The United States House of Representatives has overwhelmingly passed a bill to combat criminal activities by Chinese companies that violate U.S. trade laws and to halt the economic coercion policies of the Chinese Communist Party.
The bill, known as the Protecting American Industry and Labor from International Trade Crimes Act, was jointly proposed by Chairman John Moolenaar of the Select Committee on the CCP, the leading Democratic member of the committee Raja Krishnamoorthi, as well as committee member Republican Ashley Hinson, among others. More than ten bipartisan members of the House of Representatives signed the bill.
Members of Congress pointed out that Chinese companies frequently engage in criminal activities that violate U.S. trade laws, such as fraud, tax evasion, and tariff evasion through third-party transshipment, which benefits China’s “non-market economy” at the expense of American companies and workers.
Countless Americans have lost their jobs due to this type of crime, said the Select Committee on the CCP in a statement, noting that while there are numerous cases related to trade crimes, the resources of the U.S. Department of Justice for prosecuting these crimes are insufficient.
The legislation instructs the Department of Justice to establish a new agency dedicated to prosecuting international trade crimes, enhancing the U.S.’s ability to investigate, prosecute trade fraud, tax evasion, transshipment, and other related crimes.
The bill also requires the Department of Justice to provide training and technical assistance to other federal, state, and local law enforcement agencies, expand investigations and prosecutions, allow for parallel criminal and civil enforcement actions, and strengthen the national response to trade crimes.
Additionally, it mandates the Attorney General to submit an annual report to Congress assessing the Department of Justice’s actions, providing statistics on trade crimes, and detailing the use of funds.
Before the bill was passed, Chairman Moolenaar delivered a speech in the House of Representatives, stating, “Chinese companies frequently violate U.S. trade laws. They evade our tariffs, harming American manufacturers, harming the interests of workers, and weakening America’s competitiveness.”
He emphasized that at a roundtable meeting in Wisconsin last August, the Select Committee on the CCP heard testimonies from industry representatives, learning how Chinese companies violate laws and undermine American businesses.
Moolenaar stressed that imposing civil penalties on Chinese companies that evade U.S. trade laws is insufficient to deter China-supported trade fraud and economic coercion.
Ashley Hinson remarked, “While tariffs are one tool to create a level playing field, we must also enforce our trade laws and hold China (the CCP) accountable for their repeated violations.”
“These violations have had a catastrophic impact on American workers and industries,” said Hinson. “The bipartisan bill I have proposed will ensure that the CCP and other wrongdoers face criminal responsibility for illegal activities and that punishments are enforced. This will help bring manufacturing back to the U.S. and provide job opportunities for American workers.”
Following the passage of the bill, Raja Krishnamoorthi also issued a statement, saying, “As China continues to attempt to violate U.S. trade laws, our bipartisan bill will combat these crimes.”
“By countering China’s illegal trade practices, such as violations of the Uyghur Forced Labor Prevention Act, dumping steel below market prices, and flooding the U.S. market with illegal e-cigarettes, our bipartisan bill will protect American workers, consumers, and companies,” he stated.
Many industry associations, labor unions, and civil society organizations have expressed support for this bill.
Scott Paul, President of The Alliance for American Manufacturing, stated, “The bill rightly prioritizes prosecuting trade crimes, which is urgently needed and long overdue.”
The American Iron and Steel Institute (AISI) expressed, “Comprehensive and robust criminal and civil enforcement of U.S. customs and trade laws are critically important for the U.S. steel industry and its workers.”
The National Council of Textile Organizations (NCTO), Campaign for Uyghurs, Coalition for a Prosperous America (CPA), Forging Industry Association, United Steelworkers, as well as the AFL-CIO, support this bill.
The bill has been submitted to the Senate, and both chambers of Congress must pass identical versions before it can be sent to the President for signing into law. The current session of Congress is set to expire on January 3rd next year.