5 Republicans Urge Conferees to Back Changes to Aid Against China
Two Senate Commerce Committee Republicans -- Rick Scott of Florida and Dan Sullivan of Alaska -- were among five Republican senators who wrote Senate members of the conference committee negotiating how to marry elements of the House-passed America Creating Opportunities…
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for Manufacturing, Pre-Eminence in Technology and Economic Strength Act (HR-4521) and Senate-passed U.S. Innovation and Competition Act (S-1260) to recommend changes aimed at strengthening the U.S.’ ability to compete with China. Senate Minority Leader Mitch McConnell, R-Ky., complicated negotiations on HR-4521/S-1260 last week by tweeting “there will be no bipartisan USICA as long as Democrats are pursuing a partisan reconciliation bill.” “Economic competition with China is the single most important geo-political issue facing” the U.S., the five Republican senators said in a letter to the conferees. The other signers were Intelligence Committee Vice Chair Marco Rubio of Florida, Mike Braun of Indiana and Kevin Cramer of North Dakota. “We remain deeply concerned that several provisions germane to the conference would substantially weaken” the U.S.’ ability “to combat malicious Chinese economic influence,” the senators said. They cited language in S-1260 that would amend the 1974 Trade Act “to create a rigid exclusion process under Section 301 which we fear would eliminate it as a tool to combat unfair and malicious Chinese trade practices.” It would create “a statutory exclusion process so broad that” the Office of the U.S. Trade Representative “would be incapable of implementing an effective strategy,” the senators said: “The provision requires USTR to conduct a detailed analysis of each exclusion request and, for exclusions that it intends to deny, requires USTR to demonstrate both that the tariffs do not impact the internal finances of a business unit, and do not create an anticompetitive market structure. This burden is nearly impossible for USTR to meet.” The senators urged their conferees to accept language from HR-4521 that “we believe would be a substantial improvement over current law,” including “improvements to U.S. trade remedy laws which would help domestic manufacturers compete against unfair trade practices,” including the Chinese government-subsidized Belt and Road Initiative.