[indiscernible conversation] good morning and welcome. I would like to thank our witnesses for their testimony and staff for preparing todays hearing, and thank you to the commissioner, it is an honor to cochair with you today. While this Commission Deals with a variety of issues in the u. S. China relationship, todays hearing focuses on a topic that has rightfully emerged at the forefront of the policy debate in both chambers of congress in recent months, technology. While much remains uncertain about the 20 20s and 20 30s, recent events have made it unmistakably clear that technology will be the indispensable precondition for american prosperity, security, and National Sovereignty in the years ahead. President eisenhower once observed there is only one thing i can tell you about war, and it is this, no war ever shows the characteristics that were expected. It is always different. It has now been 79 years since the world last expense the war between great powers. That is the same amount of time that elapsed between the American Civil War and world war ii. Just think of how different the world of the American Civil War was compared to the world on the eve of world war ii. Similarly, the world today bears little results to the world of 79 years ago. If a great power war broke out tomorrow, we cant know exactly what shape it would take but we do know as president eisenhower wisely suggested that it would bears little in common with the last great power war. It is therefore essential for the future of American Security and deterrence to fully understand the implications of recent breakthroughs in commercial and military technology. America cannot remain capable of winning great power wars beyond any reasonable doubt if it does not remain superior technologically and conversely, america cannot deter great power wars from happening if the world doubts americas capacity to win them. Since the days of david and goliath and troy, the books are full of stories of smarter adversaries outmaneuvering larger foes. The greatest risk to america is we underestimate the importance that intelligence will play in reconfiguring military power in the decade ahead. We can think of a a as a factory for intelligence, a system that can solve any puzzle, find and exploit, predict the next chess move, locate tanks in a satellite image, anticipate an adversaries response option and so forth. I look forward to discussing a greater length the clinical role of ai in the future of the u. S. China rivalry in diving deeper into chinas adoption of ai intuits Global Military strategy. Second, technology will be the senior qanon for the u. S. To remain the worlds preeminent economic power. In the u. S. China rivalry, the nation with the most advanced technology will also be the nation with the larger economy. Look no further than the difference between israel and nigeria today. Nigeria has more than 21 times the population of israel and has 37 billion barrels of oil reserves from yet israel has a larger economy and military. The reason is technology. Contrary to popular belief, america can in fact stay ahead of china economically, but to do so, it must also stay ahead technologically. With four times our population, if china manages to converge with us technologically and to get the parody on productivity, it could have four times our gdp and may 4 times or military, making it the dominant power, so parody means the west is losing. Parody cannot be the byproduct of American Technology policy. Technology dominance should be our northstar and that will be my focus today. Third, technology is challenging our traditional conceptions of National Sovereignty. As china influence increasess, the internet is giving away two ideological defective techno blocks. The Global Internet is divided between the decentralized democratic internet familiar to americans in the centrally controlled internet, authoritarian internet built by china. The latter is spreading rapidly in the developing world where countries from Southeast Asia to latin america have opted to rely on Chinese Technology from 5g networks and other critical digital infrastructure. The influence of the authoritarian internet is also expanding and advanced democracies as company susceptible to ccp influence become more central to our online lives. If chinas efforts to export the systems abroad are left unchecked, the ccp may enjoy the capacity to involve dozens of countries behind its great firewall, and reconstitute 20th century style sears of influence through 21st century technology. Popular chinese platforms like tiktok make a mockery out of free speech and are internationalizing chinese surveillance everywhere, including in the United States. Tiktok is a sport attacking our children and social fabric, a threat to National Security unlikely the most extensive intelligence operation a foreign power has ever conducted against the United States. Tiktok misled congress and should be held to account. Americans deserve to know that the ceo committed perjury on its relationship with the foreign adversary. More importance American Security should be protected and it should be fully device difference Chinese Parent Company or be banned entirely. But tiktok is far from an isolated case. America is due for copy into breathing of its Technology Trading relationship with china. I look forward to discussing actionable ways that commerce can mitigate the urgent security risks posed by chinese hardware and Software Technologies in the United States. I also look forward to hearing from our expert witnesses and will now turn the floor to my cochair, commissioner russell, for his opening remarks. Commissioner russell thank you, commissioner, thank you for the engagement and process we have gone through preparing for this hearing. Commissioner how berg has deep knowledge and insights on technology issues, which he has brought to the commission, which we all appreciate. Uh, i would also like to thank everyone for joining us in thanking our witnesses for the time and effort they have put into their testimonies in preparation. Todays hearing will assess the Chinese Governments ambitions and progress towards Global Leadership in several key emerging technology sectors. The commercial applications of these technologies are profound. There adoption and diffusion through the coming years holds the potential to disrupt industries and create new wealth and opportunity. At the same time, the Widespread Adoption of these technologies and chinas Competitive Position and approaches could undermine u. S. Economic National Security by creating new dependencies or vectors that attacked the china may seek to exploit, as it has already shown it is willing to do so in certain areas. These Disruptive Technologies are already shaping our economies and security interests. Chinas efforts to gain a decisive edge in emerging technologies are clear, systemic, and underpinned by a raft of Government Policies and investments. These efforts present significant challenges to u. S. Interests across various industries. Chinese manufactured equipment embedded in Information Technology networks poses a threat to our critical infrastructure. Chinas strides in biotechnology have solidified the parole of chinese drug manufacturers Global Supply chains for lifesaving medications that could make china less dependent on the long run, with the u. S. Potentially become dependent on china for certain agricultural inputs such as amino acids, vitamins, and other products using animal feed. Chinas rapid progress in Battery Technology and manufacturing has also helped it dominate critical nodes of the supply chain for new Energy Systems and potentially is creating unacceptable security risks. We have identified both capital and technology as key facilitating areas where western support often unwittingly has advanced the goals of the Chinese Communist party. This has been a longterm effort of this commission and we are very proud of the work we have done. The focus on technology is intense, but in my view we are still only scratching the surface. I hope todays hearing and our efforts will advance analysis and provide potential recommendations for consideration by congress. The challenge is immense and controls and investment restrictions have already hindered some of beijings efforts to require cuttingedge technology, but it continues to capitalize on gaps in these regimes and the relative openness of u. S. Academia. An important problem remains in defining what constitutes emerging and foundational technologies, and linking that definition to export control and investment actions. As a critical issue, we need to understand how ai it is altering and advancing chinas military capabilities. In the past, we assessed chinas asymmetric warfare approach with its focus on space in the electronic domain as insufficient to challenge u. S. Military capabilities. We now need to better understand how china is using ai to challenge our capabilities and alter the balance of power. My cochair identified many questions that must be addressed regarding the competition that exists between our two great nations. Technology is the ability to address some of our greatest problems in areas ranging from medicine to the environment, to agriculture, and many others. In assessing chinas approaches in their efforts to control and dominate so many of these technologies, we must carefully evaluate and respond to the threats, but we must seek to find ways to ensure the technology itself does not become a battlefield that limits the ability to address critical human needs. So far, the ccps approach undermines that possibility. Before we introduce our first panel, i would like to remind our audience that witness testimonies in the hearing transcript is available on our website uscc. Gov. Our next hearing will take place on march 1. I now turned the gavel over, the microphone over to my cochair. Thank you, commissioner russell. Our first panel will address the National Security risks created by chinese manufactured Information Technology hardware and software sold in the United States, as well as the legal tools available to mitigate these risks here at we will start by welcoming back the honorable a partner at a law firm who cochair their National Security practice. She previously served as the department of commerces assistant secretary for Industry Analysis at the International Trade administration and also served as the undersecretary for industry and security at commerces bureau of industry and security in the trump administration. Her testimony will address the risk of chinese i. T. Equipment used in commercial and Government Networks. Next, we will hear from the ceo of a Data Protection and software company. He, his company has reported extensively on the tools used to track user activity online. He would discuss Chinese Software products on the risks they posed to users data and privacy. This is his first time testifying before the commission. Third, we will hear from mr. Jack corrigan, Senior Research analyst at george kent center for security and emerging technology. Prior to joining it, he worked as a journalist covering federal technology and cybersecurity policy. He would discuss the existing policy framework for regulating chinese i. T. Product sold in the United States. Mr. Corgan is a new voice for the commission. Thank you all very much for your testimony. The commission is looking forward to your marks. And i ask that all of our witnesses to please keep the remarks to seven minutes. We will begin with you. Ok, thank you very thank you very much, esteemed commissioners and staff, thank you for holding this hearing, first and foremost, very important topic. Thank you for inviting me to testify. I am an attorney and economist. Ive been working on the front lines of the u. S. China technological goods battle for over 20 years. I do need to state that the views and opinions expressed in this testimony are mine only and do not represent the views of any of the firms clients. Lets step back for a second. Just over 20 years ago, when china joined the wto, the entire world was excited about taking advantage of chinas low cost, nonmarket economy structure and we moved Production Capacity there. Then we moved technology. Folks did not think about it much at first. They thought its the commodity sector. It funds it creates the revenue stream for the next technology. The world didnt save very much. China started working up the value chain. Now we find ourselves 20 years later having some of the most critical hightech goods dependent on the chinese supply chain and technology. When you look at all of the items that are critical to u. S. National security, from raw materials, etc. , the list is 700 plus items. Which of those items are vital to technology and manufacturing. Which of those items are concentrated exclusively or the majority of the production in china. One of the reasons why i mentioned some of the reasons why this happens, one of the other reasons is americans have become consumed with this notion of software. We have become coders, app developers, and forgotten how to make the nuts and bolts of goods and that gives china a technological advantage. When we look at telecommunications hardware, we dont have those discussions. We talk about software development. In terms of innovation, semiconductor design, etc. Hardware in china gives china an enormous advantage because it gains the advantages over us. If we dont produce the hardware, we have a huge vulnerability. Thats what im going to concentrate my testimony on. I dont need to tell you where chinese hardware is embedded in our system. We have in our system we have it in our system. It is prevalent. We have the microelectronics program. That is a fraction of the dod systems that use Electronic Components from china. Drones, right . We should talk about this. They are sort of emblematic of not only the problem but refusing to do anything about the problem. Weve got chinese drones, like dji, flying around the country. Weve got the american drone securities act. For three years, it is prohibiting the use of federalt dollarso buy drones from foreign countries. Over concerns of use. We are not sanctioning dji. We are good at talking about the problem but it is about exercising the laws. There are a number of developers that want to get into this market but cant because of the chinese low cost structure and we are not doing anything to help them by perpetuating this. Weve got issues with telecommunication infrastructure. Even when we think about the China Commission the select committee on the ccp has flagged these modems in the towers. Chinas the only producer of these components. Its across the entire world. This is chinas dominance. Yet we are terrified of replacing it. We are struggling with the money to replace it. If we have tiktok on our phones and we have other applications, that Software Still infiltrates the Telecommunications Towers and spreads the cancer, the malign software into other devices. We have the Treasury Department investment ban through the Legal Authority. We have the entity list. The solutions are not complicated. You have companies over and over telling us, i dont know whats in my supply chain. You are going to pass these laws that i cant comply and anybody knows. That is wrong. I used to be a former auditor for the u. S. Government for a number of years. Every Single Company can audit the supply chain. You only focus on the items that can be tempered with. The true hardware that can be tempered with. Through several layers of audit traces, you can find a company can find what is in their systems so they can rip and replace it. The Legal Authoritys exists. The capability exists. But across the board, the world does not exist. Thank you. Will does not exist. Thank you. Thank you very much. We will now move to our next witness. Mr. Tsarynny. Thank you very much for inviting me to the hearing today. I am the ceo of feroot security. We help organizations eliminate threats paused by software posed by software that secretly tracks people online. My testimony will focus on the risks china poses to americans and data privacy. Weve had an unprecedented look into the techniques our adversaries use to steal Sensitive Information, therefore i am going to cover these three important areas. Number one, what our research has revealed on that tracking that collect Sensitive Information and make it accessible to entities under chinas jurisdiction including the communist party, the chinese intelligence and any other authorities. Number