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Bill introduced in Congress could end normal trade relations with China

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Normal trade relations with China could end if a bill filed Thursday by Rep. John Moolenaar (R-Mich.) is passed by Congress. 

“Having permanent normal trade relations with China has failed our country, eroded our manufacturing base, and sent jobs to our foremost adversary,” Moolenaar said in a House Select Committee on China (HSCC) news release. “At the same time, the CCP [Chinese Communist Party] has taken advantage of our markets and betrayed the hopes of freedom and fair competition that were expected when its authoritarian regime was granted permanent normal trade relations more than 20 years ago.”

Moolenaar, chair of the HSCC, says in the release that the CCP has cost the U.S. millions of jobs. 

The Restoring Trade Fairness Act codifies a series of tariffs on China and creates a new tariff column, the release says. The new column would create a minimum 35% ad valorem tariff for non-strategic goods and a minimum 100% ad valorem tariff for all strategic goods. 

New tariff rates will be phased in over five years, with 10% of the tariff increase implemented in year one. 

Yahoo News reports it is unlikely that Congress will pass the bill in the lame-duck session but it will likely factor into the trade discussion next year. 

Lawmakers from both parties have called out unfair trade practices from China, an article from The Hill says. President Biden maintained tariffs on Chinese goods first introduced by Trump. 

A 100% tariff rate on Chinese electric vehicles (EVs), first announced by Biden in May, went into effect in September. 

A 25% tariff was also put on EV batteries, critical minerals, steel, aluminum, and ship-to-shore cranes among other items, according to documents filed by the U.S. Trade Representative

According to The Hill, Trump also has proposed a 60% tariff on all Chinese goods. 

A companion bill was introduced earlier by Sens. Josh Hawley (R-Mo.) and Marco Rubio (R-Fla.). Rubio was recently announced as Trump’s nominee for secretary of state. 

In September, Moolenaar and ranking HSCC member Raja Krishnamoorthi (D-Ill.), sent a bipartisan, bicameral letter to leaders of AutoZone, O’Reilly Auto Parts, Genuine Parts Co., Advance Auto Parts, First Brands Group, and Factory Motor Parts to raise concerns about alleged evasion of tariffs.

The Congressmen allege that the companies are purchasing products from Qingdao Sunsong — a company based in the People’s Republic of China (PRC) and owner of a U.S.-based subsidiary under federal investigation

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Feature photo courtesy of narvikk/iStock

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