ economic relationship with China. With the bilateral trade deficit already up 7 percent this year alone, the Trump administration has initiated 301, 232, and 201 investigations that could result in punitive actions next year. Meanwhile, potential off-ramps — including major business deals concluded during Trump’s visit to Beijing in November, and future outcomes from the newly-established Comprehensive Economic Dialogue — have stalled or fallen short.

The question now facing U.S. policymakers appears to be how, not if, to take actions against China to protect U.S. workers and demand greater reciprocity for U.S. firms. While most of the media attention to date has focused on high-tech industries and commodities like steel and aluminum, the U.S. energy sector — where the United States still holds significant advantages and leverage — will be central to any future economic compromise or confrontation between Washington and Beijing. Rather than focusing on big deals that might shrink the trade deficit, the White House should play the long game and develop an economic strategy for China that enhances the long-term competitiveness of the U.S. energy sector.

[...]
Dreaming of a career in the Asia-Pacific?
Try The Diplomat's jobs board.
Find your Asia-Pacific job