First appearance on Fox: Efforts to eliminate the free trade benefits that China enjoys in the United States are gaining momentum under Republican administration.
Republican leaders in the House and Senate are reintroducing legislation that would end China's most-favored-nation status by abolishing Permanent Normal Trade Relations (PNTR).
Sen. Tom Cotton (R-Arkansas) reintroduced the Trade Fairness Restoration Act in the Senate with Sen. Jim Banks (R-Ind.) as a co-sponsor. The bill has bipartisan support in the House, where Rep. John Moolener (R-Mo.), chairman of the China Competition Commission, introduced the bill along with Rep. Tom Suozzi (D.Y.).
The measure imposes a minimum tariff of 35% on non-strategic goods and 100% on strategic goods, to be phased in over five years.
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It would end 'minimal treatment' For China, or an amount threshold below which imported goods will not be subject to duty. According to the bill, the revenue generated would be used to support farmers and manufacturers harmed by potential Chinese retaliation and to purchase critical military supplies critical to a potential Pacific conflict.
Efforts to eliminate the free trade benefits that China enjoys in the United States are gaining momentum under Republican administration.
The bill builds on a recent Trump executive order directing the Secretary of Commerce and the U.S. Trade Representative to evaluate proposals regarding the PNTR.
In 2000, under the direction of then-President Bill Clinton, Congress voted to grant China the PNTR, which also allowed it to join the World Trade Organization (WTO).
This designation fundamentally changed Sino-American trade relations. U.S. consumers now have access to lower-priced Chinese imports, and between 2001 and 2021, the value of Chinese imports quadrupled to $500 billion.
The US share of global manufacturing production fell from 25% in 1997 to 17% in 2019.
The average tariff rate for countries with PNTR is approximately 3%. The Chinese Communist Party's numbers rose further due to additional tariffs on sector-specific Chinese products that began under the first Trump administration.
President Trump and Chinese President Xi speak by phone before the inauguration ceremony
Critics of PNTR argue that it allows companies to outsource manufacturing to China and that new tensions with the Chinese government could lead to supply chain problems.
Former President Bill Clinton (left) talks with Chinese President Xi Jinping in 2001. (Photo by Jason Lee Poole/Getty Images)
Supporters of the PNTR argue that eliminating the status would cause inflation and allow for additional tariffs on billions worth of Chinese goods.
“For too long, a persistent normal trade relationship with China has weakened our nation's manufacturing base, moved American jobs overseas, and betrayed our promise of fair competition while continuing to trade with China,” Moolener said in a statement. We have allowed the Communist Party to exploit our market.”
“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 reforms to U.S.-China trade relations will protect American workers, strengthen our national security, and end the Chinese Communist Party's influence over our economy. .”
During his campaign, President Donald Trump threatened to impose tariffs of up to 60% on Chinese goods. However, this week after taking office, he announced his intention to impose a 10% tariff on Chinese goods starting February 1st.
Ending China's most-favored-nation status was a pipe dream under the previous administration, when Democrats controlled the Senate and the White House.
But the bill is gaining momentum now that Republicans control the executive branch and both chambers of Congress.
House Republicans speaking to Fox News Digital said they hope the bill passes this Congress.
“China needs to be isolated,” said Rep. Derrick Van Orden (R-Wis.). (AP Photo/Ng Hang-guan)
“China needs to be isolated,” said Rep. Derrick Van Orden (R-Wis.). “It comes with tariffs. If you don't have a permanent normal trade relationship, you get tariffs. They should never have been allowed to join the WTO. The Democrats gave them preferential national status.”
“That was the beginning of a downward spiral in which our military-industrial complex collapsed into the ground,” he continued. “We can't produce enough weapons right now, not only because we're not buying bombs from China, but because the parts that go into all these weapons systems are leaving the country. It's a security issue.
“There's no question that we want to end normal trade relations,” said freshman Rep. Pat Harrigan (R). “China is not our friend. They are our enemy. I would even say they are our enemy.”
“I would never have voted for permanent trade authorities for China or Russia,” said Rep. Darrell Issa (R-Calif.).
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“To receive most-favored-nation treatment, certain requirements must be met,” he continued. “Previous presidents made the mistake of saying we should give them the position because we're going to stop doing the wrong thing. No, they need to do the right thing. And we'll welcome them back.” I'm definitely happy to be able to do that.”
