East Michigan News

Today, Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the Select Committee on the Chinese Communist Party sent a letter to Attorney General Pam Bondi, Secretary of Homeland Security Kristi Noem, and U.S. Trade Representative Jamieson Greer. The letter calls for action against unlawful trade practices by the People's Republic of China (PRC), specifically targeting companies that bypass U.S. trade laws by shipping products through third countries.

The letter highlights the impact of these practices on U.S. industries such as automotive parts, textiles, apparel support, and addresses the PRC's role in trafficking precursor chemicals used to produce fentanyl. "The PRC’s systematic abuse of U.S. trade laws and protective mechanisms through transshipment, forced labor, and other illicit trade practices represents a clear and urgent threat to American industry and workers," they wrote.

Moolenaar and Krishnamoorthi urge agencies to strengthen enforcement against these unlawful practices by prosecuting trade criminals, increasing civil enforcement, and initiating a Section 301 investigation into PRC transshipment schemes.

The letter details various instances where PRC-based actors have violated U.S. trade laws by unlawfully transshipping products through third countries to evade tariffs and duties or obscure product origins linked to forced labor. They call for increased enforcement measures from relevant agencies.

The use of transshipment is identified as a serious violation undermining American economic security. Companies are reportedly shipping Made in China products through countries with lower tariffs before entering the United States under false pretenses.

Homeland Security Investigations has been tracking unlawful transshipment networks but current efforts are deemed insufficient. Stronger measures are necessary to protect American industries from these damaging practices.

The Select Committee also emphasizes how PRC's actions undermine American manufacturers while facilitating unfair market advantages for their companies in the U.S., often resulting in significant economic consequences for domestic businesses.

In conclusion, Moolenaar and Krishnamoorthi stress the need for decisive action against PRC's exploitation of global trade routes which impacts both American industry and law enforcement resources dealing with issues like fentanyl trafficking.