USCBC Comment to Assist in Reviewing and Identifying Unfair Trade Practices and Initiating All Necessary Actions to Investigate Harm from Non-Reciprocal Trade Arrangements

The US-China Business Council (USCBC) welcomes the opportunity to submit comments to the Office of the United States Trade Representative regarding unfair and non-reciprocal foreign trade practices as part of the administration’s work pursuant to the America First Trade Policy presidential memorandum and the Reciprocal Trade and Tariffs presidential memorandum.

USCBC represents around 270 American companies that do business with China. Our membership includes some of the largest and most iconic American brands in addition to small- and medium-sized enterprises. Our members span all sectors of the economy, including manufacturing, healthcare, agriculture, technology, and financial services, and many have been operating in China for decades.

We appreciate the opportunity to assist the Trump administration in identifying and responding to unfair Chinese trade practices that harm American companies. USCBC has long advocated for a level playing field for American companies in China—an objective aligned with President Donald Trump’s commitment to achieve a more reciprocal trade environment.

We recognize that this effort continues the work President Trump began during his first administration when he successfully negotiated the US-China Economic and Trade Agreement (Phase One) with China. The agreement provided a valuable framework for the two governments to achieve progress on commercial issues, and the United States should work to ensure China fulfills its commitments under the agreement. As the Trump administration crafts its China policy, USCBC will support the administration’s efforts to hold China accountable for fulfilling its Phase One commitments and pressure China to make long overdue changes to its economic, investment, and trade policies that disadvantage American companies. Holding China accountable to fulfill its Phase One commitments is an important first step to unlock further negotiations, which President Trump had intended to do during his first term in office.

To that end, USCBC urges the administration to begin comprehensive commercial negotiations with Beijing as soon as possible. Negotiations should concentrate on addressing structural policy barriers that disadvantage American companies, including China’s domestic substitution policies, intellectual property (IP) practices, market access constraints, and more. Achieving progress in these areas would enable American companies to compete on a more level playing field, enhance US competitiveness, and unlock more exports to China.

USCBC looks forward to being a constructive partner with the Trump administration in executing its China policy. In the sections below, we have outlined specific policy challenges and our recommendations.

Executive summary

To assist the administration in understanding the challenges of doing business in China, and in responding to these challenges in a way that protects US national security while bolstering American competitiveness, USCBC shares the following:

• US companies operate in China primarily to sell to the Chinese market. Their presence in China is key to maintaining the United States’ edge as the leading market force on the global stage.
• Bilateral negotiations at all levels of government can be successful in urging China to enforce, discontinue, finalize, and update policies to create a fairer playing field for American businesses in China. This includes policies related to:
  • Domestic substitution initiatives
  • Public procurement
  • IP
  • Agriculture biotech approvals
• Phase One addressed some of the challenges US businesses face in China, such as IP. Successfully enforcing Phase One would not only tackle key US business concerns but also lay the groundwork for further negotiations on structural policy issues.
• Expanding current lines of communication, such as those established by Phase One and the Commercial Issues Working Group between the Department of Commerce and the Ministry of Commerce (MOFCOM), would increase the likelihood of a larger agreement with China and ensure successful outcomes for US entities.
• Avoid blunt force tools that have not proven successful in bringing China to the negotiating table. These measures, such as across-the-board tariffs, empirically hurt producers that manufacture in the United States.