The Biden government is targeting Beijing's widespread use of industrial subsidies that give its companies an advantage over foreign rivals, an attempt that could lead to new sanctions on Chinese imports and further strain US-China relations.
Government officials are considering opening an investigation into Chinese subsidies under Section 301 of the US Trade Law, which, according to people familiar with their plans, could lead to new tariffs. The White House would also like to join forces with the European Union, Japan and other allies in Asia and gather support within the World Trade Organization for accepting Chinese subsidies.