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

The U.S.-China Economic and Security Review Commission recently released its annual report to Congress, recommending for the first time that lawmakers terminate China’s favored trade status and end the provision that allows goods under $800 to enter the U.S. duty-free. The commission, established by Congress as a bipartisan entity to investigate and provide policy recommendations on China, is advocating for Congress to end the Permanent Normal Trade Relations (PNTR) that China has enjoyed since 2004.

In its report, the commission highlighted the need for the U.S. to address the increasing threats posed by China, including the exploitation of trade loopholes and the influx of potentially harmful products into the country. Commission chair Robin Cleveland emphasized the urgency of implementing stronger safety and legal protections for American consumers and manufacturers.

One of the key recommendations made by the commission is the establishment of a “Manhattan Project-like program” to acquire Artificial General Intelligence (AGI) capability in the U.S. This initiative aims to enhance U.S. competitiveness in the field of artificial intelligence and ensure that the country remains at the forefront of technological advancement.

The report also called for the elimination of the de minimus exemption in tariff law, which allows Chinese goods to evade regulatory inspection and tariffs by entering the U.S. in shipments valued under $800. This loophole has been exploited by China to import potentially dangerous products, such as counterfeit goods and fentanyl, into the country.

Additionally, the commission recommended that Congress consider legislation to eliminate federal tax expenditures for investments in Chinese companies on the Commerce Department’s Entity List, which includes entities believed to pose a threat to U.S. interests or intellectual property. The report also urged the U.S. to enhance its export controls to prevent China’s access to critical dual-use goods and technologies.

Throughout the year, China has demonstrated aggressive behavior, including violent attacks on Philippine personnel, attempts to influence Taiwan’s democratic elections, and intercontinental ballistic missile tests. In response to these actions, the report suggested that the U.S. should bolster its defenses and impose stricter measures on Chinese imports and investments.

With the incoming administration of President-elect Joe Biden, the report’s recommendations may receive increased attention and scrutiny. It remains to be seen how Congress will respond to the commission’s proposals for reshaping U.S.-China relations and safeguarding American interests in the face of growing Chinese influence.