Bipartisan Bill Aims to Give the Justice Department Tools to Crack Down on China’s Trade Cheating

Getty Images

The proposed law would create a new task force within the agency to take on trade cheats, along with funding to help get the job done.

More than a dozen lawmakers from both sides of the aisle introduced legislation last week to give the Justice Department new powers and funding to take on China's trade crimes, including trade fraud, duty evasion, transshipment, and more.

The "Protecting American Industry and Labor from International Trade Crimes Act" is backed by House Committee on the Chinese Communist Party (CCP) Chairman John Moolenaar (R-Mich.) and Ranking Member Raja Krishnamoorthi (D-Ill.), along with Rep. Ashley Hinson (R-Iowa) and other members of the panel.

The Members explained the intent of the legislation:

Companies based in the People's Republic of China (PRC) frequently commit crimes violating U.S. trade laws including fraud, duty evasion, and transshipment which benefit the PRC's non-market economy and undermine U.S. companies and workers. Countless Americans have lost their jobs due to this criminal activity. Despite the large volume of trade crime-related cases, the U.S. Department of Justice (DOJ) has under-resourced its prosecution of these crimes.

This legislation aims to combat these crimes by directing the DOJ to establish a new structure dedicated to prosecuting international trade crimes. This will enhance U.S. capabilities for detecting, investigating, and prosecuting trade fraud, duty evasion, transshipment, and other trade-related crimes.

Specifically, the bill would establish a new task force within the Justice Department's Criminal Division to investigate and prosecute trade crimes, and requires the Attorney General to deliver an annual report to Congress on the Justice Department's efforts.

But it also gives the agency tools to do this work, including $20 million in fiscal year 2025, along with training and technical assistance for law enforcement agencies at the local, state, and national level, with the goal of expanding investigations and prosecutions.

Alliance for American Manufacturing President Scott Paul commended the legislation.

"The legislation rightly prioritizes the prosecution of trade crimes and is both sorely needed and long overdue," Paul said. "Customs fraud and other trade crimes are pernicious in their reach, harming domestic industries, destroying jobs, and robbing communities across the country of their economic lifeblood."

Other groups offering support for the bipartisan bill include the Campaign for Uyghurs, American Iron and Steel Institute, National Council of Textile Organizations, and Coalition for a Prosperous America.

Read more about the bill here.

Public link

Please use the above public link if you want to share this noodl on another website.