US lawmakers take aim at China's trade practices
US Senator Todd Young speaks with reporters before the weekly Republican policy luncheon at the US Capitol in Washington, on Sep 19, 2023. (Photo: REUTERS/Evelyn Hockstein)
WASHINGTON: A bipartisan group of lawmakers is introducing legislation on Monday (Feb 24) to toughen US trade enforcement laws and address the impact of Chinese-supported companies moving portions of their production to other countries to circumvent American duties.
Republican Senator Todd Young of Indiana and Democratic Senator Tina Smith of Minnesota are leading a group of more than dozen senators introducing the legislation.
The bill seeks to give the US Commerce Department new tools to address concerns about China's trade practices and its Belt and Road Initiative, a Chinese international infrastructure project aimed at boosting trade and connecting Asia, Europe and Africa.
"China has distorted the free market by dumping undervalued products and subsidising industries, actions designed to harm American businesses and workers," Young said in a statement.
A companion bill is being introduced in the US House of Representatives.
"For too long, foreign competitors like China have engaged in unfair trade practices that have undermined domestic industry and threatened our national security," Smith said.
The Chinese Embassy in Washington did not immediately comment.
The American Iron and Steel Institute praised the bill for "addressing the growing problem of cross-border subsidisation where foreign governments subsidise industries, like steel, not only in their own countries but in other countries as well."
The bill authorises the Commerce Department to apply the countervailing duty law, which allows the government to target specific products from individual countries, to translational subsidies.
The legislation would also toughen antidumping rules, sets specific deadlines for anti-circumvention inquiries, ensures the law can be applied to currency manipulation and aims to address imports of goods like kitchen cabinets from China.
Two weeks ago, President Donald Trump substantially raised tariffs on steel and aluminium imports to a flat 25 per cent. The tariffs are set to take effect on Mar 4.
Data showed US aluminium smelters produced just 670,000 metric tonnes of the metal last year, down from 3.7 million in 2000. Steel imports accounted for about 23 per cent of American steel consumption in 2023.
While China exports only tiny volumes of steel to the US, it is responsible for much of the world's excess steel capacity, according to the US.
American steel companies say subsidised production in China forces other countries to export more and leads to Chinese steel being shipped through other countries into the US to avoid tariffs and other trade restrictions.
