New Act Shifts China Trade Negotiation Power to Treasury, Sets 2035 Deadline for Export Subsidy Crackdown

The new Neutralizing Unfair Chinese Export Subsidies Act of 2025 is basically a major administrative reset for how the U.S. government tries to get China to play fair on the global trade stage. This bill doesn’t introduce new taxes or change consumer prices directly, but it fundamentally changes who’s driving the bus on key international negotiations and updates the rules of engagement. It’s all about leveling the playing field for American companies that compete against Chinese goods that might be artificially cheap due to government support.

The New Clock on Unfair Subsidies

For years, the U.S. has been trying to get China to stop giving its exporters massive, government-backed loans that essentially function as unfair subsidies. This bill updates the timeline for eliminating these subsidies. Previously, the goal was tied to an old 2015 law. Now, the new target date for eliminating these unfair export subsidies is set for 10 years after this 2025 Act becomes law—pushing the deadline out to 2035. If you work for a U.S. manufacturer or a small business competing internationally, this new deadline matters because it signals that the government is still serious about the issue, even if the timeline is long. The bill also requires the Treasury Secretary to map out a detailed plan within 180 days to work with allies to push China toward following the rules set by the OECD (a club of mostly rich nations that sets standards for export financing).

Treasury Takes the Wheel on Trade Talks

Perhaps the biggest internal shakeup in this bill is the change in who leads the negotiations. The responsibility for these international talks—which used to fall under the President’s office—is now officially transferred to the Secretary of the Treasury, working alongside the U.S. Trade Representative. The Treasury Secretary is now mandated to hold these negotiations at least twice a year. This is a classic Washington move: concentrating specific negotiation power within a cabinet agency. For the average person, this means the financial experts at the Treasury Department, rather than the broader foreign policy team, are now the primary voices pushing on this specific trade issue.

New Rules for Calling Out Currency Manipulation

Section 3 of the Act updates the criteria the Treasury Secretary must use when determining if China is manipulating its currency exchange rate against the dollar. The old rules often focused heavily on whether a country had a massive current account surplus (exporting way more than importing). This bill specifies that the Secretary must now look at factors like China's transparency and whether the government is giving major financial help to specific industries—and they can make a finding of manipulation even if the current account surplus isn't huge. This makes it easier for the U.S. to formally accuse China of manipulation.

If the Treasury Secretary does make that finding, the bill mandates a direct, immediate consequence at the International Monetary Fund (IMF). For the following year, the U.S. representative at the IMF must vote against any proposal to increase China's quota (their share of funding and voting power). This is a procedural shot across the bow, designed to use the U.S. position in international finance to apply pressure. While this doesn't affect your mortgage rate, it shows the U.S. is serious about using its leverage in global institutions to address what it sees as unfair economic practices.