US lawmakers mull State Department shake-up as trade partners seek new alliances
Major economies are beginning to work around the United States as Washington breaks away from the global trading rules that it established, witnesses told lawmakers on Wednesday, in a hearing called to assess how to restructure the US government to align economic and foreign policy goals.
Witnesses and lawmakers in the hearing organised by the House East Asia and Pacific subcommittee – chaired by Young Kim, a California Republican – generally agreed that a policy of closer economic engagement with trading partners was necessary, particularly to counter
China's growing influence, but needed closer coordination between numerous US government agencies.
00:45
Trump says he can see himself dealing directly with Xi on US-China trade deal details
Trump says he can see himself dealing directly with Xi on US-China trade deal details
Kim said her committee aimed to craft legislation to address concerns expressed by US President Donald Trump and some of his predecessors that 'economic security, economic policy is foreign policy'.
She argued that 'the current alignment of functions and agencies charged with leading our economic statecraft effort is in need of structural reform'.
Against the backdrop of Trump's bewildering series of tariff impositions, rescissions, and threats, witnesses including Wendy Cutler – a former US trade negotiator and now vice-president at the Asia Society Policy Institute – warned that
economic partnerships that would have been 'impossible just years ago' are moving ahead.
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