US-China Commission Says Congress Should Direct CBP to Start Broader Xinjiang WRO

Congress should direct CBP to impose "a region-wide Withhold Release Order on products originating from Xinjiang, China," the U.S.-China Economic and Security Review Commission said within a group of 32 recommendations for lawmakers. Congress should also require the Department of Homeland Security "to provide a comprehensive list of technologies needed and an outline of the resources required to enforce the Withhold Release Order and address other instances of China’s use of forced labor." it said in the report, released Nov. 17.

The AFL-CIO offered support for the forced labor recommendations and said the regional WRO recommendation "should get immediate action."

The commission also recommended that Congress consider passing a law "to create the authority to screen the offshoring of critical supply chains and production capabilities" to China, with the justification that the decision to import these goods from China could hurt American national and economic security interests.

"This would include screening related outbound investment by U.S. entities. Such legislation would direct the secretaries of defense and commerce, along with the U.S. Trade Representative, to develop procedures to evaluate existing and proposed supply relationships with [China] and identify whether critical U.S. interests are being adversely affected, including the loss of domestic production capacity and capabilities," the commission wrote. "The legislation would authorize the president to take appropriate action, including prohibiting supply relationships or certain transactions to protect U.S. national security."

The commission also recommended that Congress amend the "U.S.-China Relations Act of 2000 to require the U.S. Trade Representative to include an assessment of Hong Kong’s treatment as a separate customs territory in its annual report on China’s compliance with commitments made in connection with its accession to the World Trade Organization." They said the USTR should consider whether Chinese entities operating in Hong Kong are using Hong Kong's status "as a transshipment hub to circumvent U.S. duties on China." The office should also consider whether the U.S. should continue to recognize Hong Kong as a separate customs territory, and they should consider Hong Kong's commercial autonomy in deciding if Hong Kong goods should face the same tariffs as China.