A measure to remove China’s trade advantages is being pushed by US politicians
Washington, DC: A measure to revoke China’s Permanent Normal Trade Relations (PNTR) status has been presented by a bipartisan pair of US House legislators.
The Hill said that the proposal, which was submitted on Thursday, reflects continued worries about China’s economic policies and builds on previous Republican attempts to revoke Beijing’s privileged trade status.
In addition to imposing further economic expenses on China, the measure attempts to address complaints of China’s trade policy. It would significantly alter US trade policy, especially with regard to China’s manufacturing methods, which are seen to be harmful to American companies and workers.
The bill coincides with larger US initiatives to raise taxes on Chinese imports under the Trump and Biden administrations. Additionally, this action is consistent with earlier measures to hold China responsible for what many see to be unfair trade practices and a threat to fair competition.
One of the bill’s main supporters, Rep. John Moolenaar (R-Mich.), said that the PNTR status had hurt American industry for too long, forced jobs overseas, and enabled China to take advantage of US markets.
“For too long, permanent normal trade relations with China have undermined our manufacturing base, shifted American jobs abroad, and allowed the CCP to exploit our markets while betraying the promise of fair competition,” said Moolenaar. According to The Hill, he also emphasized that the law will strengthen supply chain resilience, safeguard US national security, and restore employment to the US and its allies.
Together with Rep. Tom Suozzi (D-N.Y.), Moolenaar submitted the measure, while Sens. Tom Cotton (R-Ark.) and Jim Banks (R-Ind.) filed a companion version in the Senate. When the measure was first submitted in November, former Florida senator and Secretary of State Marco Rubio was also a co-sponsor.
China’s PNTR designation would be terminated and a new tariff structure would be implemented under the Restoring Trade Fairness Act. The proposed measure would impose a 35 percent tax on non-strategic Chinese commodities and a 100 percent levy on key items. The suggested tariff list would be in line with China’s Made in China 2025 strategy and the Biden administration’s Advanced Technology Product List.
US businesses and farmers would get the levies’ proceeds, which would also be used to buy military hardware in the Indo-Pacific area. According to The Hill, the tariff rise would be implemented gradually over a period of five years.
The measure was introduced in response to President Donald Trump’s proposal to impose a 60 percent tax on all Chinese imports and extra duties on China for failing to take enough action to stop the trafficking of fentanyl. He has also hinted at possible penalties on China and other nations that back Russia’s intervention in Ukraine.
