Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party has introduced a bill to revoke China's Permanent Normal Trade Relations (PNTR). Known as the Restoring Trade Fairness Act, this legislation aims to address issues arising from China's economic practices.
In 2000, China was granted PNTR status by Congress, allowing it preferential tariff treatment under U.S. law. This decision was made with the expectation that China would adopt fair trading practices. However, according to Chairman Moolenaar, "This gamble failed." He noted that the U.S. manufacturing industry has suffered over the past two decades and accused China of intellectual property theft and economic coercion.
Senators Tom Cotton, Marco Rubio, and Josh Hawley have already introduced similar legislation in the Senate earlier this year.
Chairman Moolenaar stated, “Today, I have introduced the Restoring Trade Fairness Act to stop the Chinese Communist Party from taking advantage of America and to level the playing field for American workers and our allies.” He added that having permanent normal trade relations with China "has failed our country" and contributed to job losses.
Senator Cotton commented on China's PNTR status saying it "has enriched the Chinese Communist Party while costing the United States millions of jobs."
The background information provided indicates that tariffs imposed by Presidents Trump and Biden have already effectively revoked China's PNTR status. The Select Committee had previously recommended revoking this status in statute in 2023.
The recent United States International Trade Commission report suggests that Section 301 tariffs have not significantly impacted inflation but have encouraged diversification away from reliance on Chinese imports.
The proposed bill would eliminate PNTR for China without requiring annual Congressional recertification votes. It includes creating a new tariff column for China with a phased-in approach over five years for both non-strategic and strategic goods.
Oren Cass from American Compass supports this initiative stating it recognizes "the gravity and urgency" of rebalancing trade relations with China. Michael Stumo from Coalition for a Prosperous America also emphasized its importance in strengthening U.S. industrial capacity against adversaries like Russia and North Korea.
