As President Biden continues negotiations with congressional leaders over the looming possibility of a default on U.S. debt obligations, White House officials came to Capitol Hill today with a warning to Congress that the debt ceiling crisis is playing into the hands of China.
“China is not debating whether to pay its debts or wreck its economy,” Democratic Senator Patty Murray of Washington, chair of the Senate Appropriations Committee, said during a hearing today. “The more we play with default, punt investments, and teeter on the edge of government shutdowns, the more we prove China and our competitors are right—and helping them show the world that it is their moment to overshadow our leadership, and helping them demonstrate their core belief that totalitarianism is stronger than democratic values.”
Murray’s comments came in a hearing that featured Secretary of Defense Lloyd Austin, Secretary of State Antony Blinken, and Secretary of Commerce Gina Raimondo, all of whom pointed to areas where the U.S. is falling or will fall behind China without additional investment, who told Congress that the U.S. must invest in its economy, military, and diplomatic efforts.
“Our ability to counter China requires us to show up, it requires us to show up in embassies, and it requires us to show up on the ground with money,” Raimondo said during the hearing. “The effectiveness of all [of last year’s] investments would be threatened by a misguided return to FY 2022 enacted levels.”
Cabinet-level officials often appear before Congress alone or with other individuals in their department. To have all three appear in one hearing marked an unusual occurrence and demonstrated the Biden Administration’s collective focus on securing spending that addresses Chinese competition.
In her opening statement, Raimondo said that continued investment in areas like manufacturing and advanced technology are key to holding an edge over China. China’s economic growth has outpaced the U.S. for much of the past two decades. According to The World Bank‘s most recent estimates, China’s GDP totaled over $17.7 trillion in 2021, up from $1.32 in 2001. In contrast, the U.S. GDP hit $23.3 trillion in 2021, an increase from the almost $10.6 trillion posted in 2001.
During the hearing, the administration officials pointed to the pace of China’s economic growth as a cause for concern. Similarly, they noted China’s People’s Liberation Army Navy overtaking the U.S. Navy in fleet size and boasting the world’s largest military as warning signs. Secretary Austin said investments in weapon systems will prove significant to maintaining America’s military edge.
Additionally, China has bolstered its influence across the globe, strengthening alliances with countries across Eastern Europe, Africa, South America, Oceana, and the Middle East with its “Belt and Road” initiative that has seen the country support infrastructure projects in more than 150 countries. Concerns over this initiative and China’s overtaking the U.S. in diplomatic posts were also raised. Blinken said America must expand its diplomatic efforts, asking Congress to confirm pending nominees for ambassadorships and approve funding to expand diplomatic efforts.
“China’s vision is to be the world’s military and economic powerhouse, and it is well on its way,” Republican Senator Susan Collins of Maine, the Appropriations Committee’s top Republican, said during the hearing. “The world faces an authoritarian government that seeks to regain its hegemonic past and dismantle the international order created by the United States and our allies following World War II.”
Addressing China has been one of the few areas where this divided Congress has shown significant levels of bipartisanship.
Senate Majority Leader Charles Schumer held a press conference during the first week of May alongside other Democratic leaders where he stated his intent for Congress to begin working on bipartisan legislation aimed at bolstering the competitiveness of American industries, limiting the flow of U.S. technology to China, countering China’s global influence, and deterring an invasion of Taiwan, among other things.
This bill would build off the CHIPS and Science Act passed last Congress, Schumer said, an effort that saw the country invest around $280 billion in semiconductor manufacturing and scientific research. Although the House was controlled by Democrats during the passage of this bill, the lower chamber has continued to show an appetite for bipartisanship in this area since shifting toward a GOP majority.
Last January, members voted 365-65 in favor of establishing the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, and the committee has handled its work in a bipartisan fashion, in marked contrast to the Judiciary and Oversight Committees, which remain focused on investigating the president and his cabinet.
However, while addressing competition with China continues to see broad bipartisan support, it remains to be seen whether Schumer’s current agenda will see enough momentum to ultimately land a bill on Biden’s desk.
Senator John Thune of South Dakota, the second highest ranking Republican in the upper chamber, told Reuters that passing the initiative would be “challenging” due to “concerns about too much spending.” Similarly, Florida’s Republican Senator Marco Rubio released a statement saying, “If Senate Democrats are serious about this effort, they should be reaching out to Republicans instead of holding partisan press conferences.”
Newsweek spoke with Republican Senator Mitt Romney of Utah, a member of the Foreign Relations Committee, who said, “if there are measures that Congress needs to take to help in the [China] effort, we should.”
However, he noted that foreign policy is “typically” conducted by the White House, and that steps can be taken now without Congress to formulate a strategy to deal with China and address certain areas of competitiveness, with theft of U.S. intellectual property being an example.
“There is no question that those are very important topics,” Romney added. “You don’t have to pass legislation to put in place those kinds of measures. Can it make them more permanent? Yes. So it’s a valid process, but the administration doesn’t need to wait for us.”
Senator Tim Kaine, a Virginia Democrat who also serves on the Foreign Relations Committee, said the issue is “important” and one where he can see action taken to pass something that’s both “meaningful and bipartisan.” While he acknowledged that the administration could take action on these issues, he said a bipartisan bill would prove significant in demonstrating national unity.
“This relationship is going to be the most important bi-lateral relationship in the world for decades,” Kaine told Newsweek. “So, there ought to be something that would suggest some continuity, and I think congressional action would do that.”
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