U.S. House passes bipartisan bill to target China-linked trade crimes

The U.S. House of Representatives has unanimously passed the bipartisan Protecting American Industry and Labor from International Trade Crimes (PAIL) Act. The legislation is designed to strengthen the Department of Justice’s capacity to investigate and prosecute trade-related offenses, specifically targeting entities linked to China.

The act would establish a dedicated task force within the Department of Justice’s Criminal Division. This unit would focus on crimes such as tariff and duty evasion, illegal transshipment, forced-labor violations, trade-based money laundering, and the violation of import and export restrictions. Supporters of the bill, including Select Committee on China Chairman John Moolenaar and Representative Raja Krishnamoorthi, argue that these practices allow China-backed companies to gain an unfair advantage while devastating American manufacturing and harming domestic workers.

In addition to creating a specialized investigative structure, the legislation authorizes the DOJ to hire criminal trial attorneys and personnel dedicated to these cases. It also aims to improve coordination and training among federal, state, and local law enforcement agencies. The Attorney General will be required to provide annual reports to Congress regarding the Department’s progress in combating these trade crimes.