Stephen Roach questions Biden’s decision to keep Trump’s Chinese policy

Chief economist Stephen Roach said he was “really curious” that US President Joe Biden had left much of his predecessor’s China policy in place.

Roach, a senior Fellow at Yale University, said Biden retained the “first and second phase” “severely flawed” U.S.-China trade agreement and tariffs on China – but reversed many other policies adopted by former President Donald Trump.

“Why did you highlight the China-Trump policy as worth maintaining when you literally tried to wipe the slate off all other potential Trump policies you inherited? That’s an important question to answer,” Roach said CNBC on Thursday. Squawk Box Asia “.

During Trump’s tenure, the United States and China embarked on a trade war that threatened to derail the world economy after both sides imposed retaliatory duties on each other’s products. The first phase of the trade agreement paused the trade battle but did not withdraw these increased tariffs.

Rising tensions between the US and China

US-China relations started rocky under the Biden government.

Last month, the first high-level meeting between the two countries began with an exchange of insults, and the United States, along with some of its Western allies, cracked down on Chinese officials and organizations for violating human rights in the Xinjiang region.

Beijing retaliated against the United States and its allies with its own sanctions.

Roach, a former president of Morgan Stanley Asia, said he was “very concerned” about the rise in US-China rhetoric.

“The situation is getting worse and worse, and that doesn’t have to do that,” he said. “I think we need a more balanced approach on the part of the United States and China to get back to the common areas.”