Bipartisan panel urges Congress to toss out decades of trade policy they say China has been exploiting

A national China committee released its sprawling yearly study to Congress connected Tuesday, for the archetypal clip recommending lawmakers extremity China’s favored commercialized presumption and extremity the proviso that allows goods nether $800 to participate the U.S. duty-free.  

The U.S.-China Economic and Security Review Commission, established by Congress arsenic a bipartisan entity to analyse and supply argumentation recommendations connected China, is present straight advocating for Congress to extremity the Permanent Normal Trade Relations (PNTR) China has enjoyed since 2004.

The committee volition transportation its 83 argumentation recommendations to lawmakers connected Tuesday, on with a study connected China's military capabilities, its threats to U.S. allies successful the portion and however it is exploiting U.S. argumentation for its ain advancement. 

"For decades we person engaged successful whack-a-mole argumentation moving wrong planetary organizations and guidelines to code the expanding and ambitious efforts by China to skirt laws oregon instrumentality vantage of commercialized loopholes," committee seat Robin Cleveland said. 

"In our proceeding connected the threats to American consumers this twelvemonth we heard from medication and adept witnesses who were starkly clear: U.S. agencies bash not cognize if the bulk of packages coming from China see a babe artifact painted with a toxic chemical—a counterfeit portion of covering made with enslaved labor—or a pin caput magnitude of fentanyl which is capable to termination the mean citizen."

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The China information committee released its sprawling yearly study to Congress connected Tuesday, for the archetypal clip recommending lawmakers extremity China’s favored commercialized status. (Costfoto/NurPhoto via Getty Images)

"While the medication has existing authorization to unopen down this flood of troubling products, we person a beardown proposal connected legislative enactment that should fortify information and ineligible protections for consumers and manufacturers."

The committee besides identified an urgent request for AI advancement successful the U.S., calling connected Congress to found and money a "Manhattan Project-like program" to get Artificial General Intelligence (AG) capability, defined arsenic systems that would "surpass the sharpest quality minds astatine each task." 

The prospect of eliminating PNTR, which allowed low-cost Chinese goods to flood U.S. markets passim the 2000s by giving the CCP the aforesaid commercialized benefits arsenic U.S. allies, faces progressively apt likelihood with Republican power of the House and Senate.

Eliminating it would assistance the president authorization to measure and reappraisal whether greater tariffs are needed. President-elect Donald Trump has vowed to drastically summation tariffs connected Chinese-made goods. 

The study recovered that Chinese goods progressively evade regulatory inspection and tariffs by coming successful shipments valued nether $800, taking vantage of the "de minimus" exemption successful tariff law. 

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Eliminating "de minimus" connected e-commerce shipments would necessitate Customs and Border Patrol to institute acold greater oversight implicit small-dollar shipments, prompting a petition for much resources successful Congress. But the study recovered these shipments are often utilized to sneak fentanyl into the U.S. 

The U.S. has brought in around $4 cardinal successful Chinese goods shipped nether "de minimus" per time this year, up from $3 cardinal past year. 

U.S. President Joe Biden waves arsenic helium walks with Chinese President Xi Jinping astatine Filoli property connected the sidelines of the APEC summit. (REUTERS/Kevin Lamarque//File Photo)

Congress should besides see authorities to destruct national taxation expenditures for investments successful Chinese companies that are connected the Commerce Department’s commercialized blacklist known arsenic the Entity List, per the report. 

Such authorities could destruct the preferential superior gains taxation rate, the carried involvement loophole oregon superior nonaccomplishment carry-forward provisions for companies that are believed to tally afoul of U.S. interests oregon suspected to beryllium stealing intelligence property.  

The study besides recommended the U.S. bolster its export controls to contradict China entree to captious dual-use goods and technologies and prohibition imports of definite technologies controlled by Chinese entities, similar autonomous humanoid robots and vigor infrastructure products. 

It urged Congress to nonstop the medication to make an outbound concern bureau to oversee dollars flowing to investments successful countries of interest and to amend laws to let the Consumer Product Safety Commission mandatory callback authorization implicit Chinese products. 

The meth seized had an estimated thoroughfare worth successful the millions of dollars, CBP said. (U.S. Customs and Border Protection)

Throughout the year, China has progressively tried to ace down connected dissent and "sanctions proof" its economy, successful mentation for a aboriginal of imaginable subject oregon economical warfare with the West, the study noted. It conducted convulsive attacks connected Philippine unit operating wrong their ain exclusive zone, tried to power Taiwan's antiauthoritarian elections and incurred into Taiwanese aerial abstraction implicit 2,300 times. 

It launched its archetypal intercontinental ballistic rocket trial into the South Pacific successful much than 40 years. 

Trump has begun to capable retired his Cabinet with China hawks. On the run way this year, Trump has projected a 10% tariff connected each U.S. imports and 60% connected Chinese-made products.

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If Trump successfully raises tariffs to 60%, it could trim China’s exports by $200 cardinal and origin a 1 percent constituent resistance connected GDP, said Zhu Baoliang, a erstwhile main economist astatine China’s economical readying agency, astatine a Citigroup conference. 

Last year, China exported astir $500 cardinal worthy of goods to the U.S., astir 15% of each of its exports.