Biden does not want to cancel Phase 1 trade deal with China

(Patria) – Newly elected US President Joe Biden stated that he does not intend to 'immediately' cancel Phase 1 of the trade agreement signed by President Donald Trump.

In an interview with The New York Times, Biden said that the US needs to regain the advantage in negotiations with China.

"I will not make any immediate moves, and the same applies to tariffs," Biden said, adding that he will not allow 'prejudices to affect my options,' but also that the US 'still does not have the advantage' in negotiations.

Biden believes that the US needs to achieve bipartisan consensus and increase government investments in research and development, infrastructure, and education to be more competitive with China.

"We need to fight hard by investing in America first," the newly elected president emphasized.

According to the Phase 1 agreement signed earlier this year, China agreed to increase its purchases of US goods and services by at least $200 billion in 2020 and 2021. Tariffs of 25% on $250 billion worth of Chinese industrial goods used by American manufacturers also remain in effect, to which China responded with tariffs on American goods worth over $100 billion.

Biden also mentioned that his team intends to legally respond to China's 'bad practices,' which include 'intellectual property theft, product dumping, illegal corporate subsidies,' as well as forced 'technology transfers' from American companies to Chinese partners.

When asked about relations with Iran, Biden replied that his administration would lift sanctions if Tehran again 'strictly adheres to the nuclear deal'.

Iranian Foreign Minister Mohammad Javad Zarif said last month that Iran would fully adhere to the nuclear deal if Biden lifted sanctions, which he said could be 'done quickly'.

In the interview, Biden emphasized that the US will 'in consultation with allies and partners engage in negotiations and accompanying agreements with the aim of more precisely defining nuclear restrictions for Iran, as well as finding solutions for the missile program,' Reuters reports.