Biden’s ‘Buy America’ policy affects US trade ties, Beijing hints at the possibility of new Cold War
On Monday, US president Joe Biden signed a new executive order to focus on enhancing the US manufacturing and industrial sector. The Democratic president signed the executive order to promote the country’s long-standing ‘buy America’ policy. Biden used it to eliminate legal loopholes that limit the federal agencies in providing a favorable push to “Made in America” products. Biden’s order stands in line with his predecessor Donald Trump’s ‘America first’ policy.
While emphasizing about the existing ‘Buy American Act of 1933’, Biden said that the new order would make federal agencies to prioritize buying goods produced on US soil, but “these preferences have not always been implemented consistently or effectively”.
An official from the Biden administration said, “The dollars the federal government spends… are a powerful tool to support American workers and manufacturers. Contracting alone accounts for nearly $600 billion in federal spending.”
“I don’t buy for one second that the vitality of American manufacturing is a thing of the past,” Biden told reporters before signing the order. “American manufacturing was the arsenal of democracy in World War II and it must be part of the engine of American prosperity now.” But Biden’s vision for American domestic industry sparked conflict with one of its biggest trade rival, China.
Chinese Premier Xi Jinping called out against Biden’s protectionist policies and warned against the emergence of a new ‘cold war’, if the trend continues. Speaking at the World Economic Forum event, Xi said that nations should adopt a multilateral approach to combat the ongoing economic crisis caused by the Covid-19 pandemic, instead of promoting reverse globalization, and favoring “decoupling and seclusion”.
Though Xi avoided directly mentioning US or Biden’s executive order his words made it clear that his nation would not adhere to the dictates of the new administration in Washington. “To build small circles or start a new cold war, to reject, threaten or intimidate others, to wilfully impose decoupling, supply disruption or sanctions, and to create isolation or estrangement will only push the world into division and even confrontation” Xi said.
Xi added, “No global problem can be solved by any one country alone. There must be global action, global response, and global cooperation.” Besides, the Chinese President proposed the creation of an open world economy, which would “uphold the multilateral trading regime, discard discriminatory and exclusionary standards, rules and systems, and takedown barriers to trade, investment, and technological exchanges.”
The Chinese leader also condemned the bully behavior employed by one nation to take advantage of others, hinting at US formidable purchasing power. He said, “State-to-state relations should be coordinated and regulated through proper institutions and rules. The strong should not bully the weak. Decisions should not be made by simply showing off strong muscles or waving a big fist”.