Mr. Speaker, pursuant to House Resolution 327, I call up the joint resolution (H.J. Res. 39) disapproving the rule submitted by the Department of Commerce relating to ``Procedures Covering Suspension…
Mr. Speaker, pursuant to House Resolution 327, I call up the joint resolution (H.J. Res. 39) disapproving the rule submitted by the Department of Commerce relating to ``Procedures Covering Suspension of Liquidation, Duties and Estimated Duties in Accord With Presidential Proclamation 10414'', and ask for its immediate consideration in the House.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and submit extraneous material on the resolution under consideration.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today, we take a bipartisan step toward holding China accountable for its trade abuses.
These trade abuses are well known to all of us in this Chamber. Most recently, this past December, President Biden's Department of Commerce found that China is circumventing tariffs on imports into the U.S. by shipping solar products through, not one country, not two countries, not even three countries, but in fact, four countries in Southeast Asia.
These tariffs were put in place by President Obama since 2012 to provide a level playing field for American manufacturers who were facing unfair competition in the U.S. market from solar products that China was subsidizing and selling at unfairly low prices. By circumventing these tariffs by shipping its products through Cambodia, Malaysia, Thailand, and Vietnam, China has set up a solar panel export scheme that cheats American workers and consumers.
So we know there is wrongdoing going on. We know China is cheating. That is precisely why Members from both parties were stunned and disappointed when the White House made the misguided decision to halt for 2 years additional tariffs on Chinese solar products being sent through these four countries.
At a time when China has a dominant position in solar production, despite longstanding American innovation in this sector, should we really be telling the world that there will be less accountability for unfair trade practices?
The answer is not just no. Mr. Speaker, it is absolutely no.
But the President's proclamation to halt any new countervailing duties and tariffs does just that. What is worse, it establishes a lesser standard of accountability for China than the rest of the world.
The legislation before us today, H.J. Res. 39, Congressional Review Act legislation on solar tariffs, will stop President Biden's proclamation that has given a free pass for 2 years to unfair solar imports from China that circumvent our trade laws.
The United States must maintain crucial protections for American workers and our economy as a whole. We cannot surrender to China or any other country and put American workers at a disadvantage.
This resolution has bipartisan support. I thank Representative Posey for leading this initiative, and Committee on Ways and Means members Dan Kildee of Michigan, Greg Murphy of North Carolina, Bill Pascrell of New Jersey, Nicole Malliotakis of New York, and Claudia Tenney of New York. The fact that Democrats and Republicans on our committee are original cosponsors of this resolution shows just how bipartisan the issue is.
We have to confront the Chinese Communist Party's bad behavior. We have to hold it accountable.
Mr. Speaker, I urge votes in favor of this legislation, and I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I also want to highlight another member of the House Committee on Ways and Means that is a cosponsor and a supporter of this resolution, Ms. Terri Sewell from Alabama.
Mr. Speaker, I include in the Record a letter from the Auxin Solar founder and CEO thanking Speaker McCarthy and House Republicans for bringing this resolution to the House floor. Auxin is a small California company with 37 full-time employees that filed a petition last year asking the Department of Commerce to investigate whether Chinese firms were circumventing existing tariffs. Auxin strongly supports this resolution so that the company and its workers can get relief from unfair Chinese competition and end what it calls the get- out-of-jail-free card that President Biden gave to duty evaders.
Auxin Solar,
San Jose, CA, April 27, 2023.
Hon. Kevin McCarthy,
Speaker, House of Representatives,
Washington, DC.
Dear Mr. Speaker: I'm writing to you on behalf of myself,
my business partner Sherry Tai, the 37 full-time employees of
Auxin Solar, and our families to thank you for bringing to
the floor for a vote H.J. Res.39, the Congressional Review
Act resolution.
By just bringing this resolution to the floor for a vote,
you are sending a strong signal that the United States
Congress will stand up against the Chinese Communist Party
and their unfair trade practices on behalf of American
manufacturers and our workers. More importantly, when we see
Congress vote on this resolution, you will be giving me and
Sherry the strength to continue our fight against unfairly
traded solar imports and the confidence to continue to
reinvest our personal finances into making Auxin Solar a
leader in U.S. solar manufacturing.
Sherry and I co-founded Auxin Solar in 2008 and, since that
time, we have been providing high-paying jobs to our
employees in Silicon Valley, California. In 2008, we
forecasted that solar cells and solar modules would
eventually become commodity products that could compete on a
cost basis with traditional energy sources. That has come
true. Solar deployment is reaching year-over-year all-time
highs because of the cost parity with traditional energy
sources. With our low overhead, competitive costs, and high
employee retention rates, we should have been printing money
in a growing demand environment. But what we didn't forecast
when we started Auxin Solar was the anticompetitive behavior
of China and the success that China would have in dominating
the solar supply chain.
In the early 2010s, China was so far behind the United
States in solar technology and know-how. To catch up, CCP
agents stole our intellectual property. Then the CCP used
draconian duties to effectively prohibit U.S. polysilicon
companies from selling into the Chinese market. When the U.S.
imposed duties to offset predatory pricing in solar, China
used its industrial policies to assist major Chinese CCP-
connected solar companies in their move out of China to
circumvent U.S. trade laws. It took just ten years but now,
China dominates the entire solar supply chain. They use
forced labor practices to mine polysilicon. They use coal-
fired energy to power ingot and wafer-making. And they use
Southeast Asia as screw-driver operations to circumvent trade
laws.
In the face of predatory Chinese pricing in the United
States, and when our domestic competitors closed, Auxin
continued to operate. Sadly, what we've learned in the last
five years is that the trade remedy laws are not designed for
medium-sized enterprises like Auxin. Take for example what
happened during the initial solar safeguard. Although demand
continued to grow with duties in place in 2018, major energy
companies complained and lobbied to attain an exclusion for
bifacial panels. Bifacial panels are solar modules that
generate electricity using both sides of the panel. Since
2016--well before the safeguard even started--Auxin Solar was
one of the only companies to produce bifacial panels in
America. Our bifacial panels were used in major utility-scale
projects in Lumberton, New Jersey and by Georgia Power at the
Mercedes Benz Stadium in Atlanta, Georgia. They were also
used in Columbus, Ohio on the largest ever commercial rooftop
solar array ever installed. Since an exclusion for bifacial
panels was granted, bifacial panel pricing premiums collapsed
and bifacials quickly became the majority of imports. In
fact, just to avoid duties, companies will go so far as to
put bifacial panels on residential homes even though only one
side of the panel is used. This is done simply to avoid
duties and has the direct result of undermining Auxin's
business.
The same thing happened again when Auxin tried to stand up
and combat the surge in panels from Southeast Asia, which
consist almost entirely of Chinese content. Had these exact
same panels come directly from China, they would have been
subject to duties put in place by the U.S. International
Trade Commission. Although others in the domestic industry
wanted this circumvention loophole closed, we were the only
ones willing to publicly put our name on a filing. We were
immediately subjected to online harassment, cyber intrusion,
and attempted physical break-ins to our facility. Our stellar
Google reviews, which we use to pitch to potential employees,
became single star reviews accompanied by hateful language. A
website called ``ExposeAuxin.com'' was created to spread lies
and disinformation about us.
Against it all, we continued to have faith that the
Commerce Department's quasi-judicial process would work to
instill price discipline in the market and close the duty
evasion loophole. But President Biden mistakenly intervened
in our circumvention case because of a loud misinformation
campaign lead by Chinese special interests. The resulting
tariff-free holiday for all imports from Southeast Asia is
bad policy because it acts as a ``get out of jail free'' card
to duty evaders and sends a signal to law-abiding importers
that it doesn't pay to follow the law and pay a fair price
for a solar panel.
Today at Auxin Solar, we're operating at a fraction of our
capacity utilization because of the concerted effort to
silence us and scare us into withdrawing our trade fight. Our
ability to raise capital, hire new employees for expansion,
and secure new sales opportunities continue to be hampered.
Sherry and I are first generation immigrants. We are a
minority- and woman-owned medium sized business. When
politicians talk about how Washington should work better for
middleclass Americans, the ``tariff holiday'' does not do
that. Instead, it provides a windfall for Wall Street and
doesn't give a fighting chance to American workers to compete
against Chinese solar.
On broad policy, we must counteract the Chinese dominance
of the solar supply chain for our energy security. We should
be asking ourselves whether we want the Chinese Communist
Party to control our electricity grid. We should be asking
ourselves if the Chinese Communist Party will stifle our
ability to meet our carbon-neutral goals by imposing
export restraints on key technology or halting sales of solar
to the U.S. And we should be asking if we are okay with
meeting our carbon objectives on the back of forced labor,
from massive expansions in coal-fired power plants, and from
intellectual property theft. I've been in the solar business
for 15 years and solar deployment is good for business. But
there are bigger issues here than quarterly profits and
investor returns. This is why I strongly support your
creation of the bipartisan Select Committee on the Chinese
Communist Party, which should continue to shed light on these
issues for the American people to understand.
At Auxin Solar we've withstood Chinese predatory behavior
for 15 years. I refuse to let the Chinese prevail and put
Auxin Solar out of business. Right now we're in the midst of
a major capacity expansion at Auxin Solar funded by me,
Sherry, and our families. Once we have our expansion online,
we would be pleased to welcome you to visit so that we can
thank you in person for bringing H.J. Res. 39 to the floor
for an up-or-down vote.
Sincerely,
Mamun Rashid, CEO.
Mr. Speaker, I yield 2 minutes to the gentleman from North Carolina (Mr. Murphy).
Mr. Speaker, I yield 4 minutes to the gentleman from Florida (Mr. Posey), the original sponsor of this resolution.
Mr. Speaker, I include in the Record an article from Politico called ``Trio of Democratic senators back resolution to undue Biden's solar tariff pause.''
[From POLITICO PRO, Apr. 26, 2023]
Trio of Democratic Senators Back Resolution To Undo Biden's Solar
Tariff Pause
(By Kelsey Tamborrino)
Three Democratic senators said Wednesday they'd vote to
rescind President Joe Biden's two-year pause on new solar
import tariffs from four Southeast Asian countries--raising
the stakes on the measure that is set to force Democrats to
weigh both trade and climate considerations.
Sen. Joe Manchin (D-W.Va.) announced Wednesday that he'd
sign on to the resolution, marking another rebuke of the
Biden
administration's energy agenda from the West Virginia
Democrat. Sens. Ron Wyden (D-Ore.) and Sherrod Brown (D-Ohio)
separately also said Wednesday they'd support the measure
should it get a vote on the Senate floor.
The House is poised to vote this week on the measure, which
Biden has promised to veto should it reach his desk.
The resolution would undo the president's 24-month pause on
new import tariffs on solar cells and modules from Malaysia,
Thailand, Cambodia and Vietnam following the start of a
Commerce Department probe that roiled the solar industry.
Commerce released initial results in December that found
companies were circumventing tariffs on Chinese solar
equipment by routing them through the four nations. A final
determination is expected next month.
Lawmakers, led by Reps. Dan Kildee (D-Mich.) and Bill Posey
(R-Fla.) in the House and Rick Scott (R-Fla.) in the Senate,
introduced a resolution to rescind the rule enacting Biden's
two-year moratorium.
Manchin said Wednesday he would join the Senate resolution
as a co-sponsor, Scott's office and a Manchin spokesperson
confirmed.
While the Congressional Review Act resolution has
bipartisan support in the House, it so far had only
Republican cosponsors in the Senate.
``The United States relies on foreign nations, like China,
for far too many of our energy needs, and failing to enforce
our existing trade laws undermines the goals of the
Bipartisan Infrastructure Law and Inflation Reduction Act to
onshore our energy supply chains, including solar,'' Manchin
said in a statement. ``I cannot fathom why the Administration
and Congress would consider extending that reliance any
longer and am proud to join this CRA to rescind the rule.''
Manchin on Wednesday also joined all 49 Republicans in
support of a separate CRA resolution that would overturn
EPA's recent rule limiting emissions of nitrogen oxides.
Wyden, the chair of the Finance Committee, told reporters
that he too would vote in favor of the solar resolution,
should it come to a vote on the floor.
``I have told the administration that over the 10-year
period, when I was writing the clean energy bill, it was
always about manufacturing. Red, white and blue. Got to get
the jobs here.'' he said. ``So I'm going to be supporting the
manufacturing proposal.''
Brown shortly after released a statement that he was in
favor of the resolution.
``My whole career--I don't care what presidents think about
this--I've taken on presidents of both parties, starting with
Clinton on [North American Free Trade Agreement]. And when
they're wrong on trade, it costs American jobs, and this is
the right decision,'' he said in an interview.
The solar tariff resolution is expected to put Democrats in
a tricky position, given supporters' argument that the
resolution is meant to enforce U.S. trade laws and combat
Chinese influence, while those opposing it argue it will
undercut solar energy progress.
Brown and Sen. Bob Casey of Pennsylvania previously called
on the president to terminate the two-year suspension, and
Casey told POLITICO last month that he was inclined to
support the resolution should it come to the floor.
Democratic Sen. Jon Tester of Montana, who has previously
voted to undo another Biden rule, told POLITICO he has not
yet made a decision on the solar resolution.
The resolution advanced out of the House Ways and Means
Committee last week with Democratic support and is poised for
a floor vote later this week in the House.
Mr. Speaker, this article notes that three Democratic Senators, including the chairman of the Senate Finance Committee, Senator Wyden, Senator Manchin from West Virginia, and Senator Brown from Ohio, have publicly supported rescinding President Biden's action to pause tariffs on Chinese solar panels, even before the CRA has even passed the House.
Mr. Speaker, I understand that at least one more Democratic Senator has also expressed support. I thank my Democratic colleagues in the House and in the Senate for joining me in standing up for American workers by supporting consistent enforcement of our trade laws against China's unfair trade practices.
Mr. Speaker, I yield 2 minutes to the gentleman from Ohio (Mr. Latta).
Mr. Speaker, I include in the Record a statement from the Uyghur Human Rights Project in support of H.J. Res. 39.
Uyghur Human Rights Project,
April 18, 2023.
To the Members of the Committee: I write in strong support
of H.J. Res. 39. This bipartisan bill would repeal the Biden
Administration's Solar Emergency Declaration, a harmful rule
issued in June 2022 that protects Chinese solar manufacturers
that the Department of Commerce has determined are illegally
avoiding U.S. tariffs.
As you know, both the President Biden and President Trump
administrations have determined that the government of the
People's Republic of China (PRC) is committing genocide and
crimes against humanity against the Uyghurs and other Turkic
peoples, including state-imposed forced labor, mass forced
sterilization, and mass enforced disappearance and arbitrary
detention. The United Nations Office of the High Commissioner
for Human Rights (OHCHR) found in its authoritative August
31, 2022 report (the ``Bachelet Report'') that the PRC is
responsible for ``serious human rights violations'' that
``may constitute crimes against humanity.''
In response to the Uyghur human-rights crisis, the U.S.
government has taken action to ban products made with forced
labor from China, including solar equipment, among 100+
human-rights sanctions including export bans, investment
bans, visa bans, and Global Magnitsky targeted human rights
OFAC SDN designations. Under the Uyghur Forced Labor
Prevention Act, which came into force on June 21, 2022, no
products are exempt from the ``rebuttable presumption'' that
all products mined, grown, or manufactured in the Uyghur
Region are banned under Section 307 of the U.S. Tariff Act.
The law is applicable regardless of the needs of particular
industries or the scarcity of alternative supplies.
No economic or environmental imperative can justify profits
from the genocidal state-imposed forced labor of Uyghurs.
The reality is that the Chinese polysilicon and solar-
component industries are highly dependent on mining and
manufacturing in the Uyghur homeland, using central
government subsidies and incentives, and under the auspices
of the government of the Xinjiang Uyghur Autonomous Region.
In our view, it is clear that an increase in solar imports
from Chinese solar manufacturers--regardless of whether these
imports are from China or Chinese controlled factories in
Southeast Asia--directly supports the Chinese solar
industry's use of Uyghur forced labor. According to
government data, imports of solar cells and modules from
Cambodia, Malaysia, Thailand, and Vietnam have risen 69
percent since 2019.
It is unconscionable to believe that the U.S. should build
a clean-energy future that
relies on products made under the combination of dirty coal
plants and China's genocidal forced-labor inputs. As the AFL-
CIO pointed out in a major statement in October 2021, the
``solar industry and its entire value chain, should exemplify
how the United States meets the climate, equity and economic
challenges of the 21st century.'' It's a false choice to
think we can achieve climate goals by abandoning our core
values.
As H.J. Res. 39 comes before the Ways and Means Committee,
we urge you to support this bipartisan, common-sense measure.
It is indefensible to allow Chinese solar manufacturers that
profit from Uyghur forced labor to be exempted from
compliance with U.S. trade law.
Louisa Greve,
Director of Global Advocacy.
Mr. Speaker, the statement highlights the close connection between the CCP solar industry and the ongoing human rights abuses and forced labor being perpetrated against the Uyghurs. This is bipartisan consensus that these practices are unacceptable and must be stopped.
Mr. Speaker, I yield 2 minutes to the gentlewoman from New York (Ms. Tenney).
Mr. Speaker, I include in the Record a press release from President Biden's Department of Commerce that states the Department determined in December 2022, after a thorough investigation, that Chinese solar companies are circumventing U.S. tariffs on solar products.
[From U.S. Department of Commerce, Dec. 2, 2022]
Department of Commerce Issues Preliminary Determination of
Circumvention Inquiries of Solar Cells and Modules Produced in China
(Office of Public Affairs)
Today, the U.S. Department of Commerce announced its
prelimiary determinations in the circumvention inquiries of
solar cells and modules from the People's Republic of China
(PRC). Commerce examined a complaint alleging that eight
solar companies that manufacture solar cells and modules are
manufactured the components in the PRC, then sending those
cells and modules to Cambodia, Malaysia, Thailand, and/or
Vietnam for minor processing before being exported to the
United States. Such actions amount to an effort to evade the
existing antidumping duty (AD) and countervailing duty (CVD)
orders on solar cells and modules from the PRC. Today's
preliminary determination underscores Commerce's commitment
to holding the PRC accountable for its trade distorting
actions, which undermine American industries.
Under U.S. law, Commerce may conduct a circumvention
inquiry when evidence suggests that merchandise subject to an
existing AD/CVD order is completed or assembled in third
countries from parts and components imported from the country
subject to the order. AD/CVD orders are designed to provide
relief to the U.S. domestic industries when they are facing
unfair competition. Circumvention of these duties threatens
to undermine American industries, workers, and businesses.
After a thorough, transparent, and data-driven
investigation of eight companies across the four countries,
Commerce preliminarily found that four of the eight companies
being investigated are attempting to bypass U.S. duties by
doing minor processing in one of the Southeast Asian
countries before shipping to the United States.
The preliminary findings are as follows:
Third Country, Company, Finding:
Cambodia: BYD Hong Kong, Circumventing; New East Solar, Not
Circumventing.
Malaysia: Hanwha, Not Circumventing; Jinko, Not
Circumventing.
Thailand: Canadian Solar, Circumventing; Trina,
Circumventing.
Vietnam: Boviet, Not Circumventing; Vina Solar,
Circumventing.
Further, some companies in Malaysia, Thailand and Vietnam
did not respond to Commerce's request for information in this
investigation, and consistent with longstanding practice,
will be found to be circumventing.
Because Commerce preliminarily found that circumvention was
occurring through each of the four Southeast Asian countries,
Commerce is making a ``country-wide'' circumvention finding,
which simply designates the country as one through which
solar cells and modules are being circumvented from the PRC.
This does not constitute a ban on imports from those
countries. Companies in these countries will be permitted to
certify that they are not circumventing the AD/CVD orders, in
which case the circumvention findings will not apply. With
regard to the companies under investigation that were not
circumventing the AD/CVD duties, no action will be taken as
long as their production process and supply chain do not
change.
These findings are preliminary, and as a next step,
Commerce will conduct in-person audits in the coming months
to verify the information that was the basis of its finding.
Furthermore, all parties will have an opportunity to comment
on Commerce's finding, which Commerce will fully consider
before issuing its final determination, which is currently
scheduled for May 1, 2023.
Independent of Commerce's final determination, the
Presidential Proclamation issued on June 6, 2022, provides
that duties will not be collected on any solar module and
cell imports from these four countries until June 2024, as
long as the imports are consumed in the U.S. market within
six months of the termination of the President's
Proclamation. This provides U.S. solar importers with
sufficient time to adjust supply chains and ensure that
sourcing isn't occurring from companies found to be violating
U.S. law. Solar cells made in one of the four Southeast Asian
countries, even if made from wafers from China, that are then
exported to a non-inquiry country and further assembled into
modules or other products there, are not subject to
Commerce's preliminary circumvention findings.
Mr. Speaker, the evidence is clear. Chinese companies have set up shop in Cambodia, Malaysia, Thailand, and Vietnam to get around U.S. tariffs that were put in place in 2012 by President Obama, yet the Biden administration is turning a blind eye on American workers and American manufacturers by waiving additional tariffs while it acknowledges cheating by Chinese companies.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, my grandfather always told me that actions speak louder than words. We have heard a lot of words about people standing up to China. This resolution will give every Member in this body the opportunity to stand up to China, and this is the way to do it.
Mr. Speaker, I am so thankful that we have Democratic Senators-- including my counterpart, Senator Wyden--on the other side of the aisle who are willing to do the right thing for the American worker and to do what President Obama did in 2012 to make sure that the solar industry works for America and does not become beholden to China.
Today, the U.S. Congress has the opportunity to send a direct message to China, and really any country that thinks about violating trade policies or attempts to cheat American workers, that the U.S. will not tolerate such behavior. I appreciate the fact that this can be a bipartisan message.
The White House made a very misguided decision when it chose to lift additional tariffs from China for 2 years. That action, in my view, sends the wrong message to the world, particularly when we know, based on findings by the President's own Commerce Department, that China is cheating American workers and consumers by circumventing tariffs right now.
We have the opportunity today to act on bipartisan legislation that will turn out the lights on that decision and hold China accountable.
To be clear, U.S. purchasers of fairly traded solar products will not pay a single penny of additional tariffs if this resolution is enacted. This is about protecting American workers and American jobs and holding China accountable.
Mr. Speaker, I thank my colleagues on both sides of the aisle for introducing this resolution and fighting to protect American workers and American jobs.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.