US lawmaker introduces trade reform to tackle China's economic influence

The chairman of the House Select Committee on the Chinese Communist Party, John Moolenaar (R-MI), has introduced the Restoring Trade Fairness Act, a landmark bill aimed at revoking China's Permanent Normal Trade Relations (PNTR) status with the United States.

The bill seeks to address what lawmakers and economic experts have described as China's unfair trade practices that have undermined American workers, industries, and national security.

The legislation, introduced Thursday, represents a bold step to recalibrate US-China trade relations, undoing a policy decision made more than two decades ago.

In 2000, Congress granted China PNTR status, a move that was intended to encourage the Chinese Communist Party (CCP) to liberalise its economy and adopt fairer trading practices as part of China's accession to the World Trade Organization (WTO).

 

However, critics argue that the policy has failed to produce the desired results, with China's state-controlled economy growing stronger while American manufacturing jobs have been outsourced, intellectual property stolen, and domestic industries weakened by unfair competition.

"Having permanent normal trade relations with China has failed our country, eroded our manufacturing base, and sent jobs to our foremost adversary," Chairman Moolenaar said in a statement.

"Today, I am introducing the Restoring Trade Fairness Act to stop the Chinese Communist Party from taking advantage of America and to level the playing field for American workers and our allies," he added.

The Restoring Trade Fairness Act aims to revoke China's PNTR status, ending preferential trade access that China has enjoyed for over 20 years. Key provisions include a significant increase in tariffs--35 per cent on non-strategic goods and 100 per cent on strategic items like semiconductors and rare earth elements. These tariffs would be phased in over five years.

The bill also eliminates de minimis treatment, meaning all Chinese imports, regardless of value, would face stricter customs inspections and higher tariffs. Revenue from these tariffs would be used to support US farmers, manufacturers, and military readiness, particularly in the Pacific region.

Additionally, the bill designates critical goods, such as semiconductors, as "strategic" and subjects them to the highest tariffs. Overall, the bill aims to reduce US reliance on China, protect American industries, and strengthen national security in response to China's growing economic power.

Moolenaar's bill reflects growing bipartisan frustration with China's trade practices, which have led to the outsourcing of American jobs and heightened concerns about US dependence on China for critical goods. The Trump and Biden administrations both imposed tariffs on Chinese imports in response to concerns over intellectual property theft, forced technology transfers, and market distortions.

Supporters of the Restoring Trade Fairness Act, including a growing number of Republican and Democratic lawmakers, argue that China's economic rise has come at the expense of American workers. "China's Permanent Normal Trade Relations status has enriched the Chinese Communist Party while costing the United States millions of jobs," said Senator Tom Cotton (R-AR), who has introduced companion legislation in the Senate. "This bill will protect American workers, enhance our national security, and end the Chinese Communists' leverage over our economy."

In addition to Moolenaar, Senators Tom Cotton (R-AR), Marco Rubio (R-FL), and Josh Hawley (R-MO) have introduced similar measures in the Senate earlier this year, reflecting a broad political consensus on the need to reevaluate the US-China economic relationship.

The bill has garnered strong backing from organisations concerned about US economic and national security. The Coalition for a Prosperous America, a group advocating for fair trade policies, has voiced support for the Restoring Trade Fairness Act, arguing that the US needs to shift away from excessive engagement with China in favor of restoring economic balance.

Oren Cass, founder and chief economist of American Compass, warned that continuing to engage with China in the hopes of democratic reform is misguided. "We need to focus on rebuilding American industrial capacity and stop the CCP from exploiting American markets," Cass said.

Nonetheless, the bill's sponsors remain undeterred, emphasizing the long-term benefits of ending China's preferential trade status. The effort to repeal China's PNTR status comes amid a broader effort by the US to counter China's growing economic power and reduce reliance on an adversarial regime for critical supplies.

If passed, the Restoring Trade Fairness Act would represent a major shift in US foreign trade policy, signaling the United States' intention to confront the long-term consequences of China's economic rise. The bill reflects growing concerns among US lawmakers about China's impact on American jobs, industries, and national security.

As the US-China economic rivalry intensifies, this legislative push marks a key moment in efforts to reassert US independence from China's expanding influence and restore a fairer balance in global trade.