China Trade Relations Act of 2021
Bill: S.785 | Sponsor: Sen. Cotton, Tom (R-AR)
Policy area: Foreign Trade and International Finance

Summary:
China Trade Relations Act of 2021
This bill withdraws normal trade relations treatment from China and expands the bases of ineligibility for this treatment to include specified violations of human rights by China.
Specifically, during any period in which China engages in specified activities (e.g., using slave labor, performing forced abortion or sterilization, or hindering the free exercise of religion) (1) products from China shall not be eligible to receive nondiscriminatory treatment (normal trade relations), (2) China may not participate in any U.S. program that extends credits or credit guarantees or investment guarantees, and (3) the President may not conclude any commercial agreement with China.

To withdraw normal trade relations treatment from, and apply certain 
  provisions of title IV of the Trade Act of 1974 to, products of the 
People's Republic of China, and to expand the eligibility requirements 
for products of the People's Republic of China to receive normal trade 
       relations treatment in the future, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``China Trade Relations Act of 2021''.

SEC. 2. WITHDRAWAL OF NORMAL TRADE RELATIONS TREATMENT FROM THE 
              PEOPLE'S REPUBLIC OF CHINA.

    Notwithstanding the provisions of title I of Public Law 106-286 
(114 Stat. 880) or any other provision of law, effective on the date of 
the enactment of this Act--
            (1) normal trade relations treatment shall not apply 
        pursuant to section 101 of that Act to the products of the 
        People's Republic of China;
            (2) normal trade relations treatment may thereafter be 
        extended to the products of the People's Republic of China only 
        in accordance with the provisions of chapter 1 of title IV of 
        the Trade Act of 1974 (19 U.S.C. 2431 et seq.), as in effect 
        with respect to the products of the People's Republic of China 
        on the day before the effective date of the accession of the 
        People's Republic of China to the World Trade Organization; and
            (3) the extension of waiver authority that was in effect 
        with respect to the People's Republic of China under section 
        402(d)(1) of the Trade Act of 1974 (19 U.S.C. 2432(d)(1)) on 
        the day before the effective date of the accession of the 
        People's Republic of China to the World Trade Organization 
        shall, upon the enactment of this Act, be deemed not to have 
        expired, and shall continue in effect until the date that is 90 
        days after the date of such enactment.

SEC. 3. EXPANSION OF BASES OF INELIGIBILITY OF PEOPLE'S REPUBLIC OF 
              CHINA FOR NORMAL TRADE RELATIONS.

    (a) In General.--Section 402 of the Trade Act of 1974 (19 U.S.C. 
2432) is amended--
            (1) in the section heading, by striking ``freedom of 
        emigration in east-west trade'' and inserting ``east-west trade 
        and human rights''; and
            (2) by adding at the end the following:
    ``(f) Additional Bases of Ineligibility of People's Republic of 
China for Normal Trade Relations.--
            ``(1) In general.--Products from the People's Republic of 
        China shall not be eligible to receive nondiscriminatory 
        treatment (normal trade relations), the People's Republic of 
        China shall not participate in any program of the Government of 
        the United States which extends credits or credit guarantees or 
        investment guarantees, directly or indirectly, and the 
        President shall not conclude any commercial agreement with the 
        People's Republic of China, during the period--
                    ``(A) beginning with the date on which the 
                President determines that the People's Republic of 
                China--
                            ``(i) is in violation of paragraph (1), 
                        (2), or (3) of subsection (a);
                            ``(ii) uses or provides for the use of 
                        slave labor;
                            ``(iii) operates `vocational training and 
                        education centers' or other concentration camps 
                        where people are held against their will;
                            ``(iv) performs or otherwise orders forced 
                        abortion or sterilization procedures;
                            ``(v) harvests the organs of prisoners 
                        without their consent;
                            ``(vi) hinders the free exercise of 
                        religion;
                            ``(vii) intimidates or harasses nationals 
                        of the People's Republic of China living 
                        outside the People's Republic of China; or
                            ``(viii) engages in systematic economic 
                        espionage against the United States, including 
                        theft of the intellectual property of United 
                        States persons; and
                    ``(B) ending on the date on which the President 
                determines that the People's Republic of China is no 
                longer in violation of any of clauses (i) through 
                (viii) of subparagraph (A).
            ``(2) Report required.--
                    ``(A) In general.--After the date of the enactment 
                of this subsection, products of the People's Republic 
                of China may be eligible to receive nondiscriminatory 
                treatment (normal trade relations), the People's 
                Republic of China may participate in any program of the 
                Government of the United States which extends credits 
                or credit guarantees or investment guarantees, and the 
                President may conclude a commercial agreement with the 
                People's Republic of China, only after the President 
                has submitted to Congress a report indicating that the 
                People's Republic of China is not in violation of any 
                of clauses (i) through (viii) of paragraph (1)(A).
                    ``(B) Elements.--The report required by 
                subparagraph (A) shall include information as to the 
                nature and implementation of laws and policies of the 
                People's Republic of China relating to the matters 
                specified in clauses (i) through (viii) of paragraph 
                (1)(A).
                    ``(C) Deadlines.--The report required by 
                subparagraph (A) shall be submitted on or before each 
                June 30 and December 31 of each year for as long as 
                products of the People's Republic of China receive 
                nondiscriminatory treatment (normal trade relations), 
                the People's Republic of China participates in any 
                program of the Government of the United States which 
                extends credits or credit guarantees or investment 
                guarantees, or a commercial agreement with the People's 
                Republic of China is in effect.
            ``(3) Waiver.--
                    ``(A) In general.--The President is authorized to 
                waive by Executive order the application of paragraphs 
                (1) and (2) for a 12-month period if the President 
                submits to Congress a report that the President--
                            ``(i) has determined that such waiver will 
                        substantially promote the objectives of this 
                        subsection; and
                            ``(ii) has received assurances that the 
                        practices of the People's Republic of China 
                        relating to the matters specified in clauses 
                        (i) through (viii) of paragraph (1)(A) will in 
                        the future lead substantially to the 
                        achievement of the objectives of this 
                        subsection.
                    ``(B) Termination of waiver.--A waiver under 
                subparagraph (A) shall terminate on the earlier of--
                            ``(i) the day after the waiver authority 
                        granted by this paragraph ceases to be 
                        effective under paragraph (4); or
                            ``(ii) the effective date of an Executive 
                        order providing for termination of the waiver.
            ``(4) Extension of waiver authority.--
                    ``(A) Recommendations.--If the President determines 
                that the further extension of the waiver authority 
                granted under paragraph (3) will substantially promote 
                the objectives of this subsection, the President may 
                recommend further extensions of such authority for 
                successive 12-month periods. Any such recommendations 
                shall--
                            ``(i) be made not later than 30 days before 
                        the expiration of such authority;
                            ``(ii) be made in a document submitted to 
                        the House of Representatives and the Senate 
                        setting forth the reasons of the President for 
                        recommending the extension of such authority; 
                        and
                            ``(iii) include--
                                    ``(I) a determination that 
                                continuation of the waiver will 
                                substantially promote the objectives of 
                                this subsection; and
                                    ``(II) a statement setting forth 
                                the reasons of the President for such 
                                determination.
                    ``(B) Continuation in effect of waiver.--If the 
                President recommends under subparagraph (A) the further 
                extension of the waiver authority granted under 
                paragraph (3), such authority shall continue in effect 
                until the end of the 12-month period following the end 
                of the previous 12-month extension, unless--
                            ``(i) Congress adopts and transmits to the 
                        President a joint resolution of disapproval 
                        under paragraph (5) before the end of the 60-
                        day period beginning on the date the waiver 
                        authority would expire but for an extension 
                        under subparagraph (A); and
                            ``(ii) if the President vetoes the joint 
                        resolution, each House of Congress votes to 
                        override the veto on or before the later of--
                                    ``(I) the last day of the 60-day 
                                period referred to in clause (i); or
                                    ``(II) the last day of the 15-day 
                                period (excluding any day described in 
                                section 154(b)) beginning on the date 
                                on which Congress receives the veto 
                                message from the President.
                    ``(C) Termination of waiver pursuant to joint 
                resolution of disapproval.--If a joint resolution of 
                disapproval is enacted into law pursuant to paragraph 
                (5), the waiver authority granted under paragraph (3) 
                shall cease to be effective as of the day after the 60-
                day period beginning on the date of the enactment of 
                the joint resolution.
            ``(5) Joint resolution of disapproval.--
                    ``(A) Joint resolution of disapproval defined.--In 
                this paragraph, the term `joint resolution of 
                disapproval' means a joint resolution the matter after 
                the resolving clause of which is as follows: `That 
                Congress does not approve the extension of the 
                authority contained in paragraph (3) of section 402(f) 
                of the Trade Act of 1974 with respect to the People's 
                Republic of China recommended by the President to 
                Congress under paragraph (4) of that section on ___.', 
                with the blank space being filled with the appropriate 
                date.
                    ``(B) Procedures in house and senate.--The 
                provisions of subsections (b) through (f) of section 
                152 shall apply with respect to a joint resolution of 
                approval to the same extent and in the same manner as 
                such provisions apply with respect to a resolution 
                described in subsection (a) of that section, except 
                that subsection (e)(2) of that section shall be applied 
                and administered by substituting `Consideration' for 
                `Debate'.
                    ``(C) Rules of the house of representatives and 
                senate.--This paragraph is enacted by Congress--
                            ``(i) as an exercise of the rulemaking 
                        power of the House of Representatives and the 
                        Senate, respectively, and as such is deemed a 
                        part of the rules of each House, respectively, 
                        and supersedes other rules only to the extent 
                        that it is inconsistent with such other rules; 
                        and
                            ``(ii) with full recognition of the 
                        constitutional right of either House to change 
                        the rules (so far as relating to the procedure 
                        of that House) at any time, in the same manner 
                        and to the same extent as in the case of any 
                        other rule of that House.''.
    (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by striking the item relating to section 402 and 
inserting the following:

``Sec. 402. East-West trade and human rights.''.
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