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Phase II Deal with CCP

August 14, 2025
Policy Recommendations

In 2018, President Trump took a bold stand against the CCP’s economic warfare—imposing tariffs on hundreds of billions in Chinese goods. The result? Beijing made commitments it had never agreed to before. But as history shows, the CCP failed to keep its word. 

Today, President Trump is once again securing major trade and investment wins with our allies and partners. As negotiations with the CCP move forward, any Phase II deal must protect BOTH America’s economy and our national security.

Here's what a deal must NOT include:

  •  Selling advanced AI chips to China
  • Removing PRC companies from national security-based entity lists
  • Allowing PRC investments in U.S. strategic sectors
  • Weakening ICTS connected vehicle rules
  • TikTok/ByteDance agreements that violate current law

Here’s what a deal MUST include:

  • Enforce all Phase One commitments
  • Eliminate PRC subsidies & industrial overcapacity
  • End the trade deficit
  • End PRC currency manipulation
  • Remove PRC import quotas on U.S. goods

More key must-haves:

  •  Release U.S. hostages & end exit bans
  • Close Xinjiang camps; allow full audits & inspections
  • Tear down the Great Firewall
  • Stop fentanyl shipments to the U.S.
  • Enshrine Taiwan’s sovereignty
  • Protect IP rights for American companies

The CCP’s track record is clear: they make promises, then break them. Any deal that fails to meet these standards risks undermining U.S. security, our economy, and our allies. We cannot afford another bad deal.

Bottom line: America holds the leverage. Let’s use it to secure a deal that defends our security, protects our workers, and holds the CCP accountable.