In a significant move to protect American industry and labour, the Chairman of the US House Select Committee on Strategic Competition between the US and the Chinese Communist Party (CCP), John Moolenaar (R-MI), alongside Congresswoman Ashley Hinson (R-IA) and Ranking Member Raja Krishnamoorthi (D-IL), has introduced the bipartisan Protecting American Industry and Labor from International Trade Crimes Act.

The legislation targets companies based in the People’s Republic of China (PRC) that frequently violate US trade laws through activities such as fraud, duty evasion, and transshipment. These illegal practices bolster the PRC’s non-market economy while undermining US companies and workers, leading to job losses across the US. Despite the prevalence of these trade crimes, the US Department of Justice (DOJ) has been under-resourced in its prosecution efforts, the Select Committee on the CCP said in a press release.

The new bill aims to rectify this by directing the DOJ to establish a dedicated structure within its Criminal Division to focus on prosecuting international trade crimes. This initiative will significantly enhance the US's capabilities in detecting, investigating, and prosecuting trade fraud, duty evasion, transshipment, and other related crimes.

The Protecting American Industry and Labor from International Trade Crimes Act outlines several key provisions. It calls for the establishment of a new task force or similar structure within the DOJ’s Criminal Division to investigate and prosecute trade-related crimes. Additionally, it aims to enhance nationwide responses to trade-related offences by providing training and technical assistance to federal, state, and local law enforcement agencies, expanding investigations and prosecutions, and enabling parallel criminal and civil enforcement actions. The legislation also requires the Attorney General to submit an annual report to Congress detailing the DOJ’s efforts, providing statistics on trade-related crimes, and outlining fund utilisation. Moreover, the bill authorises $20 million for financial year 2025 (FY25) to support these efforts with appropriate guardrails.

Original co-sponsors of the bill include prominent legislators such as House Republican Conference chairwoman Elise Stefanik, House Appropriations Committee ranking member Rosa DeLauro, and representatives Darin LaHood, Glenn Ivey, Nate Moran, Ted Lieu, Ben Cline, Haley Stevens, Kevin Kiley, Deborah Ross, and Lou Correa.

"For decades, Communist China has blatantly violated US trade laws and ripped off American workers with no accountability or consequences. This has led to shuttered factories and devastating job losses across the country, hollowing out American industry and gutting rural manufacturing towns while enabling the CCP's forced labour practices. My bipartisan legislation will ensure we finally crack down on Communist China's illicit trade practices so that we can reshore American manufacturing and provide opportunities for American workers," said Congresswoman Ashley Hinson.

“Not a week goes by without the committee learning of yet another American company harmed by Chinese companies shipping their goods through other countries to illegally evade tariffs. While heightened tariff rates can help level the playing field for US businesses, the legislation we are introducing today adds teeth to the tariffs and punishes companies for breaking the law. I’m proud to join Rep. Ashely Hinson in co-sponsoring this crucial legislation that will give law enforcement the power to hold CCP trade criminals accountable and will support American businesses who are the victims of these crimes," said Chairman John Moolenaar.

Fibre2Fashion News Desk (DP)