U.S. President Joe Biden's nominee for trade representative Katherine Tai says China is both a rival and a partner with whom the U.S. needs to cooperate in order to address global challenges, according to Bloomberg's report.

Tai said she knows the "opportunities and limitations in our existing toolbox" without mentioning specifics of how she would address tariffs and export bans in the text of remarks seen by Bloomberg ahead of her confirmation hearing Thursday before the Senate Finance Committee.

"We must recommit to working relentlessly with others to promote and defend our shared values of freedom, democracy, truth, and opportunity in a just society," Tai said in the prepared remarks.

Tai's nomination requires Senate approval. She is likely to face questions from senators on Biden's tariffs policy on China, trade with the EU, policy toward the WTO, as well as ban on American firms exporting to Chinese companies including tech giant Huawei.

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Tai is expected to play a major role in making and implementing Biden's trade policy. What to do with the phase one deal that the Trump administration struck with China in early 2020 and the remaining $350 billion in tariffs are trade challenges facing the Biden administration.

As a progressive Democrat, Tai's respected by members of both parties because of her ability to find common ground on thorny matters. Over the past four years, Tai has worked as the chief counsel for Democrats on the U.S. House Ways and Means Committee responsible for trade.

(With input from Bloomberg)