Trade hawks fear an opportunity to hold both China and President
Joe Biden accountable is being lost as legislation rolling back an administration rule on Chinese solar panels languishes in Congress.
The bipartisan resolution takes aim at Biden’s “
Solar Declaration of Emergency
” order, a rule critics say hamstrings the government’s ability to enforce trade laws intended to protect U.S. companies from unfair foreign competition. As a Commerce Department investigation into China’s potential circumvention of anti-dumping tariffs was underway last year, Biden’s declaration moved to suspend potential tariffs on solar panels that could result from the inquiry.
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The department codified the rule in November, weeks before assessing that China was evading U.S. tariffs on Chinese-made solar goods by moving products offshore through Cambodia, Malaysia, Thailand, and Vietnam.
Using the Congressional Review Act, the resolution allows Congress to nullify Biden’s rule with a simple majority since it was enacted within roughly two months of the last legislative session.
Trade hawks view the bill as important in holding China accountable for violating U.S. laws as newly empowered House Republicans train their sights on Beijing.
“I don’t know why any member of congress wouldn’t want to stand up to protect American workers and American manufacturers and to protect our supply chains, which china will increase its control over if we don’t push back,” said George Cecala, a spokesman for Rep. Bill Posey (R-FL), who introduced the legislation alongside Rep. Dan Kildee (D-MI).
Cecala described discussions with House Republican leaders over the bill as “positive” and “constructive.”
Yet the delay in bringing the resolution to a vote has added new hurdles that threaten to run out the clock in the Senate.
“This is an indicator of how good Republicans are going to be on China,” a source said, warning that the slow pace of action is an early test of the party’s commitment to protecting American workers from predatory trade violations.
This person added, “You mean to tell me that you’re concerned about votes on a CRA that’s bipartisan that goes after Biden for giving a get-out-of-jail-free card to the Chinese [for] violating our laws? I dare you to put that on the floor and see which Republicans vote against it.”
It is not clear how Republicans plan to proceed with the rule.
A Republican aide said procedural rules dictate that “after this week when the grace period ends, a hearing needs to be held on this CRA and it must be reported by a committee.” The aide indicated that Republican leaders were “supportive of the effort” but declined to answer whether leadership believed the resolution had the votes to pass.
Another aide said the resolution was being looked at and would go through the committee process and could move through the Senate with privilege into May.
The majority leader determines the floor schedule.
That the bill might lack the necessary votes has taken some supporters by surprise.
Kildee told the America Prospect, a left-leaning outlet, that the resolution had “a veto-proof majority.” Asked whether this remains the case, Kildee’s office said being in the minority made this hard to predict.
The rule is also an opportunity to hold Biden accountable with Democrats’ support.
“If it passes out of the Senate, you look like a hero because you just split the Democratic caucus in both chambers and sent a bill to the president’s desk that he has to veto,” a source said.
Ahead of last year’s midterm elections
, some Democrats urged Biden to hold firm on the populist trade policies he championed during his presidential campaign.
In one campaign ad, Rep. Marcy Kaptur (D-OH), a longtime Biden ally, said she was “
fighting back
” against the president, whom she accused of “letting Ohio solar manufacturers be undercut by China
.”
Green energy industry groups like the Solar Energy Industries Association and American Clean Power have led a pressure campaign in the other direction
, with utility companies warning of potential power shortages if projects are delayed.
“We strongly disagree with the Commerce Department’s contradictory preliminary decision, which is not supported by the facts, and we believe it should be reversed on final review,” Abigail Ross Hopper, president and CEO of SEIA, said in a statement. “In the absence of that, the tariff pause is the next best option to protect the livelihood of tens of thousands of American solar workers. We believe most lawmakers want to grow these American jobs and the economy-fueling clean energy these workers are providing.”
In a public utility commission filing, Xcel Energy warned that equipment and material shortages had frustrated the company’s solar project plans, the Colorado Sun reported
. Xcel last year backed lawmakers pressing Biden to hasten the administration’s tariff circumvention review.
The Minnesota-based company partners on large-scale solar plants with NextEra Energy, the country’s largest electric utility and a clean energy giant whose suppliers have been linked to forced labor violations in China.
Xcel, NextEra, and other utilities have contributed tens of thousands of dollars to lawmakers in both parties, as have industry groups including SEIA.
During the 2022 midterm cycle, NextEra gave $20,000 to House Republican leaders, including Speaker Kevin McCarthy
(R-CA), Majority Leader Steve Scalise (R-LA), and Majority Whip Tom Emmer (R-MN).
Emmer was also the top Republican recipient of Xcel donations in 2022, according to OpenSecrets.
Emmer’s office declined to comment. Scalise’s office declined to comment.
Republican differences on tariffs have spilled into public since Biden took office, with top lawmakers at times urging the president to expand tariff exclusions on Chinese goods. Aimed at pressuring China to stop what U.S. officials deem a pattern of unfair trade practices and theft of American intellectual property, the Trump-era tariffs have been repeatedly challenged by business groups lobbying the White House and Capitol Hill.
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Former President Donald Trump’s White House trade adviser has warned that Republicans looking to weaken tariffs would face political opposition.
With the 2024 presidential contest underway, some Republicans are beginning to tout their positions on trade and tariffs.
Drawing new battle lines in the race for the Republican nomination, Trump vowed a “sweeping pro-American overhaul” of the nation’s trade policies if reelected to the White House
.
