Should the Federal Gov’t Develop a Strategy to Address Economic & Security Challenges Posed by China? (H.R. 2565)

What is H.R. 2565?

(Updated July 13, 2020)

This bill — the U.S.-China Economic and Security Review Act of 2019 — would seek to reduce the U.S. government’s reliance on Chinese supply chains and push back on China’s unfair trade practices by implementing many recommendations made by the U.S.-China Economic and Security Review Commission. In total, this bill would require more than 10 government agencies to work together to create a whole-of-government approach to address Chinese challenges to the U.S. in both the economic and security spheres.

Specifically, this bill would require:

• An assessment of and report on the federal supply chain’s potential vulnerabilities to Chinese threats, to be carried out by the administration;
  
• The U.S. Trade Representative to assess whether it’s in the U.S.’ national interest to bring a complaint against China at the World Trade Organization (WTO) in coordination with U.S. allies and partners;
  
• The Dept. of Justice (DOJ) to determine whether members of the Chinese Communist Party (CCP) are intimidating U.S. residents and ensure that Chinese government publications distributed in the U.S. are clearly labeled as such;
  
• The Director of National Intelligence (DNI) to report on the effects (on freedom of navigation, sea control, and U.S. interests) of China’s existing and potential facilities along the Silk Road Economic Belt and the New Maritime Silk Road;
  
• The National Counterintelligence and Security Center to report on the CCP’s influence and propaganda activities in the U.S.;
  
• The Depts. Of Defense (DOD) and Homeland Security (DHS) to assess the implications of changes in the Chinese Coast Guard’s command structure;
  
• The Dept. of Commerce and Federal Communications Commission (FCC) to indentify the steps required to roll out a secure 5G wireless network;
  
• The Comptroller General to assess potential risks involved in U.S.-China technical cooperation;
  
• The Treasury Dept. to report on China’s enforcement of UN sanctions on North Korea; and
  
• The Office of the U.S. Trade Representative (USTR) to report on China’s trade-distorting practices and what it’s doing to counteract Chinese policies’ anticompetitive impact.
  

Argument in favor

China’s multifaceted challenge to the U.S. — in the security, economic and political spheres — requires a government-wide response. This bill would facilitate this process and ensure that the U.S. government is prepared to address the numerous challenges that China poses to its interests both at home and abroad.

Argument opposed

The U.S. is already beginning to embrace a whole-of-government approach to addressing the challenge posed by China without this bill. Additionally, ratcheting up the government-wide effort to counter Chinese influence will certainly derail already-tense negotiations to end the trade war between the two countries, which could worsen if negotiations fail.

Impact

Treasury Dept.; WTO; DOJ; CPP; DOD; DHS; Commerce Dept.; FCC; Comptroller General; DNI; USTR; China; U.S.-China relations; Chinese Coast Guard; Silk Road Economic Belt; and the New Maritime Silk Road.

Cost of H.R. 2565

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Rep. Brad Sherman (D-CA), Chairman of the House Foreign Affairs Subcommittee on Asia, introduced this bill to harness at least ten government agencies’ resources to help counter China’s multifaceted challenge to the United States:

“For too long China has been stealing U.S. technology and jobs with impunity and it is increasingly trying to influence public opinion in the United States. The U.S.-China Economic and Security Review Act of 2019 would create a whole-of-government approach to counter China’s whole-of-society challenge.”

Original cosponsor Rep. Mike Gallagher (R-WI) adds that this bill is needed to China’s influence:

“The United States faces no greater economic, political, and security threat than China. We must act with a sense of urgency to address the malign activities of the Chinese Communist Party and implementing the important recommendations of the U.S.-China Economic and Security commission would serve as an important step in doing so.”

Sen. Chris Coons (D-DE), who’s sponsoring the Senate version of this bill, says China now poses security, economic and political challenges to the U.S. that need to be addressed:

“From its unfair trade practices to its rapid military expansion, China now presents security, economic, and political challenges to the United States unlike any we’ve faced before. China is acting swiftly and aggressively to expand its power and influence around the globe, and Congress must do its part to ensure the United States is positioned to work with China where we can, but also, push back where we must.”

Original Senate cosponsor Sen. Tim Kaine (D-VA) contends that while the U.S. should cooperate with China on global issues, that position isn’t incongruous with defending U.S. interests against Chinese encroachment:

“For too long, the United States has failed to address the challenge that China poses to our economy, our allies in East Asia, and to international norms on human rights and civil liberties. It is now clear that a new approach is needed, and this bill will begin to lay the foundation for a reassessment of the U.S.-China relationship. Although I believe we should cooperate with China to resolve pressing global issues, we cannot shy away from defending U.S. interests and the international system that has brought peace and prosperity to the Pacific region.”

Critics of a hardline approach to U.S.-China relations argue that it endangers stable relations and contend that there are numerous benefits to continued engagement and cooperation with China. They also point out that the costs of dealing with Chinese retaliation to hardline U.S. policies could be high, as the two countries’ economies are tightly intertwined and Asian partners and allies also have consumers, businesses, and stockholders that’d be negatively affected by a deterioration in U.S.-China relations.

This bill has two Republican House cosponsors. Its Senate companion is sponsored by Sen. Chris Coons (D-DE) with two bipartisan Senate cosponsors (one of from party).

Of Note: In its 2018 annual report to Congress, the U.S.-China Economic and Security Review Commission made 26 recommendations to Congress, 10 of which it deemed to be “of particular significance.” The Commission’s 10 key recommendations are all included in this bill.

The U.S. began embracing a whole-of-government strategy to address the challenges posed by China beginning in late summer 2018. Congress led the push via legislation, hearings and statements targeting Chinese practices; the Trump administration used tariffs to also punish China; and administration officials turned up the rhetorical heat on China in public statements, interviews and editorials.

Media:

• Sponsoring Rep. Brad Sherman (D-CA) Press Release
  
• Senate Sponsor Sen. Mitt Romney (R-UT) Press Release
  
• U.S.-China Economic and Security Review Commission 2018 Annual Report (Context)
  
• The Diplomat (Context)