A recent US trade report has underscored the significant challenges posed by China’s economic policies, contrasting sharply with its approach towards India. The report, issued by the Office of the United States Trade Representative (USTR), emphasizes China’s state-led model aimed at global dominance, going beyond traditional trade barriers to target key industries. Despite US exports to China reaching $106.3 billion in 2025, concerns persist over China’s industrial policies favoring domestic firms and its strategies to replace foreign technology.
The report criticizes China’s extensive industrial plans that aim to boost Chinese companies’ dominance in various sectors, labeling these practices as “unreasonable” and detrimental to US commerce. It also raises red flags on forced technology transfer, intellectual property protection issues, and cyber intrusions faced by US companies operating in China. Furthermore, the report highlights China’s incomplete implementation of commitments made under the Phase One trade deal, citing gaps in agriculture, market access, and intellectual property protection.
China’s regulatory tools, including stringent import controls through food safety rules and certification procedures, have been flagged as trade disruptors by the USTR. The report mentions Washington’s response to these challenges, including tariffs and investigations, particularly targeting China’s semiconductor sector. Concerns are also raised about China’s influence in shipbuilding, logistics, and setting technical standards globally to its advantage. The report’s tone signifies a shift in US policy, viewing China not just as a trading partner but as a significant economic rival, closely linked to national security interests.
