Washington Institute For Defence & SecurityWashington Institute For Defence & SecurityWashington Institute For Defence & Security
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Exploring the US decision to end normal trade relations with China
Credit: IMF Photo/Raul Ariano

The relationship between China and the United States has become more fragile with time. The deal has damaged the US economy. Millions of Americans lost their jobs, and the CCP stole trillions of dollars in American intellectual property. Because of all of these losses, it is not good for the US to continue trade with China. To solve the issue, Secretary of State-designate Marco Rubio, Senator Josh Hawley, and others have introduced new plans. According to them, the US should end its normal trade relationship with China. Ending of ‌China’s Permanent Normal Trade Relations (PNTR) with the United States. This could be the only way to protect American workers and businesses from Chinese harmful policies. 

Back in 2000, when the United States granted China’s Permanent Normal Trade Relations (PNTR). The nation hoped that this step would lead to more freedom in China and fair trade. The objective was to get an advantage from China’s 1.2 billion consumers. However, the US failed to achieve its target. And China used this trade relationship to damage American industries. This action by China alerts the US to take stronger action. 

The strict policies of the Chinese Communist Party snatched the freedom of people who lived in China. The government in China failed to adopt fair behavior with Americans. They harmed American businesses and became the reason for the closure of many factories based in the United States. Many people, approximately 4 million, had lost their jobs since the year 2000. Furthermore, the Chinese also steal huge amounts of money, $600 billion, every year. China also used its money and power to change the decisions of American leaders. They also mislead Americans by spreading false news on TV shows. China just wants its own benefits and never cares about US technology and inventions. One of the worst actions from the Chinese is that they used ‌American money to build the largest military in the world. With the US

Over the following five years, a new proposal calls for progressively imposing duties on Chinese goods. Important products would be subject to a 100% tariff, while non-strategic goods would be subject to a 35% tariff. Additionally, the president could put additional limits on necessary imports. By taking this slow approach, American businesses have time to train employees, move production back home, and adjust to a business climate free from corruption in China.

A trade loophole that permits China to send millions of tax-free packages to the United States daily is also the target of the proposal. Businesses that would be impacted by possible Chinese reprisals would benefit from the tariffs’ revenue. The objective is to concentrate on policies that benefit Americans, even while retaliation is anticipated. Long-term improvements in the nation’s economy and security would result from the utilization of additional tariff income to lower the national debt and bolster the US military. 

With the goals of strengthening the military, reviving manufacturing, securing crucial supply chains, boosting the economy, and creating employment in America, this bill suggests a significant change in the US-China relationship. It aims to fix a long-standing error in economic policy that has harmed the American people while benefiting China.

The United States would suffer long-term consequences if it continued its existing trade relationship with China, which is far from normal. Change is needed, and according to the bill, collaborating with President-elect Donald Trump and the next Congress would help usher in a more advantageous and balanced era for US-China ties.

This campaign is supported by John Moolenaar, a Republican lawmaker from Michigan’s 2nd district who serves as the chairman of the Select Committee on the Chinese Communist Party. His stance emphasizes how critical it is to correct economic disparities and provide a brighter future for the United States.

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