Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
FIRST ON FOX: The movement to eliminate the advantages of free trade china enjoy in the US it is gaining strength under Republican control of the government.
GOP leaders at House and Senate are once again introducing legislation that would end China’s most-favored-nation status by repealing the Permanent Normal Trade Relations (PNTR).
Sen. Tom Cotton, R-Ark., reintroduced the Trade Fairness Restoration Act in the Senate, with Sen. Jim Banks, R-Ind., as co-sponsor. The bill has bipartisan support in the House: Rep. John Moolenaar, R-Moch., chairman of the China Competition Committee, introduced it along with Rep. Tom Suozzi, DN.Y.
The measure would create a minimum tariff of 35% on non-strategic goods and a 100% tariff on strategic goods, which would be phased in over five years.
SENATE REPUBLICANS LAUNCHE EFFORT TO BAR CHINESE NATIONALS FROM BUYING US LAND
The “de minimis treatment” would end for china, or the value threshold below which imports are not subject to customs duties. The revenue generated, according to the bill, would go to farmers and manufacturers hurt by possible Chinese retaliation and the purchase of key munitions important to a potential Pacific conflict.
The movement to eliminate the free trade benefits China enjoys in the US is gaining momentum under Republican control of the government.
The bill follows a recent Trump executive order directing the Commerce Secretary and the US Trade Representative to evaluate proposals regarding PNTR.
Congress voted in favor of China’s PNTR in 2000 under a directive from then-President bill clintonwhich also allowed it to join the World Trade Organization (WTO).
The designation fundamentally changed trade relations between China and the US. American consumers gained access to low-priced Chinese imports, and between 2001 and 2021, the value of goods imported from China quadrupled to $500 billion.
The US share of global manufacturing output fell from 25% in 1997 to 17% in 2019.
PNTR nations enjoy an average tariff rate of around 3%. Additional tariffs on Chinese goods by sector that were initiated under the first Trump administration pushed this number higher for the CCP.
TRUMP, CHINA’S XI TALK BY PHONE AHEAD OF INAUGURATION
Critics of PNTR say it allowed companies to outsource their manufacturing to China and that renewed tensions with Beijing could lead to supply chain problems.
Former President Bill Clinton, left, speaks with Chinese President Xi Jinping in 2001. (Photo by Jason Lee-Pool/Getty Images)
Proponents of the PNTR say removing that status would cause inflation, allowing more tariffs on billions worth of Chinese goods.
“For too long, permanent business-as-usual trade relations with China have undermined our manufacturing base, displaced American jobs overseas, and allowed the CCP to exploit our markets while betraying the promise of a fair competition,” Moolenaar said in a statement.
“China’s permanent normal trade relationship status has enriched the Chinese Communist Party while costing millions of American jobs,” Cotton said. “This comprehensive repeal of China’s PNTR status and reform of the U.S.-China trade relationship will protect American workers, improve our national security, and end Chinese Communist influence over our economy “.
On the campaign trail, president donald trump suggested tariffs of up to 60% on Chinese goods. However, after taking office this week, he said he intended to start with a 10% tariff on Chinese goods on February 1.
Ending China’s most-favored-nation status was a pipe dream under the previous administration, when Democrats controlled the Senate and the White House.
However, with Republican control of the executive branch and both houses of Congress, the legislation has gained momentum.
House Republicans who spoke to Fox News Digital said they want the legislation to pass this Congress.
“China needs to be isolated,” said Rep. Derrick Van Orden, R-Wis. (AP Photo/By Han Guan)
“China needs to be isolated,” said Rep. Derrick Van Orden, R-Wis. “This requires tariffs. It requires tariffs without any permanent normal trade relationship. They should never have been allowed into the WTO — the Democrats gave them favored nation status.”
“This started the downward spiral of our military industrial complex crashing into the ground,” he continued. “We can’t produce enough weapons right now because all the manufacturing, it’s not just that we’re not buying bombs from China, but there are components that have to go into all of that. weapons systems that left the country. This is a national security issue.”
“There is no doubt in my mind that I would like to see an end to business as usual,” said freshman Rep. Pat Harrigan, RNC. “China is not our friend. They are our adversary. I would even say they are our enemy.”
“I would never have voted for a permanent trade authority for China or for Russia,” said Rep. Darrell Issa, R-Calif.
CLICK HERE TO GET THE FOX NEWS APP
“You have to meet certain requirements to be the most favored nation,” he continued. “Previous presidents made the mistake of saying we should give them status because they’re going to stop doing the wrong thing. No, they have to do the right thing. And then we’re happy to let them back in.”
