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Washington, D.C. – U.S. Senator Marco Rubio (R-FL) today introduced the Fair Trade with China Enforcement Act, legislation that would safeguard American assets from Chinese influence and possession, and serve to blunt China’s tools of economic aggression. Ahead of the bill’s introduction, Rubio published an op-ed in the Washington Post to outline how America’s economic relationship with China has become increasingly unbalanced for the United States and other nations. A one-pager of the bill is available here.
“As China undertakes a strategic effort to supplant and undermine America, we must protect our country by correcting an economic relationship that has become increasingly unbalanced,” said Senator Rubio. “This bill will do just that by targeting China’s tools of economic aggression to guard the American people against its nefarious influence on national and economic security. How America responds to the growing threats posed by China is the single most important geopolitical issue of our time, and will define the 21st century.”
Specifically, the Fair Trade with China Enforcement Act would:
· Prohibit the sale of national security sensitive technology and intellectual property to China.
· Increase taxes on multinational corporations’ income earned in China at a rate similar to the lost value of stolen IP and technology.
· Cancel an income tax treaty signed in the 1980s and tax China on their “investment” in the U.S., including their holdings of the national debt.
· Prepare duties on, and impose Chinese investor shareholding caps on U.S. companies producing, goods targeted by the Made in China 2025 plan.
· Prohibit the federal government, or subsidiaries/contractors, from purchasing telecommunications equipment or services from Huawei and ZTE.