China’s trade policies ‘exacerbate distortions in global economy’, commission says
Anna Allen • November 15, 2022 4:30 p.m.
A bipartisan panel convened by Congress is recommending that Congress review China’s trade status after finding that the country’s trade policies are inconsistent with its protocol for joining the World Trade Organization.
US-China Economic and Security Review Commission finds China’s ‘subsidies, overcapacity, intellectual property theft and non-trade protectionist policies’ are not consistent to the “spirit and letter” of the WTO protocols and “aggravate the distortions of the world economy”. Reviewing China’s trade relationship topped the committee’s 39 recommendations to Congress, released in an annual report on Tuesday. If a congressional review finds China is not following WTO protocols, the committee recommends that Congress suspend China’s ‘permanent normal trade relations’ status, which the United States established in a landmark agreement in 1999.
The report comes the day after President Joe Biden met with Chinese leader Xi Jinping to discuss deteriorating relations between the two countries — a meeting Rep. Michael McCaul (R., Texas) feared would only expose the Biden’s inability to stand up to China.
“We’re going to compete vigorously, but I’m not looking for conflict. I’m looking to run this competition responsibly,” Biden told reporters after the three-hour meeting.
The US-China Economic and Security Review Commission was organized to investigate the national security implications of US-China economic policies. The commission recommended a 90-day deadline for consideration by Congress.
“There is a cost associated with China’s predatory trade practices on American workers and industries that has been well documented since joining the WTO,” said Kim Glas, vice chair of the commission. the wall street journal. “We’re asking Congress to do a systematic and thorough review of this and determine what a normalized trade relationship would look like.”