U.S., EU Trade and Technology Commission: chip supply, China trade

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U.S. Trade Representative Catherine Day (from left), U.S. Secretary of Commerce Gina Raimundo, U.S. Secretary of State Anthony Brinken, EU Trade Commissioner Valdis Dobrowskis, and European Commission Commissioner for Competition Marg Lit Vestag.

Bloomberg | Bloomberg | Getty Images

London-The United States and the European Union have agreed to “rebalance” the global supply chain in semiconductors. This may be the first of many trade and technology-focused conferences.

The US-Europe Trade and Technology Committee, TTC for short, came into being. Joe BidenAs the executive body of the European Union, the European Commission hopes to overcome transatlantic disputes in these areas and therefore won the presidential election. The Trump administration imposed tariffs on the EU, and the EU has been eager to find a solution with the new president.

Pittsburgh hosted the organization’s first gathering on Wednesday. After Australia decided to cancel the submarine agreement with France, preparations for the meeting were put on hold and instead chose the American agreement that angered France.

According to reports, France’s anger weakened the statement made by the two sides at the end of the meeting on Wednesday night.

Cecilia Bonefeld-Dahl, Director General of DigitalEurope, who represents technology companies and trade associations, told CNBC that she wants the United States and the European Union to separate geopolitical and industrial issues.

“It is also in America’s interest to have a strong digital Europe,” she said by phone.

What was agreed?

At present, both parties agree to “find out the gaps in the semiconductor value chain and strengthen our domestic semiconductor ecosystem.”

The group added in a joint statement that it is committed to “building a partnership in the rebalancing of the global semiconductor supply chain.”

Affected by the epidemic, the area has suffered major damage Coronavirus pandemicIn the past few months, chip demand has exceeded supply, which has affected the production of many products, including automobiles, televisions and many other electrical appliances.

Given that the EU currently relies heavily on international supply chains, this is a worrying issue.

Therefore, the committee is formulating a new policy Promote chip production And reduce dependence on the rest of the world.

In addition, although the final statement did not mention China, some of the promises are definitely aimed at Beijing.

The United States and the European Union stated: “We intend to work closely together to resolve non-market and trade-distorting policies and practices, and improve the effectiveness of their respective domestic measures.”

Officials have repeatedly criticized Beijing for not giving foreign companies the same level as Chinese companies overseas.

“I am very pleased with today’s exchange and joint statement with our transatlantic partners,” European competition leader Margrethe Vestager said on Twitter after the meeting.

U.S. Trade Representative Katherine Tai also stated that she was “energetic” for the meeting and looked forward to “strengthening our technology and trade partnership with the EU”.

What about trade tariffs?

However, no breakthrough has been made in tariffs.

The United States and the European Union agreed early in the summer to reach a compromise on steel and aluminum tariffs imposed by the end of November during Trump’s presidency.

Earlier this week, EU Trade Director Valdis Dombrovskis told Bloomberg that “time is running out”.

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