China-US economic and trade relations may be facing a major transformation. The United States International Trade Commission announced on the 26th local time that it will officially launch a six-year economic impact assessment study to examine what kind of impact the revocation of China's Permanent Normal Trade Relations status, commonly known as "Most-Favored-Nation (MFN) treatment", would have on the US economy.
This investigation is being conducted pursuant to requirements in the congressional appropriations bill. Since US President Donald Trump returned to the White House in January 2025, he has immediately taken a tough trade stance, directing the heads of the trade and commerce departments to assess proposed legislation on revoking China's MFN status. In its statement, the Commission made clear that it will conduct an in-depth analysis of the potential impacts on the US economic system over the next six years following the revocation of this status.
The Commission noted that the results of the investigation are expected to be officially announced before August 21 this year. Due to the tight timeline, the Commission has decided not to hold a public hearing, instead inviting the public and interested parties to submit written comments by April 13.
If the US officially revokes China's MFN status, it would mean that Chinese imports would no longer enjoy low tariff benefits and may face high tariffs equivalent to those imposed on other countries without free trade agreements. This move is expected to have far-reaching effects on global supply chains and the overall volume of China-US trade.