America’s manufacturers, workers, and communities are fighting for survival, and China poses the single greatest threat. It’s not because China’s innovations are better, its products are better, or its workers work harder. That’s because many Chinese companies steal U.S. intellectual property, receive massive state subsidies, and often circumvent U.S. trade laws designed to counter this unfair advantage. We’ve heard these stories many times over the last year. solar panel industry.
On January 18, another incident in China in which the Department of Homeland Security broke rules came to a head. raid About Qingdao Sunsong, a China-based auto parts manufacturer with operations in Ohio.
August 2023, Republican Illinois Congressman Darin LaHood; House Select Committee on the Communist Party of China (Chinese Communist Party)accused Sunsong of “blatant efforts to avoid 301 tariffs” and urged the federal government to “do a better job of pushing back against Chinese companies like Sunsong and supporting small and medium-sized manufacturers.” ” he asked. The committee’s chairman, Rep. Mike Gallagher of LaHood and Wisconsin, announced: of open letter He called on Secretary of Homeland Security Alejandro Mayorkas to take action against Sunsung, declaring:[r]Qingdao Sunsong’s review of public information reveals instances of blatant trade fraud that are having devastating effects on American manufacturers. ”
The case against Sunsong is yet another example of a Chinese company evading tariffs. But the real impact of Soon-Sung’s actions, and the likely existence of hundreds of similar cases, is that American factories will be forced to close and high-wage, blue-collar jobs will be eliminated across the country. It is.
Decades of support from the Chinese Communist Party in the form of cheap loans, subsidies, and import protection have given these Chinese competitors an unbeatable advantage over hard-working American companies. Center for Strategic and International Studies (CSIS) report In 2019 alone, the Chinese Communist Party spent $248 billion on industrial subsidies, demonstrating the urgent need for a level playing field.
The US has the means to curb China’s economic invasion. Section 301 TariffsThe tariffs, also known as the “Trump tariffs,” apply a 25% tariff on many Chinese imports, including auto parts. At the time of their enactment, these tariffs were considered among the toughest measures ever taken to fend off China and protect U.S. industry. In Sunsong’s case, the trade fraud charges could have the following consequences: civil fine INot just tens of millions of dollars; Criminal penalty is up to 20 years in prison For the accomplices.
The lack of effective detection and enforcement of tariff fraud perpetuates an uneven playing field and erodes U.S. industry. The Special Committee issued its year-end report. report Advocate for policy changes and additional resources that strengthen the government’s ability to detect and enforce trade laws. Among its many recommendations: Leveling the Playing Field Act 2.0, Customs framework for the 21st centuryand increased resources to fund the work of the Department of Justice-led Trade Fraud Task Force.
The federal investigation into Mr. Soon-song is ongoing, and if the Chinese commission’s decision is correct, U.S. government authorities will hold him accountable. However, this situation raises unpleasant questions. Who is enabling his Sunsong business operations on American soil?
We must recognize the broader, unfortunate truth that some American companies are cozying up to companies that support the Chinese Communist Party and violate laws. In Sunsong’s microcosm, major U.S. companies o’reilly auto parts and autozone make up two Sunsong’s 5 largest customers in the world, If you check their website, you will see that they are still trading. As Americans, we must ask ourselves: Is it worth trading a better deal—one financed by the Chinese Communist Party—in exchange for doing business with a company under investigation for violating U.S. trade laws?
In these cases, it becomes clear that a company’s motives may be inconsistent with the objectives of U.S. trade law. It is important for large U.S. companies to adhere to standards that reflect the intended purpose of these laws, rather than pursuing short-term economic gain. Lawmakers should consider making U.S. companies jointly liable by extending liability to U.S. companies that purchase products from importers who evade tariffs. The issue of trade fraud goes beyond just following laws and ethics.It’s also about protecting our national interests. Continued exploitation by the Chinese Communist Party.
China will not miraculously stop these practices and start playing by the rules, so the United States must vigorously fight back against any unfair deals. The China Commission is doing important work. But this is a fight that requires more than just government action.
America’s largest companies not only abide by the law, they take pride in doing so, rigorously scrutinizing their supply chains to ensure they are free from sinister ties to the Chinese Communist Party. There is a need to. Our collective mindset must evolve. Conscientious choices are the foundation of our nation’s future. “The decline of American industry is not inevitable…it is a choice,” Gallagher said. Make the right choices for manufacturers, workers and communities.
Dan Harris is a founding member of Harris Slewowski, an international boutique law firm specializing in representing U.S. and European companies abroad and foreign companies in the United States. He is the author of the award-winning Chinese law blog (www.chinalawblog.com). Dan earned his bachelor’s degree from Grinnell College and his Juris Doctor degree, cum laude, from Indiana University School of Law.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.
