US Federal 2023-2024 Regular Session

US Federal House Bill HB638

Introduced
1/30/23  

Caption

China Trade Relations Act of 2023

Impact

The proposed legislation would amend the Trade Act of 1974 to expand the ineligibility criteria for the PRC to receive normal trade relations. This includes conditions concerning the country's compliance with human rights standards, labor rights, and its adherence to international agreements regarding the treatment of its citizens. If enacted, it would immediately affect the economic conditions under which U.S. businesses engage with China, potentially leading to higher tariffs and new barriers to trade. Critics of the bill argue that these measures could lead to retaliatory actions from China and disrupt numerous supply chains reliant on Chinese goods.

Summary

House Bill 638, titled the 'China Trade Relations Act of 2023', proposes significant changes to the trade relationship between the United States and the People’s Republic of China (PRC). The bill aims to withdraw the normal trade relations treatment currently extended to PRC products, which would drastically alter the existing import-export dynamics. By restricting trade privileges, the legislation seeks to hold China accountable for various human rights violations and other issues that have raised concerns in Washington over recent years.

Contention

The bill has generated significant debate among lawmakers. Proponents argue that tougher trade regulations are necessary to protect American interests and respond to China's actions regarding human rights abuses, including allegations related to forced labor and the treatment of ethnic minorities. On the other hand, some legislators warn that such measures may aggravate tensions between the U.S. and China, exacerbating existing trade disputes and leading to broader economic implications. The discussions around HB 638 reflect a growing divide regarding U.S. foreign policy direction towards China, balancing economic relations against national security concerns.

Companion Bills

US SB125

Related China Trade Relations Act of 2023

Previously Filed As

US HB1504

China Trade Relations Act of 2025

US SB3566

No Trade Preferences for Communist China Act

US HB694

Restoring Trade Fairness ActThis bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.The bill alsoauthorizes the President to take additional actions related to trade with China, requires merchandise imported from China to be appraised based on U.S. value, and establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.

US SB206

Restoring Trade Fairness ActThis bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.The bill alsoauthorizes the President to take additional actions related to trade with China, requires merchandise imported from China to be appraised based on U.S. value, and establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.

US HB1122

China Technology Transfer Control Act of 2025

US HB7075

Divesting from Communist China’s Military Act of 2026

US SB3640

Divesting from Communist China’s Military Act of 2026

US HB692

China Exchange Rate Transparency Act of 2025

US SB2657

STOP China and Russia Act of 2025 Severing Technology Transfer Operations and Partnerships between China and Russia Act of 2025

US SB1053

FIGHT China Act of 2025 Foreign Investment Guardrails to Help Thwart China Act of 2025

Similar Bills

No similar bills found.