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Wednesday, November 6, 2024

Bipartisan bill targets Chinese firms' violations of US trade laws

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Rep. Ashley Hinson, U.S. Representative for Iowa's 2nd District | Official U.S. House headshot

Rep. Ashley Hinson, U.S. Representative for Iowa's 2nd District | Official U.S. House headshot

Congresswoman Ashley Hinson (IA-02) has introduced the bipartisan Protecting American Industry and Labor from International Trade Crimes Act. The bill's original co-sponsors include Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI), Ranking Member Raja Krishnamoorthi (D-IL), House Republican Conference Chairwoman Elise Stefanik (R-NY), House Appropriations Committee Ranking Member Rosa DeLauro (D-CT), as well as Representatives Darin LaHood (R-IL), Nate Moran (R-TX), Ben Cline (R-VA), Kevin Kiley (R-CA), Glenn Ivey (D-LA), Ted Lieu (D-CA), Haley Stevens (D-MI), Deborah Ross (D-NC), and Lou Correa (D-CA).

The legislation addresses frequent violations of U.S. trade laws by companies based in the People’s Republic of China, including fraud, duty evasion, and transshipment. These activities benefit China's non-market economy while undermining U.S. companies and workers, leading to significant job losses in America. Despite numerous cases related to trade crimes, the U.S. Department of Justice has been under-resourced in prosecuting these offenses.

The proposed act directs the DOJ to establish a new structure dedicated to prosecuting international trade crimes, enhancing capabilities for detecting, investigating, and prosecuting trade fraud, duty evasion, transshipment, and other related offenses.

"For decades, Communist China has blatantly violated U.S. trade laws and ripped off American workers with no accountability or consequences," said Congresswoman Hinson. "This has led to shuttered factories and devastating job losses across the country... My bipartisan legislation will ensure we finally crack down on Communist China's illicit trade practices so that we can reshore American manufacturing and provide opportunities for American workers."

Chairman John Moolenaar added: “Not a week goes by without the Committee learning of yet another American company harmed by Chinese companies shipping their goods through other countries to illegally evade tariffs... I’m proud to join Rep. Ashley Hinson in co-sponsoring this crucial legislation that will give law enforcement the power to hold CCP trade criminals accountable.”

Ranking Member Raja Krishnamoorthi emphasized: “For years, the Chinese Communist Party’s predatory trade policies have violated American trade laws... Our bipartisan legislation cracks down on these crimes by establishing a new unit at the Department of Justice dedicated to enforcing U.S. trade laws... We must send an unmistakable message to companies based in the People’s Republic of China that their illegal trade practices must end now.”

Supporting organizations include the American Iron and Steel Institute, National Council of Textile Organizations, Alliance for American Manufacturing, United Steelworkers, AFL-CIO, Campaign for Uyghurs, American Shrimp Processors Association, Coalition for a Prosperous America, and America First Policy Institute.

The act proposes establishing a new task force within the DOJ’s Criminal Division to investigate and prosecute trade-related crimes. It aims to enhance nationwide responses by providing training and technical assistance to various law enforcement agencies while expanding investigations and prosecutions through parallel criminal and civil enforcement actions.

Additionally, it requires the Attorney General to submit an annual report to Congress assessing DOJ efforts with statistics on trade-related crimes and fund utilization. The bill authorizes $20 million for FY 2025 with appropriate guardrails.

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