The U.S.-China Economic and Security Review Commission (USCC) has recommended ending permanent normal trade relations (PNTR) with China, citing concerns over the Chinese Communist Party’s (CCP) unfair trade practices and violations of international norms. The USCC’s annual report highlights China’s centralized control of its economy, distortion of global markets, and exploitation of foreign industries and workers. The committee suggests revoking China’s most favored nation (MFN) status to protect American economic interests and security.
The report describes how China, under President Xi Jinping’s leadership, has shifted towards a politically-driven strategy focused on dominating high-tech sectors globally. China’s aggressive export practices, state-directed capital allocation, and manipulation of trade surpluses pose a threat to fair competition and require action to safeguard U.S. industries.
The proposal to revoke China’s MFN status aligns with President-elect Donald Trump’s anti-CCP agenda and is supported by key lawmakers like Sen. Marco Rubio and Rep. John Moolenaar. Trump’s intention to appoint Robert Lighthizer, a staunch critic of China’s trade violations, further signals a commitment to tough trade policies.
Despite potential backlash from China and concerns about consumer prices, public sentiment and economic adjustments have created a favorable environment for more aggressive action against China. The ongoing conflict in Ukraine has strengthened NATO alliances and could lead European partners to support U.S. trade policies. If the U.S. revokes China’s MFN status, Beijing may challenge the decision at the WTO, but the organization’s limited enforcement mechanisms may not significantly impact U.S. actions.
A second Trump administration would likely continue to challenge WTO rulings and prioritize unilateral or bilateral trade policies, potentially using the national security exception to counter China’s objections. Overall, the shift towards a more confrontational approach to trade with China reflects a broader strategic realignment in U.S. economic and security interests.
It is possible that Trump sees the WTO’s opposition to his trade policies as an opportunity to justify pulling the United States out of the organization altogether.
Given the high stakes involved, the WTO is unlikely to escalate tensions with the United States out of fear of losing one of its most influential members. The organization relies on voluntary compliance and international pressure to uphold its credibility, and a U.S. withdrawal would greatly diminish its relevance. This would allow Trump to enforce trade restrictions on China, thereby cutting off funding for the CCP’s weapons programs and weakening the Chinese regime’s ability to wage war against the United States or take over Taiwan.
Views expressed in this article are the opinions of the author and may not necessarily align with those of The Epoch Times.
