Biden administration officials are skirmishing over a trade pact that aims to set rules for digital trade in the Asia-Pacific region, but would exclude China
WASHINGTON—A skirmish between national security and trade officials in the Biden administration is hindering efforts to forge a digital-services pact with Asian countries, according to people involved in the talks.
National Security Council and State Department officials want to set rules for digital trade in Asia, which could include cross-border flows of information, digital privacy and standards for the use of artificial intelligence in Asia, the people said. The proposed pact would be open to U.S. allies in the Asia-Pacific region. It would exclude China, similar to the approach the administration has taken on issues such as export controls on advanced technology. The U.S. has tried to put together alliances that would set standards in Asia, as a way of limiting Chinese influence.
U.S. Trade Representative Katherine Tai has urged an approach that recognizes potential opposition from Congressional Democrats and labor allies, said people familiar with their thinking. She is concerned about setting priorities in trade policy and maintaining what she callsA digital pact could be seen as a boon for internet giants such as Amazon.com Inc. and Alphabet Inc.’s Google, which benefit from the unimpeded flow of data across borders. Ms.
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