A federal China commission has released its annual report to Congress, urging lawmakers to terminate China's favored trade status and eliminate the provision allowing duty-free entry of goods under $800 into the U.S. The U.S.-China Economic and Security Review Commission, established by Congress, is advocating for ending China's Permanent Normal Trade Relations (PNTR) status, which has been in place since 2004.
The commission has presented 83 policy recommendations to Congress, highlighting concerns about China's military capabilities, threats to U.S. allies, and exploitation of trade loopholes. The commission chair emphasized the need for stronger safety measures for consumers and manufacturers, citing examples of hazardous products entering the U.S. from China.
In addition to trade issues, the commission has called for advancements in Artificial General Intelligence (AGI) in the U.S., proposing a program similar to the Manhattan Project to acquire AGI capabilities. The possibility of revoking PNTR could grant the president authority to impose tariffs, a move supported by President-elect Donald Trump.
The report also addresses the evasion of regulatory inspections and tariffs by Chinese goods valued under $800, prompting calls to eliminate the 'de minimus' exemption. The sources suggest legislation to restrict federal tax benefits for investments in Chinese companies on the Entity List and to enhance export controls on critical technologies.
China's recent actions, including military tests and aggressive maneuvers, have raised concerns about potential conflicts with the West. Trump's proposed tariffs on Chinese imports could significantly impact China's economy, with estimates suggesting a substantial reduction in exports.
As tensions between the U.S. and China escalate, the recommendations from the commission underscore the need for strategic policy changes to address trade imbalances and national security risks posed by China's actions.
