C the select committee will come to order. Welcome everyone to the select Committee Hearing or the leveling the Playing Field how to counter the Chinese Communist party or economic aggression. Who when i looked at the staggering economic relationship thats a word that comes to mind. One small example the American Pacific northwest salmon are frozen sent to china to feed tboned by hand and refrozen and shipped back to u. S. Grocery store sometimes miles from where the fish were copied the economical links between the u. S. And china are dizzyingly complicated that theres another word that comes to mind. Naivete. There were prescient dissenters for the last 25 years or both parties largely made the same naive bet on china that Economic Engagement would lead the Chinese Communist party to political liberalization. Beijing saw our quintessentially american optimism is an opportunity to exploit and their treaties and International Commitment are but not for me. I will enter video into the record and if the clerk will play the video. The Chinese Communist party will it be the next worlds last great communist dragging click the wto will move china in the right lane advanced americas for the past three decades. China is a full member of the wto and will be a full partner in the Global Trading system. We will it be than next great capital . [inaudible] [inaudible] [inaudible] u. S. Deputy chief in geneva says this as transparent as the government subsidy. We will seek faster progress to join the wto. [inaudible] chinese hackers outnumber cyber personnel by elise 501. We remain committed to developing free trade in investment. Promote trade and investment in the facilitation. We must remain committed to developing free trade. The ttp took advantage of our technology our knowhow and are capital. Once they felt ready they began to decouple from us or they began to decouple from us because it was never about reciprocity. Now the air of Wishful Thinking is over. The Economic Warfare uses any and all that rich to course us and our allies in its time we defend ourselves and the free world. In so doing its important to remember theres no such thing as a truly private business in china. Business like Everything Else serve the Chinese Communist party has political goal. The National Intelligence amended counter espionage laws and are all clear evidence it hand wringing in this discussion in the media about what we call our new economic relationship with china decoupling derisking interwitnesses i would say call it whatever the heck you want. Lets stop admiring the problem and actually get down to a solution. You will hear a lot of economic jargon. Section 301 tariff capital control. Easy to get lost in acronyms in the jargon but i find it helpful however to have policy principals in mind to get her hands dirty in the minutia. A caveat furnished this complex all principals need healthy doses of pragmatism and humility. One, we need to stop fueling our infrastructure. This means we shouldnt fund pla modernization and wish to protect their Sensitive Research and Critical Technology and not sacrifice National Security for shortterm profits. Two we need to take off the blindfold and open our eyes. American business shouldnt be complicit in the ongoing genocide in American Capital should not investment manager especially pension and Retirement Funds cant ignore their fiduciary duty through the past few months the ttp is criminalized repeated Due Diligence making a mockery of the system of transparent disclosures that that undergirds her Capital Market and undermines the rule of law. Three, we need to reinforce or economic sovereignty. That means reassuring her most critical supply chains like pharmaceuticals. We need a positive collective resilience with our partners and allies and open new markets for American Companies. No one is talking about a full decoupling of china at the strawman is propagated by the pro engagement if we use these principals to craft a policy agenda along with technical recommendations from experts like the ones testifying before us tonight i believe we can chart a new course for american prosperity in the 118th congress and without i recommend roger krishnamoorthi for statement. Thank you. Tonight we are getting to the heart of the strategic constitution with ttp. This is the fundamental question who will be the economic innovation leader for the remainder of the 21st century . We will the america or the ttp . The 1978 when the prc began to open the economy america four times more steel than the prc and now the prc produces 12 times more steel than we do. In 1978 americans had now the prc is the Worlds Largest automaker. It produces nearly three times more than america. In 1978 america was the worlds leading economy with a gdp of 12 times that of the prc which ranked 10th in the world. Today we remain the worlds biggest economy in the prc is the second biggest economy and they are aiming to be number one. If the trajectory of the prc is not a wakeup call let me give you one more step. The prc leases 37 and 44 technologies that many consider to be important for the future of our world. That includes 5g and that includes nanoscale manufacturing and commercial drones among other things. Lets be clear the ccp is catching up economically and they want to move ahead of us. As chairman xi jinping is at the ttp seeks to lead the world in terms of comprehensive power in international scale. Want to level the Playing Field for the American People and remain her place as the Global Economic leader for the rest of the 21st century and to protect herself from unfair competitive trade practices by the ccp. At the same time we must up our game and enhance their own competitiveness. Tonight we are going to hear from three impressive witnesses about how america can regain momentum and retake the lead in so many fields important to our economy. As a think about how to put america on track to win strategic competition with the ccp a i respectively submit for your consideration three keys, people, production and partnership. First, people. Americas biggest advantage has always been its people whether we were born here or like my own family came here from Distant Shores seeking the american dream. The American People have always been our biggest competitive advantage bar none. Making sure people are better prepared to lead is critical in attracting the best and the brightest talent from around the world is essential to making sure america remains number one. The second is production. We have seen over the past few years the impact of the supply chain abroad can have on our working families here at home. Hardening our supply chain by producing more here in america will ensure that our Economic Future is not left to the whims of competitors and will make sure america remains number one. Third and finally, partnerships. None of these things happen without partnerships. Partnerships with other nations partnerships to retain the public in the private sector and partnerships between republicans and democrats working together to fuel innovation on Nextgen Technology like ai and quantum computing and robotics will ensure we set the pace for the future can keep america number one. Finally i want to leave you with two more. These matters need to be pressing priorities for our entire country. We are going to to hear lot tonight about things that sound like Science Fiction or the distant future. It may seem like we can wait for whole of government approach to tackle ai and quantum and biotechnology but we cannot. The moment to act is not in 10 years or five years for next year, its now. Its now. That means whatever we discussed i hope we act upon. In the house, the senate in corporation with the frustration and the deed with the private sector as well. I look forward to hearing from our witnesses and her fellow members to help us on a path to win the strategic competition. I yield back the balance of my time. Thank you Ranking Member and if any other member has a statement. There being then we have a great lineup of witnesses each of them bring in them bring an important sector to how we encounter first ambassador robert lighthizer. Ambassador ambassador lighthizer served as 18th u. S. Trade representative where he helped shepherd the u. S. Mexicocanada agreement and the chinabased 12 and we are happy to host tim. We have had spirited conversations and i appreciate those discussions. The next is Roger Robinson who helped us untangle the web of financial ties between the u. S. In the prc. Mr. Robinson served as a top architect under Ronald ReaganEconomic Strategy against soviet unions and went on to chairs the china a review commission and chairman and cofounder of the Prague Security Institute and finally we are privileged to be joined by a doctor eric schmidt is done more to advance american technological leadership should. Doctors schmidt served as ceo and chairman of a Small Tech Company called google and its Parent Company alphabet. Its most recent initiative to competitive study project is a bipartisan Nonprofit Institute with a Clear Mission to make recommendations were ai and other emerging technologies reshape our National Security and our connie and society. Welcome to all of our witnesses and thank you for being here this evening. Please raise your right hand and i will now swear you in. Do you swear or affirm under penalty of perjury the testimony youre about to give his true and correct to the best of your knowledge so help you . You may may be seated. Let the record show that witnesses have answered in the affirmative and ambassador lighthizer you may begin. Chairman gallagher Ranking Member krishnamoorthi members of the committee i would like to thank you for inviting me to testify today and it would like to thank the house leader should for establishing this Important Committee and all of you serving on it. I believe china is the most dangerous threat that we face as a nation. Indeed it may be the most perilous adversary it ever had. That state actions are increasingly totalitarian and targeted at us. China believes it is destined to be the world only superpower and that we are in the way. When the sessinger economic relationship with china its important to put our analysis in the broader context. And i will not repeat examples of military espionage and other acts demonstrating their intentions to challenge americans. And i will not repeat their own words about america being in decline and their preparation for changes nothing in 100 years. I only ask when you think about their Economic Activity please remember they are openly adversary. It is not an exaggeration to say the Chinese Communist party is waging economic war against United States for decades. In this economic war they use all the tools plus many more. Parent higher Economic Policy is designed to be an integral part of their overall global dominance. That policy produces huge trade surpluses obtained technology by whatever means. Turn it at a plate of currency and uses industrial subsidies and maintains a close market only allowing access when they determine its in their interest. It uses among other things tariffs and discriminatory Regulatory Regime and riggs product safety standards. They force a the company to turn over technology to them and when they dont do it they steal a baby or the number one source of industrial espionage in the world. They have banking and labor systems to limit domestic consumption and subsidize production and exports. They take advantage of very low environmental standards. They target u. S. Businesses that are trying to monopolize the supply in the world. In short if this is not economic or what is it . Also please remember these actions to the communities and more partly the destruction across america nothing whispered perhaps the worst part of this story is they appear to be succeeding to dwell waging this economic war on the u. S. Their gdp has gone from 1. 2 trillion in 2000 when we granted them favored nation statement to now a 14 fold increase in their Technology Sector has grown to the point that it challenges ours. Their success was largely done with our money. Lets consider how much of our treasure is transferred to china every year. First we give them 330 billion in trade surpluses. Their Technology Theft probably nets another three to billion dollars a year. They make tens of billions of dollars every year sending fentanyl mostly through mexico. We have transferred over 5 trillion in the last 22 years and probably 3 trillion lost technology. When one considers the compounding effect of these wealth transfers over so long a period its fair to say much of the ccp economic miracle has been the result of taking advantage of america. I believe its far past time to engage in the United States should begin to process and phase and the decoupling of our economy from theirs. I did not espouse cutting off economic relations but thats unrealistic and probably counterproductive. Strategic decoupling would include several policy changes. First we need to balance trade and we should raise tears on the products to a level that one sure way by approximately as much from them as we sell to them. Sounds trade will reduce the effects of their unfair practices and stop the transfer of our wealth. Second way to take steps to disentangle our Disk Technology from theirs and me to expect if we should develop new technologies on our own and with our allies. Third we should limit their investment in our country and only allowed when theres a demonstrated benefit to the United States. Outbound u. S. Investments in china should be severely defunded. This policy is submit a so softer version of exactly the policy that china has towards america. The way im calling for reciprocity. Obviously this is aggressive recommendation but i believe honest people who look at all the facts in this relationship realize the status quo cannot continue. This is not the time for half measures. This is a time to be bold and Congress Must make this happen. Thank you. Thank you sir. If he hear a gentle thats me in my miss the wisconsin nice way to enforce the fiveminute rule. I understand it is impossible to summarize her testimony in five minutes. Im a very old 39yearold. Members get mad if i dont try to keep it in. I dont mean to be. Mr. Robinson. Mr. Chairman and members of the committee i greatly appreciate the opportunity to appear before you today to describe was arguably the largest strategic financial scandal in modern history to consist of the multitrillion dollar underwriting by our democracy of an authoritarian regime bent on undermining our fundamental values and way of life. Aided by some fiduciary malfeasance wall street firms and certain conflicting u. S. Government regulators at the toplevel stuff that toplevel stuff up Treasury Department the securities and Exchange Commission of the National Economic council. Over 20 years the u. S. Has allowed the cavalcade of thousands of ccp controlled chinese publicly. Companies to enter their retirement and investment portfolios of average americans with precious little if any diligence concerning who these enterprises and their subsidiaries are for the human rights and National Security abuses including already u. S. Sanctions of Chinese Companies. None of these roughly 5000 chinese corporate security. Traded adequate material risk transparent financials corporate shareholder rights the rule of law and other requirements for their american informant foreign corporate counterparts for rick is just her Pension System administrators and other fiduciaries are protecting our risk related interest not just seeking returns. This is often not the case. Providers like msci have products littered with risky sanctions and other chinese corporate bad actors using crude human rights and National Security fenders for the same mr. Regarding certain large American Asset managers which have included these bad actor companies in their funds and other passive Investment Products benchmarked against these industries thro