Summary: Democratic members of the House China committee urged the administration to craft a trade deal that imposes binding limits on China’s structural overproduction, as Treasury Secretary Scott Bessent and USTR Jamieson Greer meet Chinese officials in Madrid.
What happened
A letter obtained by Reuters says the U.S. should work with allies on a coordinated response and balance tariffs with measures that strike at subsidized capacity in sectors like steel and solar.
Why it matters
- Policy continuity: The push echoes earlier calls under Biden and signals rare bipartisan convergence on China industrial policy.
- Real‑economy stakes: Overcapacity shapes global prices, factory closures, and the pace of clean‑energy deployment.
Key facts
- Talks: Madrid meetings this week; 90‑day tariff truce in effect.
- Ask: binding requirements to reduce subsidized capacity.
- Allies: call for a broader coalition approach.
What to watch
Any joint statement from Madrid; linkage to U.S. tariff calibration; EU/Japan alignment on capacity disciplines.