US Trade Rep. Katherine Tai speech today will lay out the #BidenAdministration China trade policy politi.co/3a29oxH. They will hold China accountable for "unfair and coercive [trade] practices," which is a step forward. But the Dragon in the room is ... 1/8
...the massive and surging US goods trade deficit, which on track to exceed $1.1 trillion dollars in 2021. US recovery spending is leaking away to imports, which are clogging US ports, & hurting American manufacturing, which has not recovered jobs lost in COVID recession. 2/8 
The not-so-hidden driving force behind surging US goods trade deficits (up 22% this year) are China's China's soaring goods trade surpluses, which are a mirror image of US trade deficits. China's surplus in manufactures alone likely topped $1.2 trillion in 2020. 3/8
While US DIRECT imports & its trade deficit with China both fell sharply after tariffs were imposed in 2018 & 2019, as shown below, China's exports to the world as a whole continued to grow. China simply rerouted exports to the US through Vietnam, Malaysia & other countries 4/8
China has dodged US tariffs by transshipping goods thru Vietnam & other countries, where they are minimally transformed & re-exported 5/8 on.wsj.com/3FjdXlq.
... and similarly, they have been found guilty by the Commerce Department of illegally circumventing anti-dumping duties on oil country tubular goods 6/8 bit.ly/3A9tuR8
We must address the root cause of China's massive, trade distorting surpluses, which have cost the US more than 3.7 million good jobs. 7/8 bit.ly/2RENisq
The most important cause of China's unfair trade is its undervalued currency. We need to realign the US dollar, lowering it's value by about 25% and restoring the competitiveness of US manufacturing firms & workers. Here's how bit.ly/3qKFtjI 8/8
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