{"id":2050458,"date":"2023-09-30T05:31:02","date_gmt":"2023-09-30T09:31:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-china-panel-probes-dhs-on-enforcing-trade-fraud-penalties\/"},"modified":"2023-09-30T05:33:25","modified_gmt":"2023-09-30T09:33:25","slug":"house-china-panel-probes-dhs-on-enforcing-trade-fraud-penalties","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-china-panel-probes-dhs-on-enforcing-trade-fraud-penalties\/","title":{"rendered":"China Panel Investigates DHS Enforcement of Trade Fraud Penalties"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhouse-china-panel-probes-dhs-on-enforcing-trade-fraud-penalties%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2050458&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>A House China Panel Calls for Investigation into Chinese Trade Fraud<\/h2>\n<p>A House China panel has demanded an \u200bexplanation from the Department of Homeland Security (DHS) on how \u200bit tackles trade fraud committed by Chinese\u2064 companies to evade tariffs. The panel, led by Chair Mike Gallagher and member Rep. Darin LaHood, specifically pointed out Qingdao Sunsong, a \u200cChinese manufacturer of \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-china-panel-probes-dhs-on-enforcing-trade-fraud-penalties\/\" title=\"China Panel Investigates DHS Enforcement of Trade Fraud Penalties\">automotive fluid transfer hoses<\/a> and lines, as one of the culprits.<\/p>\n<p>Gallagher and LaHood wrote a letter to\u2063 DHS Secretary Alejandro Mayorkas, stating, &#8220;Reviews of Qingdao Sunsong&#8217;s public disclosures lay out a case of blatant trade fraud\u200d that is having a \u2063catastrophic \u200bimpact on American \u2063manufacturers.\u2062 Indeed, \u2064one American company\u200c has been compelled to accumulate significant debt, divest itself of two business divisions, and most recently lay off one-quarter of \u2064its workforce due to Sunsong&#8217;s trade fraud.&#8221;<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/china\/china-spending-billions-on-disinformation-targeting-global-audiences-report-5500919?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>China Spending Billions\u200b on Disinformation Targeting Global Audiences: Report<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/29\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/china\/china-spending-billions-on-disinformation-targeting-global-audiences-report-5500919?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/china\/us-china-diplomats-hold-in-depth-talks-on-asia-pacific-issues-5500779?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>US, China Diplomats Hold &#8216;In-Depth Talks&#8217; on Asia-Pacific Issues<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/29\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/china\/us-china-diplomats-hold-in-depth-talks-on-asia-pacific-issues-5500779?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>&#8220;If swift action\u200c is not taken, \u200dthe affected\u200b company will be\u200c forced to permanently cease\u200d its operations,&#8221; warned the congressmen.<\/p>\n<p>When Sunsong attempted to go public on the Beijing Stock Exchange (BSE) last year, the\u2064 company openly discussed\u200d its methods \u200bof evading U.S. tariffs on its exports.<\/p>\n<div class=\"my-5\">According to a disclosure document (<a href=\"https:\/\/www.bse.cn\/disclosure\/2022\/2022-10-31\/1667201822_122172.pdf\" target=\"_blank\" rel=\"noopener\">pdf<\/a>) filed with BSE in October 2022, Sunsong revealed that its auto\u200d parts manufactured in China had been subjected to a 25 percent tariff since 2018. To lower \u200btariff costs, the company expanded its production in Thailand and has been \u2064exporting to the United States from \u2064there since 2021.<\/div>\n<div class=\"my-5\">Furthermore, the filing indicates\u2062 that\u2064 the value-added by \u2064the Thailand step in the journey\u200d of a\u2063 Sunsong product from \u2064China to the United States is below 10 percent. This \u200bis significantly lower than the \u200dminimum 35 percent required for a &#8220;substantial transformation&#8221; of products originally from China to be considered &#8220;made in Thailand&#8221; for \u2062tariff \u2062purposes.<\/div>\n<p>The Epoch\u2063 Times reached out to\u2063 Qingdao Sunsong for comment.<\/p>\n<div class=\"post-figure\" style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>Shipping containers wait to be \u2063transferred from the ports of Los Angeles and Long Beach on Oct. 14, 2021. (John Fredricks\/The Epoch Times)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>The tariffs,\u2062 commonly known as &#8220;Section 301 tariffs,&#8221; were initiated by the Trump administration using Section 301 of the Trade Act of \u200d1974 to investigate and address <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">unfair trade practices<\/a>. The \u2062Biden administration has maintained these tariffs.<\/p>\n<p>&#8220;We are concerned that this type of trade fraud is\u200c widespread in today&#8217;s economic environment, with companies\u2062 resorting to\u200d such practices\u2064 to effectively evade the United States&#8217; \u2063tariff regime,&#8221; stated the lawmakers in their letter to DHS.<\/p>\n<p>During an August hearing on China&#8217;s threat to American manufacturing, Mr. Gallagher \u2063emphasized, &#8220;China underprices and dumps, and that has had devastating consequences\u2064 for manufacturing, American workers, and \u2064economic security. Tariffs, when strategically applied to China, reduce reliance on \u200cChina and promote domestic manufacturing.<\/p>\n<p>&#8220;Targeted economic incentives\u2064 for specific sectors can strengthen our economy and national\u200c security,\u2062 and countervailing duties can level the playing field.&#8221;<\/p>\n<p>The Epoch Times has reached out to DHS for comment.<\/p>\n<\/blockquote>\n<p> <\/p>\n<h2> What are the potential consequences for American businesses and workers due to Sunsong&#8217;s trade fraud?<\/h2>\n<p><span>  \u2062D Malaysia, and falsely labeled the products as originating from\u200d those countries. By doing so, Sunsong was able to avoid paying the higher tariffs \u2063imposed on Chinese imports.<\/div>\n<p>The House China panel expressed \u200bdeep concern over the \u200clack of\u2062 action\u200d taken by the DHS to address this issue.\u2064 In their letter to Secretary Mayorkas, Gallagher and LaHood\u2063 requested a detailed explanation of the department&#8217;s current strategy to combat trade fraud, specifically referring to Chinese companies evading tariffs.<\/p>\n<p>Furthermore, the congressmen urged the DHS to initiate \u200ban \u200dinvestigation\u2063 into Qingdao Sunsong and\u2063 other Chinese companies engaged in similar fraudulent practices. They emphasized the urgent need to hold these \u2064companies accountable for their actions\u200d and protect American manufacturers from unfair competition.<\/p>\n<p>The impact of Sunsong&#8217;s trade fraud on \u2062the affected American company \u2063has been severe. The accumulation \u2062of \u200dsignificant \u200ddebt, divestment of business divisions, and \u200clayoff of one-quarter \u2064of \u200dits workforce are clear indications of the \u200bdevastating consequences of such fraudulent activities. Immediate action\u200d is imperative to\u200d prevent further harm to American businesses and workers.<\/p>\n<p>The House China\u2063 panel&#8217;s call for a thorough \u2063investigation into Chinese trade fraud is a necessary step in safeguarding the integrity of international trade. China&#8217;s practice of evading tariffs not only undermines fair competition but also poses a \u2062threat to economic stability and national security.<\/p>\n<p>In recent years, concerns about China&#8217;s unfair trade practices and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senior-partners-at-firm-hired-to-review-lincoln-project-scandal-have-donated-thousands-to-group\/\" title=\"Senior Partners at Firm Hired to \u2018Review\u2019 Lincoln Project Scandal Have Donated Thousands to Group\">intellectual property theft<\/a> have been on the rise. It is\u200b crucial for the United States to take\u2063 proactive measures to \u2062address these issues and\u200c protect its domestic industries. By investigating and penalizing companies like Qingdao Sunsong, the U.S. can \u200bsend a strong message that trade fraud will not be tolerated.<\/p>\n<p>The House China panel&#8217;s\u2064 action serves as a reminder of the importance of maintaining fair trade rules\u200b and holding accountable those who seek to undermine them. It\u200d is essential for the\u2064 DHS to promptly respond to the \u2062panel&#8217;s \u200brequest for an\u200b explanation and initiate a thorough investigation into Chinese trade fraud.<\/p>\n<p>Ultimately, the goal \u2064should be to create a level playing field for American businesses and ensure\u200b that international trade is conducted in a transparent and fair manner. The House China panel&#8217;s efforts are a step in the \u2064right\u2064 direction, and it is crucial for the DHS and other relevant authorities to take appropriate action to address trade fraud\u200d by Chinese companies and protect the interests of American manufacturers.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>A House China panel has requested the Department of Homeland Security to clarify its methods for detecting and apprehending Chinese firms involved in tariff evasion through trade fraud. In a letter to DHS Secretary Alejandro Mayorkas, Chair Mike Gallagher (R-Wis.) and Rep. Darin LaHood (R-Ill.) of the House Select Committee on China accused Qingdao Sunsong, a Chinese company, of such practices.<\/p>\n","protected":false},"author":238,"featured_media":2050459,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2050458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2050458"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2050459"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2050458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2050458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2050458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}