ICYMI: Cassidy “It’s Time to Hold China Accountable on Pollution”

WASHINGTON - U.S. Senator Bill Cassidy, M.D. (R-LA) penned an op-ed in The Washington Times for their special Energy Week edition highlighting an industrial manufacturing and trade policy to counter competition from China. The piece highlights Cassidy's Foreign Pollution Fee Act, legislation to level the playing field with Chinese manufacturing and expand American production.

"For years, China has strengthened its economy, military, and geopolitical influence at the expense of the U.S. This must stop. It is time to hold communist China accountable with comprehensive legislation that addresses economic development, national security, and the environment. The Foreign Pollution Fee Act (FPFA) is the path forward," wrote Dr. Cassidy.

"It makes absolutely no sense to continue allowing China and other countries to pollute freely and weaken the U.S. economically, and relatively speaking, militarily. We must turn the tables to make China pay instead of making the American people pay. The FPFA does this," concluded Dr. Cassidy.

Read the full op-ed here or below:

It's Time to Hold China Accountable on Pollution

For years, China has strengthened its economy, military, and geopolitical influence at the expense of the U.S. This must stop. It is time to hold communist China accountable with comprehensive legislation that addresses economic development, national security, and the environment. The Foreign Pollution Fee Act (FPFA) is the path forward.

Over the years, China has gained an unfair trade advantage over American companies by intentionally not enforcing environmental standards. A business deciding between opening a manufacturing plant in the U.S. or China has a clear monetary incentive to pick China. This has contributed to 2.5 million American jobs being lost to China over the last 20 years.

This is negatively affecting our environment. Up to a quarter of sulfate pollution in the western U.S. comes from Chinese emissions, according to a study published by the Proceedings of the National Academy of Sciences. China's greenhouse gas (GHG) emissions now exceed those of the U.S. and EU combined.

As this took place, China's GDP grew from 19th globally to second. China has used its economic strength to become the second-greatest military power in the world. China uses military power as a hegemonic tool, seeking to intimidate Japan, Taiwan, the Philippines, and other U.S. allies.

China gets American jobs, expands economically, and uses economic strength to militarize, while America gets China's pollution. At the same time, the U.S. spends billions to make sure our manufacturing and energy production is the cleanest in the world. This is wrong.

Classical economics says that there is a place for fees or tariffs if there is an externality, like pollution, not included in the price of a good. This is the basis for the FPFA. This fee capitalizes on the fact that the U.S. has invested billions to control emissions. The FPFA would be commensurate with the avoided cost of complying with international pollution control norms. This decreases the ability of China (and other high-polluting countries) to underprice U.S. manufacturers. The FPFA will incentivize high-polluting countries to reduce emissions. To the degree that it equalizes manufacturing costs, it can encourage re-shoring jobs. Speaking of China in particular, in concert with the economic advantage shifting to the U.S., China will have less money to militarize. For the U.S., it's a win, win, win, instead of a lose, lose, lose.

I recently presented my plan to Americans from across the country visiting D.C. in the latest episode of Bill on the Hill. People agreed that putting a fee on dirty products coming from high-polluting countries was not only wise policy but the reasonable course of action. This is consistent with recent nationwide polling that found that 84% of Americans favor taxing foreign companies for importing products that emit more GHG than comparable U.S. products.

It makes absolutely no sense to continue allowing China and other countries to pollute freely and weaken the U.S. economically, and relatively speaking, militarily. We must turn the tables to make China pay instead of making the American people pay. The FPFA does this.

• Sen. Bill Cassidy was elected to the U.S. Senate in 2014. He serves on the Finance Committee, the Health, Education, Labor, & Pensions Committee (HELP), the Energy and Natural Resources Committee, and the Veterans Affairs Committee.

Background

Cassidy announced he will be holding a summit entitled, "Louisiana Energy Security Summit: Unleashing American Abundance in a Changing Global Landscape," in Baton Rouge on Wednesday, October 16, 2024. The Energy Security Summit will bring together leaders from the federal, state, and local government, industry, research community, and more.

He frequently highlights the geopolitical challenges confronting U.S. manufacturers operating internationally. Adversaries exploit lax environmental and labor standards to gain an unfair trade advantage over American companies. Cassidy advocates for a U.S. foreign policy integrating national, economic, and energy security.

He and U.S. Senator Lindsey Graham (R-SC) introduced their Foreign Pollution Fee Act to level the playing field with Chinese manufacturing and expand American production.

Earlier this month, he released the 3^rd episode of Bill on the Hill, which highlights his Foreign Pollution Fee Act and discusses China's growing economy and military at the expense of the American worker. After hearing fellow Americans share his concerns, Cassidy presented his plan to address the nexus between economic development, national security, and the environment. His Foreign Pollution Fee Act would even the playing field while holding China accountable.

He penned editorials in Foreign Affairs, The Washington Times, and jointly in the USA Today Network with State Senator Caleb Kleinpeter (R-Port Allen), and State Representative Blake Miguez (R-Erath) discussing the geopolitical threats China poses to U.S. global standing. Cassidy also joined Greta Van Susteren on Newsmax to discuss his foreign pollution fee, noting the competitive advantage China receives from intentionally ignoring environmental standards.

Last Spring, the Louisiana Senate and House of Representatives unanimously adopted a resolution urging Congress to pursue an industrial manufacturing and trade policy to counter competition from China. Learn more here.

Last Congress, Cassidy released a landmark energy policy outline in response to the Biden administration's assault on domestic energy. The outline details how we can successfully reset U.S. energy policy, including Cassidy's plan for an Energy Operation Warp Speed to cut permitting red tape and unleash domestic energy and manufacturing. In support of this complete vision and in addition to the Foreign Pollution Fee, Cassidy led Republican colleagues in opposition to a domestic carbon tax and introduced the first comprehensive judicial reform for permitting bill. He also pushed back on disastrous proposals from the Biden administration to limit development in the Outer Continental Shelf with the introduction of the WHALE Act and the Offshore Energy Security Act of 2023.

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