Background

A new Section 301 petition seeks additional restrictions on trade with China over Beijing’s role in the production and export of illicit fentanyl to the U.S.

According to a fact sheet, the petition “lays out stark evidence” that the Chinese Communist Party “permits and actively encourages the production and export of illicit fentanyl,” including by (1) providing tax incentives and other financial support to Chinese companies that export fentanyl, (2) impeding U.S. efforts to investigate and prosecute fentanyl manufacturers and exporters, and (3) failing to prohibit Chinese entities, through adequate laws and enforcement actions, to halt the export of illicit fentanyl to the U.S.

The petition asserts that the economic impact of China’s actions on the U.S. has reached into the trillions of dollars and that the U.S. government “has a responsibility to do everything in its power” in response. Stating that “nothing short of significant countermeasures will incentivize the Chinese government to take meaningful action,” the petition lists a number of steps the U.S. could take, including tariffs and import bans amounting to $50 billion, the elimination of the de minimis exemption for all imports originating in China, expanded outbound investment restrictions, and a mandate for China to purchase U.S. agricultural goods and autos.

The Office of the U.S. Trade Representative has 45 days to determine whether to accept the petition and open a Section 301 investigation.

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