The U.S.-China Economic and Security Review Commission released the 2024 Annual Report to Congress this week, as part of its mission to investigate, assess, and report on “the national security implications of the economic relationship between the United States and the People's Republic of China.” You can watch the Senate Hearing of the report and read the findings here.
Of particular interest to USFIA members is Chapter 1 of the report, which covers the U.S.-China Economic and Trade Relations. This section looks at China’s efforts to mitigate the current economic challenges, including increased government subsidies and targeted supply-side stimulus toward favored industries. The Executive Summary covers Chapter 1 starting on page 12.
The Commission also includes recommendations to Congress, such as:
- With respect to imports sold through an online marketplace, Congress eliminate Section 321 of the Tariff Act of 1930 (also known as the “de minimis” exemption), which allows goods valued under $800 to enter the United States duty free and, for all practical purposes, with less rigorous regulatory inspection. Congress should provide U.S. Customs and Border Protection adequate resources, including staff and technology, for implementation, monitoring, and enforcement.
- Congress amend the Consumer Product Safety Act to (1) grant the U.S. Consumer Product Safety Commission (CPSC) unilateral mandatory recall authority over products where the Chinese seller is unresponsive to requests from the CPSC for further information or to initiate a voluntary recall and the CPSC has evidence of a substantial product hazard, defined as either failing to comply with any CPSC rule, regulation, standard, or ban or posing a substantial risk of injury to the public; and (2) classify Chinese e-commerce platforms as distributors to allow for enforcement of recalls and other safety standards for products sold on these platforms.
- Congress direct the U.S. Department of Homeland Security and U.S. Customs and Border Protection, in conjunction with the U.S. Department of Commerce, to develop assessment tools capable of identifying the true origins of parts, components, and materials contained in products entering the United States to prevent tariff evasion and limit safety and security risks in light of the increasing complexity of global supply chains.
- Congress require that the U.S. Trade Representative, in consultation with the U.S. Department of Commerce, the U.S. International Trade Commission, and other entities, as appropriate, prepare a comprehensive report within 90 days on the operation of the U.S.-Mexico-Canada Trade Agreement since its entry into force that provides data and information on:
- Chinese-affiliated investments in Mexico and Canada and specific information on their production of goods and how those goods may enter the U.S. market either as finished products or as components in other products;
- Trade flows of products produced in China to Mexico and Canada and how such trade flows have changed;
- Prices of products produced in China shipped to Mexico and Canada as well as products shipped through those countries to the United States and how those prices relate to the prices of such goods shipped directly into the U.S. market; and
- Trade enforcement actions by Mexico and Canada regarding Chinese-produced products (including those transshipped 736 through third countries’ markets) and how such actions relate to U.S. trade enforcement actions.
- Congress amend applicable laws to mandate that online marketplaces clearly disclose on product listings for Chinese-made goods the name, physical address, and contact information for the manufacturer. The online marketplaces should also be required to clearly display a warning label that the item is manufactured in a country that does not comply with U.S. consumer safety standards.
- Congress direct the U.S. Government Accountability Office to investigate the reliability of safety testing certifications for consumer products and medical devices imported from China.