GOP leaders rally to revoke China’s ‘most favored nation’ status after 20-year run

The movement to eliminate the free trade perks China enjoys in the U.S. is gaining momentum, with Republican leaders in the House and Senate introducing legislation to end China’s most favored nation status by repealing Permanent Normal Trade Relations (PNTR).

Sen. Tom Cotton, R-Ark., has reintroduced the Restoring Trade Fairness Act in the Senate, with Sen. Jim Banks, R-Ind., as a cosponsor. The bill has bipartisan support in the House, with Rep. John Moolenaar, R-Mich., introducing it along with Rep. Tom Suozzi, D-N.Y.

The proposed measure would impose a minimum 35% tariff on non-strategic goods and a 100% tariff on strategic goods, phased in over five years. This move aims to address the imbalance in trade relations between the U.S. and China and protect American farmers and manufacturers from potential Chinese retaliation. The revenue generated from these tariffs would also be used to purchase key munitions important for potential conflicts in the Pacific region.

The decision to grant China PNTR in 2000 under President Bill Clinton’s administration significantly altered the landscape of trade relations between the two countries. While U.S. consumers benefited from access to low-priced Chinese imports, critics argue that it led to the outsourcing of manufacturing jobs and a decline in the U.S. share of global manufacturing production.

Proponents of repealing China’s most favored nation status argue that it would protect American workers, enhance national security, and end the Chinese Communist Party’s exploitation of U.S. markets. They contend that previous administrations made a mistake in granting China PNTR, which has allowed the CCP to gain leverage over the U.S. economy.

President Donald Trump had proposed imposing high tariffs on Chinese goods during his campaign, and the current administration is considering a 10% tariff on Chinese products starting in February. With Republican control of the government, the legislation to end China’s PNTR status has gained momentum, with House Republicans expressing their support for passing the bill in this Congress.

Lawmakers believe that isolating China through tariffs and ending its most favored nation status is necessary to address national security concerns and protect American interests. They argue that China’s actions pose a threat to the U.S. and that tougher measures are needed to hold the country accountable for its trade practices.

In conclusion, the movement to eliminate China’s free trade perks in the U.S. is gaining traction under Republican leadership. The proposed legislation aims to address the imbalance in trade relations, protect American workers, and enhance national security. With bipartisan support and a sense of urgency among lawmakers, the push to repeal China’s most favored nation status is poised to make significant progress in the coming months.