Bill Summary
The "Strengthen American Competitiveness Against Harmful Subsidies Act of 2025" is a proposed legislation aimed at enhancing the United States' ability to monitor and respond to industrial subsidies provided by the government of China. The Act mandates that the United States Trade Representative (USTR) regularly oversee these subsidies and report on the associated risks, particularly concerning U.S. employment and manufacturing in critical industries.
Key components of the legislation include:
1. **Monitoring Responsibilities**: The USTR, in collaboration with various federal entities (including departments of State, Commerce, Agriculture, and others), will track both existing and proposed industrial subsidies from China.
2. **Risk Assessment Reports**: The USTR is required to submit an annual report to Congress that identifies current and anticipated subsidies that may pose significant risks to American jobs and manufacturing. The report must also recommend actions to mitigate these risks.
3. **Definitions**: The Act provides definitions for terms like "critical infrastructure," "strategically critical goods," and "strategically critical industries" to clarify the scope of industries and goods affected by these subsidies.
Overall, the legislation seeks to protect American economic interests and national security by keeping a close watch on foreign subsidies that could distort competition and harm U.S. businesses.
Possible Impacts
Here are three examples of how the "Strengthen American Competitiveness Against Harmful Subsidies Act of 2025" could affect people:
1. **Job Security for American Workers**: The Act mandates the United States Trade Representative to monitor and report on industrial subsidies from China that could potentially threaten American jobs, particularly in strategically critical industries. This could lead to proactive measures being taken to protect jobs in sectors like manufacturing and technology, thereby contributing to job security for American workers. If the subsidies are deemed harmful, the government might implement tariffs or other trade measures to level the playing field, helping to preserve employment in affected sectors.
2. **Impact on Small Businesses**: By evaluating the risks associated with Chinese industrial subsidies, the Act could create a more competitive environment for small businesses in the U.S. If the report identifies significant threats posed by these subsidies, it could lead to recommendations for support programs or financial assistance aimed specifically at small businesses. This could help these businesses to compete more effectively against subsidized Chinese products, which may otherwise undercut prices and limit their market share.
3. **Economic Policy Changes**: The findings and recommendations from the annual reports required by this legislation could lead to new economic policies aimed at strengthening American industries. For example, if certain subsidies are found to significantly harm U.S. manufacturing, the government may introduce new regulations or incentives to boost domestic production. This could result in a shift in economic policy that prioritizes local manufacturing, potentially leading to increased investment in U.S. factories and infrastructure, which would benefit not only workers but also the economy as a whole.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1165 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1165
To require the United States Trade Representative to regularly monitor
industrial subsidies provided by the Government of the People's
Republic of China and submit a report on the risks posed by those
subsidies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 27, 2025
Ms. Hassan (for herself and Mr. Cassidy) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To require the United States Trade Representative to regularly monitor
industrial subsidies provided by the Government of the People's
Republic of China and submit a report on the risks posed by those
subsidies, 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 ``Strengthen American Competitiveness
Against Harmful Subsidies Act of 2025''.
SEC. 2. MONITORING BY UNITED STATES TRADE REPRESENTATIVE OF INDUSTRIAL
SUBSIDIES PROVIDED BY GOVERNMENT OF PEOPLE'S REPUBLIC OF
CHINA.
(a) Monitoring.--The United States Trade Representative, in
coordination with the entities specified in subsection (b), shall
regularly monitor--
(1) industrial subsidies provided by the Government of the
People's Republic of China; and
(2) plans by the Government of the People's Republic of
China to implement new industrial subsidies or expand existing
industrial subsidies.
(b) Entities Specified.--The entities specified in this subsection
are the following:
(1) The Bureau of Economics and Business Affairs of the
Department of State.
(2) The United States and Foreign Commercial Service of the
Department of Commerce (established by section 2301 of the
Export Enhancement Act of 1988 (15 U.S.C. 4721)).
(3) The International Trade Administration of the
Department of Commerce (other than the United States and
Foreign Commercial Service).
(4) The Foreign Agricultural Service of the Department of
Agriculture.
(5) The Small Business Administration.
(6) Any other department or agency of the Federal
Government, as determined by the President.
SEC. 3. REPORTING BY UNITED STATES TRADE REPRESENTATIVE ON RISKS POSED
BY INDUSTRIAL SUBSIDIES PROVIDED BY GOVERNMENT OF
PEOPLE'S REPUBLIC OF CHINA.
(a) Reporting.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the United States Trade
Representative, in coordination with the entities specified in
subsection (b), shall submit to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of Representatives a
report that--
(1) identifies current and expected industrial subsidies
provided by the Government of the People's Republic of China
that pose significant risk to--
(A) employment in the United States, including
employment in strategically critical industries; and
(B) manufacturing in the United States, including
production of strategically critical goods; and
(2) recommends legislative, administrative, or other
actions that could mitigate the risks posed by industrial
subsidies identified in paragraph (1).
(b) Entities Specified.--The entities specified in this subsection
are the following:
(1) The Bureau of Economics and Business Affairs of the
Department of State.
(2) The United States Agency for International Development.
(3) The United States and Foreign Commercial Service of the
Department of Commerce (established by section 2301 of the
Export Enhancement Act of 1988 (15 U.S.C. 4721)).
(4) The Industry and Analysis unit and the Enforcement and
Compliance unit of the International Trade Administration of
the Department of Commerce.
(5) The Bureau of Industry and Security of the Department
of Commerce.
(6) The Small Business Administration.
(7) The Department of Labor.
(8) The Department of Transportation.
(9) The Department of Energy.
(10) Any other department or agency of the Federal
Government, as determined by the President.
(c) Definitions.--In this section:
(1) Critical infrastructure.--The term ``critical
infrastructure'' has the meaning given that term in the
Critical Infrastructures Protection Act of 2001 (42 U.S.C.
5195c).
(2) Key technology focus areas.--The term ``key technology
focus areas'' means the key technology focus areas included in
the list required under section 10387(a)(2) of the Research and
Development, Competition, and Innovation Act (42 U.S.C.
19107(a)(2)).
(3) Strategically critical good.--The term ``strategically
critical good'' means any raw, in process, or manufactured
material (including any mineral, metal, or advanced processed
material), article, commodity, supply, product, or item of
supply the absence of which would have a significant effect
on--
(A) the national security or economic security of
the United States; and
(B) critical infrastructure.
(4) Strategically critical industry.--The term
``strategically critical industry'' means an industry that is
critical for the national security or economic security of the
United States, considering key technology focus areas and
critical infrastructure.
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