Good morning. This hearing will now come to order. I am pleased to welcome our distinguished panel of Witnesses Today is the economic and security subcommittee. He focuses on the very important topic that i think has a lot of bipartisan interest in. And that is the economic and geostrategic challenge that the rise of china poses for the United States. Much as today, but in the future. China, communist party, Peoples Republic Party of china. Unfair trade practices, intellectual property theft and market manipulation and very prominently in my view, m nonreciprocal treatment. Not just an economic room but in many realms. It has been a force in the Global Economy that undercuts the resiliency and strength of the u. S. Economy. China has been one of the worlds Fastest Growing economies. Averaging close to 10 percent growth from 1979 to 2016. In 2014, china was the Worlds Largest economy and nursing power bases according to the international monetary. I believe there is a strong bipartisan interest, hopefully we will see that today. In establishing a longterm economic United States strategy. With our allies that focuses on reciprocity and intellectual property theft, and ultimately the United States percent effective, not competing the chinese. In may, the white house issued its document called the United States strategic approach to the peoples republic of china. This document stated that the Chinese Communist partys expanding use of economic military power compels the efforts from nationstates across the globe, vital american interests and undermines the sovereignty and dignity of countries and individuals from around the world. This document is part of the Broader National Security strategy. That was issued a couple of years ago by the Trump Administration. And the Defense Strategy issued by the department of defense. These documents although you dont see it in the press, and my view have very strong bipartisan support in the congress from laying out the challenge that a nation faces with regard to china. With a lack right now is implementing this document. Implementing strategies. Critically as it relates to the economic challenge that china poses. So what are hearing intends to do today. Is to start the focus on the implementation and execution of these strategies. As i mentioned these families have broadbased bipartisan support but we are going to need to build bring our government, our societies together for the longterm. Literally, decades. Like we did in the cold war with the soviet union affair going to execute these in a way that protect american interests, our workers, are economic and National Security interests. Im hopeful that that is i the path that we are beginning on. Ete Trump Administration, in the series of speeches from cabinet members of the last few weeks have started to lay out this strategy. E know that the secretary pompeo as we speak is testifying in front of the Senate Foreign relations committee. Informing the congress on this issue which i think is one of the mostos important issues facing the United States, that is our goal and im excited to have Ranking Member markey as my Ranking Member here, i know he feels the same on a lot of the issuese with regard to the challenges that china poses and with that i will turn to the Ranking Member for his Opening Statement. Think you mr. Chairman, thank you so much for this hearing and for your continued partnership on the subcommittee and they want to think our witnesses for their willingness to participate today, as a Ranking Member of the subcommittee in the east asia subcommittee of the Foreign Relations committee, i believe meeting the china challenge should be a bipartisan priority. We must compete against beijing to unfairly choke the Playing Field against American Workers and businesses. Those actions include state support for companies, intellectual property theft as well as increasingly using multilateral institutions to set standards that privilege Chinese Companies and technology, china also uses as vast economic tools to threaten freedom around the world, beijing is alreadyij exploiting the size of its market to coerce american citizens and Business Leaders as well as foreign governments into selfcensorship and protect official Chinese Government messaging. We know china is using experts in foreign insistence including through the bolt and Road Initiative to embed around the world, not only Surveillance Technology but also the value and practices that activate those technologies for authoritarian regression. As we engage in this competition of systems, we must remember the Chinese Government is testing their authoritarian tools, first and foremost on the people of china. I want to p make clear, in todas hearing and otherwise, we are focused on the threats posed excuse me. We are focused on the threats posed by the Chinese Government and environment. While countries around the world look to the United States and International Coalition to push back on the chinese aggression, they know the United States has retreated from our historic support of democracy and human rights as a key pillar of our foreignpolicy. They know that the Trip Administration has abandoned internationalin institutions suh as the World Health Organization while the Chinese Government had only a stepped up their influene campaign, they know this administration unprecedented support for authoritarian over allies. Rather than take a leadership role in Pulling Together Coalition to combat chinese policy objective, this administration has pursued an aggressive wood alone approach that swings between pandering to china including a green light fromro President Trump while uighurs of tension camps to the closing of the chinese consulate in houston without any clear reason orr explanation of whate seek in return, we cannot consider china policy, every policy is a decision from the past three and half years impacts how the rest of the world views the current conflict and i assess these policy decisions, it is clear to me we have failed to rise to this moment. As china stepped up its Propaganda Campaign in the midst of the coronavirus, its hard for the United States to point fingers when her own virus response has been so inadequate, the president in this bookable failure lead a National Response to the Coronavirus Crisis and taxed against science, free speech in the media has left the United States flailing as other countries lead in responding to the pandemic. As china continues to dominate manufacturing and requires companies to bringre on chinese and sheer intellectual property, the United States has cut relevant areas of domestic spending and has not ravaged the governmentces of the for economic development. We should be investing in a research and T Development and Technology Sectors and putting money into education with a particular focus on stem, we should also be utilizing the defense production act with full potential to mobilize the economy during the pandemic. As china engages in a comprehensive campaign to exploit International Institutions for their own purposes, we have retreated even further from the world stage, the when the United States is absent on the world stage, china is only too happy to fill the void. Competition with china is fundamentally about a free society versus authoritarian. You must utilize all the tools at our disposal and make the United States in our economy competitiveng and resilient as e work with democratic countries around the world to push back in a connected way to protect her values that we hold so dear, the challenges are to appoint, the stakes are too high, the United States of lee cannot afford to see leadership. So thank you, mr. Chairman for this important hearing, thank you to all of the witnesses who are participating today and this is clearly a very important subject. Thank you senator markey and i appreciate your partnership on the subcommittee where we had a lot of good hearings and a lot of overall bipartisan agreement on a number of issues, as it relates to china, i noticed the chairman of the Commerce Committee senator wicker is here and i would ask him to give an Opening Statement as well. Thank you very much, mr. Chairman, i appreciate your leadership and there is an ambitious two Panel Hearing this morning and the focus of course is the Chinese Communist party in their predatory economic practices and their impact on American Companies and workers a both at home and abroad. Confronting these practices in protecting our economic advantages into the future will require an impressive u. S. Government response, supported by congressional action and oversight. In the white house published its whole government Response Plan in a document called the United States strategic approach to the peoples republic of china. E todays hearing will focus on the economic dimensions of the overall u. S. Strategy. As a white House Strategic press points out, the ccp uses a variety of weapons to undermine americas economic competitiveness including cyber attacks, intellectual property theft, force of Technology Transfers and illegal subsidies to stay down enterprises. I hope where enterprises will describe the impact of chinas campaign with respect to industries under the commerce jurisdiction such as telecommunication, maritime, aviation and space. Americas future Economic Prosperity is not the only thing at stake in the strategic competition, the covid19 pandemic continues, china is paapparently using topics from s flavor in our Public Health center. In indicted two chinese hackers for a widespread cyber attack campaign supported by the chinese intelligence service, the target allegedly included at least four pharmaceutical and biotech firms working on covid19 testing and treatmentd products. Covid19 has revealed unacceptable vulnerabilities with years of letting the ccp destructive and economic practices. Without an effective, core native response, hopefully that is about to change. During the initial phase of covid19, chinese exporters and shipping ground to a halt, and many u. S. Businesses were forced to go. In particular United States pharmaceutical has been shown to be overly reliant on chinese suppliers. We cannot tolerate having these economic vulnerabilities. The ccp is unlikely to stop its predatory practices. And therefore u. S. Government has helped our economy, more resilient against constant pressure from beijing. I want to ask her witnesses on the state department and the Commerce Department through detailed measures they are taking to support a multicompany. They complained of significant role in supporting the efforts of the executive branch. In the Commerce Committee is doing it in the health producing bipartisan legislation. Such as the recently enacted secure and trusted Communications Network act. Known as the rip and replace. There are funds in the covid19 placeth for proposal by the majority leader in this regard. In this will help protect elamerican communications, networks from threats, posed by ccp back suppliers such as huawei and gte, that is the removal of that equipment and i would welcome suggestions from all of our witness on how congress can continue to bolster the administration efforts. But mr. Chairman and Ranking Member and the champions in this regard, i appreciate your bipartisan support, i think the witnesses for the time today and look forward to the recommendations. Thank you very much. Thank you, mr. Chairman and i want to welcome her witnesses. I have instructions to say if the witness does not take their seats, please ask them too a do, we have no witnesses here in the room but i think theyve taken their seats virtually so i can see them on the screen, i want to welcome mr. Michael, commissioner of the u. S. China economic and Security Review Commission and mr. Rush goucher director of the chinese strategy at the brookings institution, gentlemen you each will have five minutes to deliver an oral statement, a longer written statement will be included for the record, thank you again for being here, when we begin with you. Thank you for the invitation to appear before you today, the topic of todays hearing directly affects every one of our citizens. My name is michael and im appearing before you as a commission on the u. S. China economic and Security Review Commission, for a normal washington and speaking for myself although my comments are informed by my service on the commission and other work ive been involved in for many years. Todays hearing raises the critical issue on how to respond to the china challenge. Or chinas policy and actions pose the greatest threat to our competitive posture, other nations or washing americans response to determine if they should emulate chinas actions or whether america will stand tall and defend and promote its interest. Last week chinas foreign minister said that, the Current Situation in chinese u. S. Relations is not what china desires to see. The United States is responsible for all of us. I agree we dont want the current state of relations to continue but i strongly disagree that the u. S. Is totally responsible, years of repeated attacks on our Industrial Base with continuous theft of our intellectual property, countless unfair trade practices, mass subsidies of state owned in state entities and many other predatory protection policies along with human rights abuses, current actions in hong kong and projection of the South China Sea and elsewhere required that we more seriously confront china. Chinas actions led to the response. Chinas leadership has made clear that their intention through number policy announcements and activities, they pose their approach as being a winwin but rather winning and dominating, the Chinese Communist party policy has contributed to the hollowing out of production, the dangerous reliance on uncertain and risk of supply chain and a loss of resiliency. Countless jobs have been lost. In my prepared testimony and many of the ccp policy or practices perform the basis for our concerns, they are wellfo documented, the dangerous dependence on china for medicines, medical devices and personal protective equipment has painted a stark picture for the public, that dependence exist in many other sectors and could increase if the ccc achieves its stated goals. But as it relates to policy failures here in the u. S. That must be addressed, our action on others that have contributed to the current problems, after the obsession of china the world trade organization, many began to set up operations in china with the stated goal of serving the Chinese Market despite facing requirements for joint ventures, Technology Transfer and other policies, the amount of investment by u. S. Firms in china increased as did their employment which rose by almost 600 to 1. 7 Million People by 2017. R d by u. S. Firms in china has increased an average of 13. 6 per year since 2003, almost double the rate of the domestic. The promise of serving the Chinese Market has not yield benefits. Research shows that 60 of chinas exports for the u. S. From foreign invested enterpri