(7) U.S.-CHINA COMMISSION KEY RECOMMENDATIONS TO CONGRESS: The U.S.-China Economic and Security Review Commission released its annual report and is making several sweeping recommendations:
Eliminate Section 321 of the Tariff Act of 1930, which waives tariffs and inspections on goods under $800.
Establish a Joint Interagency Task Force under the President to evaluate and enhance export controls on technologies posing a national security risk.
Provide government oversight to any Chinese involvement in U.S. biotechnology development, specifically for genomic research and ancestral documentation. This would include oversight at U.S. colleges and universities, and every level of government down to local agencies.
Ban Chinese imports of technology controlled by China such as humanoid robots and energy infrastructure remote services.
Repeal Permanent Normal Trade Relations status for China.
Order the Director of National Intelligence to report within 180 days on China’s preparation for imminent war. The report would be classified and cover China’s energy sector, goods production, mobilization systems, and strategic reserves.
Amend the Arms Export Control Act of 1976 to add Taiwan to “NATO Plus” recipients, pay foreign nations to continue diplomatic recognition of Taiwan.
Why It Matters: These recommendations are generally in line with President-elect Trump’s hard-on-China stance and would amount to a low form of economic warfare. Repealing Section 321 would see a near immediate price rise on cheap Chinese goods, significantly affecting inflation numbers. Of particular note is the recommendation to pay foreign nations to switch recognition. This is a common Chinese tactic that the U.S. is likely to highlight if China attempts to thwart its implementation. Relations with China are likely to be severely strained under these recommendations but none directly lead to war. – J.V.
