Today, a letter from Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the Select Committee on the Chinese Communist Party has been sent to Attorney General Pam Bondi, Secretary of Homeland Security Kristi Noem, and U.S. Trade Representative Jamieson Greer. The correspondence calls for action against unlawful trade practices by the People's Republic of China (PRC). The letter urges investigations into companies that bypass U.S. trade laws by shipping products through third countries.
"The PRC’s systematic abuse of U.S. trade laws and protective mechanisms through transshipment, forced labor, and other illicit trade practices represents a clear and urgent threat to American industry and workers," write Moolenaar and Krishnamoorthi in the letter.
The letter outlines concerns about transshipment practices that allow PRC companies to evade tariffs by rerouting goods through countries with lower duties before entering the United States. This practice undermines American economic security by allowing products to enter under false pretenses.
Specific examples are provided, such as Qingdao Sunsong's use of facilities in Thailand to avoid tariffs on automotive parts. "In order to reduce tariff costs, the issuer shifted its production (from China) to Thailand," states Qingdao Sunsong's response during its application for listing on the Beijing Stock Exchange.
Textiles are another sector affected by these practices. The PRC allegedly exploits free trade agreements by routing textiles through countries like those in the CAFTA-DR region or Mexico, fraudulently claiming duty-free benefits.
The issue extends beyond traditional goods; fentanyl trafficking is also a concern. "More than 90 percent of illicit fentanyl precursors come from the PRC," notes the committee's report on how precursor chemicals reach Mexican cartels.
Moolenaar and Krishnamoorthi emphasize that stronger enforcement measures are necessary. They call for criminal prosecutions and civil enforcement actions against these unlawful activities while advocating for a Section 301 investigation into PRC transshipment schemes.
"Thank you for your attention to this important matter," concludes the letter. It highlights the Select Committee's role in countering threats from the Chinese Communist Party under H. Res. 5 Sec. 4(a).
