And subcommittee on Global Competitiveness will come to order. I know this seems a little strac strange with an empty room except for three witnesses live in front of me and many of our colleagues are going to be joining us virtually. But i want to welcome all of you nonetheless to this important hearing. This subcommittee continues to do its work in exploring the unfair trade practices of foreign governments, especially china and russia. The topic of censorship in china is a common one because it is growing effect on business in the United States as well as culture. Last fall, for example, the National Basketball association had the Market Access blocked in china because an individual american citizen using a media platform not allowed in china expressed a political opinion. Now the topics have become more manufactu important. The timely information about the spread of covid19 due to chinese censorship has contributed to the havoc wreaked on our economy and health and indeed the pandemic. The story is nothing new for some joining us today, as chinese censorship has long been growing and long had a negative effect on people around the world such as those in tibet or the uyghurs in the gin chang province. Censorship definition is a good place to start. The sensor or prohibition considered obscene, politically unacceptable or a threat to security. Today well focus on how the use of censorship has become a barrier to global trade. When the World Trade Organization was founded two exceptions to the principal of National Treatment and most favored nation were created. Those are for public morals and National Security. There is no exception for a country to restrict trade because its something politically unacceptable. With discussions over reforming the wto multilateral talks on ecommerce and the prospect of a phase two bilateral trade deal with china progressing, the subcommittee is uniquely involved in informing a nonbarrier tariff to trade. Well help to determine if the censorship of information via Digital Media by countries like china constitute a trade barrier in violation of the wto. As well as multilateral and Bilateral Agreements and practice. If so well look to determine the economic damage caused the human, cultural and political ramifications and what remedies should be created to combat this unfair trade practice. On a bilateral basis, what is clear is the lack of reciprocity for countries like china and russia and the United States. The Chinese Government spends billions of dollars to promote propaganda overseas. A form of offensive censorship. For years russia has broadcast the state propaganda in the United States and has justly been designated as a foreign agent. The lack of reciprocity takes advantage of our Free Expression to promote the countrys agenda online in media, entertainment and our education system. Meanwhile, china and russia do not grant the United States the same access to its markets or media. Instead, china has been expelling our media, having kicked out three wall street journal and other reporters earlier this year over chinese censorship of covid19. For centuries, countries block trades through physically restricting access to their ports. Today the same thing happens but with fire walls, filters and outright restrictions to access. In fact, nearly 100 of Global International traffic travels through a crisscrossing network of undersea cables that form the backbone of Global Digital trade. These cables are another front in the Global Technology like huawei rapidly controlling contact and trade censored. The blocking or filtering of traffic by nation states is growing. The censorship is fragmenting our markets and culture and understanding of one another. The internet itself is becoming less global. China and russia are building their own infrastructure, to cut themselves off from the world, but exporting their authoritarian model to other nation states through efforts such as the digital silk road. It is important that congress support our nation in meeting that challenge and im working together with all of the colleagues in the senate and in the house to include parts of the chips for america act in the National Defense authorization bill currently on the senate floor. If were forced to rely on china to build our networks, and our technology, the world we know will be much less freer and open to expression of opinions and do business. This bill will help us create production for high End Semiconductor that underpin the technology we use in our daily lives and let the United States remain a Global Leader in promoting free trade of goods, information and speech. Finally i look forward to discussing what remedies are available. Last fall a chinese american constituent of mine in texas reported he was censored here on american soil by the Chinese Government. His american we chat account was shut down for supporting protests in hong kong. His response was, quote, if you have censorship in china, fine. But in this country im a republican but i suffer the same as democrats. Were all censored. I look forward to exploring this topic in the same bipartisan fashion in which we hope to proceed. It is time for congress to ask hard questions and that is why weve called our panel of four experts here today to discuss this issue. Let me now recognize Ranking Member casey. Mr. Chairman, thanks very much for this hearing and i want to thank our witnesses for being with us today. This is, as the chair has noted, the third in a series of hearings held by the subcommittee outlining Chinese Governments Civil Military agenda and efforts to influence the economic and geopolitical order in a manner that benefit the authoritarian and anticompetitive practices. Just yesterday the Chinese NationalPeoples Congress passed a National Security law for hong kong that significantly erodes hong kongs special status and based on available reporting will deny people of hong kong the right to protest, the right to assemble or the right to criticize their government. The United States congress has been clear time and again that citizens of hong kong must enjoy certain rights that are distinct from Mainland China in efforts to undermine the status quo as an affront to the people of hong kong and decades of [ technical difficulties ] to execute a clear and coordinated strategy. This applies to trade and to the Chinese Government most recent efforts to erode the rights of people of hong kong. Here in the United States at this time, we know that were in the midst of a Public Health and jobs crisis. So much suffering all across our country. Weve seen the cost of our reliance in the context of this pandemic, this Public Health crisis, our reliance on a Single Source supplier and more to the point our reliance on production from a nonmarket economy. Last year senator cornyn and i began this effort by outlining the main issues related to Market Access of china and then focused on specific initiatives and actions undertaken by the chinese starting with the belt road initiative. Today we return our attention to censorship. We have direct barriers such as blocking movies frommering their market or restricting content to blocking internet firms to dictating content related to chinas territorial and economic claims and to demanding action or inaction by businesses related to taiwan, hong kong, tibet and the ongoing human rights abuses in gin chang. The Chinese Government has become assertive in demands within and outside of its borders. The mandates related to extra territorial censorship is particularly troubling. The Chinese Government respond to a message of solidarity for hong kong for the general manager of the Houston Rockets for one example, brings to life the lengths the government will go to censor speech no matter where in the world it occurred. The intended message sent by beijings disproportional response is clear, that Chinese Government can exert command and control over any enterprise operating in china, public or private. Simply stated, Chinese Government is using its market power and steadiful speech, speech of our firms and speech of our people. These actions are inconsistent with our principles, inconsistent with our values, and those of our allies. The introduction of corporate social Credit System take this is activity to a new level. The actions undertaken by the Chinese Government are clearly restrictive and discriminatory. They are in sidus and counter to the necessary conditions of a fair, Global Economic system. Since this hearing was originated, or originally scheduled in march, weve seen all too clearly the cost of relying on china for production for our nations critical capabilities. Whether that is personal protective equipment or otherwise. I recently introduced the market economy sourcing act which will begin to right size supply chains toward the United States and other marketoriented countries. But this is but one measure that must be adopted to refocus our trade rules to the Global Economic system. If we hope to sustain, to sustain marketoriented principles for the next, say, 100 years, we must take action now to ensure competition and market principles are not simply words in a textbook but rather infused into our system of government and governance. When it comes to trade, we must be responsive and creative to address challenges and harness opportunities. There is no doubt congress, citizens, and businesses must support and defend the Economic Security of the United States of america. I look forward to hearing today from our witnesses and discussing potential responses including the required disclosure of these types of requests, the appropriate federal entities and trade rules that prevent free writing from nonmarketing. Thank you, senator. Thank you, senator casey. Would you like to take a few minutes to introduce our witnesses and we look forward to hearing from all of you today. I ask all witnesses summarize your written testimony and try to abide by the five minute rule. Well come back and ask more questions and your statements will be made part of the record without any objection. Our first witness is mr. Richard gear, chairman of the International Campaign for tibet headquarters in washington, d. C. Mr. Gear is an internationally known actor and philanthropist who worked for 25 years to advocate for human rights of tibetan people and preserve the tibetan culture. Also cofounder of tibet house u. S. And creator of the Gear Foundation and cosponsored five historic visits to the United States by the dalai lama and i understand you had a recent addition to your family. Congratulations on your new son. Thank you for being here. Next id like to welcome nigel cory, from the Information Technology and Innovation Foundation here in d. C. Mr. Cory is an if expert on data and digital trade issues in the global economy. He spent eight years working for australias department of Foreign Affairs and trade which included positions covering Global Economic and trade issues among g20 countries and at World Trade Organization. Hes also held diplomatic postings in malaysia and afghanistan. Third id like to welcome beth maltson, a fellow in the open Market Institute here in d. C. She focuses on the impact of monopoly power on trade and the consequences for National Security. She previously served as Democratic Council for the ways and Means Sub Committee and was six years with the United States trade representative where she participated in trade negotiations and litigated trade disputes. She spent three years detailed to the Senate Permanent subcommittee on investigations. And finally id like to welcome mr. Cleat williams from straus, helder and feld here in washington, d. C. Mr. Williams advises a variety of clients on International Economic law and policy matters. Before he joined the firm, he served as the white house at the white house as Deputy Assistant to the president for International Economics. Hes represented the United States as a key negotiator and litigationed 30 wto disputes. His work here on capitol hill on the House Budget Committee and for the former speaker paul ryan. Thank you very much for being here. Mr. Williams and all of our witnesses. And mr. Gear, if you could if youre there, please proceed with your opening statement. Im here. Somewhere. Thank you for joining us. This is bizarre and prefer this facetoface, but lets engauge each other anyhow. And chairman and Ranking Member and members of the committee, thank you so much for your introduction and in inviting me to testify. It has been 35 years since i first testified in congress and that is on behalf of our Central American brothers and sisters and on tibet for the last 30 years or so. Tibet has certainly been my compass that has helped me navigate through the world and certainly through washington and probably through all of my life. This is the first time ive testified before the senate since i last met with one of your greatest colleagues john mccain. He was a good man. And he was a good friend. He was a good friend as well with the dalai lama and the tibetan field. He was the best of us. Like john mccain and many of you, im sure, that i hope that our government could deliver at its best. Not only for the american people, but for the millions of people all over the world who look to us, to look to the United States and its democracy and freedoms and its openness as a source of inspiration and refuge while they live under oppression and violence. American leadership is at its best whether it sets its view beyond the horizon and looks with balanced confidence at the challenges and the opportunities that lie ahead. But the rise of china in the world today is not something beyond our horizon. It is right here. It is right in front of us. It is in our face and it affects our daily lives, our workplaces, our freedoms, our privacy, our health, obviously were finding out, our elections and they will certainly shape the future of or world. After looking at the committees work since 1949 to place the u. S. On the world stage and advance the Community Party authoritarian model everywhere in the world, im happy to offer my experience to this existential important conversation. The conversation about the future of our relationship with the chinese is crucial, not only to the u. S. And frankly weve been tragically naive under both republican and democratic administrations, but it is equally crucial for our democratic allies. Ive been involved in supporting tibetan people and a vision with the dalai lama where peaceful coexistence for almost 40 years now. When it comes to china, tibet supporters have been in for the long haul, say. We knew that was happening in tibet would not stop there. And the chinese authoritarianism would expand well beyond tibet as we see in xin jung and beyond chinas borders. Clearly we have a rapport with the chinese people. Theyre the same as us. We wish they enjoy life and opportunities and joy and happiness for families and for their children. But what i fear is the chinese Community Party model of development that is predicated on control, dominance, and violence. Chinese leaders have often quoted an old chinese proverb on the outside be benevolent, on the inside be ruthless. I recall a time in the 90s when members of Congress Called on the white house many times to condition chinese most favored nation status on clear criteria that would protect the rule of law and human rights. That coalition unfortunat