Washington, April 1 In contrast to its measured tone on India, a new U.S. trade report portrays China as a far more entrenched and systemic challenge — one defined not just by market barriers but by what Washington describes as a state-led model aimed at global dominance.
A new report by the Office of the United States Trade Representative (USTR) said China’s policies go beyond traditional trade barriers and reflect a broader strategy to dominate key industries.
The 2026 National Trade Estimate (NTE) report said U.S. exports to China stood at $106.3 billion in 2025, but longstanding concerns remain unresolved.
At the centre of the criticism is China’s industrial policy. The report said Beijing continues to pursue plans to replace foreign technology with domestic alternatives.
It said these policies are designed to give Chinese firms a larger share of both domestic and global markets.
“China continues to pursue an extensive number of industrial plans… that target industries for domination by Chinese companies,” the report said.
The USTR said these practices are “unreasonable” and restrict U.S. commerce.
The report also flagged concerns about forced technology transfer. It said U.S. companies still face pressure to share technology to gain market access.
Issues related to intellectual property protection and cyber intrusions also remain a concern.
The report said China has not fully implemented commitments made under the Phase One trade deal signed in 2020.
It pointed to gaps in areas such as agriculture, market access and intellectual property.
In agriculture, the report said China’s approval process for biotechnology products remains slow and unclear. It added that import restrictions are applied inconsistently.
The USTR also said China uses regulatory tools to control imports. These include food safety rules, licensing requirements and certification procedures.
The report said such measures can disrupt trade and create uncertainty for exporters.
Washington has responded with tariffs and investigations in recent years.
The report cited new actions targeting China’s semiconductor sector. It said Beijing’s policies in this sector aim to displace foreign firms and create global dependence.
It also raised concerns about China’s role in shipbuilding and logistics. The report said state-backed expansion has weakened competition.
China’s approach to setting technical standards also drew criticism. The report said Beijing is using its market size to shape global standards in its favour.
The report's tone contrasts with the U.S. approach toward countries like India.
While India is seen as a difficult but evolving market, China is described as a systemic challenge.
The report said China’s economic model itself is at odds with market principles.
It added that U.S. trade policy toward China is now closely tied to national security concerns.
The findings reflect a broader shift in Washington’s strategy. China is no longer seen as just a trading partner, but as a central economic rival.
--IANS
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