WASHNGTON — A congressional committee has put forth a recommendation to revise the United States’ trade stance with China, advocating for the reversal of a nearly quarter-century-old policy that many believe has contributed to U.S. economic challenges. This suggestion comes amidst increasing concerns that the current trade agreement has not worked in the best interests of the nation.
The U.S.-China Economic and Security Review Commission released its annual report to Congress on Tuesday, proposing for the first time an end to the permanent normal trade relations granted to Beijing. This movement aligns with the sentiments of several leading Republican figures, including Senator Marco Rubio, who has been nominated by President-elect Donald Trump to serve as Secretary of State. The anticipated trade conflict with China is expected to escalate in the forthcoming administration.
Implementing this change would reestablish annual evaluations of China’s trade actions and enhance U.S. ability to address what the commission terms “unfair trade practices.” The report emphasizes that such a policy shift would demonstrate a commitment to a more vigorous trade strategy geared toward safeguarding American businesses and workers from economic pressures.
The suggestion is part of a series of recommendations detailed within the nine-page document, which was established in 2000 to examine national security risks associated with the evolving trade relations between the U.S. and China. The congressional decision made during the final year of Bill Clinton’s presidency facilitated China’s accession to the World Trade Organization in 2001, with the belief that engagement in the U.S.-centric global economy would foster political reforms in China.
However, this hoped-for transformation has not materialized. The relationship between the two nations began to deteriorate in 2018 when President Trump initiated a trade war aimed at correcting trade discrepancies. During his campaign this year, Trump promised to impose tariffs of up to 60% on Chinese imports to reduce the trade deficit further. Experts caution that such measures could hinder China’s economic growth while raising consumer prices in the U.S. The trade gap was reported at $279 billion in 2023, a notable reduction from the $418 billion reported in 2018.
Moreover, in September, several Republican senators, including Rubio, proposed a bill aimed at ending the permanent normal trade relations status with China, which significantly reduces trade restrictions. Rubio has publicly condemned the decision to extend comparable trade benefits to China as highly detrimental.
“The decision to treat Communist China with the same trade advantages as our closest allies ranks among the most damaging choices our nation has made,” Rubio contended while presenting the bill. With Rubio’s strong opposition to communism and his firm viewpoint on China, Trump has chosen him to head the State Department, pending Senate approval.
“Our trade deficit with China has soared, resulting in the loss of countless American jobs. Terminating normal trade relations with China is an obvious and essential step,” Rubio stated. Additionally, last week, Representative John Moolenaar, a Republican from Michigan and chair of the House’s Select Committee on the Chinese Communist Party, introduced a complementary bill advocating for this policy change.
