US lawmakers call for crackdown on China's illegal trade practices, call for Section 301 investigation

Washington DC [US], March 7 : Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the Select Committee on the Chinese Communist Party have sent a letter to US Attorney General Pam Bondi, Secretary of Homeland Security Kristi Noem, and US Trade Representative Jamieson Greer urging them to take further action against China's illegal trade practices, according to a report from the Select Committee on CCP (SCCCP). They called for a Section 301 investigation into China's transshipment schemes.
In the letter, the US lawmakers urged the three officials to conduct investigations and implement appropriate enforcement measures against companies that evade US trade laws by unlawfully routing products through third countries. It underscored the significant damage these practices have caused to various US industries, including automotive parts, textiles, and apparel support, as well as the trafficking of precursor chemicals used in the production of fentanyl by China, SCCCP said in a press release.
"The PRC's systematic abuse of US trade laws and protective mechanisms through transshipment, forced labor, and other illicit trade practices represents a clear and urgent threat to American industry and workers. The Select Committee's bipartisan investigative and oversight work has exposed many examples of relevant concerns. Given such evidence of systemic fraud, we urge your agencies to strengthen enforcement against the PRC's unlawful trade practices, including by criminally prosecuting trade criminals, stepping up civil enforcement, and self-initiating a Section 301 investigation into PRC transshipment schemes", the letter read
"We are reaching out today to urge your agencies to take further actions to enforce US. trade regulations and to address the unlawful practices of the People's Republic of China (PRC) that hinder US commerce. The Select Committee on the Strategic Competition between the United States and the Chinese Communist Party (CCP) has revealed multiple instances of actors based in the PRC violating U.S. trade laws, including the illegal transshipment of products through third countries," SCCCP press release said.
The US lawmakers noted that failure to hold China accountable for these "unlawful practices" would lead to actors "continuing to inflict severe harm on American industries and workers."
In the letter, the lawmakers stated, "Failure to swiftly hold the PRC accountable for these unlawful practices will result in these actors continuing to inflict severe harm on American industries and workers. We urge your respective agencies to increase their enforcement to curb transshipment. Specifically, we request that the Office of the United States Trade Representative (USTR) launch an investigation of these practices under Section 301(b) of the Trade Act of 1974."
"In the 118th Congress, the Select Committee uncovered numerous cases of blatant trade fraud that undermine American manufacturers and force American consumers into unwitting complicity in the CCP's ongoing genocide of the Uyghurs and other ethnic and religious minority groups in Xinjiang", the letter stated.
John Moolenaar and Raja Krishnamoorthi said that China's transshipment practices give its companies an unfair advantage, enabling them to flood the US market with artificially cheap goods while bypassing trade enforcement mechanisms
"The PRC's transshipment practices give its companies an unfair advantage, allowing them to flood the US market with artificially cheap goods while bypassing trade enforcement mechanisms. The consequences for American companies are severe; they are frequently burdened with significant debt, forced to lay off workforce, and pressured to shift production overseas", the letter said, as stated by SCCCP report.
In the letter, Krishnamoorthi and Moolenaar concluded by asserting that China's ongoing misuse of US trade regulations and protective measures via transshipment, forced labor, and other illegal trade activities poses a significant and pressing threat to American industries and employees. The bipartisan investigative and oversight efforts of the Select Committee have revealed numerous pertinent issues, according to the SCCCP.