The "U.S.-China Economic and Security Review Commission" authorized by the U.S. Congress pointed out on the 15th that the Biden administration should establish an inter-ministerial standing committee to study sanctions or economic punishment measures for China's possible actions such as attacking and blocking Taiwan. Review trade relations with China.

(Reuters file photo)

Establishment of an Inter-Ministry Standing Committee to Review U.S.-China Trade Relations

[Compiled Zhang Peiyuan/Comprehensive Report] The US-China Economic and Security Review Commission (USCC) authorized by the US Congress pointed out on the 15th that China has greatly increased its aggressive actions against Taiwan this year. In addition to diplomatic and economic coercion, it has also expanded its military display. The Biden administration should set up an inter-ministerial standing committee to formulate sanctions or economic penalties for China's possible actions such as attacking and blocking Taiwan, and to review trade relations with China.

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Strengthening Taiwan's Defense Proposal for U.S. and Taiwan Defense Officials to Establish a Joint Planning Mechanism

The report also suggests that in order to strengthen Taiwan's defense, U.S. and Taiwan defense officials should establish a joint planning mechanism to examine what interoperability and reinforcement capabilities are needed to defend Taiwan; Congress should instruct the U.S. Department of Defense on how to improve the U.S. military's resistance in the event of China's invasion of Taiwan. ability to submit an evaluation report.

The U.S. Congress should allocate additional multi-year defense funds, and Taiwan should also commit to allocate the funds needed to acquire relevant capabilities through the legislative process.

The USCC made the call in its 785-page annual report to Congress, just a day after U.S. President Joe Biden held talks with Chinese President Xi Jinping in Bali.

The report elaborates on China's challenges and threats in five major themes, including the CCP's decision-making and Xi Jinping's centralization of power, U.S.-China economic and trade relations, U.S.-China security and foreign affairs, Taiwan, and Hong Kong.

The report pointed out that the CCP continued to conduct frequent coercive actions in the sea and airspace around Taiwan, including large-scale live-fire drills after the US House of Representatives Speaker Nancy Pelosi visited Taiwan in August.

In terms of economic coercion, China has focused on Taiwan's relatively small export industries that are highly dependent on China, such as food imports from regions that support President Tsai Ing-wen, as a way to send a political message.

Taiwan is not the only victim of China’s economic coercion. Australia, Lithuania and other countries have also suffered from it. The report recommends that Congress should consider legislation to authorize the executive authorities to impose punitive trade measures against China in order to support allies or partners under China’s economic coercion , and authorize the United States and its allies to take joint actions.

The report also pointed out that China's overthrow of the global trading system involves unfair trade practices and is increasingly deviating from the spirit and obligations of the WTO protocol. It is recommended that Congress ask the Biden administration to review whether China has actually fulfilled the protocol within 90 days. , if the conclusion is no, Congress should consider legislation to suspend the "permanent normal trade relations" (PNTR) granted to China.

The PNTR, formerly known as "most favored nation treatment," allows China to enjoy the most favorable terms of trade and tariff rates.