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"China calculates impact of losing most favored nation status
Pundits say US tariff hikes will hurt manufacturers seriously – and it may be time to upgrade their businesses" by YingJian
"China is expected to suffer from a 3.4% deflationary pressure if the United States revokes permanent normal trade relations (PNTR), previously known as most favored nation (MFN) status.
Beijing’s concerns about losing its MFN status have increased since the November 5 presidential election victory of Republican candidate Donald Trump, who has vowed to raise tariffs for all imported Chinese goods to 60%.
John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party (CCP), heated up the issue further on November 14 by introducing the Restoring Trade Fairness Act, which calls for ending China’s PNTR.
Moolenaar said that when China prepared to enter the World Trade Organization (WTO) in 2000, the US Congress voted to extend PNTR status to China, hoping that the Chinese would liberalize and adopt fair trading practices, but “this gamble failed.”
“Having PNTR with China has failed our country, eroded our manufacturing base and sent jobs to our foremost adversary. At the same time, the CCP has taken advantage of our markets and betrayed the hopes of freedom and fair competition that were expected when its authoritarian regime was granted PNTR more than 20 years ago,” he said.
Republican Senators Marco Rubio, Tom Cotton and Josh Hawley on September 26 introduced The Neither Permanent Nor Normal Trade Relations Act to end PNTR with China. On November 13, Rubio was nominated by Trump to be the next US secretary of state. Rubio is likely to gain Senate confirmation and begin his term after Trump’s January 20, 2025, inauguration."
