Illinois Rep. Darin LaHood and Wisconsin Rep. Mike Gallagher, both members of the House Select Committee on the Chinese Communist Party, have joined forces to address concerns surrounding Chinese auto component manufacturer Qingdao Sunsong. The lawmakers have composed a letter to Homeland Security Secretary Alejandro Mayorkas, urging action to combat allegations of trade fraud committed by the company.
According to Rep. LaHood, Chinese companies like Qingdao Sunsong are "circumventing tariffs at the expense of Illinois manufacturers and workers." He emphasized the need for the administration to take action to address this fraudulent trade practice. The lawmakers have called on Secretary Mayorkas to provide a thorough briefing on the plan of action, with a deadline set for no later than October 13, 2023.
An investigation into Qingdao Sunsong and its U.S.-based subsidiary, Sunsong North America, has revealed evidence of trade fraud. The lawmakers highlighted the catastrophic impact this fraud has on American manufacturers, with one company being forced to accumulate significant debt, divest itself of two business divisions, and lay off a quarter of its workforce. If swift action is not taken, the affected company may be forced to permanently cease operations.
The investigation uncovered that Qingdao Sunsong is bypassing Section 301 tariffs by transshipping their products through Thailand to the United States with limited transformation. This practice not only violates U.S. laws but also poses a significant national security and economic threat to American manufacturers. In fact, a company within Rep. LaHood's district has already had to lay off a quarter of its workforce due to Sunsong's trade fraud. The lawmakers assert that companies falsely claiming their products originate from a different country when shipping them to the United States should be penalized under 19 U.S.C. § 1592.
The lawmakers expressed concern that this type of trade fraud may be widespread in today's economic environment, with companies engaging in these practices to evade the United States' tariff regime. They are calling for action to address this issue and protect American manufacturers and workers.
With the letter addressed to Secretary Mayorkas, Rep. LaHood and Rep. Gallagher are seeking a thorough briefing on the plan of action to combat Qingdao Sunsong's trade fraud. They are urging the administration to take swift and decisive measures to address this blatant violation and protect American businesses.
