China will lose its most-favored-nation trade status. This will further extend trade concessions. It will be for one nation to all countries. Thus on Thursday, US Senator Tom Cotton introduced new legislation. This might be hard for China. Losing it will surely impact its economy. Though it could still maintain the position. The President renewed the privilege annually. However, Congress is allowed to override the decision. They could pass a joint resolution of disapproval. At present China enjoys trade concession on goods and services. This is all because of the MFN status. The bill includes loss of human rights and trade abuses. Thus these reasons are enough to disqualify China for MFN status.
The Chinese government has used slave labor, re-education prison camps. They even forced abortion and sterilization. Also organ harvesting from prisoners and many more. Even religious ill-treatment, harassment of emigrants. They are also the theft of intellectual property from Americans. According to the release, the bill includes everything. China’s tendency of not doing the things in manner. It always left it in trouble later. Its high time now. American workers need to be protected. The had faced a lot of harassment against them.
Overview of China Trade
On September 19, 2000, the Senate voted for China’s MFN. Though when the status is given to China they misused it. This has contributed to the China Trade Stock. It has destroyed 2 million American jobs. Later after 2001, China led to expansion. This has also lead to a surge of business investment in Chinese products. Later the CCP of China become stronger. Not on stronger but dangerous. To maintain the important pillars of the world they made an agreement. Earlier it was believed that more trade with the Chinese would advance America’s economy. The Chinese government took it to advantage. As a new member, it grows rapidly. This has lower tariffs and open China’s market. China cut tariffs after joining WTO. However, they continue to steal US IP to grow its economy. It also forced American companies to move to China. They even steal technology. Whatever the Chinese traders did was against the WTO rules.
However, it is very necessary that there must be a check. The new rules and regulations are necessary. There must be policies. These policies are directed. Otherwise, it will impact the standard of living. Trade war must be ended.