[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3566 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 3566
To withdraw normal trade relations treatment with respect to the
People's Republic of China, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 18, 2025
Mr. Scott of Florida introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To withdraw normal trade relations treatment with respect to the
People's Republic of China, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Trade Preferences for Communist
China Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) From 1980 until the passage of the U.S.-China Relations
Act of 2000 (22 U.S.C. 6911 et seq.), the United States granted
permanent normal trade relations status to the People's
Republic of China, contingent on an annual review pursuant to
section 402 of the Trade Act of 1974 (19 U.S.C. 2432).
(2) The receipt by the People's Republic of China of
permanent normal trade relations status, concurrent with its
ascension to the World Trade Organization in 2001, was
contingent on its adherence to several commitments, including
transitioning towards a more market-oriented economy,
protecting intellectual property, ensuring non-discrimination
against foreign entities in trade matters, and ending export
and production subsidies. However, the People's Republic of
China has repeatedly and objectively violated each and every
one of those commitments.
(3) Evasion by the People's Republic of China of tariffs
imposed by the United States cost the economy of the United
States approximately $130,000,000,000 in 2023 alone, and
concurrently the People's Republic of China chose to impose
exceedingly high tariffs, non-tariff barriers, and other
regulatory hurdles on businesses in the United States.
(4) According to the United States Trade Representative,
the People's Republic of China remains a ``priority watch
list'' country for intellectual property theft and has stolen
between $180,000,000,000 and $540,000,000,000 annually from the
United States economy through theft of intellectual property,
trade secrets, business processes, and technologies.
(5) The People's Republic of China continues a systemic
program of top-down industrial planning through heavy
subsidization of domestic industries, prioritizing the
protection of state-owned enterprises and a dual-pricing scheme
that has left industries in the United States unable to
effectively and fairly compete. According to a 2022 study by
the Center for Strategic and International Studies, the
People's Republic of China offered as much as $407,000,000,000
in de facto subsidies to its domestic industries in 2019.
(6) While the People's Republic of China subsidizes its
industries in violation of its commitments under the World
Trade Organization, it has already failed to comply with yet
another major trade agreement--the Economic and Trade Agreement
Between the Government of the United States of America and the
Government of the People's Republic of China, signed on January
15, 2020, in which the People's Republic of China pledged to
purchase an additional $200,000,000,000 in United States goods
and services by the end of 2021. The People's Republic of China
failed to meet that deadline and fell short of its pledged
commitment by 60 percent for goods.
(7) According to the United States Trade Representative,
from 1994 through April 2025, the United States lost 5,000,000
manufacturing jobs and 90,000 factories. The world
manufacturing output share of the United States declined from
28 percent in 2001 to 17 percent in 2024. In the fourth quarter
of 2024, United States manufacturing as a share of gross
domestic product was at a 20-year low. At the same time, the
economy of the People's Republic of China grew from the world's
sixth largest economy in 2001 to the second largest in 2025.
(8) In October 2025, the People's Republic of China
threatened to hold the world hostage through broad export
controls over the rare earths supply chain, spanning mining,
refining, and manufacturing. The United States once held global
dominance in rare earths but gradually surrendered by yielding
to environmental pressure campaigns and an increasingly onerous
regulatory regime.
(9) Under article XXI of GATT 1994 (as defined in section 2
of the Uruguay Round Agreements Act (19 U.S.C. 3501)),
countries may act ``for the protection of their essential
security interests'' without breaching their obligations under
the World Trade Organization. The relentless assault by the
People's Republic of China on the economic security of the
United States through industrial espionage, forced technology
transfers, and the systematic erosion of the domestic
manufacturing base of the United States directly undermines the
ability of the United States to sustain its industrial
capacity. Those economic attacks, compounded by broader acts of
aggression, such as military expansion in the South China Sea
and egregious human rights abuses, constitute a comprehensive,
ongoing, and grave threat to the national security interests of
the United States. Accordingly, the behavior by the People's
Republic of China merits the invocation of article XXI and
Congress should therefore invoke that principle by revoking
permanent normal trade relations status for the People's
Republic of China to defend the strategic and economic security
of the United States.
(10) In 2022, members of the World Trade Organization
similarly invoked article XXI to revoke permanent normal trade
relations status for the Russian Federation.
SEC. 3. WITHDRAWAL OF NORMAL TRADE RELATIONS TREATMENT FOR THE PEOPLE'S
REPUBLIC OF CHINA.
(a) In General.--Notwithstanding title I of Public Law 106-286 (114
Stat. 880) or any other provision of law, effective on the date that is
90 days after the date of the enactment of this Act--
(1) normal trade relations treatment shall not apply
pursuant to section 101 of that Act to the products of the
People's Republic of China;
(2) normal trade relations treatment may not thereafter be
extended to the products of the People's Republic of China
under the provisions of chapter 1 of title IV of the Trade Act
of 1974 (19 U.S.C. 2431 et seq.);
(3) the rates of duty set forth in column 2 of the
Harmonized Tariff Schedule of the United States shall apply to
all products of the People's Republic of China; and
(4) the President may proclaim increases in the rates of
duty applicable to products of the People's Republic of China
to rates that are higher than the rates described in paragraph
(3).
(b) People's Republic of China Defined.--In this section, the term
``People's Republic of China'' means the government of the People's
Republic of China, the government of the Special Administrative Region
of Hong Kong, the government of the Special Administrative Region of
Macau, and any agency or instrumentality thereof.
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