Bipartisan Lawmakers Call for Severing More Economic Ties with China
Bipartisan lawmakers called for severing more of America’s economic and financial ties with China on Tuesday, including revoking the low tariff rates that the United States granted Beijing after it joined the World Trade Organization more than two decades ago.
The House Select Committee on the Chinese Communist Party released a wide-ranging set of recommendations for resetting America’s economic relationship with China. The report, which was signed by both House Democrats and Republicans, argued that China had carried out a “multidecade campaign of economic aggression” that had undercut American firms, dominated crucial global industries, and left the United States highly vulnerable in the event of a broader military conflict.
The report included nearly 150 recommendations that Congress and the administration could take to offset those vulnerabilities. These recommendations ranged from imposing new tariffs on older types of Chinese chips to further cutting off the flow of capital and technology between the world’s largest economies.
Additionally, the report suggested requiring publicly traded American companies to disclose ties to China and investing further in U.S. research and manufacturing capacity to counter China’s dominance of sectors like pharmaceuticals and critical minerals. It also proposed developing plans to coordinate economically with allies if the Chinese government invades Taiwan.
Representative Mike Gallagher, Republican of Wisconsin and the committee’s chairman, emphasized the importance of Congress coming together on a major China bill next year ahead of the presidential election. He highlighted the need for legislation clarifying what was allowed for many companies that oppose restrictions on doing business with China.
The report signals a significant shift in the bipartisan consensus toward China. A decade ago, there was an argument that economic ties between the United States and China could be a force for peace and stability. However, fears that these ties could be weaponized in the event of a conflict have resulted in the recommended measures to reduce economic dependence on China.
While some of the recommendations may face opposition from businesses and could provoke retaliation from China, the bipartisan support for the report’s recommendations sends a message to China about American unity in dealing with challenges posed by the Chinese Communist Party.