U.S. Lawmakers Demand Action on China's Overproduction Impact

The Select Committee on the Chinese Communist Party urges U.S. Secretary of Commerce Gina Raimondo to tackle China's industrial overcapacity and market-destabilizing dumping. Highlighting the epoxy resin industry, the committee seeks stronger enforcement of antidumping laws to protect American manufacturers from unfair competition posed by Chinese overproduction and government subsidies.

The leadership of the Select Committee on the Chinese Communist Party (SCCCP) has issued a strong plea to U.S. Secretary of Commerce Gina Raimondo, urging prompt measures to combat the detrimental effects of China's industrial overcapacity and export dumping practices in the American market.

The letter from lawmakers emphasizes the significant economic threat posed by Chinese overproduction, creating unfair competition, destabilizing U.S. industries, and eroding the market share of domestic manufacturers. The committee advocates for a firmer application of trade laws, particularly suggesting the use of special cost adjustment rules under 19 USC 1677b(f)(1)(A) to rectify pricing strategies skewed by overproduction and government subsidies.

Citing the epoxy resin sector as a prime example, the missive outlines the surge of underpriced goods flooding the American market, driven by increased production capacity among foreign producers, including those from China. The committee contends that such practices are cannibalizing market prices and squeezing profit margins for U.S. manufacturers, urging immediate and decisive action from the Department of Commerce to safeguard the American industry's future.

(With inputs from agencies.)