Fair Trade with China Enforcement Act
Latest action (22 Jan 2019): Introduced
What this bill does
H.R. 704, the "Fair Trade with China Enforcement Act," was introduced to restrict Chinese economic influence in the United States and impose new trade penalties on China. It would direct the U.S. Trade Representative to compile an annual list of products tied to China's "Made in China 2025" industrial policy; ban exports of national-security-sensitive technology and intellectual property to China; cap Chinese ownership of certain U.S. companies producing goods on that list; and bar federal agencies from using telecommunications equipment or services from Huawei, ZTE, or similar Chinese-linked firms. It would also require countervailing duties on listed Chinese goods, end reduced tax withholding rates for Chinese residents under the U.S.-China tax treaty, and change tax treatment of U.S. government obligations held by the Chinese government. A companion title, the "Stopping Foreign Businesses Sanctuary Act," addresses U.S. jurisdiction over foreign entities and their affiliates.
The bill would affect U.S. companies and investors dealing with China, federal agencies and contractors using certain telecom equipment, importers of Chinese goods in targeted industries, and Chinese investors, residents, and the Chinese government with respect to U.S. tax treatment and securities ownership.
The bill was introduced on January 22, 2019, by Rep. Michael Conaway and referred to the House Ways and Means Committee, along with the Financial Services, Judiciary, Foreign Affairs, and Oversight and Reform Committees. It received no further action or vote before the end of the 116th Congress, meaning it did not become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Fair Trade with China Enforcement Act
This bill revises trade, finance, and tax provisions with respect to China.
The bill directs the Department of Commerce to prohibit the export of certain U.S. technology and intellectual property to China.
The bill places a shareholder cap on Chinese investments in certain U.S. corporations.
Federal agencies are prohibited from using or procuring telecommunications equipment or services from Huawei Technologies Company, ZTE Corporation, or any other entity reasonably believed to be owned or controlled by China.
The bill requires the U.S. Trade Representative to list certain Chinese products that receive support pursuant to China's Made in China 2025 policy. The bill aexpedites the countervailing duty process (i.e., the imposition of duties to offset a subsidy by a foreign government) for products on such a list.
The bill amends the Internal Revenue Code to
• repeal certain reduced withholding rates for residents of China,
Common questions
- What does H.R. 704 do?
- H.R. 704, the "Fair Trade with China Enforcement Act," was introduced to restrict Chinese economic influence in the United States and impose new trade penalties on China. It would direct the U.S. Trade Representative to compile an annual list of products tied to China's "Made in China 2025" industrial policy; ban exports of national-security-sensitive technology and intellectual property to China; cap Chinese ownership of certain U.S. companies producing goods on that list; and bar federal agencies from using telecommunications equipment or services from Huawei, ZTE, or similar Chinese-linked firms. It would also require countervailing duties on listed Chinese goods, end reduced tax withholding rates for Chinese residents under the U.S.-China tax treaty, and change tax treatment of U.S. government obligations held by the Chinese government. A companion title, the "Stopping Foreign Businesses Sanctuary Act," addresses U.S. jurisdiction over foreign entities and their affiliates. The bill would affect U.S. companies and investors dealing with China, federal agencies and contractors using certain telecom equipment, importers of Chinese goods in targeted industries, and Chinese investors, residents, and the Chinese government with respect to U.S. tax treatment and securities ownership. The bill was introduced on January 22, 2019, by Rep. Michael Conaway and referred to the House Ways and Means Committee, along with the Financial Services, Judiciary, Foreign Affairs, and Oversight and Reform Committees. It received no further action or vote before the end of the 116th Congress, meaning it did not become law.
- Has H.R. 704 become law?
- Not yet. As of 22 Jan 2019, H.R. 704 is introduced.
- Who sponsored H.R. 704?
- H.R. 704 was sponsored by Rep. Michael Conaway [R-TX11, 2005-2020] (Republican-TX), with 5 cosponsors.
- What's the latest action on H.R. 704?
- Introduced (22 Jan 2019).
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