America. This is just over two hours. The Senate ForeignRelations Committee will come to order. Welcome everyone and good morning. Senatorsing to have participating both live and virtually. Since it is difficult to determine when they showed up virtually, we will go on seniority. If that is agreeable, that is what we will do. Three we welcome witnesses. David stillwell, secretary of state for east asia and pacific affairs. The senior pacific official. Assistant to pity secretary for western affairs. Today, of course, we are going to be talking about china. Obviously, china presents us with many challenges. With opportunities also. Right now, challenges. Ofre has been a lot legislation introduced as far as china is concerned. Bill we introduced earlier that tries to bring together as many as possible. I am told as recently as today or yesterday, the minority introduced a bill of which senator schumer is the lead sponsor, i am told. In any event, this is not a partisan issue. This is an american issue. When i put together the bill originally, i brought together processes from all sides. We consulted with a number of people both in the set of the island the other side. There is a lot of input from a lot of bipartisan effort in the bill. We went on to the think tank. Liberal and got those in. Im glad to hear there has been this bill introduced by the minority. Can bring it into one bill. It is not a partisan issue. The deputy secretary testified on the Administration Strategy withdvancing competition china. We will look at three regions. I look important to the assessment of chinas impact in the regions. A lot ofs doing to activities are common knowledge. There are other things that is important to drill down to. To understand about prosperity and Good Governance in the regions. That is an important thing to shed light on for the american people. Us who deal in these kinds of things are aware of chinas activities everywhere. We know virtually everywhere you in the world, china is there. In the strategic act, i talked introduced earlier, i made it clear we must address challenge china as a global challenge. Our priority must be the indo pacific region. The feature of the region future of the region is decisive for the u. S. Both economically and in terms of security. Harvard has been this region means expanding our Economic Engagement, especially southeast asia. It means the portable will to deepening treaty alliances and grow security partnerships. It means ensuring the region is resourced as a proportion of the state apartment budget. Objective is to use regional supremacy in the pacific and then use that to become a leading world power. Eating our policy right in this region impacts our policy and other regions we are examining to in europe, one of my major priorities is to advance a constructive agenda with transatlantic partners. We are already moving in that direction. I have met with numerous leaders from European Countries. Exchanged ideas and i can tell is hitting a welcoming audience. On both sides of the atlantic, we have strengthened investment screening. We are cooperating to uphold the integrity of international institutions. In the u. K. And others. They are engaging deepening their engagement. This is a good investment. I am encourage the u. S. Has agreed to join the new dialogue in china. I look forward to hearing about that and other efforts today. In the western hemisphere, the negative impacts are clear. This includes predatory finance mechanisms for infrastructure projects. Ofjects that are often questionable value and create environmental challenges. Aggressive fishing practices violate integrity. Raising significant longterm security concerns. Blatant efforts to trade in the ares of canadian citizens appalling. I am encouraged by president to collaborate with neighbors to promote a more prosperous future. Finally, this hearing is an opportunity to conduct oversight of the Department Coordination of strategy and initiatives. Importantination is to ensuring our strategy is articulated coherently and executed effectively. Thank you to the witnesses for being here. Im going to turn it over to a senator who shares many of my concerns and hopefully we will be able to Work Together to create an american answer. Thank you, mr. Chairman. And my thanks for convening this hearing. We have a common view entered a more competitive era with china. China displaying global ambitions. Many have concerns the Administration Strategy to deal with this new strategy fall well short of answering the enormity of the challenge. China today, led by the communist party, is unlike any challenge we have faced as a nation before. And as we will have an opportunity to discuss, china is more active and more assertive around the globe than ever before. Unfortunately, the trump agenda has served to empower chinese aggression. Ken u. S. Influence and fail american workers. This moment demands a Strategic Response to invest in our ability to outcompete china and the generation ahead. Is why i have joined with a number of my democratic colleagues to introduce the america leads act. It seeks to do three things. Invest an american competitiveness. An american competitiveness. In american competitiveness. Invest in our values. And invest in economic statecraft and ensure china pays a price for its predatory actions. America leads provides a comprehensive and coherent strategy and approach addressing the new competitive u. S. China relationship. Policies and allocate Critical Resources that combine and mobilize all aspects of u. S. National power. Starting with the recognition american competitiveness starts with investments at home. Workers, education, science and technology and innovation. Driven by the need after almost four years of destruction under President Trump to retool the economy to compete in the 21st century. Broader architecture of our approach is grounded in getting china right by first getting the Indo Pacific Strategy right. Centered on our alliances in partnerships, animated by values exceptional,rica and powered by a tough, pragmatic, and realistic appraisal of how to combat chinas trade policies. Critical and relevant, the legislation includes provisions for the implementation of robust Regional Strategies to meet the china challenge in europe, the western hemisphere, africa, the middle east, the arctic and of course the into pacific itself. Itsefl. Pacific itself. I look forward to working with him in areas of convergence between our bills to forge a strong, unified, and bipartisan approach. More specifically to the hearing today, i am interested in hearing a sense of their perspective on where we stand in their respective regions of responsibility. Europe and the western hemisphere. There is a lively debate between europe and the United States in the right approach to china. As we hear in the u. S. Come to grips developing the right policy, our friends in europe will be among the closest partners. I dont know anyone would argue the president s destructive approach has made our efforts to advance the joint agenda any easier. Imposing tariffs on our allies is not a good recipe for success. Publiclyy and insulting leaders across europe is not a recipe for success. An essential Building Block must have a strong Transatlantic Alliance which today of course does not exist as it has in the past. U. S. Hasong, the sought to pressure europe without providing alternatives. 5g is perhaps the best example where the u. S. Did not adequately emphasize european alternatives while pressuring our allies. That approach is not sustainable. Within we have to make progress. Call for a working group in china. I look forward to learning more about this initiative. The power of the American Economy and european economy provides formidable leverage visavis china. It may be the sole factor that truly moves the needle with beijing. We should be laser focused enhancing that leverage. Hemisphere, chinas presence need not be viewed through the lens of a zerosum game. We should not be surprised that chinas influence expands at our expense. The president s misguided view every challenge needs to be solved with a sledgehammer, whether placing tariffs or cutting off assistance to Central America, has only inflicted damage in the relationships we need to counter the more corrosive elements of chinas engagement in our hemisphere. The Trump Administrations results speak for themselves. At a rate of one per year, panama, the dominican republic, and salvador have broken diplomatic relations with taiwan. Cteenezuela, utilizing the surveillance technology, the expendedgime has control over the people. When our allies in canada rightfully arrested the huawei ceo, for extradition to the u. S. , the Trump Administration responded with little more than press statements as beijing placed tariffs on canadian trade and kidnapped canadian citizens. Americaently, as latin and the caribbean has become the theenter of the pandemic, Trump Administration has over promised and under delivered. By the government well the government committed new lending for Vaccine Access and delivery. And the Development Corporation which congress stood up existed so we could better compete with china. It has yet to make significant investments in our hemisphere. When it comes to addressing chinas presence in our hemisphere, the Trip Administration rhetoric has outpaced actions. Attempts at swagger have outpaced substance. We must course correct. That is why i was proud to introduce the advancing competitiveness and transparency widths senators cardin and kane. It will strengthen diplomatic and security assistance. Our closest partners acquire the tools they need to defend their Natural National interests. Given the shortcomings of strategy, itmps is more and more clear we need a real strategy to cope with the competitive challenge of china. I look forward to a genuine conversation with witnesses about how to develop a comprehensive approach to china. Reinvest and replenish the resources of our National Strength and competitiveness. Allies and partnerships first. Thank you. Learn to our first witness. The assistant secretary of state for east asian and pacific affairs. He served in the air force for their 35 years and retired in 2015. He served multiple tours of duty japan and china. Recently, he served as director of the chinese Strategic Focus group at u. S. Indo Pacific Command in hawaii. We welcome you. The floor is yours. Thank you, chairman risch. Ranking member mendez. Menendez. Opportunity tohe testify to discuss the threat by party. Nese communist im here to tell you today, with several department colleagues, the fact that the three of us are testifying across three different geographic regions is a testament to the challenge we face and how the department is adjusting. For years, committed credited beijings commitments to the domesticbased rules order would lead to reform. To us and more and more countries around the Foreign Policy seeks to shape values around one beneficiary, the communist party. Their conduct is being noticed. Bullying behavior of Foreign Companies and companies governments. Silencing critics abroad, buying, stealing, or forcing tech transfers. Agree just human rights abuses. Theabilizing agree coverup of covid19 highlights the dangers of the prc disinformation. We are engaging with the party as it is and not as we wish it would be. Seeks to present itself rhetorically. Our competition with the peoples republic needed not lead to conflict. We are restoring stability where the world has previously allowed beijing to format instability. Foment instability. There are pillars, protect the american way of life. Promote american prosperity. Preserve peace through strength. We have organized to ensure officers have policy training, messaging direction to tackle the china challenge. This has meant breaking down bureaucratic barriers. We have developed new data driven diplomacy tools. We have asked all of our posts to designate officers to focus on china policy portfolio. They have increased diplomatic reporting. Cadre ofifting our experts identifying Regional Trends in Chinese Communist party behavior. The battle against maligned activities requires messaging that is wellinformed and well executed around the world. Diplomacy teams work with the department of global promote aairs to more positive vision. State economic sphere, lending and investment distorts markets, encourages corruption, and creates an uneven Playing Field. We are in the forefront of raising Global Awareness about this with bipartisan congressional support. Infrastructure, commercial competition, and investment screening trade and technology, we have taken measures to deny the prc the ability to continue its military strategy. Sureincludes making stem students are not able to military u. S. In modernization. We have called on countries to secure 5g networks. More and more companies are doing that securing their 5g networks. Announced anpeo ontiative focused safeguarding information. Including apps and app stores. We are bringing transparency and propaganda outlets. State owned enterprises and more. Since february, we have designated as Foreign Missions nine propaganda outlets and the confucius institute. We capped the number of individuals allowed to work at these outlets. We closed the consulate in houston due to concerns about the inappropriate actions of diplomats. We require diplomats to seek permission. As beijing has longed on to our diplomats. We appreciate congressional leadership establishing the new Counter China influence fund. This very important provision provides the department with a flexible mechanism that will bolster resiliency to chinese maligned influence. The initial round of funding resulted in over 400 project submissions from around the globe. The demand outstripping appropriate funding. There is a lot to go over. The resilience and strength of our global alliances is paramount to addressing strategic competition. In no region is this more true than the indo pacific. Our vision is about supporting me a ton ami and pluralism of the pacific states. We support a region open to trade and investment. The u. S. And a diverse cohort of allies speak clearly in terms of the indo pacific. Similar contests have been put forward by japan and south korea. Showing remarkable alignment across our partners. We have advanced economic initiatives. In years g security. Investment screening and more. We are strengthening commercial diplomacy. Countries settled with unsustainable debt. Wepromote Good Governance, launched the indo pacific transparency act, which has influenceocused on including corruption, disinformation, and coercive financing. We are reinforcing security commitments. We have Double Development assistance through the pacific pledge. We are developing arrangements to coordinate with likeminded partners. Meeting ofinistry the u. S. , australia and japan marked a new era. The taiwan relations act is firm. As is our commitment to the one china policy. Including our assistance cross strait issues be resolved peacefully. A recent visit shows the u. S. Will work with taiwan on vital issues such as Global Health. We will also continue to vigorously support taiwans meaningful support and International Organizations. Secretary pompeo announced a change in maritime claims, making it clear claims to offshore resources are unlawful. As is its campaign of bullying to control them. Last month, the secretary announced visa restrictions for state owned businesses including the China Communications construction company. This was coordinated with department of commerce additions. We are seeing results. Dozens of countries have taken action to restrict vendors from their 5g networks. We have seen stricter investment screening mechanisms. 54 countries came together to deny a candidate to the top leadership position. 23 countries joined us in signing it. More and more countries taking action against the confucius institute. And propaganda outlets. We have released joint statements in hong kong. Many of which have imposed export controls. We are pushing all countries to exposer reciprocity and vectors of influence. Including by diplomats, researchers, and state enterprise employees and others. To have aneds Important Research ship relationship with the prc. We need to hold beijing accountable for its behavior and protect National Security and longterm wellbeing. We are asking the International Community to join us standing up for international rights. We are making Great Strides towards this goal and we appreciate this committee support. Thank you you, secretary stillwell. That was certainly a good tour around theres a lot to unpack. Your statement indicates. We will now turn to philip rieger who has led the bureau of European Affairs since march 2019. Prior, he was posted in journaling germany. He served numerous posts throughout europe including u. S. Ambassador to