US Panel Calls for Tougher Trade Stance Against China

A US congressional panel recommended ending permanent normal trade relations with China. This move aims to strengthen US leverage against 'unfair trade behaviours' and aligns with Republican strategies to intensify the trade war, potentially impacting both economies significantly.

The US-China Economic and Security Review Commission has called for the United States to reconsider its trade relationship with China. In its latest report to Congress, the panel recommended ending permanent normal trade relations with Beijing, a policy that's been in place for nearly 25 years. This suggestion aligns with a growing wave of sentiment in Washington seeking to stem what is perceived as economic imbalance and unfair trade practices by China.

The recommendation follows actions from notable Republican figures, including Senator Marco Rubio and other legislators, as the trade tension with China looks set to amplify under the forthcoming administration. The commission's proposal could lead to the US reinstating annual evaluations of China's trade conduct, granting America additional leverage to combat perceived injustices in trade.

Initially, the 1999 decision was made to facilitate China's entry into the World Trade Organization, fostering hopes for both economic growth and political reform in China. However, these aspirations did not fully materialize, and the trade conflict escalated notably in 2018. Amid the evolving trade dynamics, prominent leaders are voicing the necessity to prioritize American industry and labor interests.

(With inputs from agencies.)