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Bill > S2826


US S2826

US S2826
Fair Trade with China Enforcement Act


summary

Introduced
05/10/2018
In Committee
05/10/2018
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Fair Trade with China Enforcement Act This bill revises trade, finance, and tax provisions with respect to China. The bill directs the Department of Commerce to prohibit the export of certain U.S. technology and intellectual property to China. The bill amends the Securities Exchange Act of 1934 to place a shareholder cap on Chinese investments in certain U.S. corporations. Federal agencies are prohibited from using or procuring telecommunications equipment or services from Huawei Technologies Company, ZTE Corporation, or any other entity reasonably believed to be owned or controlled by China. The bill amends the Trade Act of 1974 to require the U.S. Trade Representative to list certain Chinese products that receive support pursuant to China's Made in China 2025 policy. The bill amends the Tariff Act of 1930 to expedite the countervailing duty process (i.e., the imposition of duties to offset a subsidy by a foreign government) for products on such a list. The bill amends the Internal Revenue Code to: repeal certain reduced withholding rates for residents of China, tax income received by China from certain U.S. investments, and tax income derived from certain Chinese investments.

AI Summary

This bill aims to safeguard American national and economic security from foreign influence by China. Key provisions include: 1. Establishing a list of Chinese products receiving government support under the "Made in China 2025" policy, with the goal of reducing imports of these products. 2. Prohibiting the export of U.S. technology and intellectual property deemed critical to national security to China. 3. Imposing a shareholder cap to limit Chinese investment in U.S. corporations producing components for the "Made in China 2025" listed products. 4. Banning U.S. government use or procurement of telecommunications equipment and services from Chinese companies like Huawei and ZTE, citing national security concerns. 5. Expediting the countervailing duty process for these "Made in China 2025" listed products to offset Chinese government subsidies. 6. Repealing reduced withholding tax rates for Chinese residents, taxing Chinese government holdings of U.S. obligations, and imposing a surtax on certain income derived from China. The overall aim is to restrict China's ability to acquire U.S. technology, limit Chinese investment and involvement in the U.S. economy, and encourage U.S. companies to produce domestically rather than in China.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2625-2627) (on 05/10/2018)

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