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US introduces new bill to counter Chinese production and encourage local supply

By Rachel Douglass


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Credits: Gagan Kaur from Pexels

A new US bill is hoping to encourage an increase in circular fashion production in a bid to revive North America’s local supply chain while countering that of China’s.

The Americas Trade and Investment Act (or the Americas Act) was introduced by US senators Bill Cassidy and Michael Bennet, as well as US representatives Maria Salazar and Adriano Espaillat.

Together, they are looking to establish an “ever-expanding and permanent trade partnership of Western Hemisphere countries and counter China’s growing control over global manufacturing and geopolitics”.

If enforced, the act would push for reshoring and near-shoring manufacturing to boost the American industry, encouraging American companies to move their manufacturing away from China and establishing “de minimis reciprocity to close China’s trade loophole”.

‘We need to re-level the playing field…’

Other areas that the bill focuses on are improving relations between certain countries, evidence of such comes through proposals such as creating a pathway to a US-Mexico-Canada Agreement (USMCA) membership, creating “an expanding community of nations focused on improving hemispheric integration” and strengthening cultural bonds and integration among populations.

In terms of fashion production, the act looks to establish a grant programme that would aim to help combat “slave-based Chinese textile and apparel labour” by funding US and Americas partner countries in the creation of new supply chain jobs.

A grants and tax incentives programme to encourage textile reuse and recycling has also been proposed, with the goal of reducing waste and building a new US industry that could employ “thousands” of people.

In a release, Cassidy said: “We need to re-level the playing field between freedom-loving democracies and those who exploit the rules like China. We do that by refocusing on the Western Hemisphere to improve trade, bring manufacturing back to our shores, and end China’s growing influence.

“Our Americas Act will make economies across the hemisphere more resilient, governments more stable, and our hemisphere more prosperous.”

Supply Chain