The China CHEATS Act

American manufacturers deserve our full support in combating China’s relentless pattern of international trade law violations. The simple fact is that China cheats. Chinese manufacturers aren’t outcompeting Wisconsin manufacturers. Chinese manufacturers receive direct subsidies from their government to help them undercut American businesses. In the paper sector alone, China provided more than $33.1 billion in subsidies from 2002 to 2009 and, during that period, overtook the U.S. as the world’s largest producer of paper and paper products. We’ve seen the result this has had on our manufacturing base. This cheating must be stopped.

In order to protect American manufacturing, especially Wisconsin’s paper industry, from unfair Chinese trade practices, Rep. Baldwin and Rep. Reid Ribble (R-WI) introduced bipartisan legislation. The CHEATS Act (China Hurts Economic Advancement Through Subsidies, H.R. 4071) responds to a December 19, 2011 ruling by the U.S. Court of Appeals that the Department of Commerce lacks the legal authority to impose countervailing duties (CVDs) on subsidized imports from countries with nonmarket economies, such as China and Vietnam. Without legislative action, the Court’s ruling would have taken effect in March 2012. If that were to have occurred, the U.S. would have lost a powerful remedy to level the playing field and combat the harmful effects of unfairly subsidized Chinese imports. In addition, the U.S. would have been forced to pay back tariffs already paid by importers - at taxpayers’ expense.

Fortunately, Rep. Baldwin’s CHEATS Act was incorporated into legislation that will restore CVD protections against China’s unfair trade practices. On March 13, 2012 President Obama signed into law a measure containing Rep. Baldwin’s CHEATS Act language. This law ensures the Department of Commerce has the legal authority to impose CVDs on foreign imports from China and other countries that unfairly subsidize their manufacturing industries. Without these CVDs, American manufacturers are undercut and cannot compete on a level playing field.

Rep. Baldwin’s legislation will benefit many major Wisconsin employers who have suffered significant job losses due to unfair Chinese competition, including Wisconsin paper manufacturers NewPage Corporation (Biron, Stevens Point, Whiting, and Wisconsin Rapids), Appleton Coated LLC (Kimberly), Felker Brothers Corp. (Marshfield), Coating Excellence International, LLC (Wrightstown), Appleton, Inc. (Appleton), Award Hardwood Floors (Wausau), and From the Forest (Weston).

Press Releases

• Baldwin Measure to Protect Wisconsin Manufacturers Now Law (3/13/12)
• House Includes Baldwin Measure to Protect Wisconsin Manufacturers (3/6/12)
• Baldwin Says Time Running Out to Protect Wisconsin Paper Manufacturers (2/29/12)
• Baldwin, Ribble Seek Remedies for Wisconsin Paper Manufacturers (2/17/12)

Video

Rep. Baldwin speaks in support of the China CHEATS Act on the House floor (3/6/12)

Other Recent Work for Wisconsin Manufacturing Jobs

• Kohl, Baldwin Meet with EPA Administrator to Press for Relief from Rule Affecting Wisconsin Paper Companies (4/25/12)
• Baldwin Joins in Call to Hold China Accountable for Illegal and Unfair Auto Trade Practices (2/15/12)