U.S.-China Relations Report Suggests Stricter Trade Restrictions Amid Concerns of American Weakness

The U.S.-China Economic and Security Review Commission (USCC) has released its 2024 report, advocating for the U.S. Congress to enhance restrictions targeting China in various sectors, including trade and technology. One of the report's more notable suggestions is the revocation of China's Permanent Normal Trade Relations (PNTR) status, an action that experts argue contradicts 25 years of free trade principles and signals a defensive posture from the U.S.

The comprehensive report, spanning 793 pages, assesses various dimensions of U.S.-China relations and offers 32 legislative recommendations. These include addressing economic ties, technological competition, and China's military expansion in the Asia-Pacific region. Policy experts, such as Anthony Moretti, highlight concerns that these measures reflect a recognition of China's persistent progress despite the challenges posed by U.S. and allied interventions.

The intent to remove China's PNTR status is seen as a strategy to gain leverage over China's trading practices, yet experts like Yang Nan caution that such a move could violate World Trade Organization rules and exacerbate inflation within the U.S. Yang argues that terminating this status could destabilize both countries' economies, as China's large market and supply chain are difficult to replace.

Additionally, the report suggests the establishment of a Manhattan Project-like initiative focused on advancing U.S. artificial intelligence capabilities. Critics point out that broadly labeling Chinese technology as a national security risk may hinder potential collaboration in the tech sector, which could be detrimental in fostering international relationships.

If Congress agrees to these recommendations, Chinese imports may be subjected to higher tariffs, with implications for U.S. consumer prices and economic stability. The document further advocates for stricter controls on technology exchanges with China, raising concerns about the impact on global economic dynamics and the U.S. position in international trade.