Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

Flick International A modern American factory symbolizing strength against Chinese trade practices

GOP Lawmaker Advocates for Stronger DOJ Action Against China’s Trade Violations

GOP Lawmaker Advocates for Stronger DOJ Action Against China’s Trade Violations

Representative Ashley Hinson, a Republican from Iowa, emphasizes the urgent need for enhanced measures to empower the Department of Justice in fighting China’s trade misconduct. Hinson’s proposal, known as the Protecting American Industry and Labor from International Trade Crimes Act, has garnered bipartisan support as both Democratic and Republican lawmakers unite to confront the threats that China poses to American businesses.

China-based enterprises have engaged in widespread theft of American intellectual property, enabling market flooding with cheaper and often inferior products. In addition to the theft of intellectual property, these companies also utilize transnational shipping techniques to circumvent U.S. tariffs, further undermining the American market.

“This is about safeguarding America’s economic stability. The reality is that China has been exploiting our businesses and our workforce for decades,” Hinson stated in an interview with Fox News Digital. She added, “While we often discuss tariffs and penalties aimed at those who violate our laws, we must also ensure stringent enforcement of these laws.”

Hinson’s legislation aims to create a specialized task force within the Department of Justice dedicated to investigating and prosecuting trade-related offenses, thus establishing an effective mechanism for enforcing U.S. law.

Case Study: CQ Medical and the Impact of IP Theft

One American business significantly affected by Chinese intellectual property theft is CQ Medical, a company dedicated to advancing radiotherapy and healthcare technology. A competing company based in China, which also has U.S. operations in Ohio, has reportedly undermined CQ Medical by providing lower-quality products at prices that are two-thirds cheaper. CQ Medical asserts that the Chinese firm employs “nearly identical” product names, leading to consumer confusion and potentially jeopardizing patient safety.

Hinson pointed out, “These products are crucial for hospitals in administering effective radiation treatments for cancer. When a foreign entity undercuts an American business that invests heavily in research and development, it creates an unfair competitive landscape, benefiting a Chinese company that engages in illicit practices.”

Raising Awareness and Taking Action

Representative Hinson underscores that the challenges faced by CQ Medical encapsulate a broader issue of Chinese intellectual property theft and trade violations that need urgent attention. She urged the necessity to combat unfair and illegal trade practices that threaten American businesses and consumers alike.

In the instance of CQ Medical, the inferior products introduced by their Chinese competitor not only risk patient safety due to their quality but also threaten American job opportunities. Hinson emphasized the significance of supporting American companies that contribute positively to local economies. “Consider rural America and the substantial role that a company like CQ Medical plays. They are creating jobs and fostering growth in communities across states like Iowa and Pennsylvania. They aspire to expand their footprint and growth here at home,” she explained.

Wider Economic Implications of Chinese Trade Practices

During her interviews, Hinson articulated that CQ Medical’s plight represents merely the surface of a larger problem; she estimates that Chinese trade crimes cost the American economy hundreds of billions, if not trillions, of dollars each year. This loss is driven by the aggressive pricing strategies of Chinese businesses, which operate through reduced pricing that undermines American firms.

The Protecting American Industry and Labor from International Trade Crimes Act successfully passed the House of Representatives in December 2024. However, Hinson is reintroducing this crucial legislation in the current congressional session, aiming for its eventual enactment into law.

The Path Forward for American Industry

As the American economy continues to grapple with the repercussions of international trade issues, the call for legislative and enforcement action remains critical. Representatives like Hinson are working diligently to sound the alarm over unfair trade practices and to ensure that American industries are shielded from predatory tactics employed by foreign competitors.

With the bipartisan support for the Protecting American Industry and Labor from International Trade Crimes Act, there is renewed hope that the U.S. can effectively address the challenge of intellectual property theft and unfair competition originating from China. As conversations around America’s economic future and its competitiveness on the global stage continue to evolve, decisive action from lawmakers will be essential in fortifying American industry against ongoing threats.