U.S. lawmakers propose revoking U.S. permanent normal trade relations status with China

Three Republican U.S. senators, Tom Cotton, Jim Inhofe and Rick Scott, introduced the China Trade Relations Act on March 18. The bill calls for revoking the permanent normal trade relations status (i.e., the original most-favored-nation status) that China received with the United States in September 2000 and returning U.S.-China trade relations to the pre-2001 model, which requires the president to approve annual extensions of China’s trade preference status.

For 20 years, China has maintained permanent MFN status, creating a super acceleration in the loss of American manufacturing jobs,” Cotton wrote in the statement. It is Time to protect American jobs and hold the Communist Party of China accountable for its forced labor camps and egregious human rights abuses.” In his statement, Inhofe said, “I said it 20 years ago and I’ll say it again: we cannot let the pursuit of trade cloud our understanding of some of the realities of Communist China’s rule. China has repeatedly threatened the United States and Taiwan. Along with increasingly hostile military modernization efforts and the theft of U.S. nuclear secrets and other key technologies, China has repeatedly tried to corrupt the U.S. political system.”

Not to mention, they have violated too many international agreements and are known globally for their brutal crackdown on dissent and disregard for human rights,” Inhofe said. It is dangerously misguided to continue to ignore these actions as if they can be separated from what we do in our trade relations. Ending China’s permanent preferential trade relationship would send a strong message to the Chinese Communist Party and would support American workers.” Scott said, “I am proud to join my colleagues in continuing this important work to protect Americans from the threat of the CCP and its trade practices, and to hold General Secretary Xi accountable for his horrific human rights abuses.”

The China Trade Relations Act calls for the revocation of China’s permanent MFN status and a return to the pre-2001 status quo, where China’s MFN status must be renewed annually at the discretion of the President of the United States and Congress can pass a joint resolution to override the President’s decision to renew MFN status. The bill would also expand the Jackson-Vanik Amendment to include human rights abuses and trade violations as disqualifying factors. The bill would make China ineligible for MFN trade status if it uses forced labor or other concentration camps, or enforces sterilization, intimidation or harassment of nationals living outside of China, unless exempted by the President. Republican Rep. Chris Smith (R-NY) has introduced a similar bill in the House.