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House Select Committee on the CCP: The Biden Administration’s PRC Strategy

House Select Committee on the CCP

The Biden Administration’s PRC Strategy

Thursday, July 20, 2023

Topline

  • Democrats expressed concerns regarding technology and the privacy of American data.
  • Republicans asked about Chinese-owned US property and how important critical mineral mining is for the American economy.

 

Witnesses

  • The Honorable Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs
  • The Honorable Daniel J. Kritenbrink, Assistant Secretary of State for East Asian and Pacific Affairs
  • The Honorable Ms. Thea Rozman Kendler, Assistant Secretary of Commerce for Export Administration

 

Opening Statements

Chairman Mike Gallagher (R-Wisc.)

In his opening statement, Gallagher voiced his concerns about the Biden Administration’s approach with China, specifically saying the Administration allowed the Chinese spy balloon to drift over sensitive military sites and failed to hold the CCP accountable. He also blamed the Administration for delaying policies to end Huawei export licenses and failing to restrict outbound capital flows in critical sector or hold CCP officials accountable for the Uyghur genocide.

 

Ranking Member Raja Krishnamoorthi (D-Ill.)

In his opening statement, Krishnamoorthi noted that the majority of Americans see China as a competitor but explained that they are concerned about this competition turning into a war. He said the CCP is targeting American companies operating in the PRC, through forced technology transfers, state sanctioned theft of US IP, and cyber coercion. He emphasized that the US needs to prevent open conflict with the CCP.

 

Testimony

Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs

In his testimony, Ratner explained that the PRC is the only country with both the will and capability to refashion the international order in ways that will deeply undermine US interests. He noted that the US is seeking unprecedented levels of funding for research and development (R&D) to deploy technologies to deter conflict. Ratner concluded by saying the US supports Taiwan’s defense in the face of the PRC’s aggression.

 

Daniel J. Kritenbrink, Assistant Secretary of State for East Asian and Pacific Affairs

In his testimony, Kritenbrink said China is the only competitor with both the intent to reshape the international order and the diplomatic, military, and technological power to do so. He noted that the US has deepened its alliances with Japan, Thailand, Australia, and the Philippines. He closed by committing to managing competition responsibly so that the US-China relationship does not veer into conflict.

 

Thea Rozman Kendler, Assistant Secretary of Commerce for Export Administration

In her testimony, Kendler said the US is aggressively and appropriately contending with the strategic competition threat posed by China. She mentioned that the advanced computing rule released in October is a prime example of a BIS technology control that has proven to be extremely effective in combatting China’s ability to use AI and supercomputing power to develop its military. Kendler concluded that the US is not using export controls to pursue economic decoupling from China, and that the American approach is calibrated and targeted.

 

Question & Answer

Technology

Gallagher asked panelists if they believe US technology should go to China. All panelists said no, and that no advanced technology is permitted to go to Huawei under US regulations.

Krishnamoorthi said that Chinese law requires any software companies doing business in the PRC to share their source code and vulnerabilities with the CCP. He noted his concerns that these software companies might sell these same pieces of software to Americans, including the government.

Rep. Ashley Hinson (R-Iowa) asked why the US is not reciprocating China and Huawei’s targeted IP theft with targeted repercussions. Kendler said that the DOJ is very focused on this effort and work is being done.

Economy and Trade

Rep. Blaine Luetkemeyer (R-Mo.) asked Kendler if she believed that the US is allowing American money to flow through China via trade. Kendler said the world’s biggest economies should continue commercial trade that does not impact national security interests.

Rep. Ro Khanna (D-Calif.) asked panelists if they agreed that the US needs to do more to address the trade deficit with China. All panelists agreed, and Kendler mentioned that the CHIPS Act was a great first step.

Rep. Haley Stevens (D-Mich.) asked how the Biden Administration is working to ensure a speedy and safe rollout of electric vehicles. Kendler said that is not something she can report immediately on, but she will respond to Stevens in a timely manner.

Rep. Jake Auchincloss (D-Mass.) asked if trade with China lowers cost for American consumers by driving down the cost of imports. Kendler said it does.

 

Critical Minerals & EVs

Rep. Michelle Steel (R-Calif.) asked Kritenbrink if he agreed that the US should be leading in mining and processing critical minerals. He said it’s not in the US interest to be overly dependent on one country for critical minerals, and that’s why the US should pursue a mineral security partnership.

Rep. Mikie Sherrill (D-N.J.) said that the CCP announced it will impose export controls on critical minerals and asked Kendler about these bans. Kendler said that these actions aren’t new and that the CCP has targeted US technologies for years.

Auchincloss asked Kendler is she considers the US to be the leaders in battery technology for automotive applications. Kendler agreed with the statement.

 

For more information on this meeting, please click here.

For an archive of past SIFMA hearing coverage, please click here.