INTERNAL USE ONLY

Virtual Dialogue
Biden Administration:
Priorities and Outlook for Asia Pacific
25 February 2021

Presented by: Moderated by:

Candi Wolff Catherine Simmons
Head, Global Government Affairs Head, Government Affairs, Asia Pacific
Citi Citi

INTERNAL USE ONLY

Narrow Congressional Margins Will Limit Legislative Ambitions
Narrow majorities in Congress + unified government = balancing act

U.S. House U.S. Senate

Pre-election: 232D – 197R Pre-election: 47D – 53R

Post-election: 221D – 211R Post-election: 50D – 50R

(NY-22 to be called, LA-2 & LA-5 open)

Expect Executive Orders and Regulations to be primary policy vehicles

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Biden Administration 100 Day Priorities

• 1.9 T COVID relief/vaccine distribution

• Executive orders targeting/reversing Trump policies

• Nominations to key regulatory agencies and cabinet

• Build Back Better Recovery plan (infrastructure)

• Immigration reform

• Tax reform (included in recovery plan)

• Police/criminal justice reform

• Tech, Media, & Telecom scrutiny

• Reengagement with allies and international orgs

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Budget Reconciliation: Passage of Tax & Spending Proposals with 51 Senate Votes

Reconciliation is an optional, expedited process “Byrd Rule” Limits Provisions Included In Bill:
Reconciliation instructions call for specified changes in
spending, revenues, deficits, and/or the debt limit Do not produce Produce changes Are outside the
a change in in outlays or jurisdiction of the
Reconciliation bills over the years outlays or revenue which are
merely incidental
committee that
revenues submitted the title or
• Tax Cuts and Jobs Act (2017) – tax reform provision
• Affordable Care Act (2010) – health care reform
• Tax Increase Prevention and Reconciliation Act (2006) – Increase outlays or Increase net outlays Contain
extension of capital gains rate, extenders decrease revenue if the or decrease changes to
• EGTRRA (2001) – “Bush tax cuts” provision’s title, as a revenue during a Social
whole, fails to achieve fiscal year after Security
Steps for reconciliation the committee’s those covered by
reconciliation the bill
instructions
Relevant House & Senate
House & Senate
committees approve same
approve same
report reconciliation Waiving the Byrd Rule for these items requires 60
budget resolution
legislation legislation, Senate votes
with reconciliation
meeting President must
instructions
instructions sign Byrd Rule dynamics in recent legislation include:

• During the ACA repeal debate, non-revenue aspects like

Revenue/Spending directives
May instruct a committee
to report legislation
increasing revenues by a
specific amount, and that
would be a minimum
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May instruct a committee to
OR report language increasing
direct spending by a
certain amount, which would
be a maximum
eliminating essential health benefits and permitting insurers to
sell policies across state lines were found to violate the rule
• During the TCJA, the budget impact of expanding 529
accounts to home-school expenses was found to be incidental
to the non-budgetary policy around education
Climate Policies/Regulations Are a Priority

• Rejoined Paris Agreement

• Position Auto Industry to win Clean Energy/Tech Innovation Race
• Carbon-Free Power Sector by 2035
• Large investments in Public and Private energy efficient buildings and homes,
transportation, agriculture
• Promote Sustainable Agriculture and Land/Water Conservation
• Board disclosure on Climate Risk scenarios, fossil fuel exposure
• Eliminate Oil and Gas subsidies
• Ban drilling on public lands
• Aggressive methane limits on new and existing projects

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U.S. vs. China: Strategic Competition Will Continue
• U.S. – China conflict is the most important geopolitical issue that the Biden Administration needs to
address
• Economic and National Security are now one and the same – need to view economic relationship
not through a commercial lens but rather a security one
• Review by Biden team
• Economic statecraft tool kit is expected to continue; but be more systematic and institutional in
approach:
o BIS Entity list designations (focus on technology)
o Human Rights sanctions (Uyghurs, Hong Kong protestors)
o Investment restrictions/Delisting of companies that are “politically toxic”
o Supply Chain Security (restrictions on medical supplies, ICT goods)
o Telecommunications
• Strong bipartisan support in Congress to challenge China
• Human rights issues will take on additional significance

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 Q&A

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