The U.S. Democratic Party urges Trump to reach a trade agreement that restricts Chinese production. - Reuters

The U.S. Democratic Party urges Trump to reach a trade agreement that restricts Chinese production. - Reuters

U.S. Democratic lawmakers have sent a letter to the Trump administration urging it to press China to curb its "structural overproduction" as part of ongoing trade negotiations. The letter, sent to Treasury Secretary Scott Bessent and other top trade officials, highlights concerns about China's economic model and its impact on U.S. industries and international markets.

The letter, signed by members of the House Select Committee on China, argues that any bilateral trade deal should include binding requirements for Beijing to reduce industrial overcapacity. It cites examples such as China's steel and solar panel industries, where massive expansions in supply have led to waves of exports that undercut jobs and industries in the U.S. and elsewhere.

The letter also suggests that the administration should capitalize on the angst caused by these exports among allies and partners, and work with them to construct an international response to China's overcapacity. This would require a more balanced approach to tariffs, according to the letter, which refers to the Trump administration's favored economic policy tool.

The Trump administration has struggled to turn a truce on triple-digit tariffs, extended for 90 days last month, into a lasting trade deal to address complaints ranging from fentanyl and the U.S. trade deficit to TikTok's ownership. The administration has imposed tariffs on close allies like South Korea and Japan, although some levies have subsequently been reduced in exchange for investment pledges or reciprocal tariff cuts.

The letter, repeating arguments made by the Biden administration, especially former Treasury Secretary Janet Yellen, is unlikely to move the Republican administration. However, it underlines the depth of concern about China in Washington, where bipartisan agreement is rare.