Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party has reached out to Secretary of Commerce Gina Raimondo regarding China's market practices. In a letter, he highlighted the impact of China's actions on the global economy, focusing on the resin industry as an example. He urged the Department of Commerce to use "special rules for costs" to adjust reported costs from foreign producers and address issues like overcapacity and market distortion affecting the U.S. economy.

Moolenaar stated, "The effects of the PRC’s overcapacity extend far beyond individual sectors—affecting the broader U.S. economy and undermining entire supply chains." He pointed out that China's increased production capacity, coupled with declining domestic prices, pressures prices outside China. This results in underpriced products flooding global markets, harming American businesses' competitiveness.

He added that this situation "disrupts fair pricing mechanisms, encourages overinvestment in unsustainable production," forcing foreign producers to rely heavily on exports at U.S. manufacturers' expense. The Chairman also noted government subsidies and opaque pricing structures contribute to low prices in both U.S. and global markets.

Using the resin industry as a case study, Moolenaar identified six quantitative measures for defining overcapacity: falling utilization of existing capacity, overinvestment in new capacity, increasing reliance on exports, falling prices in domestic markets, falling prices in export markets, and shrinking profit margins.