Countries Must Stand Up to Chinese Product “Dumping”
China has made no secret about its plan to dominate the world’s economy. Increasing its economic influence around the world is one of the Chinese Communist Party’s (CCP) most important tools in this quest to control the future of the globe.
One way that the CCP has tried to control foreign supply chains in recent years is through the process of “product dumping.” The practice occurs when the CCP or companies under its control export a product into a foreign country at a much cheaper price than it is sold for in China. Oftentimes, China will temporarily sell a foreign product at a price lower than what it costs to produce to undercut competitors and dominate a foreign market.
Once the CCP gains a foothold in a foreign market, consumers and governments are at the will of the communist government in Beijing. These countries become dependent on China to maintain supply chains of critical goods. Unless actions are taken to stop the practice of product dumping, countries like the United States can quickly become reliant on Chinese products as our own industrial base is hollowed.
The U.S. Is Fighting Against Chinese Product Dumping
The United States Congress has long recognized the potential dangers of product dumping by China or any other U.S. adversaries. In order to fight product dumping to limit ill-intended foreign economic influence, Congress gave the President specific tools to combat this practice.
The United States International Trade Commission (ITC) makes regular determinations finding that China continues to dump products into American markets at artificially low prices for the purposes of manipulating American supply chains. The ITC also maintains scores of countervailing duties to fight Chinese dumping and level the playing field.
Not surprisingly, China often targets America’s most critical industries when it dumps products into the United States. The list of products most often protected by the USITC includes the following:
Agricultural products essential to American farmers
Automobile manufacturing components and accessories
Chemicals
Furniture
Lumber, hardwood, home fixtures, and construction products
Metals, like aluminum and steel
Paper products
Clothing, fabrics, and textiles
It would be disastrous if China and the leaders of the CCP were allowed to have effective control of these industries or supply chains. That is why it is so important for the government to use the tools at its disposal to stop product dumping and keep China from achieving economic control.
Countries Around the World Are Stepping Up Their Protections
The United States is not the only world market where China is trying to use product dumping to exert economic control. China is stepping up its product dumping strategy and repeating tactics that it has tried in the U.S. Most recently, the CCP has been caught trying to control food and automobile markets in Europe.
Within the last week, the European Union has stepped up efforts to stop Chinese product dumping. First, China was found to be dumping cheap car tires into European markets. China was also found to be flooding European markets with cheap poultry in a direct threat to local farmers.
The worldwide scale of Chinese product dumping is a reminder that the CCP’s strategy for global economic dominance is comprehensive, coordinated, and long-term. The EU is wisely taking quick action to protect critical industries from the threat of product dumping.
America Must Vigilantly Protect Key Industries
Essential American industries are under constant attack from the CCP’s product dumping campaign. The industries listed above are at the most risk because they supply products and jobs that are critical to American independence and our way of life.
U.S. farmers and crop growers face particular threats from Chinese product dumping. China has demonstrated a willingness to dump both farm products and components necessary to farming, like fertilizer. Their goal is simple – take over America’s food supply chain. Our leaders in Congress and the Trump Administration must not let this happen.
Congress gave the White House the ability to use Antidumping and Countervailing Duties to keep international markets fair. These tools should be used liberally to ensure that China sticks to the agreements it has already made. The Protecting America Initiative will continue to educate about the dangers of Chinese product dumping and advocate for the use of every measure to stop CCP control of U.S. markets.