Senior Trump administration officials told the Wall Street Journal this week they are looking to bring new trade pressure to bear on China as President Donald Trump prepares to leave office.
One of the ideas under consideration is creating what the WSJ called “an informal alliance of Western nations,” to take joint action against China when it engages in unfair trade practices. The plan was developed after China erected new trade barriers for Australian exports after Australia's Prime Minister called for an inquiry into the origins of COVID-19 earlier this year, WSJ reported.
Under the plan described by administration officials, when China creates trade barriers like those deployed against Australia, other allied nations would purchase the affected goods or provide compensation to the affected partner. Another option would see the group of nations jointly impose tariffs on China in retaliation, WSJ said.
The officials said even if the plan to create the new alliance is successful, it would depend on the incoming Biden administration to implement it.