U.S. Senators Mitt Romney (R-UT), Catherine Cortez Masto (D-NV), James Lankford (R-OK), Sherrod Brown (D-OH), John Cornyn (R-TX), and Todd Young (R-IN) today introduced the bipartisan American Economic Independence Act, legislation that would require the President to submit to Congress a comprehensive threat analysis of the national security risks posed by economic integration with China in key economic sectors such as financial services, artificial intelligence, critical minerals, and manufacturing. After delivering the threat analysis, the Executive Branch would be tasked with providing recommendations to Congress to mitigate the national security risks posed by China in each economic sector.
“China is on a fast track to replace the United States as the global economic leader. Yet at the same time, we remain intertwined with China in virtually every sector of our economy,” Senator Romney said. “We must consider the national security threats posed by U.S. economic integration with China—from critical minerals to manufacturing and everything in between—to effectively craft a strategy that mitigates these threats.”
“Nevada plays an essential role in ending our reliance on China for critical materials and helping the United States compete economically on the world stage,” Senator Cortez Masto said. “This bill will ensure Congress and the Administration are informed about the policies needed to further strengthen our domestic critical supply chains, protect our national security, and support American workers.”
“Ohioans know all too well how China illegally subsidizes its companies, putting our workers out of jobs and undermining entire industries from steel to solar manufacturing,” said Senator Brown. “We can’t wait for China to run this same playbook over and over – we need thorough monitoring of the economic and security risk China poses to Ohio manufacturers and workers to save jobs, strengthen our economy, and protect our national security.”
“To effectively counter China, the U.S. must have a full understanding of how our economies intersect,” Senator Cornyn said. “By requiring the executive branch to conduct a thorough assessment of U.S.-China economic integration, this legislation would preserve our national security and ensure the U.S. stays one step ahead of the CCP.”
“In recent years, we have experienced the economic and national security risks associated with relying on a strategic rival’s supply chains for a wide variety of industries,” said Senator Young. “Our bipartisan bill would promote American economic independence and help mitigate any potential threats that may stem from future economic integration with China.”
Full text of the legislation can be found here.
Background:
The American Economic Independence Act would analyze national security risks from current and predicted economic integration between the United States and China across the following economic sectors:
- Financial services;
- Critical minerals, including rare-earth elements;
- Semiconductors and microelectronics;
- Artificial intelligence;
- Communications, including telecommunications, social media applications, satellites and other space-based systems, and undersea cables;
- Quantum computing;
- Cloud-based systems, including computing services and data storage;
- Biotechnology;
- Pharmaceuticals and medical technology, including medical devices; and
- Manufacturing, including casting, machining, joining, and forming.
The American Economic Independence Act requires a comprehensive analysis that includes an assessment of:
- Each sector’s reliance on Chinese entities, including state-owned enterprises, for foreign direct investment and other sources of financial capital;
- Each sector’s reliance on supply chains that have a significant dependence on products or processes based in China;
- Risks of intellectual property theft or economic espionage by individuals or entities linked to the Chinese government or the Chinese Communist Party;
- An assessment of risks to the defense industrial base; and
- An assessment of the risks posed by the use of subsidies and the dumping of goods into the customs territory of the United States by entities in the People’s Republic of China, including entities owned or controlled by the Chinese government.
