Washington DC - A bipartisan committee on Tuesday called for a "reset" of Washington's economic ties with Beijing, laying out a more aggressive approach in handling competition with China.

The 53-page report released by the House Select Committee on the Chinese Communist Party (CCP) came after it held hearings and met with industry officials and experts.

"The United States must now chart a new path that puts its national security, economic security, and values at the core of its economic engagement with the PRC and invests in long-term American technological leadership," said the report, referring to the People's Republic of China.

While many recommendations might not immediately be taken up by lawmakers, the proposals could lead to bipartisan legislation in the future.

Its recommendations include moving China from its current tariff classification to ensure the country abides by its trade commitments.

The committee argued that China's accession to the World Trade Organization in 2001 "undermined and impaired" benefits that the United States and other economies expected to get from expanded trade ties with the country.

It added that China had not embarked upon the structural reforms expected and failed to live up to WTO principles.

Another recommendation was to renew the "China Safeguard mechanism," allowing tariffs or other restrictions to be imposed without having to prove unfair trade practices.

The report also suggested a stress test of US banks "for their ability to withstand a potential sudden loss of market access" to China in case of a possible conflict involving the world's two biggest economies.

Other recommendations spanned import duties on legacy semiconductors from China and potential trade agreements such as with Taiwan.

The report comes after a November meeting between President Joe Biden and his Chinese counterpart Xi Jinping, which saw both sides restore military communications and boost cooperation.

Committee chairman Mike Gallagher, a Wisconsin Republican, and ranking member Raja Krishnamoorthi, an Illinois Democrat, said in a statement that the recommendations would help prevent the flow of American capital and technology from supporting China's military advances and human rights abuses.

They are also aimed at boosting economic resilience and ensuring "American leadership for decades to come."