The Issue
Chinese companies that break U.S. laws undermine the integrity of America.
American companies are being put out of business due to the inflow of cheap, heavily subsidized products promoted by the Chinese Communist Party’s aggressive, state-sponsored economic program.
Every day, American companies face increasingly steep competition from China. The Chinese Communist Party (CCP) heavily subsidizes companies in industries important to China’s economic domination. These companies can afford to sell their products at a very cheap price and squeeze out American competition. It is difficult for American companies to compete under normal circumstances, but when Chinese companies break U.S. trade laws, it’s nearly impossible.
In response to the Chinese subsidies, the United States has imposed tariffs on many Chinese products. This has created an incentive for Chinese companies to break and evade U.S. trade laws by several innovative and underhanded means, including transshipping, reimporting and roundtripping, tariff jumping, and two-stepping. Sometimes these practices are layered onto other alleged unethical practices (e.g., forced prison labor).
The following case studies show how the business practices of two Chinese companies raise important questions about tariff integrity, the impact of these practices on American businesses, and the government’s ability to defend American businesses against such practices.
President Trump Can Help American Companies Fight Back
President Trump’s goals with the tariffs he implemented in 2018 and new tariffs in 2025 are to encourage less production in China and increase domestic production and job creation in the U.S. While he seeks this long-term goal, it is critical that as part of his America First strategy, he use his powers in the short term to help American companies fight back against their Chinese competitors right here in America. Because some American companies are now cutting back, laying off, and even closing down, President Trump should use his authority to offer them short-term tariff exemptions provided they commit to reducing their reliance on China and increasing their production and job creation in he U.S.
Why It Matters
We need to save American companies and protect customers, American companies are being put out of business due to the inflow of cheap, heavily subsidized products promoted by the CCP’s aggressive, state-sponsored economic program. The U.S. government imposed Section 301 tariffs in 2018 to help level the playing field, but so many Chinese firms are not afraid to flout them by “finishing” their products in Southeast Asia and undercut the American tool manufacturing industry by skirting the law and other tricky maneuvers.
If action isn’t taken, stakeholders in the entire U.S. supply chain (manufacturers and suppliers) will be at risk of losing jobs, and, as just two examples, the U.S. aftermarket automobile parts industry and tool manufacturing industry will be beholden to the interests of foreign governments. Americans cannot put faith in foreign governments to ensure that companies operating under their purview are following the rules and regulations that the American government put in place.
Solidarity at government and industry levels must occur if we hope to save American businesses and, ultimately, the American consumer.
We must have tariff integrity. And when American firms need help to fight back, the U.S. government and President Trump should have their back and provide the tariff relief they need to win.
Note on Research
Tariff Integrity constantly engages in research to update the accuracy of its content. Periodic changes to the content of the website reflect its most recent research.
What You Can Do to Help
Ask the U.S. Trade Representative to crack down on China and to fight for tariff integrity.