“Addressing these problems may warrant our having defensive motion to guard our corporations and staff — and the normal Instrument package of trade steps will not be sufficient,” Mr. Shambaugh included. “More Innovative techniques can be essential to mitigate the impacts of China’s overcapacity.”

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Biden administration officials claimed that they had labored carefully with the Mexican government on the evaluate, and which they were obvious with Chinese officials the two publicly and privately regarding their considerations about unfair Chinese trade techniques.

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“In today’s interconnected economic system, this kind of overcapacity might also result in the focus of provide chains in ways in which in the end reduce economic resilience,” Mr. Shambaugh mentioned in remarks in the Council on Foreign Relations.

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