House Select Committee proposes shift in US-China economic relations

The report, titled 'Reset, Prevent, Build: A Strategy to Win America's Economic Competition with the Chinese Communist Party', received overwhelming bipartisan support. It marks a potential turning point in the longstanding economic relationship between the two global superpowers.

"With this report, the Select Committee has demonstrated a unified commitment to addressing the historical challenges we face," stated chairman Gallagher and ranking member Krishnamoorthi. They emphasised the necessity of resetting the US' economic ties with China to better align with American economic and national security interests.

The committee's year-long investigation into the CCP’s extensive campaign of economic and technological aggression has culminated in this comprehensive set of policy proposals. These recommendations are structured around three foundational pillars: Reset, Prevent and Build.

Reset: The report calls for a redefinition of the economic relationship between the US and China, moving away from past practices towards a more strategic and secure engagement.

Prevent: A significant focus is on curtailing the flow of US capital and technology that inadvertently supports China's military modernisation and its human rights violations.

Build: The committee advocates for bolstering technological leadership and fostering collective economic resilience, working in concert with allies to ensure a robust, secure economic future.

Speaking about the report, ambassador Robert Lighthizer, former United States Trade Representative, said, "The Select Committee made a bipartisan finding that giving China most favoured nation treatment for trade 23 years ago was a tragic mistake. The committee calling for new higher tariffs on China is an historic event. The failed policy of the past cost millions of American workers their jobs and the country trillions of dollars of wealth. It crippled many communities and put our national security at risk. I hope the committees of jurisdiction act quickly to implement these findings and set America on a course of greater prosperity and security for all working families."

Kim Glas, president and CEO of the National Council of Textile Organizations said: “We greatly appreciate the work of the bipartisan House China Select Committee issuing this report examining three pillars of a strategic plan to rebalance the US relationship with the Peoples’ Republic of China (PRC). The report includes three pillars that are extremely important steps toward realising this goal, including: resetting the terms of the US economic relationship with China; stemming the flow of US capital and technology to China; and investing in technological leadership and building collective resilience with US allies.

“The US textile and apparel manufacturing sector has been on the receiving end of some of the worst predatory trade practices by China, including substantial intellectual property theft, coupled with rampant abuse of state-owned enterprises and subsidies, and horrifying labour abuses in Xinjiang, which have enabled the country to dominate world markets in this sector. In addition to the myriad unfair trade practices, China’s dominance was accelerated by its accession to the WTO.

“The Committee’s critical blueprint released today provides key bipartisan policy guidance to immediately help manufacturing sectors like ours that are experiencing economic headwinds as a result of predatory trade practices. Recalibrating our relationship with China is critical to finally addressing the illegal subsidisation, intellectual property theft and the stranglehold of key aspects of supply chains that make the US and our allies extremely vulnerable. Specifically, stepping up UFLPA and customs enforcement is a critical concern to ensure transparency of our supply chains. We also urge the House and Senate to close the de minimis loophole, which facilitates the importation of slave-labour made goods, counterfeits, counterfeits and illicit narcotics, and is undermining our industries."

ALCHEMPro News Desk (KD)