A US Congressional advisory panel has proposed revoking China's Permanent Normal Trade Relations (PNTR) status, citing a Cold War mentality among lawmakers.

This PNTR status, in place for over two decades, allows China to trade on the same terms as US allies, and its removal could trigger annual reviews of China's trade practices.

In response, the Chinese Foreign Ministry has argued that such a move would violate World Trade Organization (WTO) rules and disrupt global economic interests, urging US lawmakers to adhere to international trade regulations.

Chinese officials have emphasized that globalization is irreversible and that unilateral trade protectionism by the US cannot undo historical progress.

Experts warn that reversing 25 years of trade policy could severely damage the US industrial sector and exacerbate the trade deficit.

A report from the Peterson Institute for International Economics cautions that this policy shift could lead to higher inflation and a decline in GDP, potentially resulting in a long-term economic downturn.

The report also predicts that stock market prices would likely fall, with agricultural and manufacturing firms being particularly vulnerable, especially if China retaliates.

Chinese experts have criticized the advisory report as reflecting entrenched political biases among US politicians, suggesting that it lacks objectivity.