East Michigan News

Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party has introduced the Restoring Trade Fairness Act. This legislation seeks to revoke China's Permanent Normal Trade Relations (PNTR), which was extended in 2000 when China joined the World Trade Organization. The decision aimed to encourage fair trading practices by the Chinese Communist Party, but according to critics, it resulted in negative impacts on U.S. manufacturing and intellectual property.

Senators Tom Cotton (R-AR), Marco Rubio (R-FL), and Josh Hawley (R-MO) have previously introduced similar legislation in the Senate.

Chairman Moolenaar stated, “Today, I have introduced 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 further mentioned that maintaining permanent normal trade relations with China has failed America by eroding its manufacturing base and sending jobs overseas.

The bipartisan Select Committee recommended resetting economic ties with China last year. Building on tariffs from previous administrations, this bill aims to formally revoke China's PNTR status, safeguard national security, support supply chain resilience, and restore U.S. manufacturing jobs.

Senator Cotton commented on China's PNTR status: "China’s Permanent Normal Trade Relations status has enriched the Chinese Communist Party while costing the United States millions of jobs."

President Trump implemented tariffs in 2018 targeting billions worth of Chinese goods, a strategy continued by President Biden. The Select Committee nearly unanimously supported revoking China's PNTR status last year. The new bill codifies these tariffs into law as part of a broader effort against CCP economic policies.

An ITC report found that Section 301 tariffs did not significantly contribute to inflation but instead encouraged supply chain diversification away from China without substantial price hikes for consumers.

The proposed bill would end PNTR for China without requiring annual Congressional recertification votes. It introduces a new tariff column imposing a minimum 35% ad valorem tariff for non-strategic goods and up to 100% for strategic items over five years.

Strategic goods are defined by HS codes based on current administration guidelines. The bill also removes De Minimis treatment for covered nations like China and requires customs brokers for certain shipments. Revenue from these tariffs would support affected U.S. farmers and manufacturers while funding military deterrence efforts in Asia.

Oren Cass from American Compass said, "The trade relationship between the United States and China is anything but ‘normal.’" He supports ending 'normal' trade relations with China as necessary for restoring balance.

Michael Stumo of Coalition for a Prosperous America noted that granting MFN status was an error impacting American industries: “Granting China Most Favored Nation status was a grave error that has had long-term consequences.”