Democratic congressmen are demanding that the Trump administration force China to reduce industrial overproduction during the talks in Madrid.
US Democrats are demanding that Trump take a tougher approach to China
US Democrats have urged the Donald Trump administration to increase pressure on China, demanding that Beijing reduce structural overproduction. They insist that any new trade deal must include binding commitments by the PRC to change its economic model, which is based on overproduction.
The letter with such a demand was received by US Treasury Secretary Scott Bessant, Trade Representative Jamieson Greer and Commerce Secretary Howard Latnick. The talks between the US delegation and Chinese Vice Premier He Lifen started on Sunday in Madrid.
Overproduction as a key issue
The document, signed by members of the House of Representatives, emphasizes that “China’s historic and destructive use of structural overproduction to stimulate growth has obvious consequences for American industry, jobs, and global stability.”
China produces far more goods than its domestic market can consume. This leads to massive export surges and price wars, particularly in the steel and solar industries. Democrats believe that these are the industries that are taking the biggest toll on U.S. jobs.
Trade War and Allies
The Trump administration has already extended a 90-day tariff “truce” with China several times, but there is still no fundamental agreement. The agenda covers a wide range of issues, from fentanyl and the U.S. trade deficit to ownership of TikTok.
Democrats urge the White House not only to put pressure on Beijing, but also to coordinate actions with partners who also suffer from Chinese dumping. In their opinion, it is a joint international response that can bring results.
At the same time, the letter criticizes Trump’s current tariff policy, as it often hits US allies such as Japan or South Korea. Congressmen demand a “more balanced” approach so that the use of tariffs is an effective tool against Beijing, and not against Washington’s partners.
