US Report Casts China As Systemic Rival, Not Just Trade Challenge

(MENAFN- IANS) Washington, April 1 (IANS) 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.

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