October 14, 2022 | The Spectator
It’s time for the US to revoke China’s ‘normal trade’ status
It’s an economic adversary and we should treat it as such
October 14, 2022 | The Spectator
It’s time for the US to revoke China’s ‘normal trade’ status
It’s an economic adversary and we should treat it as such
Excerpt
In April 2022, six weeks after Moscow’s invasion of Ukraine, President Biden signed legislation to suspend Russia’s Permanent Normal Trade Relations (PNTR) status. “Revoking PNTR from Russia,” he said, “is going to make it harder for Russia to do business with the United States… The free world is coming together to defeat Putin.”
PNTR status, also known as Most Favored Nation (MFN) status, is a designation granted among World Trade Organization members. Receiving nations are awarded all trade advantages that any other nation receives.
Revoking PNTR status from Russia was a strategic move. It opened the door to deliver comprehensive economic strikes against Moscow and sent a clear signal to markets. But five months later, Russia continues its offensive against Ukraine, with the Chinese Communist Party serving as Moscow’s primary international backer. This demands attention. The Russia PNTR move was reactive. It did not deter Putin’s ambition or impose costs on his chief ally, now eyeing further international aggression. Might a proactive move to rescind China’s permanent trading status have strategic value at this stage?
Nathan Picarsic and Emily de La Bruyere are co-founders of Horizon Advisory and Senior Fellows at the Foundation for Defense of Democracies.