What This Bill Does
This bill stops giving Chinese products special trade treatment that the United States currently provides. Instead, the bill requires the President to follow older trade rules when dealing with Chinese products. The bill also creates new reasons that could prevent China from receiving favorable trade status in the future.
Who It Affects
Businesses that buy or sell Chinese products, the President, Congress, the U.S. government agencies that manage trade and credit programs, and Chinese nationals living outside China.
Key Provisions
• Normal trade relations treatment stops applying to Chinese products immediately when this bill becomes law (Sec. 2)
• Chinese products can only receive favorable trade treatment in the future if the President submits a report to Congress saying China is not violating eight specific conditions, which include not using slave labor, not operating concentration camps, not forcing abortions or sterilizations, not harvesting organs from prisoners without consent, not blocking religious freedom, not intimidating Chinese people living abroad, and not stealing American intellectual property (Sec. 3)
• The President can waive these restrictions for 12-month periods if the President reports to Congress that the waiver will substantially promote the goals of this law and that China has given assurances about improving its practices (Sec. 3)
• Congress can vote to disapprove any extension of the President's waiver authority through a joint resolution (a formal Congressional action), and the waiver ends if Congress votes to disapprove and either the President does not veto it or Congress votes to override a presidential veto (Sec. 3)
What Changes
Chinese products lose automatic access to the same trade treatment that most countries receive. China must meet new requirements before its products can receive that treatment again. The President must report regularly to Congress about whether China meets these requirements. The President gains the ability to temporarily waive these rules, but Congress can vote to block those waivers.
Important Definitions
Normal trade relations treatment: special trade status that allows products to enter the United States without extra tariffs or restrictions
Nondiscriminatory treatment: treating products from one country the same as products from other countries
Effective Date
The date this bill is signed into law (Sec. 2)
II
118TH CONGRESS
1ST SESSION
S. 125
To withdraw normal trade relations treatment from, and apply certain provi-
sions of title IV of the Trade Act of 1974 to, products of the People’s
Republic of China, and to expand the eligibility requirements for products
of the People’s Republic of China to receive normal trade relations
treatment in the future, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JANUARY 26, 2023
Mr. COTTON (for himself, Mr. SCOTT of Florida, Mr. BUDD, and Mr. VANCE)
introduced the following bill; which was read twice and referred to the
Committee on Finance
A BILL
To withdraw normal trade relations treatment from, and
apply certain provisions of title IV of the Trade Act
of 1974 to, products of the People’s Republic of China,
and to expand the eligibility requirements for products
of the People’s Republic of China to receive normal trade
relations treatment in the future, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘China Trade Relations
4
Act of 2023’’.
5
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SEC. 2. WITHDRAWAL OF NORMAL TRADE RELATIONS
1
TREATMENT FROM THE PEOPLE’S REPUBLIC
2
OF CHINA.
3
Notwithstanding the provisions of title I of Public
4
Law 106–286 (114 Stat. 880) or any other provision of
5
law, effective on the date of the enactment of this Act—
6
(1) normal trade relations treatment shall not
7
apply pursuant to section 101 of that Act to the
8
products of the People’s Republic of China;
9
(2) normal trade relations treatment may there-
10
after be extended to the products of the People’s Re-
11
public of China only in accordance with the provi-
12
sions of chapter 1 of title IV of the Trade Act of
13
1974 (19 U.S.C. 2431 et seq.), as in effect with re-
14
spect to the products of the People’s Republic of
15
China on the day before the effective date of the ac-
16
cession of the People’s Republic of China to the
17
World Trade Organization; and
18
(3) the extension of waiver authority that was
19
in effect with respect to the People’s Republic of
20
China under section 402(d)(1) of the Trade Act of
21
1974 (19 U.S.C. 2432(d)(1)) on the day before the
22
effective date of the accession of the People’s Repub-
23
lic of China to the World Trade Organization shall,
24
upon the enactment of this Act, be deemed not to
25
have expired, and shall continue in effect until the
26
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•S 125 IS
date that is 90 days after the date of such enact-
1
ment.
2
SEC. 3. EXPANSION OF BASES OF INELIGIBILITY OF PEO-
3
PLE’S REPUBLIC OF CHINA FOR NORMAL
4
TRADE RELATIONS.
5
(a) IN GENERAL.—Section 402 of the Trade Act of
6
1974 (19 U.S.C. 2432) is amended—
7
(1) in the section heading, by striking ‘‘FREE-
8
DOM OF EMIGRATION IN EAST-WEST TRADE’’
9
and inserting ‘‘EAST-WEST TRADE AND HUMAN
10
RIGHTS’’; and
11
(2) by adding at the end the following:
12
‘‘(f) ADDITIONAL BASES OF INELIGIBILITY OF PEO-
13
PLE’S REPUBLIC OF CHINA FOR NORMAL TRADE RELA-
14
TIONS.—
15
‘‘(1) IN GENERAL.—Products of the People’s
16
Republic of China shall not be eligible to receive
17
nondiscriminatory treatment (normal trade rela-
18
tions), the People’s Republic of China shall not par-
19
ticipate in any program of the Government of the
20
United States which extends credits or credit guar-
21
antees or investment guarantees, directly or indi-
22
rectly, and the President shall not conclude any
23
commercial agreement with the People’s Republic of
24
China, during the period—
25
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‘‘(A) beginning with the date on which the
1
President determines that the People’s Republic
2
of China—
3
‘‘(i) is in violation of paragraph (1),
4
(2), or (3) of subsection (a);
5
‘‘(ii) uses or provides for the use of
6
slave labor;
7
‘‘(iii) operates ‘vocational training and
8
education centers’ or other concentration
9
camps where people are held against their
10
will;
11
‘‘(iv) performs or otherwise orders
12
forced abortion or sterilization procedures;
13
‘‘(v) harvests the organs of prisoners
14
without their consent;
15
‘‘(vi) hinders the free exercise of reli-
16
gion;
17
‘‘(vii) intimidates or harasses nation-
18
als of the People’s Republic of China living
19
outside the People’s Republic of China; or
20
‘‘(viii) engages in systematic economic
21
espionage against the United States, in-
22
cluding theft of the intellectual property of
23
United States persons; and
24
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‘‘(B) ending on the date on which the
1
President determines that the People’s Republic
2
of China is no longer in violation of any of
3
clauses (i) through (viii) of subparagraph (A).
4
‘‘(2) REPORT REQUIRED.—
5
‘‘(A) IN GENERAL.—After the date of the
6
enactment of this subsection, products of the
7
People’s Republic of China may be eligible to
8
receive nondiscriminatory treatment (normal
9
trade relations), the People’s Republic of China
10
may participate in any program of the Govern-
11
ment of the United States which extends credits
12
or credit guarantees or investment guarantees,
13
and the President may conclude a commercial
14
agreement with the People’s Republic of China,
15
only after the President has submitted to Con-
16
gress a report indicating that the People’s Re-
17
public of China is not in violation of any of
18
clauses (i) through (viii) of paragraph (1)(A).
19
‘‘(B) ELEMENTS.—The report required by
20
subparagraph (A) shall include information as
21
to the nature and implementation of laws and
22
policies of the People’s Republic of China relat-
23
ing to the matters specified in clauses (i)
24
through (viii) of paragraph (1)(A).
25
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‘‘(C) DEADLINES.—The report required by
1
subparagraph (A) shall be submitted on or be-
2
fore each June 30 and December 31 of each
3
year for as long as products of the People’s Re-
4
public of China receive nondiscriminatory treat-
5
ment (normal trade relations), the People’s Re-
6
public of China participates in any program of
7
the Government of the United States which ex-
8
tends credits or credit guarantees or investment
9
guarantees, or a commercial agreement with the
10
People’s Republic of China is in effect.
11
‘‘(3) WAIVER.—
12
‘‘(A) IN GENERAL.—The President is au-
13
thorized to waive by Executive order the appli-
14
cation of paragraphs (1) and (2) for a 12-
15
month period if the President submits to Con-
16
gress a report that the President—
17
‘‘(i) has determined that such waiver
18
will substantially promote the objectives of
19
this subsection; and
20
‘‘(ii) has received assurances that the
21
practices of the People’s Republic of China
22
relating to the matters specified in clauses
23
(i) through (viii) of paragraph (1)(A) will
24
in the future lead substantially to the
25
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•S 125 IS
achievement of the objectives of this sub-
1
section.
2
‘‘(B) TERMINATION OF WAIVER.—A waiver
3
under subparagraph (A) shall terminate on the
4
earlier of—
5
‘‘(i) the day after the waiver authority
6
granted by this paragraph ceases to be ef-
7
fective under paragraph (4); or
8
‘‘(ii) the effective date of an Executive
9
order providing for termination of the
10
waiver.
11
‘‘(4) EXTENSION OF WAIVER AUTHORITY.—
12
‘‘(A) RECOMMENDATIONS.—If the Presi-
13
dent determines that the further extension of
14
the waiver authority granted under paragraph
15
(3) will substantially promote the objectives of
16
this subsection, the President may recommend
17
further extensions of such authority for succes-
18
sive 12-month periods. Any such recommenda-
19
tions shall—
20
‘‘(i) be made not later than 30 days
21
before the expiration of such authority;
22
‘‘(ii) be made in a document sub-
23
mitted to the House of Representatives
24
and the Senate setting forth the reasons of
25
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•S 125 IS
the President for recommending the exten-
1
sion of such authority; and
2
‘‘(iii) include—
3
‘‘(I) a determination that con-
4
tinuation of the waiver will substan-
5
tially promote the objectives of this
6
subsection; and
7
‘‘(II) a statement setting forth
8
the reasons of the President for such
9
determination.
10
‘‘(B) CONTINUATION IN EFFECT OF WAIV-
11
ER.—If the President recommends under sub-
12
paragraph (A) the further extension of the
13
waiver authority granted under paragraph (3),
14
such authority shall continue in effect until the
15
end of the 12-month period following the end of
16
the previous 12-month extension, unless—
17
‘‘(i) Congress adopts and transmits to
18
the President a joint resolution of dis-
19
approval under paragraph (5) before the
20
end of the 60-day period beginning on the
21
date the waiver authority would expire but
22
for an extension under subparagraph (A);
23
and
24
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•S 125 IS
‘‘(ii) if the President vetoes the joint
1
resolution, each House of Congress votes
2
to override the veto on or before the later
3
of—
4
‘‘(I) the last day of the 60-day
5
period referred to in clause (i); or
6
‘‘(II) the last day of the 15-day
7
period (excluding any day described in
8
section 154(b)) beginning on the date
9
on which Congress receives the veto
10
message from the President.
11
‘‘(C) TERMINATION OF WAIVER PURSUANT
12
TO JOINT RESOLUTION OF DISAPPROVAL.—If a
13
joint resolution of disapproval is enacted into
14
law pursuant to paragraph (5), the waiver au-
15
thority granted under paragraph (3) shall cease
16
to be effective as of the day after the 60-day
17
period beginning on the date of the enactment
18
of the joint resolution.
19
‘‘(5) JOINT RESOLUTION OF DISAPPROVAL.—
20
‘‘(A) JOINT RESOLUTION OF DISAPPROVAL
21
DEFINED.—In this paragraph, the term ‘joint
22
resolution of disapproval’ means a joint resolu-
23
tion the matter after the resolving clause of
24
which is as follows: ‘That Congress does not ap-
25
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•S 125 IS
prove the extension of the authority contained
1
in paragraph (3) of section 402(f) of the Trade
2
Act of 1974 with respect to the People’s Repub-
3
lic of China recommended by the President to
4
Congress under paragraph (4) of that section
5
on lll.’, with the blank space being filled
6
with the appropriate date.
7
‘‘(B) PROCEDURES IN HOUSE AND SEN-
8
ATE.—The
provisions
of
subsections
(b)
9
through (f) of section 152 shall apply with re-
10
spect to a joint resolution of approval to the
11
same extent and in the same manner as such
12
provisions apply with respect to a resolution de-
13
scribed in subsection (a) of that section, except
14
that subsection (e)(2) of that section shall be
15
applied and administered by substituting ‘Con-
16
sideration’ for ‘Debate’.
17
‘‘(C) RULES
OF
THE
HOUSE
OF
REP-
18
RESENTATIVES AND SENATE.—This paragraph
19
is enacted by Congress—
20
‘‘(i) as an exercise of the rulemaking
21
power of the House of Representatives and
22
the Senate, respectively, and as such is
23
deemed a part of the rules of each House,
24
respectively, and supersedes other rules
25
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•S 125 IS
only to the extent that it is inconsistent
1
with such other rules; and
2
‘‘(ii) with full recognition of the con-
3
stitutional right of either House to change
4
the rules (so far as relating to the proce-
5
dure of that House) at any time, in the
6
same manner and to the same extent as in
7
the case of any other rule of that House.’’.
8
(b) CLERICAL AMENDMENT.—The table of contents
9
for the Trade Act of 1974 is amended by striking the item
10
relating to section 402 and inserting the following:
11
‘‘Sec. 402. East-West trade and human rights.’’.
Æ
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