Big news!The United States officially evaluates the cancellation of China's permanent normal tra
- Author:Shipping Information
- Source:Shipping Information
- Release Date:2025-03-06
On March 3 local time, the Office of the U.S. Trade Representative issued the "U.S. President's 2025 Trade Policy Agenda", one of which was an important issue that attracted widespread attention: evaluating the legislative proposal to abolish China's permanent normal trade relations status (PNTR).
The proposal was launched by John Moolenaar, chairman of the House Ad Hoc Committee on China, in conjunction with the Democrats, and was called the Trade Fair Restoration Act, which aims to revoke the PNTR status that China has obtained since joining the WTO in 2000.
Current U.S. Trade Representative Jamieson Greer, an attorney with a background in international trade law, will be responsible for evaluating the proposal.During Trump's first term, Greer served as chief of staff to Robert Lighthizer, then-US Trade Representative, and is known for his tough stance towards China.
He advocated strategic decoupling between China and the United States, abolished China's PNTR status, and imposed new and higher tariffs on Chinese goods.This position is in line with the Trump administration's "America First" policy, showing the United States' hawkish tendency in trade policy.
Tariffs up to 35%-100%
Under the Trade Fair Restoration Act, if the PNTR status is cancelled, the United States will impose high tariffs on Chinese goods in stages.The minimum tariff for non-strategic commodities is 35%, while the minimum tariff for strategic commodities is as high as 100%.
This measure will be implemented gradually within five years, increasing to 25% in the second year, reaching 50% in the fourth year, and rising to 100% in the fifth year.In addition, the bill proposes to terminate the "small exemption" tax exemption for low-value Chinese imported products worth less than $800.
After Trump's victory in November last year, Mullenal, chairman of the U.S. House of Representatives China Ad Hoc Committee, proposed the legislation aimed at depriving China of its PNTR status, commonly known as the most-favored-nation treatment.
The United States' move not only involves economic considerations, but also has political intentions.On the one hand, the United States hopes to protect its manufacturing industry by raising tariffs and reduce its trade deficit with China; on the other hand, abolishing the PNTR status will make Sino-US trade relations more tense and further intensify the strategic competition between the two countries.
Possible loss of $1.6 trillion
Faced with the threat of the United States' possible cancellation of its PNTR status, China will surely take reciprocal countermeasures.This will lead to a permanent decoupling of the economies of China and the United States, and have a profound impact on the economy of China and the United States and the global trade order.
According to a research report by the Peterson Institute for International Economics, the abolition of China's PNTR status will reduce the U.S. GDP by US$158.7 billion between 2025 and 2034, a decrease of durable products by US$520 billion, an inflation rate rises by 0.4 percentage points, and an increase in unemployment, especially in the agriculture, mining and durable goods manufacturing industries.
This series of negative consequences will force the United States to weigh the pros and cons when implementing the policy.
Overview, the US proposal to abolish China's PNTR status will have a profound impact on China's economic and trade relations.The two sides need to seek solutions through dialogue and consultation to maintain the stability and development of China-US economic and trade relations.
At the same time, China also needs to accelerate its own economic development and structural adjustment, improve its independent innovation capabilities and core competitiveness, so as to better respond to external challenges and risks.
In addition, the complementarity of China and the huge domestic market capacity of China provides the possibility for the two countries to reach a new trade agreement.
China's exports to the United States mainly include labor-intensive and technology-intensive products such as mechanical and electronic products, textiles, shoes and clothing products, while imports from the United States are based on agricultural and sideline food, energy products, chemicals and chemicals, etc.
China has the ability and wisdom to manage economic and trade disputes with the United States, and will respond flexibly based on actual conditions and strive for the most favorable results.
The proposal was launched by John Moolenaar, chairman of the House Ad Hoc Committee on China, in conjunction with the Democrats, and was called the Trade Fair Restoration Act, which aims to revoke the PNTR status that China has obtained since joining the WTO in 2000.
Current U.S. Trade Representative Jamieson Greer, an attorney with a background in international trade law, will be responsible for evaluating the proposal.During Trump's first term, Greer served as chief of staff to Robert Lighthizer, then-US Trade Representative, and is known for his tough stance towards China.
He advocated strategic decoupling between China and the United States, abolished China's PNTR status, and imposed new and higher tariffs on Chinese goods.This position is in line with the Trump administration's "America First" policy, showing the United States' hawkish tendency in trade policy.
Tariffs up to 35%-100%
Under the Trade Fair Restoration Act, if the PNTR status is cancelled, the United States will impose high tariffs on Chinese goods in stages.The minimum tariff for non-strategic commodities is 35%, while the minimum tariff for strategic commodities is as high as 100%.
This measure will be implemented gradually within five years, increasing to 25% in the second year, reaching 50% in the fourth year, and rising to 100% in the fifth year.In addition, the bill proposes to terminate the "small exemption" tax exemption for low-value Chinese imported products worth less than $800.
After Trump's victory in November last year, Mullenal, chairman of the U.S. House of Representatives China Ad Hoc Committee, proposed the legislation aimed at depriving China of its PNTR status, commonly known as the most-favored-nation treatment.
The United States' move not only involves economic considerations, but also has political intentions.On the one hand, the United States hopes to protect its manufacturing industry by raising tariffs and reduce its trade deficit with China; on the other hand, abolishing the PNTR status will make Sino-US trade relations more tense and further intensify the strategic competition between the two countries.
Possible loss of $1.6 trillion
Faced with the threat of the United States' possible cancellation of its PNTR status, China will surely take reciprocal countermeasures.This will lead to a permanent decoupling of the economies of China and the United States, and have a profound impact on the economy of China and the United States and the global trade order.
According to a research report by the Peterson Institute for International Economics, the abolition of China's PNTR status will reduce the U.S. GDP by US$158.7 billion between 2025 and 2034, a decrease of durable products by US$520 billion, an inflation rate rises by 0.4 percentage points, and an increase in unemployment, especially in the agriculture, mining and durable goods manufacturing industries.
This series of negative consequences will force the United States to weigh the pros and cons when implementing the policy.
Overview, the US proposal to abolish China's PNTR status will have a profound impact on China's economic and trade relations.The two sides need to seek solutions through dialogue and consultation to maintain the stability and development of China-US economic and trade relations.
At the same time, China also needs to accelerate its own economic development and structural adjustment, improve its independent innovation capabilities and core competitiveness, so as to better respond to external challenges and risks.
In addition, the complementarity of China and the huge domestic market capacity of China provides the possibility for the two countries to reach a new trade agreement.
China's exports to the United States mainly include labor-intensive and technology-intensive products such as mechanical and electronic products, textiles, shoes and clothing products, while imports from the United States are based on agricultural and sideline food, energy products, chemicals and chemicals, etc.
China has the ability and wisdom to manage economic and trade disputes with the United States, and will respond flexibly based on actual conditions and strive for the most favorable results.