Live blog: Combatting the Economic Threat from China

10:05 am. Atlanta.

Waiting for the U.S. House Committee on Financial Services to begin hearing on economic threats from China.

10:07 am. Atlanta.

Committee chairman Patrick McHenry declares that China is not a partner or an ally. China is a competitor. The US must double down on its commitment to free people and free markets. American values of free speech and free markets has made the US strong. For the US to compete with China, the US cannot become more like the Chinese political party. China must be prevented from re-writing the economic rules of the road.

10:10 am. Atlanta.

Maxine Waters, ranking member of the House financial services committee, chides the Republican party over its delay in raising the debt ceiling. The delay, according to Ms. Waters, hands China an economic advantage.

10:16 am. Atlanta.

U.S. Representative Blaine Luetkemeyer asserts that China is leveraging its private sector to fund its military ambitions.

10:21 am. Atlanta.

Mr. Rich Ashooh, Corporate Vice President, Global Trade and Government Affairs, Lam Research Corporation. Four recommendations. First, the national security threats must be clearly defined. Regulate horizontally. national security threats usually helped by governments. Second, US agencies must collaborate when protecting against state-sponsored threats. Third, leverage what works to address gaps in national security. Fourth, high priority must be given to partner nations.

10:25 am. Atlanta.

Mr. Tom Feddo, Founder and Principal, The Rubicon Advisors LLC. The Peoples Republic of China poses a great threat to the world. To ensure America’s security, China’s theft of technology must be prevented.

10:31 am. Atlanta.

Mr. Eric Lorber. The US needs strong sanctions policy. Over the last two decades, sanctions have become a core tool in countering bad actors. Policy makers have focused on sanctions in its competition with China. First, steps for sanctions should be clearly defined. Targeted list-based sanctions can be effective. Impact list-based sanctions require consistent efforts to monitor. Expansive programs can have substantial macro impact. More expansive programs can fail to achieve lofty objectives. Sanctions are more impactful when access to US markets is impacted versus access to other markets. Sanctions are likely to be more impactful when China’s leadership is more concerned about how crippling the sanctions are on their economies versus their own objectives in a region.

10:36 am. Atlanta.

Clete Willems, Partner, Akin Gump Strass Hauer & Feld. US should pursue market access agreements that reduce US alliance on Chinese goods. RCEP has made it easier for 14 Asian region countries to tie their supply chains to China. China’s markets provide economic advantage to the US.

10:41 am. Atlanta.

Peter Harrell. National Security Council. The US and allies should continue promoting their economic and technological strength. The US should protect its economic and technological advantages. The US should address the debt ceiling issue as it gives China a strong narrative that challenges the viability of the US economy. The US should pursue multilateral economic agreements. The US needs to address data risk that China poses.

10:50 am. Atlanta.

Committee chairman McHenry expressed concerns over the idea that the US would have to look more like China in order to compete with China. Clete Willems expressed that China’s policies are inconsistent with requirements from organizations such as the World Bank or the International Monetary Fund.

10:54 am. Atlanta.

Ranking member Maxine Waters continues focus on the debt ceiling. Mr Harrell emphasizes that the US may lose face if it does not meet its debt obligations. Ms. Waters recalls efforts in the past to address outbound investments in China from the US.

11:00 am. Atlanta.

US Representative Frank Lucas expresses concern about how the Peoples Bank of China lends money to developing nations resulting in an inability of these countries to repay loans. Wants to know whether US lending strategies can counter this impact.

11:09 am. Atlanta.

US Representative Pete Sessions wanted witnesses to address China’s existential threat to American markets. He wanted to know if the US could take a more holistic approach to addressing economic and market threats.

11:20 am. Atlanta.

US Representative Bill Posey asks the panel of witnesses what percentage of American debt is held by China and what percentage of land in the US is owned by Chinese entities. No one on the panel could answer.

11:25 am. Atlanta.

US Representative Greg Meeks wanted to know in what areas the US still has an advantage over China and whether China’s development of a central bank digital currency poses a threat to the status of the dollar as a reserve currency.

Alton Drew

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