Connect with us

Hi, what are you looking for?

The Freedom RightThe Freedom Right

Investing

Republicans inch closer to ending China’s favored trade status

Fresh off Tuesday’s red sweep, House Republicans have begun to renew the idea of ending China’s preferential trade status. 

They have begun to promote the idea of ending China’s Permanent Normal Trade Relations (PNTR). With Republicans seizing control of the White House and Senate, and being on track for a likely win in the House, the idea that was once considered a longshot now now become a likelihood. 

‘For too long, the Chinese Communist Party has taken advantage of America’s open hand with predatory economic practices that target the American economy, our workers, businesses, and our national security. We believe in free trade with free nations, but as the Committee recommended on a bipartisan basis, it is now time to reset our relationship with China by moving past PNTR to a trade relationship that reflects the threat we face from the CCP,’ a spokesperson for the House China Committee told Fox News Digital. 

In 2000, Congress voted to grant China permanent normal trade relations. The designation fundamentally changed China-U.S. trade relations: U.S. consumers gained access to low-priced Chinese imports, and between 2001 and 2021, the value of goods imported from China quadrupled to $500 billion.

Critics of PNTR say it allowed companies to outsource their manufacturing to China – and that renewed tensions with Beijing could lead to supply chain issues. 

Proponents of PNTR say that removing that status would cause inflation, allowing further tariffs on billions’ worth of Chinese goods. 

President-elect Donald Trump has already proposed an across-the-board 60% tariff on all Chinese goods and end China’s favored trade status. 

Repealing PNTR would automatically reset the tariffs on Chinese goods to higher levels. 

Trump could enact much of his trade agenda on goods he deems to be an ‘unusual and extraordinary threat’ to national security or the U.S. economy. 

The GOP’s platform unveiled in July called for an ending of PNTR. In September, Fox News Digital first reported that a group of Republican senators put forth a bill to end China’s PNTR and increase tariffs on many of its goods up to 100%. 

Over five years, the bill would increase tariffs by 100% on imports deemed ‘strategic’ to national security by the Biden administration in an effort to force the growth of the domestic market for national security-related goods. 

It would boost tariffs on non-strategic goods by a minimum of 35%. 

China is widely expected to respond with tariffs on U.S.-imported goods. China buys tens of billions of dollars’ worth of agricultural products, primarily soybeans, each year. 

The bill, led by Sen. Tom Cotton, R-Ark., and cosponsored by Sens. Marco Rubio, R-Fla., and Josh Hawley, R-Mo., would also grant the president the authority to institute further tariffs, quotas and bans on specific Chinese goods. It would end ‘de minimis treatment’ for China, or the value threshold below which imports are not subject to customs duties. 

The revenue generated, according to the bill, would go toward farmers and manufacturers injured by potential Chinese retaliation, the purchase of key munitions important to a Pacific conflict, and paying down the debt.

Fox News’ Liz Elkind contributed to this report. 

This post appeared first on FOX NEWS

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Investing

    Vermont Sen. Bernie Sanders, 81, defended President Biden, 80, against voter critiques that he lacks the energy and vigor to continue leading the United...

    Investing

    Political advisers to both President Biden and Vice President Harris were reportedly annoyed with Democrat California Gov. Gavin Newsom over a planned debate with...

    Editor's Pick

    By the IoT Analytics team. A new report from IoT Analytics highlights eight notable trends helping to advance and promote digital twins. Four of...

    Stock

    A second delivery driver has died in Texas amid record-high temperatures, just as the regulation of workplace heat safety enters a new legal limbo...

    Disclaimer: thefreedomright.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2020-2024 The Freedom Right. All Rights Reserved