SIMIC

The previous Trump administration raised tensions with China, leading many to hope the incoming Biden administration would be different.

Mr Biden's pick for Treasury Secretary Janet Yellen and Secretary of State nominee Antony Blinken have differing opinions, most notably the incoming administration's commitment to working with US allies and investments to make US firms and workers more competitive against Beijing.

Ms Yellen declared China as the US' most important strategic competitor while accusing China of undercutting American companies through illegal subsidies, dumping products at below-market prices, stealing intellectual property, and erecting barriers to US exports.

"We need to take on China's abusive unfair and illegal practices. We're prepared to use the full array of tools," said Ms Yellen.

Mr Blinken declared his approval of former President Trump's tougher approach on China but disagreed with how the previous administration went about it.

"President Trump was right in taking a tougher approach to China. I disagree very much with the way he went about it in a number of areas," said Mr Blinken.

Ms Yellen declared the importance of working with allies to combat the challenge posed by China, while Democrats have complained about the exodus of jobs and manufacturing to China over the last several years.

Ms Yellen also stated to senators that global digital tax negotiations under the auspices of the Organisation for Economic Cooperation and Development are important for the country to levy taxes on corporations that have moved their headquarters overseas.

Mr Biden, a Democrat, has pledged to defend American workers and manufacturing under his slogan "Build Back Better", with a new stimulus plan in the works that includes huge infrastructure investments.