House Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI) has introduced legislation to combat China’s unfair trade policies.
U.S. concern with the issue is bipartisan.
In May, the Biden White House directed his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses. It was noted that “China’s unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports.”
The Restoring Trade Fairness Act could revoke China’s Permanent Normal Trade Relations (PNTR). In 2000, as China prepared to enter the World Tade Organization, President Clinton signed legislation extending PNTR status to Beijing. It was hoped that the Chinese Communist Party would liberalize and adopt fair trading practices. Achieving PNTR status meant that the Chinese state-run economy received preferential tariff treatment under U.S. law, opening the door for the mass influx of products made there. This gamble failed. In the two decades since, the United States manufacturing industry has been depleted, American firms have had their intellectual property pillaged by CCP economic coercion, and the Chinese Communist Party grew into America’s foremost economic (as well as military) adversary.
Senators Tom Cotton (R-AR), Marco Rubio (R-FL), and Josh Hawley (R-MO) introduced companion legislation.
Following the bill’s introduction, Chairman Moolenaar said, “… I have introduced the Restoring Trade Fairness Act to stop the Chinese Communist Party from taking advantage of America and to level the playing field for American workers and our allies. Having permanent normal trade relations with China has failed our country, eroded our manufacturing base, and sent jobs to our foremost adversary. At the same time, the CCP has taken advantage of our markets and betrayed the hopes of freedom and fair competition that were expected when its authoritarian regime was granted permanent normal trade relations more than 20 years ago.
“Last year, our bipartisan Select Committee overwhelmingly agreed that the United States must reset its economic relationship with China. Today, building on tariffs from the Trump and Biden Administrations, the Restoring Trade Fairness Act will strip China of its permanent normal trade relations with the U.S., protect our national security, support supply chain resilience, and return manufacturing jobs to the U.S. and our allies. This policy levels the playing field and helps the American people win this strategic competition with the CCP. China’s Permanent Normal Trade Relations status has enriched the Chinese Communist Party while costing the United States millions of jobs. This comprehensive repeal of China’s PNTR status and reform of the U.S.-China trade relationship will protect American workers, enhance our national security, and end the Chinese Communists’ leverage over our economy,” said Senator Cotton.
Craig Singleton, a senior China fellow at the Foundation for Defense of Democracies, is optimistic that the second Trump Administration will continue the toughness on China’s trade policies that marked its first term in the Whiter House.
“Donald Trump’s first term signaled a historic shift in U.S. policy toward China. His strategic blend of economic pressure, unpredictability, sanctions and tariffs knocked Beijing off balance. It was a turning point: Washington moved from passive acceptance of China’s revisionist ambitions to assertive opposition. The Biden administration has wisely maintained and in some cases expanded on this framework. Mr. Trump’s second term could help America to win this strategic contest altogether. China faces an array of challenges, especially a stagnating economy, making it vulnerable to the president-elect’s assertive tactics. If Mr. Trump can couple the blustery style of his first term with a more focused strategy and tighter discipline, the next four years are a golden opportunity to keep Beijing on the defensive and permanently transform the rivalry in America’s favor.”
Photo: China’s Xiamen City (Pixabay)