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As reported by the Financial Times, the US is actively seeking to further edge China out of trade deals with other countries in an effort to continue isolating China.

Key highlights

The US is actively seeking to prevent the EU, the UK, and Japan from setting up separate trade deals with China in favor of imposing ‘economic isolation’ on the Asian country. The US wedged a provision in their recent NAFTA rework that forces Canada and Mexico to disclose any trade negotiations with “non-market economies”, allowing the US to use walking away from the new NAFTA as leverage for preventing its neighbors from completing trade deals with 3rd party countries that the US is unhappy about. The US is apparently set to try and pursue a similar measure in trade talks with other countries as well.

“Arthur Dong, a professor at Georgetown University’s McDonough School of Business, said the US push to constrain other countries in dealing with China marked a “very significant departure from the previous US trade posture” and “nothing less than an intended strategic reset of the global trade order”.” – The Financial Times