Daily Memo: Brussels’ Next Trade Target

Trade matters. The European Union is set to unveil a new trade strategy next week expected to place a much bigger emphasis on holding China to its international obligations. According to a leaked draft of the paper, it will focus in part on aligning with the U.S. on reform of key international institutions that have proved ill-suited for managing China’s rise, particularly the embattled World Trade Organization. Meanwhile, the Biden administration on Thursday refrained from introducing a new tariff rotation in its dispute with the EU over airplane subsidies, which Europe sees as a gesture of Washington’s willingness to bring the nearly two-decade dispute to a close. Fighting China at home. The Biden administration is calling for a major new domestic infrastructure drive as a means of competing with China. It’s also mulling new targeted restrictions on tech exports to China. Confronting China directly will still be part of the U.S. approach to the rivalry, but perhaps the biggest emphasis for the U.S. going forward will be on addressing vulnerabilities and lagging capabilities at home. Naval exercises. The Aman 2021 naval drills, hosted by Pakistan, began on Friday. Ten countries, including the United States, Russia, China, the United Kingdom, Japan […]