DeLauro Introduces China Market Economy Status Congressional Review Act

WASHINGTON, DC (April 14, 2016) — Congresswoman Rosa DeLauro (CT-03) today announced the China Market Economy Status Congressional Review Act to protect the American economy by requiring Congressional review for China to be recognized as a market economy. Under current U.S. law, the Department of Commerce is solely responsible for making a determination as to whether or not China has become a market economy. DeLauro’s bill ensures that Congress has the authority to approve this determination.

“Today, across our economy, American businesses are in crisis under the weight of billions of government-subsidized Chinese exports. Meanwhile, American companies attempting to do business in China have faced severely unfair treatment by the Chinese government,” said Congresswoman Rosa DeLauro. “Our trade deficit with China has now increased to a record $366 billion dollars. The China Market Economy Status Congressional Review Act is a critical step in ensuring that we do not short sell our economy with a trading partner that does not play by the rules.”

When China was allowed to join the World Trade Origination (WTO) in 2001, they agreed that other countries could automatically treat them as a non-market economy for at least 15 years. After that, each country would utilize the existing legal framework of their choice to decide how to treat Chinese products. Now, the Chinese government is seeking to be designated as a market economy and is lobbying WTO members, including the European Union and the U.S., to endorse changing its status.

According to the bipartisan U.S.-China Economic Security and Review Commission, the Chinese government continues to use non-market tactics to create barriers to investment and subsidize state-owned enterprises. In China, intellectual property theft and cyber-theft of trade secrets continues largely unabated.

A change in China’s non-market economy status would confer numerous benefits to China, while muting critical antidumping and countervailing duty defenses designed to offset China’s unfair practices. As a result, there would be a devastating impact on American industry. The China Market Economy Status Congressional Review Act would ensure that Congress has the opportunity to review any proposed change in China’s non-market economy status, and to either approve or reject that determination by a joint resolution within 45 days.

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