WASHINGTON D.C. — December 12, 2023 — The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, led by Chairman Mike Gallagher (R-Wis.) and Ranking Member Raja Krishnamoorthi (D-Ill.), adopted nearly 150 policy recommendations in a bipartisan report that outlines a strategy to fundamentally reset the United States’ economic and technological competition with the People’s Republic of China.
After the adoption of the policy recommendations on an overwhelmingly bipartisan basis, Chairman Gallagher and Ranking Member Krishnamoorthi said: “With this report, the Select Committee has shown that the bipartisan will exists to meet the call of history. It embraces the clear reality that our current economic relationship with the People’s Republic of China needs to be reset in order to serve the economic and national security interests of the United States, while offering nearly 150 bipartisan recommendations for Congress to legislate. Collectively, these recommendations will reset the terms of our relationship with the PRC, prevent the flow of American capital and technology from supporting its military advances and human rights abuses, and build collective economic resilience in concert with our allies and partners while ensuring American leadership for decades to come.”
Members of the Select Committee spent the past year investigating the CCP’s decades-long campaign of economic and technological warfare. The members define three key pillars that inform each recommendation and the United States’ path to correct 30 years of misguided policy:
RESET: Reset the Terms of Our Economic Relationship with the People’s Republic of China.
PREVENT: Stem the Flow of U.S. Capital and Technology Fueling the People’s Republic of China’s Military Modernization and Human Rights Abuses
BUILD: Invest in Technological Leadership and Build Collective Economic Resilience in Concert with Allies
Read the Select Committee’s full report, ‘Reset, Prevent, Build: A Strategy to Win America’s Economic Competition with the Chinese Communist Party’ HERE: https://selectcommitteeontheccp.house.gov/media/press-releases/select-committee-adopts-proposal-reset-economic-relationship-peoples-republic
What they’re saying about the Select Committee’s report:
“The Select Committee made a bipartisan finding that giving China most favored nation treatment for trade 23 years ago was a tragic mistake. The committee calling for new higher tariffs on China is an historic event,” said Ambassador Robert Lighthizer, Former United States Trade Representative. “The failed policy of the past cost millions of American workers their jobs and the country trillions of dollars of wealth. It crippled many communities and put our national security at risk. I hope the committees of jurisdiction act quickly to implement these findings and set America on a course of greater prosperity and security for all working families.”
“The USW welcomes today’s report and the Select Committee’s efforts to find bipartisan solutions to the Chinese Communist Party’s (CCP) ongoing economic aggression. USW members can compete against anyone on a level playing field, but too often they instead face the CCP’s illegal trade practices. Our union applauds the committee’s work to safeguard domestic industries, and in particular its acknowledgment that Permanent Normal Trade Relations with China negatively impacts American workers. The USW further welcomes the committee’s clear prioritization of common-sense enforcement tools like the Leveling the Playing Field Act 2.0, as well as reforms to the Generalized System of Preferences and renewal for Section 421 of our nation’s trade code. As workers grapple with the consequences of unfair trade, Congress must restore their access to Trade Adjustment Assistance so they can gain new skills and quickly reenter the workforce,” said United Steelworkers International President David McCall. “More than 84,000 workers are waiting for their TAA petitions to be heard since the program lapsed in 2022, and we also welcome its inclusion in this report. As the committee continues to confront the CCP, the USW urges caution on a number of fronts, including any potential amendments to Section 232 tariffs, which serve as a vital part of protecting our domestic industries. While it’s not possible for the USW to endorse all of the 150 policy recommendations in the report, our union thanks the committee for its work to hold the CCP accountable and protect American workers. We look forward to working with Congress to make many of these recommendations reality.”
“For too long, Communist China has exploited America’s open markets, free enterprise, and unparalleled entrepreneurial spirit. “Reset, Prevent, Build” are the necessary building blocks to ensure the U.S. maintains its economic resiliency and technological superiority. I applaud the bipartisan members of the House Select Committee on China for courageously standing up for every hard-working American,” said Former Speaker of the U.S. House of Representatives Newt Gingrich
“The work of the House Select Committee on the Strategic Competition between the United States and the CCP is crucial in exposing the threats all Americans face from Xi Jinping and his communist party. The select committee has exposed our vulnerabilities to China through their investigations. Their new plan seeks to remove our economic dependency from our biggest national security threat. I applaud the hard work of this bipartisan committee and the leadership of Rep. Gallagher; our nation will be safer for it,” said Morgan Ortagus, Former Spokesperson for the U.S. Department of State and Founder of Polaris National Security.
“This comprehensive, bipartisan economic report provides a fact-based, candid reassessment of US-China trade and financial relations which has been urgently required and long overdue,” said Roger W. Robinson Jr., former Chairman of the Congressional US-China Economic and Security Review Commission. “Chairman Gallagher has shown exemplary leadership in this crucial undertaking which, among many other policy attributes, serves to better protect US investors from the rampant fiduciary malfeasance of certain major Wall Street firms as well as our national security and fundamental values.”
“The bipartisan strategy approved today by the Select Committee on the Chinese Communist Party is a pioneering moment, and its important recommendations present integral components necessary to counter the malign economic influence of the PRC and the CCP,” said Ambassador Joseph Cella, Former Ambassador to Fiji, Kiribati, Nauru, Tonga, and Tuvalu. “It offers a clear-eyed view of the perilous terrain we are on with China in this new Cold War, particularly when it comes to state level incursions and influence operations. Now begins the vital whole of government and whole of society vigilance to provide for our common defense against a repressive Communist regime that is openly engaged in unrestricted warfare against the United States.”
“ASA applauds the bipartisan efforts of the House Select Committee on Strategic Competition Between the U.S. and China. A strong, bipartisan consensus in Washington has emerged to end the Chinese Communist Party’s use of economic coercion to undermine America’s national security and our values. ASA has documented Chinese practices that threaten American investors and our capital markets, including the loopholes and exemptions that have allowed the capital of Main Street America to fund state-owned Chinese companies and China’s People’s Liberation Army,” said Chris Iacovella, President and CEO of the American Securities Association. “The economic and national security threat from the Chinese Communist Party is very real. Congress must protect American investors and the integrity of U.S. capital markets by adopting the policies in today’s report from the Select Committee. ASA looks forward to working with the Select Committee and Members of Congress on both sides of the aisle to turn talk into action.”
FDD Action: “The Communist Party of China has inflicted significant economic harm on the American people. Without urgent action, the challenges it poses will continue metastasizing into an even greater national security threat. The Select Committee’s report lays out a clear-eyed vision for the future to guide a more strategic approach to U.S. competition with China and inform bipartisan congressional action. It provides a roadmap to counter the CCP’s aggressive focus on military-civil fusion, while safeguarding America’s sensitive industries and technology, upholding the rules-based order, and repelling the CCP’s growing economic coercion. FDD Action strongly supports the conclusions of this report and urges policymakers in both Congress and the administration to heed the Select Committee’s recommendations.”
“The evidence is overwhelming that decades of unchecked CCP economic aggression have had a devastating impact on U.S. economic and trade interests. It has been both a disaster for the American people and an overwhelming indictment of the misguided establishment approach of uncritical engagement with the CCP,” said Steve Yates, Chair of the China Policy Initiative at the America First Policy Institute. “This report is a crucial downpayment on resetting the terms of the U.S. economic relationship with the CCP, prioritizing vital features such as our supply chain security, restrictions on outgoing investment in critical technology sectors, and the integrity of our intellectual property and research infrastructure. I commend the House Select Committee on China for laying this important foundation on which to build sound policy during this critical period in our bilateral relationship with the CCP—our chief global adversary.”
“The House Select Committee has conducted a meticulous and comprehensive public and private review to pinpoint deficiencies in the U.S. strategic approach to techno-economic rivalry with China. This economic report marks an inaugural and significant assessment of crucial initiatives necessary to bridge gaps in America’s techno-economic strategy regarding China, aiming to ensure that the United States and its allies maintain long-term leadership,” said Ylli Bajraktari, CEO of the Special Competitive Studies Project.
“We commend Chairman Gallagher and Ranking Member Krishnamoorthi for continuing their bipartisan work to highlight the threat that the CCP poses to U.S. economic and national security,” said Michael Stumo, CEO of the Coalition for a Prosperous America. “Importantly, this bipartisan report recognizes that granting China permanent normal trade relations status was a serious mistake, and that Congress must revoke China’s status to counter the CCP’s economic and trade strategy that has devastated American manufacturers and workers. Additionally, we applaud the Committee for recognizing that CCP companies engaged in human rights abuses and forced labor, as well as Chinese military firms, are being funded by U.S. capital markets. While some lawmakers who are beholden to Wall Street want to allow this to continue, Members of the House China Committee recognize that funding our greatest geopolitical and military adversary through our capital markets is insanity and must be addressed.”
“The need to confront the China challenge has been obvious for at least a decade, but the American ship of state has been turning too slowly.” said Oren Cass, Executive Director, American Compass. “Politicians wedded to an outmoded Washington Consensus and special interests profiting from the status quo resist even the slightest change of course. This report marks the first time that congressional leaders have grabbed the wheel and pulled hard, clear-eyed about the peril and prepared to act. Their courage is commendable, their warnings must be heeded, and their call to reset the nation’s economic relationship with its primary adversary is correct.”
“The Select Committee has issued a game-changing set of recommendations on economic and technology policy that reflect broad, bipartisan support for resetting the U.S.-China trade relationship and strengthening American manufacturing.” said Scott Paul, President of the Alliance of American Manufacturing. “The Alliance for American Manufacturing urged the committee at its very first hearing to pursue a great number of these changes. We hope the committee’s commendable efforts ultimately blossom into laws passed by Congress and signed by the president. We look forward to working with Chairman Gallagher, Ranking Member Krishnamoorthi, and the committee members on the core policy recommendations while also working to better address our concerns on Section 232 and trade agreements.”
“We greatly appreciate the work of the bipartisan House China Select Committee issuing this report examining three pillars of a strategic plan to rebalance the U.S. relationship with the Peoples’ Republic of China (PRC). The report includes three pillars that are extremely important steps toward realizing this goal, including: resetting the terms of the U.S. economic relationship with China; stemming the flow of U.S. capital and technology to the PRC; and investing in technological leadership and building collective resilience with U.S. allies. The U.S. textile and apparel manufacturing sector has been on the receiving end of some of the worst predatory trade practices by China, including substantial intellectual property theft, coupled with rampant abuse of state-owned enterprises and subsidies, and horrifying labor abuses in Xinjiang, which have enabled the country to dominate world markets in this sector. In addition to the myriad unfair trade practices, China’s dominance was accelerated by its accession to the WTO,” said Kim Glas, President and CEO of the National Council of Textile Organizations. “The Committee’s critical blueprint released today provides key bipartisan policy guidance to immediately help manufacturing sectors like ours that are experiencing economic headwinds as a result of predatory trade practices. Recalibrating our relationship with China is critical to finally addressing the illegal subsidization, intellectual property theft and the stranglehold of key aspects of supply chains that make the United States and our allies extremely vulnerable. Specifically, stepping up UFLPA and customs enforcement is a critical concern to ensure transparency of our supply chains. We also urge the House and Senate to close the de minimis loophole, which facilitates the importation of slave-labor made goods, counterfeits, counterfeits and illicit narcotics, and is undermining our industries.”
“These bipartisan proposals offer a much-needed strategic and thoughtful approach to bolstering our national security against China’s growing influence, by taking steps to strengthen our technological, scientific, and industrial competitiveness,” said Divyansh Kaushik, Associate Director for Emerging Technologies and National Security at the Federation of American Scientists. “The emphasis on safeguarding our intellectual property, boosting supply chain security, investing in science and technology research, modernizing our STEM immigration pathways and strengthening export controls and sanctions reflect the critical need for concrete action to counter the aggressive tactics deployed by the PRC. These recommendations also underscore the importance of a vibrant technological ecosystem as a key element of our national defense. Overall, these recommendations show an awareness of the interconnected nature of economic strength, technological leadership, and national security in the modern world. They tie in closely with the importance of collaboration with our allies and partners to effectivel y navigate the challenges of the 21st century. In sum, they will strengthen the resilience of our economy, bolster our technological edge, and protect our national security.”
“The Committee’s bipartisan review has conclusively determined that we must act with haste and determination to strengthen America’s critical mineral supply chain, especially for rare earth magnets essential to our economy and national security. Congress should build on this important work,” said James H. Litinsky, Chairman & CEO, MP Materials.
“USA Rare Earth, LLC supports the Select Committee on the CCP’s bipartisan report on strengthening America’s economic position as it relates to China. Bolstering the US position across industries, especially the critical minerals space, through enhanced investment and regulatory reform is imperative. This is particularly important for rare earth magnets which are used in critical green technologies and the defense industrial base. The proposed framework addresses the need for capital flow, tax incentives, and talent retention in the US, which enhances domestic supply chain resilience while reducing dependence on foreign supply.”
“American shrimp processors and harvesters have been fighting China’s unfair trade practices for nearly twenty years,” said American Shrimp Processors Association President Trey Pearson. “The domestic shrimp industry is made up of small, family-owned businesses, and we need our trade remedy laws to be strengthened and vigorously enforced for us to have a chance to compete with foreign producers and exporters supported by the Government of China.”
Posted: December 12, 2023
Source: U.S. House of Representatives — The Select Committee on the Chinese Communist Party (CCP)
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