Washington, D.C. - On Thursday, the Chinese government announced its intention to end commercial subsidies designed to promote the Chinese economy at the expense of American businesses. 

American businesses and workers have long argued that Chinese subsidies—often direct financial investment in the production, manufacture and export of Chinese goods—have directly contributed to the loss of 1.7 million American jobs since 2001 (45,200 in Indiana alone), as well as America’s growing trade deficit with China.  In fact, last year the United States trade deficit reached a record high $763.3 billion, marking the fifth consecutive year foreign imports exceeded American exports.

“I am cautiously optimistic that China understands that more reform is needed if our trade relationship is truly going to be based on fair and open competition,” said Congressman Donnelly.

Since joining Congress this past January, Donnelly has deemed addressing unfair Chinese trade practices a top priority. 

In May, the congressman met with Chinese Ambassador Zhou Wenzhong to discuss a number of concerns, including illegal Chinese subsidies, currency manipulation, and intellectual property theft, as well as their impact on Indiana’s Second District. 

In addition, Donnelly is a co-sponsor of The Non-market Economy Trade Remedy Act, which aims to correct trade inequity and expand the ability of America manufacturers to obtain relief from illegal subsidies on imports from countries like China.  The congressman has also co-sponsored legislation to crack down on Chinese currency manipulation and has worked with Senator Bayh to introduce legislation in the House to address the growing challenges posed by intellectual property theft.

“While China’s decision to end certain commercial subsidies comes as good news, it’s certainly does not, by itself, level the playing field between our two countries,” said Donnelly.  “As long as the Chinese government tilts the playing field in favor of its producers by not respecting others’ intellectual property, manipulating its currency and cutting corners in terms of food and product safety, I will make it a priority to give the businesses and workers in my district all they’ve ever asked for: an opportunity to compete head-to-head on fair terms.”