US senators Todd Young and Tina Smith have introduced legislation to strengthen US trade remedy laws and ensure they remain effective tools to fight against unfair trade practices. Besides improving the US trade remedy system, the legislation would also respond to China’s “unfair trade practices”, which, according to the senators, provide subsidies to China-based or China-operated companies doing business in countries outside of China.
“China has distorted the free market by dumping undervalued products and subsidizing industries, actions designed to harm American businesses. For too long, foreign competitors like China have engaged in unfair trade practices that have undermined domestic industry and threatened our national security. This legislation provides more tools for the US to stop illegal dumping and subsidies that have made it impossible for domestic producers to compete,” Mr. Young, said.
According to Young, in recent years China’s unfair trade practices, such as Chinese-supported companies moving portions of production to other countries to circumvent US duties, have culminated in grave economic consequences that affect American workers. Stating that China’s One Belt and Road Initiative also unfairly subsidizes products made in other countries, rather than just in China, the senator noted that, in addition to competing with these unfair trade practices, the US companies have to contend with long lead times before the Department of Commerce initiates a new anti-circumvention inquiry.