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US House targets China-linked firms in crackdown on trade crimes

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Washington, DC | September 1, 2026 6:29:02 PM IST
The US House of Representatives has passed bipartisan legislation aimed at strengthening the Justice Department's ability to investigate and prosecute trade-related crimes allegedly committed by Chinese companies and other entities linked to China.

The Protecting American Industry and Labor from International Trade Crimes Act, led by Select Committee on China Chairman John Moolenaar along with committee members Ashley Hinson, Raja Krishnamoorthi and others, would establish a dedicated task force within the Department of Justice's Criminal Division.

The proposed task force would focus on a range of alleged trade violations, including tariff and duty evasion, violations of import and export restrictions, trade-based money laundering, smuggling and other crimes involving international commerce.

Supporters of the legislation argue that such practices have harmed US manufacturers and workers while allowing China-backed companies to gain an unfair advantage in American markets.

"China has spent decades finding ways to undermine American workers and our economy," Hinson said, arguing that the bill would provide the DOJ with stronger tools to address trade violations and ensure that penalties are effectively enforced.

Moolenaar similarly accused China-backed companies of engaging in trade crimes that he said "devastate American manufacturing" and threaten the economic prosperity of Americans. He described tougher enforcement as essential to countering what he characterised as China's "predatory trade practices."

The legislation would authorise the DOJ to hire criminal trial attorneys and other personnel specifically to investigate and prosecute trade-related offences. It would also expand training and technical assistance for federal, state and local law enforcement agencies dealing with suspected trade crimes involving individuals or entities in China.

Another provision would allow authorities to pursue parallel criminal and civil enforcement actions, potentially broadening the government's ability to respond to suspected violations.

The bill would also require the Attorney General to submit an annual report to Congress detailing DOJ efforts, emerging trends in trade-related crime statistics and how funds allocated for enforcement are being used. (ANI)

 
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