The federal China Commission released a massive annual report to Congress on Tuesday, urging lawmakers to repeal China's preferential trade status and eliminate a provision that allows goods valued at $800 or less to be imported into the United States duty-free. Recommended for the first time.
U.S.-China Economic Security Review Commission, Established by Congress as a bipartisan body to research and make policy recommendations regarding China, the commission is currently advocating directly to Congress to end the Permanent Normal Trade Relations (PNTR) that China has enjoyed since 2004. There is.
The committee submitted 83 policy recommendations to lawmakers on Tuesday, along with a report on China's military capabilities, threats to U.S. allies in the region, and how China uses U.S. policies for its own development. We plan to make a proposal.
“For decades, we have been working hard to address China's increasingly ambitious efforts to circumvent the law and take advantage of trade loopholes,” said Robin Cleveland, chair of the commission. “We have been engaged in a whack-a-mole policy in the midst of this.”
“During this year's hearings on threats to U.S. consumers, we heard clear clarity from government and expert witnesses: U.S. officials say the vast majority of packages arriving from China have been coated with harmful chemicals. We don't know if they contain baby toys, i.e. counterfeit products, clothing made with slave labor, or pinhead amounts of fentanyl, enough to kill the average citizen. ”
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The China Security Council released its massive annual report to Congress on Tuesday, recommending for the first time that lawmakers end China's preferential trade status. (Costfoto/NurPhoto via Getty Images)
“The government has existing powers to stop this flood of problematic products, but we strongly recommend legislative action to strengthen safety and legal protections for consumers and manufacturers.”
The committee also recognizes the urgent need for AI advancement in the United States and urges Congress to acquire artificial general intelligence (AG) capabilities, defined as “systems that exceed the sharpest human intelligence.” He called for the creation and funding of a “Manhattan Project-like program.” In every job. ”
The prospect of repealing the PNTR, which allowed low-cost Chinese goods to flood the U.S. market throughout the 2000s by giving the Chinese Communist Party equal trade benefits with U.S. allies, comes as Republicans control the House and Senate. It is becoming more and more likely that
Repealing this would give the president the power to assess and consider whether additional tariffs are necessary. President-elect Donald Trump has vowed to significantly increase tariffs on Chinese products.
The report found that an increasing number of Chinese products are taking advantage of the customs law's “marginal” exemption to avoid regulatory inspections and tariffs by importing shipments valued at less than $800.
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Eliminating “de minimis measures” for e-commerce shipments would require Customs and Border Protection to institute much stronger oversight of petty dollar shipments, prompting Congress to request more resources It turns out. But reports say these shipments are often used to sneak fentanyl into the United States.
This year, the U.S. will import about $4 million a day of Chinese goods shipped under the “de minimis” policy, up from $3 million last year.
US President Joe Biden walks and shakes hands with Chinese President Xi Jinping at the Filoli residence on the sidelines of the APEC summit. (Reuters/Kevin Lamarque//File Photo)
Congress should also consider legislation that would eliminate federal tax spending on investments in Chinese companies on the Commerce Department's trade blacklist, known as the Entity List, the report said.
Such a bill could eliminate preferential capital gains tax rates, interest carryover loopholes, or capital loss carryforward provisions for companies believed to be contrary to U.S. interests or suspected of stealing intellectual property. There is sex.
The report also calls for the United States to deny China access to critical dual-use goods and technologies and ban imports of certain technologies controlled by Chinese companies, such as autonomous humanoid robots and energy infrastructure products. It recommended that export controls be strengthened.
The report calls on Congress to direct the administration to create an Office of Foreign Investment to monitor dollars going to countries of concern and to amend the law to give the Consumer Product Safety Commission mandatory recall authority for Chinese products. Ta.
CBP said the estimated street value of the meth seized was in the millions of dollars. (U.S. Customs and Border Protection)
The report said that throughout the year, China has increased its attempts to crack down on dissent and “sanction proof” its economy in preparation for a possible future military or economic war with the West. It has carried out violent attacks against Filipino personnel operating within its exclusive territory, attempted to influence Taiwan's democratic elections, and entered Taiwan's airspace more than 2,300 times.
Japan conducted its first intercontinental ballistic missile test launch into the South Pacific in more than 40 years.
President Trump has begun filling his cabinet with China hawks. During this year's election campaign, Trump proposed imposing 10% tariffs on all U.S. imports and 60% tariffs on products made in China.
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Zhu Baoliang, former chief economist at China's Economic Planning Bureau, said at a Citigroup conference that if President Trump succeeds in raising tariffs to 60%, China's exports will decline by $200 billion, reducing its gross domestic product (GDP). He said there was a possibility of a decline of 1 percentage point.
Last year, China exported about $500 billion worth of goods to the United States, or about 15% of its total exports.
