House Financial Services Committee to Hold Hearings on Chinese Regime’s Economic and Geopolitical Threats

After a reconnaissance balloon was shot down over U.S. territory on February 4, the world’s attention has shifted significantly to Beijing’s role in the world. hearing The Speaker of the House Financial Services Committee will address subversion and aggression emanating from Communist-controlled China and consider legislative proposals to counter these threats.

A topic of particular interest is how to provide alternatives to US companies that trade intensively in China and make extensive use of Chinese workers, including forced labor in Xinjiang.

The hearing, entitled “Combatting Economic Threats From China,” will feature four confirmed speakers with expertise in economic policy, global trade and diplomacy, and counter-terrorism. Witnesses scheduled to testify Crete Willems, a partner at the law firm Akin Gump, Strauss, Hauer & Feld, and special adviser to the president for international trade, investment and development during the Donald Trump administration. Tom Feddo is the founder and director of The Rubicon Advisors LLC. Eric Lorber, Principal of the Cyber, Risk and Regulatory Practice at PricewaterhouseCoopers and Senior Advisor to the Trump Administration’s Under Secretary of State for Terrorism and Financial Intelligence. Rich Ashew, Corporate Vice President, Global Trade and Government Affairs, Lam Research Corporation, said:

The timing of the hearing is coincidental just two days after an international incident involving alleged Chinese espionage within US borders, Willems told the Epoch Times. But this incident puts even more emphasis on him one of the themes of the hearing. namely, how to counter the growing dangers posed by the Chinese regime’s territorial, geopolitical, commercial and technological designs.

The administration of President Joe Biden has committed to the Chinese government’s chronic violations of World Trade Organization (WTO) membership, abusive trade practices, threats to Taiwan’s sovereignty, and documented genocide against the Uyghur minority. The response has been criticized.

Treasury Secretary Janet Yellen has advocated curtailing the tariffs implemented during the Trump administration, aimed at punishing Beijing for its myriad abuses and violations.

Separation of trade and investment

The threat of the Chinese Communist Party is seriously exacerbated by the close business ties between Beijing’s regime and US companies drawn to the lucrative potential of a market of over a billion people.

“It’s one thing to crack down on the flow of capital and make sure you’re not funding the Chinese military, but at the same time, to cut off U.S. companies and investors from that market, we need to provide alternatives. If you’re going to close the Chinese market, you have to open a third-country market,” Willems told The Epoch Times.

Curbing Beijing’s opportunities for espionage, intellectual property theft, coerced technology transfer, and other abusive and illegal business practices requires the at least partial isolation of U.S. companies from their markets. , It’s a market outside of China that offers attractive new business opportunities, he said.

Willems acknowledged the obvious reasons that US companies are attracted to a market of this size, but stressed the potential for alternatives that would make it much more difficult for Beijing to tap into East-West business ties. .

“We need to provide companies with positive incentives to relocate, such as trade agreements. So a thoughtful and comprehensive strategy that talks not only about where we need to crack down on the one hand, but also about the positive incentives to maintain the world’s most competitive economy. must be erected.

At the hearing, Willems will outline in detail his plans for such an alternative arrangement.

“There are national security imperatives that call for severing ties with China for certain technologies and capital flows. So I don’t think it should be completely decoupled from China.When you draw those lines, you can see that there are economic costs. [for decoupling], and that is where these third-country markets need to be tapped. If you can’t sell to China, I want you to sell more to Vietnam,” Willems continued.

IMF and World Bank

In addition to further expanding business ties with markets outside of China, Mr Willems said of his strategy to curb Beijing’s exploitation and manipulation of global financial institutions that do not serve the interests of China’s ruling Communist Party. I plan to speak.

“China’s role in international institutions such as the World Bank and the International Monetary Fund (IMF), and that China remains one of the biggest borrowers while advancing its One Belt, One Road initiative is frankly ridiculous. Mr. Willems said that China’s President Xi Jinping has a far-reaching plan to finance and develop new trade routes and establish China’s dominant position in the global trade and investment network. mentioned and said.

Another topic at the hearing was China’s abuse of the IMF, with Beijing using its influence to prevent countries from restructuring their debts, Willems said. He stressed the need to pressure China to become a “responsible actor” in the global economic order.

Willems believes his background is an ideal fit for this hearing’s agenda.

“I think the reason they asked me to be a witness was because in my role in the White House, I was overseeing the entire economic portfolio, including these capital flows, the IMF, the World Bank, and trade. I tended to cover all these things and help develop strategies to address these issues,” he said.

Other legislative proposals debated at Tuesday’s hearing included various actions the United States should take in the event of a Chinese invasion of Taiwan and funding for fentanyl and precursor chemicals from China that would greatly boost the opioid epidemic. Includes strategies for sabotaging offers. within US borders.