Bipartisan US Bill Targets China's Trade Privileges in Major Policy Shift

A new bipartisan bill seeks to revoke China's Permanent Normal Trade Relations status, marking a major policy shift. The legislation aims to address criticisms of China's trade practices and impose economic costs, with tariffs on Chinese goods to support US farmers and military purchases.

A bipartisan coalition of US House lawmakers has put forth legislation designed to rescind China's Permanent Normal Trade Relations (PNTR) status, The Hill reports. This bill, presented on Thursday, builds upon prior Republican efforts to challenge China's preferential trade arrangement and highlights persistent concerns regarding Beijing's trade conduct.

The bill, aimed at addressing critiques of China's trade methods, seeks to levy greater economic costs on China. It proposes a fundamental change in US trade policy, concentrating on China's manufacturing approaches which many argue have negatively impacted American jobs and industries. This legislative move aligns with broader US efforts—under both Trump and Biden administrations—to heighten tariffs on Chinese imports, and is consistent with past initiatives intended to hold China accountable for perceived unfair trade practices.

Rep. John Moolenaar (R-Mich.), a chief advocate for the bill, claims that China's PNTR status has long harmed US manufacturing, sent jobs abroad, and allowed market exploitation. "Permanent normal trade relations with China have consistently undermined our manufacturing base, transferred American jobs overseas, and let the Chinese Communist Party exploit our markets," Moolenaar stated. He underlined that the legislation would enhance US national security, bolster supply chain resilience, and reinstate jobs for the US and its allies, according to The Hill.

Collaborating with Rep. Tom Suozzi (D-N.Y.), Moolenaar introduced the bill, complemented by a Senate version from Sens. Tom Cotton (R-Ark) and Jim Banks (R-Ind). The Restoring Trade Fairness Act, initially co-sponsored in November by former Secretary of State Marco Rubio, proposes ending China's PNTR status and instating a novel tariff framework. Non-strategic Chinese goods would incur a 35 percent tariff, while strategic items face 100 percent, aligning with the Biden administration's Advanced Technology Product List and China's Made in China 2025 strategy.

Tariff-generated revenue would be allocated to US farmers and manufacturers and fund military hardware in the Indo-Pacific, phased over five years. This bill surfaces amid former President Donald Trump's proposal for a sweeping 60 percent tariff on Chinese imports and additional levies to combat fentanyl trafficking. Trump mentioned potential tariffs on Russia and nations backing its Ukraine conflicts, possibly implicating China, per ANNI.

(With inputs from agencies.)