Congress Bulls In China Shop

This is an existential struggle over what life will look like in the 21st century – and the most fundamental freedoms are at stake.”

Rep. Mike Gallagher (R-Wisc)

The first hearing held by the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party capped a day of activity by House lawmakers focused on China, including approval of a raft of China-focused bills by the Financial Services and Foreign Affairs Committees.

Gallagher Committee Launches

Members of the newly-created Select Committee on China spent their inaugural session calling for bipartisan support to counter the economic and national security threats posed by China.

Rep. Mike Gallagher (R-Wisc), chair of the Select Committee, urged his members to act “with a sense of urgency” and on a bipartisan basis in arriving at proposals to counter Beijing.

“We may call this a strategic competition, but it's not a polite tennis match,” he said. “This is an existential struggle over what life will look like in the 21st century – and the most fundamental freedoms are at stake.”

Over the course of the three-hour hearing, lawmakers from both sides of the political aisle raised numerous concerns over China’s behavior and policies – and its potential aggression toward Beijing.

Many of the issues they raised are already the subject of legislation, like limiting or prohibiting Chinese investment in US agricultural land and companies. Similarly, questions were raised about whether there should be restrictions on US investment in China, particularly in the technology sector.

China’s unfair trade practices were raised, with several members from both sides of the political aisle suggesting the time has come to revoke China’s permanent normal trade relations status.

Bill Proposes Rejecting LDC Status for China

The House Foreign Affairs Committee approved legislation (HR 1107) yesterday directing the Administration to fight for revoking China’s status as a developing country in all international organizations in which both countries are members.

The bill would make it US policy that China should not be considered a developing country in international organizations, agreements and treaties.

The measure does not name specific international organizations, but the United States has long complained about China’s developing country status at the World Trade Organization.

“Make no mistake – China is not a developing country, despite the People’s Republic of China’s claims,” the bill’s chief sponsor, Rep. Young Kim (R-Calif) said during the committee’s mark up. The bill is co-sponsored by Rep. Gerry Connolly (D-Va).

The committee approved an amendment to the bill that would place restrictions on the President’s ability to waive the measure in specific circumstances.

McCaul Continues BIS Drumbeat

Committee Chairman Michael McCaul (R-Texas) commended the Administration for recently- imposed export controls on semiconductors and semiconductor. But he sharply criticized the Commerce Department’s Bureau of Industry and Security, saying that BIS “continues to grant licenses that allow critical US technology to be sold to our adversaries – even those it’s designated as threats to national security.”

He charged that in one recent six-month time period, BIS approved licenses worth $60 billion to. Huawei and $40 billion to SMIC, which are both on the Entities List. “If BIS continues to mindlessly green light sensitive technology sales, the CCP has proven they will use our own inventions against us,” he said.