As US-China trade talks resume this week, the topics for discussion will include China’s demand for the creation of two-way “enforcement offices” in the US and China, with the threat of US unilateral tariffs as a backstop if all else fails.
It is surprising that a US administration that has staked so much on its muscular trade negotiating tactics might be satisfied with this, given China’s inconsistent record of compliance with its trade commitments.
Designing an enforcement mechanism has not been simple. The truth is that the Trump administration has no legal means to enforce China’s compliance with any deal. The US could refuse to lift the tariffs it has imposed, or it could levy more. But do tariffs adequately address China’s violations of intellectual property rights, cyber theft and forced technology transfer?
