A bill that would revoke China’s Permanent Normal Trade Relations ( PNTR ), previously known as the Most Favoured Nation ( MFN) trade status, and impose a 100 % tariff on a wide range of Chinese goods has been proposed by bipartisan US lawmakers.  ,
Republican John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, next November introduced the , Restoring Trade Fairness Act, which, if enacted, would withdraw China’s PNTR.  ,
He announced on January 23 that Democrat parliamentarian Tom Suozzi may contribute to its promotion by forming a bipartisan bill to the proposed Act.  ,
The newly-inaugurated US President Donald Trump signed an executive order on January 20 that directed the US Trade Representative and the Secretary of Commerce to evaluate congressional ideas regarding China’s PNTR.
Trump had promised to establish a 60 % tax on all Chinese products on the campaign trail, but he has veered away from doing so since taking office on January 20.
The bipartisan compromise that both parties must acknowledge the need to restart our financial ties with China is a big success for both the Select Committee and our country, according to Moolenaar.
The Restoring Trade Fairness Act takes decisive action in line with President Trump’s authority, building on the tax measures passed by three successive governments.
According to the proposed Act, a wide range of Chinese goods will experience a 100 % price. They include pesticides, drugs, nuclear reactor and parts, gas turbine and parts, agricultural and construction equipment, industrial robots, motors and engines, unmanned aircraft, consumer electronic products and weapons. Other products may encounter a 35 % price.
Price increases may be entirely implemented in five times if the Act is passed and enacted. Two decades after the passage, 25 % of the complete work increase may apply. Four decades after the passage, 50 % of the complete duty increase may use.  ,
Some Chinese analysts predicted that the removal of China’s Import standing would result in a 60 % price on all US imports from China in November.
Some Chinese experts predicted that China will be able to address these issues by diversifying its export to other nations. They claimed that China could retaliate against the US by depreciating the Taiwanese money, slashing American make payments, and stifling imports of market metal to the US.
But, Tu Xinquan, professor of the China Institute for WTO Studies, University of International Business and Economics, says in a new article that China should never overlook the negative effects of losing MFN position.  ,
Rejecting Nafta standing results in the US no more granting China the same level of tariff protection, Tu claims. ” The US can then choose which taxes to impose on Chinese goods.”
” Revoking China’s Import reputation will also impact trade in services, intellectual property rights, diplomatic opportunities, engineering controls and officers markets between China and the US”, he says. ” China’s impact on losing the MFN status is much greater than tariff increases.”
Trump stated on January 21 that he is considering imposing a 10 % tariff on imports of all Chinese-made goods as soon as February 1. While it will take time for the US Congress to discuss the 100 % tariff. He defended his action in light of the claim that China is preventing the entry of its fentanyl precursors into North America.  ,
The US president also has the option of imposing a 25 % tariff on Mexico and Canada beginning in February, citing the two neighbors ‘ failure to stop the flow of illegal immigrants and drugs.
AmCham concerns ,
In addition, according to a survey conducted by the American Chamber of Commerce ( AmCham ) in China, three out of ten US companies are considering moving manufacturing or sourcing to a different country as a result of rising geopolitical concerns.
The China Business Climate Survey, which covers both the week of October 21 through November 15, 2024, before and after the most recent US presidential election on November 5, was conducted. It has a total sample size of 368 member companies.  ,
Only 23 % of the surveyed companies said they were considering leaving China or had already begun, according to the survey conducted in late 2023.  ,
According to the survey conducted in 2024, only 14 % of the responding companies think that the bilateral US-China relationship is expected to improve. However, 51 % of the responding companies said they think the relationship may continue to deteriorate in 2025.  ,
In the 2023 survey, only 24 % of companies think the Sino-US relationship will deteriorate while 30 % believe that the relationship will improve.  ,
The top five issues US businesses are facing in China, according to AmCham China:
- rising tensions in US-China relations
- competition from state-owned and/or privately-owned Chinese companies
- regulatory compliance
- inconsistent legislative interpretation, ambiguous laws, and strict laws
- rising labor costs
Understanding our members ‘ viewpoints has never been more crucial, according to Alvin Liu, chair of AmCham China,” US-China relations remain the most consequential bilateral dynamic in the world today.” A stable and constructive relationship that is based on economic and trade ties is essential for both our two countries ‘ prosperity and the stability of the world economy.
According to AmCham’s surveys, about 48 % of the responding companies listed China as one of their top three global investment destinations in 2024, up from 61 % in 2020. Additionally, from 10 % in 2020, the percentage of businesses that no longer listed China as a preferred investment destination increased to 21 % last year.
49 % of AmCham members surveyed last year said foreign companies were treated unfairly compared to domestic companies in the technology and R&, D sectors. The figure was 42 % in the 2023 survey.
In 2024, 46 % of respondents claimed their China businesses were profitable, and 18 % claimed to have lost money. In 2021, 59 % of responding members said they were profitable while 13 % saw a loss.  ,
Commenting on American firms ‘ concerns about deteriorating US-China relations, Mao Ning, a spokesperson of the Chinese Foreign Ministry, said this actually reflects how important it is to pursue a steady, sound and sustainable China-US relationship.
” China always views and develops China-US ties in line with the three principles put forth by President Xi Jinping, namely mutual respect, peaceful coexistence and win-win cooperation”, Mao said. We also anticipate that the US will cooperate with China to put China-US relations back on track for sound and steady development.
He Yadong, a spokesperson for the Chinese Ministry of Commerce, stated that the government will continue to support foreign businesses, improve the economic environment, and reduce the negative list in 2025.
Yong Jian contributes to the Asia Times. He is a Chinese journalist who specializes in Chinese technology, economy and politics.  ,