Tag: China

  • Farm state Republicans raise alarm over Trump’s new China trade proposal

    Farm state Republicans raise alarm over Trump’s new China trade proposal

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    “There are serious trade disparities that should rightfully be raised, but we should be honest about the potential economic impact to rural America,” said Rep. Kelly Armstrong (R-N.D.).

    Another farm state Republican lawmaker was more blunt when asked about how Trump’s new trade proposal could impact the U.S. agriculture economy, calling it “fucking suicide” for rural communities.

    Trump’s last tariff war with China originally targeted China’s steel dumping but provoked crippling retaliatory tariffs on U.S. agricultural exports to China — hitting farmers who were already struggling financially. Rural families, especially on small farms, felt the economic toll. Farms increasingly defaulted on their loans as China looked to Brazil and other foreign markets for farm exports, even after Trump spent $28 billion in federal funds on bailout payments. Trump eventually signed a trade deal with Beijing that he claimed would result in China purchasing $50 billion in U.S. farm goods, something China has failed to live up to. Tariffs on billions of dollars on Chinese goods put in place by Trump remain today. The Biden administration, which is reviewing the tariffs, has made no moves to ease them in the past two years.

    Sen. Tommy Tuberville (R-Ala.), a staunch Trump ally, cautioned against new trade moves that could hurt American agriculture. “I can understand what he’s doing — China is our biggest adversary,” Tuberville said. “But we’ve got to be careful about tariffs on farmers.”

    Some GOP lawmakers begrudgingly went along with Trump’s last tariff war with Beijing, in support of the general goal to punish China for intellectual property theft, steel dumping, broader state subsidies and a wide range of other malign actions. But they now caution that the process of disentangling the country’s complex economic relationship with China requires far more nuance than what Trump is proposing.

    “It’s important that we take a protective posture with regard to the sort of predatory practices of China,” said Rep. Rick Crawford (R-Ark.). But “I also know we have such a great deal invested in China, probably trillions of dollars,” Crawford continued, adding that the unwinding of those investments will need to be conducted “forthrightly” and “aggressively” while also protecting the U.S. agriculture economy.

    Some farm state lawmakers, however, lauded parts of Trump’s plans. Rep. John Rose (R-Tenn.), a former state agriculture commissioner, said the proposal to revoke China’s preferred nation trading status “makes some sense.” Sen. Marco Rubio (R-Fla.), a potential 2024 presidential contender himself, said tariffs are “the only angle we have to protect our markets from their unfair practices.” Sen. Pete Ricketts (R-Neb.) said he supported tariffs on Chinese goods, especially given that “they’re already not meeting their obligations under the previous trade agreement.”

    And there are a swath of Republican lawmakers who are still uneasy about publicly criticizing the former president, given his pull among a vocal slice of the party. Asked by POLITICO about Trump’s plan, more than a dozen pro-Trump Republicans said they didn’t want to weigh in since they hadn’t seen the proposal yet.

    Rep. Max Miller (R-Ohio), a former Trump aide who is now on the House Agriculture Committee, said he wanted to “look at the language” of any tariff proposals “and who it’s really going to hurt and who it’s really going to affect.”

    “Sometimes it provides a big relief to the bigger consumers within our country,” Miller said. “But sometimes it’s the little guy and the little woman at the end who really take on that burden sharing of actually having the tariff cost them more money.”

    Miller, who has endorsed Trump’s 2024 presidential bid, said he backed Trump’s previous tariffs on China. “I’m supportive of those tariffs,” Miller said, but added, he’s “a little bit different, more free trade individual myself.” Miller went on to say the “Milton Friedman model I believe is the best way for economic prosperity of the entire world,” referring to one of the most well-known advocates of free market trade — a belief system largely shunned by the former president.

    Trump’s campaign didn’t consult key agricultural groups before rolling out his new trade plans — even conservative-leaning groups he was close to during his presidency.

    Trump relied on the American Farm Bureau Federation during his initial trade war with China, as he argued farmers were doing their patriotic duty by helping to carry the financial burden on his larger effort to punish China for its economic tactics. But Zippy Duvall, the ag lobby’s president, said Trump aides hadn’t asked him about the former president’s new trade proposal. A Trump spokesperson didn’t respond to an inquiry regarding the Republican pushback to the plans or whether the campaign had reached out to any agriculture groups about it.

    Some Republicans said that while they haven’t yet seen or reviewed Trump’s proposal, they’re generally leery of enacting new tariffs on China, given the likely backlash on U.S. farm exports.

    “I like free trade. I think that’s what our country is built upon and the sooner we can get back to that, I think it’s going to help our farmers and ranchers,” said Rep. Mark Alford (R-Mo.), a pro-Trump freshman who represents a rural stretch of Missouri.

    “I really don’t have a lot of comment on this at this point, because it’s all speculation, right?” House Agriculture Chair G.T. Thompson (R-Pa.) said.

    Asked if he would support new tariffs on China in general, Thompson replied, “I still think we’re resolving the impact of tariffs now.”

    Steven Overly contributed to this report.

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    #Farm #state #Republicans #raise #alarm #Trumps #China #trade #proposal
    ( With inputs from : www.politico.com )

  • China Select Committee hearing highlights partisan divide on Beijing-countering strategy

    China Select Committee hearing highlights partisan divide on Beijing-countering strategy

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    Pottinger spiced up his testimony with a video of quotes by China’s paramount leader Xi Jinping that suggested hostile intentions toward the United States. Pottinger accused the Chinese government of waging “information warfare” on the U.S. and likened it to a series of magicians, calling the Chinese Communist Party “the Harry Houdini of Marxist-Leninist regimes; the David Copperfield of Communism; the Chris Angel of autocracy.” McMaster echoed that assessment and argued that some of the blame lies with leaders in academic, industry, finance and government who’ve exercised “wishful thinking and self-delusion” about China’s intentions.

    But the hearing revealed stark differences in how GOP and Democratic committee members perceive the U.S.-China rivalry and the strategies to approach it.

    Committee chair Mike Gallagher (R-Wis.) laid out a GOP vision of an external facing “existential struggle” against China’s “ideological, technological, economic and military threat.” Democratic committee members countered with a more domestic-focused approach hinged to bolstering U.S. democracy and backed by government funding for an industrial policy that ranking member Raja Krishnamoorthi (D-Ill.) said could thwart China’s challenge “through investments in technologies of the future, workforce improvement and by fixing weaknesses in our economy.”

    And Democratic members made implicit reference to Rep. Lance Gooden’s (R-Texas) statement on Fox News on Feb. 22 in which he questioned Rep. Judy Chu’s (D-Calif) loyalty or competence — a sign of the divides that could undermine the committee. “Calling into question the loyalty of Chinese Americans, as a member of Congress recently did, is as dangerous as it is deplorable,” said Rep. Ritchie Torres (D-N.Y.). Neither Chu nor Gooden are members of the committee.

    Gallagher and Krishnamoorthi have also rejected Gooden’s comments. Still, the divisions on display at the hearing suggest they face serious challenges from day one in delivering on their commitment to keep the committee’s focus on China rather than GOP-Democratic bickering.

    “Just because this Congress is divided, we cannot afford to waste the next two years lingering in legislative limbo or pandering for the press,” Gallagher said in opening remarks. And he warned that a failure by the U.S. to respond decisively to the Chinese government’s threat means “a world crowded with techno-totalitarian surveillance states where human rights are subordinate to the whims of the Party.”

    That tone captures the growing congressional concern about China following the discovery and subsequent destruction of a Chinese spy balloon over the continental U.S. in February. Biden administration warnings that the Chinese government is considering providing lethal weaponry to Russia in its war against Ukraine have only fanned those fears. And a Department of Energy report leaked on Sunday that concluded that a laboratory leak in Wuhan, China sparked the Covid pandemic has renewed congressional anger toward China’s role in a pandemic that has killed more than a million Americans.

    Bipartisan antagonism toward the Chinese government led the House Financial Services Committee to approve 10 bills on Tuesday aimed to rein in Beijing’s economic power. That legislation included measures that would target Chinese manufacturing of synthetic drugs, and commission a Treasury Department report on the global economic risks associated with China’s financial sector.

    But while GOP China committee members focused mainly on well-trod U.S-China hot button issues, including the role of Chinese-sourced precursor chemicals in the U.S. opioid overdose epidemic, concerns about Chinese purchases of agricultural land and the plight of Muslim Uyghurs in Xinjiang, Democratic members called for domestic policy initiatives to offset challenges from China.

    Reps. Ro Khanna (D-Calif) and Haley Stevens (D-Mich.) called for the U.S. to develop an industrial policy that would fund the development of manufacturers to supplant China’s dominance of global supply chains in areas including the supply of semiconductors for consumer products. “It provides dividends not only to our economy, but to our national security, to invest in R&D and invest in our manufacturing sector,” Stevens said.

    There were no takers among GOP committee members. “The United States should not mimic the Chinese industrial policy and should not copy the Chinese command and control system. … We should not try to counter China by becoming more like China,” said Rep. Andy Barr (R-Ky.)

    Democratic members argued, meanwhile, that facing down China’s authoritarian threat required a concerted effort to bolster what they described as America’s ailing democracy. Rep. Jake Auchincloss (R-Mass.) described the Jan. 6, 2021 insurrection as a propaganda gift to Beijing. That day “was Xi Jinping’s best day in office,” said Auchincloss. “I hope the bipartisan spirit of competing with the Chinese Communist Party overseas extends to defending democracy here at home.”

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    #China #Select #Committee #hearing #highlights #partisan #divide #Beijingcountering #strategy
    ( With inputs from : www.politico.com )

  • China bills sail through House committee

    China bills sail through House committee

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    A desire to restrain China united Republicans and Democrats on the House Financial Services Committee Tuesday, with lawmakers approving a series of bipartisan bills designed to rein in the country’s economic power.

    The committee approved 10 bills with broad support, including measures that would have the U.S. government scrutinize financial institutions that serve senior Chinese officials, target Chinese manufacturing of synthetic drugs, and commission a Treasury Department report on the global economic risks associated with China’s financial sector.

    The package also featured pro-Taiwan bills that would encourage Taiwan’s membership in the International Monetary Fund and exclude China from the G-20 and other global organizations in the event it threatens Taiwan’s security.

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    #China #bills #sail #House #committee
    ( With inputs from : www.politico.com )

  • China urges US to stop trying to mislead the world on Taiwan

    China urges US to stop trying to mislead the world on Taiwan

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    Beijing: The Taiwan question is purely China’s internal affair. It is time for the US to stop walking on the edge, stop using the salami tactics, stop pushing the envelope, and stop sowing confusion and trying to mislead the world on Taiwan, a spokesperson for the Chinese Foreign Ministry said on Tuesday.

    If the US refuses to change course and goes down that wrong path, there will be real consequences and it will come at real costs to the US, Spokesperson Mao Ning made the comment in response to US Secretary of State Antony Blinken’s recent ‘erroneous’ remarks on Taiwan.

    “Secretary Blinken’s remarks are absolutely irresponsible and absurd. China firmly opposes that,” Mao said, adding that it seems that some history lessons are in order for the top US diplomat on the Taiwan question, Xinhua news agency reported.

    “Taiwan is an inalienable part of China. The one-China principle is a universally recognised basic norm in international relations and the important political prerequisite and foundation for China’s diplomatic relations with countries in the world,” the Spokesperson stressed.

    In 1972, the US stated in the Shanghai Communique that “The US acknowledges that all Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China. The US government does not challenge that position,” Mao said.

    In 1978, the US stated in the Joint Communique on the Establishment of Diplomatic Relations between the US and China that “The US recognises the Government of theRepublic of China as the sole legal government of China. The US government acknowledges the Chinese position that there is but one China and Taiwan is part of China,” he added.

    She also mentioned in 1982, the US stated in the August 17 Communique that “the US recognised the Government of the People’s Republic of China as the sole legal Government of China, and it acknowledged the Chinese position that there is but one China and Taiwan is part of China. The US government…reiterates that it has no intention of infringing on Chinese sovereignty and territorial integrity, or interfering in China’s internal affairs, or pursuing a policy of ‘two Chinas’ or ‘one China, one Taiwan’.”

    “For some time, the US made those political commitments to China on the Taiwan question, which are written down in black and white,” the Spokesperson said.

    The US has been deliberately ignoring and twisting the history and sending the wrong message on the Taiwan question. The US has significantly relaxed its restraint on official interactions and reinforced military contact with Taiwan and touted “Ukraine today, Taiwan tomorrow.” It has even been revealed by the media that the US government has a plan for “the destruction of Taiwan,” Mao said.

    “We cannot help but ask what exactly is the US trying to achieve?”

    The Taiwan question is purely China’s internal affair. It is at the very core of China’s core interests. It is the political foundation of China-US relations, and the first red line that must not be crossed in this relationship. China will never allow any external force to interfere in our internal affairs, Mao added.

    “We have a clear message for the US: It is time to stop — stop walking on the edge, stop using the salami tactics, stop pushing the envelope, and stop sowing confusion and trying to mislead the world on Taiwan,” she said.

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    ( With inputs from www.siasat.com )

  • White House scales back plans to regulate U.S. investments in China

    White House scales back plans to regulate U.S. investments in China

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    The White House and National Security Council declined to comment.

    An order along those lines would be far more modest than some of the investment restrictions Biden and Congress considered last year. Then, policymakers proposed setting up a government review board that could deny U.S. deals in a wide swath of Chinese industries — including microchips, AI, quantum computing, clean energy and biotechnology — when they felt national security was at risk.

    Backing away from those plans would represent a setback for China hawks in the White House, who have led a campaign to undermine Beijing’s high-tech industries, and could slow the momentum toward strategic separation — or “decoupling” — between American and Chinese industries. And it would underscore how even as diplomatic relations between Washington and Beijing nosedive, strong economic interests continue to bind the U.S. and China together.

    Officials in the administration and Congress who have advocated a tougher line with China will be “very disappointed” if the eventual order “falls short of having the authority to reject deals” between U.S. and Chinese firms, said Eric Sayers, a former staffer for the U.S. Indo-Pacific Command during the Trump administration.

    But even a scaled back executive order would represent a new chapter for federal oversight of American business overseas. Until recently, the U.S. government largely allowed American business free rein in the world’s second largest economy. But China’s use of U.S. technology and funding to develop its advanced microchips, weapons systems and other defense industries has pushed national security officials to argue for more oversight in recent years. Executive action scrutinizing so-called “outbound investments” represents the next step of that campaign to curtail Chinese technological development, even if it is less aggressive than earlier plans.

    “While this [executive order] is the first official step, we shouldn’t expect it to be the last,” said Sayers, now managing director at D.C. consulting firm Beacon Global Strategies. He noted that past investment screening policies, like the Committee on Foreign Investment in the United States, took decades to be fully established. “This will likely be an additive process that grows over time through both executive powers and legislative action,” he said.

    Though the final order is still in flux, the administration is likely to set up a pilot program under which U.S. firms doing new deals with Chinese artificial intelligence and quantum computing firms would have to disclose details to government authorities. Biotech and clean energy deals are now likely to be left out of the initial executive order, the people with knowledge said, though regulatory efforts could be extended after the pilot program and opportunities for comment from industry and outside groups.

    Such an order would represent a setback for national security leaders in the White House, led by the National Security Council, who have advocated for a more aggressive approach. Last September, national security adviser Jake Sullivan said in a speech that the administration would aim to undermine Chinese development across a numbers of sectors — AI, quantum, chips, biotech and clean energy — that were subject to the original executive order discussions.

    But despite continued tensions over Taiwan and the recent surveillance balloon debacle, the administration has since narrowed its approach at the request of the Treasury Department, which has long opposed an aggressive approach to outbound investments and has been meeting with U.S. financial firms since last fall. Momentum for the NSC’s more aggressive approach also slowed after the departure last fall of one of Sullivan’s key deputies, Peter Harrell, who had helped lead the economic campaign against Beijing.

    Momentum in Congress also appears to have slowed. Over the past two years, lawmakers have debated bipartisan legislation that would have set up a new federal review panel headed by the U.S. Trade Representative with broad authority to review and deny American investments across a wide swath of the Chinese economy. But they were ultimately unsuccessful in attaching the bill to Congress’ CHIPS Act last year or the yearly defense spending bill.

    Now, some Republicans in the House are advocating a narrower approach, with leaders of the House Financial Services Committee pushing legislation that would expand the federal government’s ability to blacklist Chinese firms, but not set up new federal oversight authority. “For the U.S. to compete with China, we cannot become more like the Chinese Communist Party,” Chair Patrick McHenry said at a hearing earlier this month.

    The debate will now turn to the Senate, where the Banking Committee will hold a hearing Tuesday on sanctions, export controls and “other tools” like outbound investment screening. While Chair Sherrod Brown (D-Ohio) has been generally supportive of efforts to increase oversight of U.S. firms in China, it is still unclear what changes he and ranking member Tim Scott (R-S.C.) will seek to the bipartisan bill debated last year.

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    ( With inputs from : www.politico.com )

  • Why Can’t Democrats Explain Themselves on China?

    Why Can’t Democrats Explain Themselves on China?

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    Vigorous competition would be a healthy version of a U.S.-China relationship, he said. But he did not sound convinced that Biden’s catch phrase fully addressed the status quo, since a competitor like the People’s Republic of China can become an “adversary” if they break the rules to win.

    “We have to protect our interests and we have to protect our values,” Krishnamoorthi said, even as “our businesses and our supply chain are interdependent with the business and technological ecosystem within the PRC.”

    Krishnamoorthi and a small group of Democrats will bring that layered worldview to the select committee when it holds its debut hearing on Tuesday. Conceived by the new Republican House majority and approved by a bipartisan vote as a wide-ranging investigative body, the committee is also a crucial opportunity for Democrats to explain their perspective on China for the American people.

    Up to this point, they have ceded too much of the political discourse on China to the right.

    If both parties agree that China poses a uniquely complex threat, only one has made it a daily obsession. Across the GOP’s warring factions, the Chinese Communist Party is a menace that nearly all can agree to despise; lawmakers voice that sentiment in sober floor speeches and frothing rants on Newsmax. The challenge for levelheaded Republicans on the select committee, led by Rep. Mike Gallagher of Wisconsin, will be keeping the paranoid right from overwhelming their work.

    An important job for Democrats will be clarifying their own policies with a message that makes sense to regular people.

    Krishnamoorthi, a 49-year-old lawyer who is also a senior member of the intelligence committee, is sensitive to the task. He said he consulted veterans of the Jan. 6 committee about their methods of commanding public attention, with an eye toward using witness testimony and multimedia to engage a mass audience. In his Chicago-area district, Krishnamoorthi said he encounters many constituents alarmed by China’s human rights abuses, underhanded economic tactics and militancy toward Taiwan. But few voters can shape that swirling fog of concern into a coherent picture.

    That fog emanates, in part, from the White House.

    To people following his policies closely, Biden’s China strategy is clear enough. He has imposed painful restrictions on China’s tech sector and pressured European allies to do the same. He has deepened military alliances with China’s neighbors and promised to supply Australia with nuclear submarines to strengthen its defenses. His administration is weighing new limits on American investment in the Chinese economy. It is an approach aimed at forcefully undermining Chinese power while leaving some room for dialogue on matters of shared concern, like climate change and the war in Ukraine.

    But Biden has neglected the job of articulating all that to voters in plain English. He has explained one policy at a time, but he has not defined a bigger picture that is clearer than “competition, not conflict.”

    Sometimes that verbiage is risibly inadequate, like when Kamala Harris told my colleague Eugene Daniels, after the Air Force downed the spy balloon and the secretary of state canceled a trip to Beijing, that nothing needed to change in U.S.-China relations.

    “We seek competition, but not conflict or confrontation,” Harris insisted. Those tumultuous events, she said, were “very consistent with our stated approach.”

    On some subjects, that “stated approach” has been cryptic. Over and over, Biden has pledged to defend Taiwan from a Chinese attack. He did so at a news conference in Japan, in an interview with 60 Minutes and in a town hall on CNN. But every time, Biden’s advisers have walked back his comments under cover of anonymity. “Strategic ambiguity” is fine as policy-planning jargon, but Americans deserve to know whether there is a good chance of open war with a nuclear power inside this decade. They might reasonably expect to have some say in the matter.

    Then there was Biden’s “Fawlty Towers” moment in the State of the Union speech: the outburst that reminded me of nothing more than John Cleese’s sitcom hotelier losing it before a group of German guests he was determined not to offend. Biden followed his script for a while, enunciating tight phrases about resolute competition with China (don’t mention the new Cold War!) until the polite façade collapsed. Like Basil Fawlty breaking into a flamboyant goose-step, Biden erupted in a shouted taunt: “Name me a world leader who would change places with Xi Jinping! Name me one!

    What were Americans meant to draw from that?

    There are occasional moments of piercing clarity when people close to Biden shed the opaque language of diplomacy. An example came last week when on a conference call with several columnists the secretary of commerce, Gina Raimondo, described the strategic imperative to make the United States a tech-manufacturing superpower.

    On the call, Raimondo urged a “national mobilization” to build America’s semiconductor industry into a global force. After she invoked America’s World War II-era drive for nuclear technology and the Space Race of the 1960s, I pointed out that those happened in the context of America facing off against evil empires. Should Americans understand the semiconductor campaign in similar terms?

    “That is the point,” Raimondo answered. “We want the American people to make that link, because that’s the reality.”

    She predicted: “There’s going to be two separate tech ecosystems: one led by America with our allies, consistent with our values of openness, transparency, respect for human rights — and another.”

    I guess the lesson is: If you want a picture of the future, ask a member of the cabinet.

    Biden’s China strategy would probably make for good politics if Americans understood it. Yet it has mostly existed in a space outside politics — in a world of policy memoranda and formal strategy documents and distant events like the Munich Security Conference. As it is, a sizable majority of the country disapproves of how he is handling relations with China: 58 percent in a new AP-NORC poll.

    It does not take a world-class diplomatic mind to understand why Biden would avoid giving a forthright account of his tough-on-China policies in a speech to Congress. There is a limit to the rhetorical provocations China will tolerate while maintaining even a tenuous working relationship.

    But it also does not take a world-class political mind to see the perils in Biden’s coded approach.

    One lesson of the Trump era was that danger lies in the gap between studied elite consensus and visceral public opinion. A policy that is smart and careful and invisible to the untrained eye cannot easily survive a brute attack from a motivated adversary. Good ideas need to be explained and defended if they are to win out over crude and offensive ones.

    And when it comes to China, crude and offensive ideas abound. Look no further than the proposal in Texas to ban Chinese nationals from buying property. That is but one manifestation of an ugly, reactionary mood that continues to intensify.

    That phenomenon weighs on Krishnamoorthi. The committee, he said, must shun “rhetoric that could end up being discriminatory toward Chinese-origin people or Asian-origin people.”

    “That can really infect the conversation and endanger people,” he told me. “That’s what we saw, unfortunately, with President [Donald] Trump.”

    There is another risk, too, in Biden leaving the full extent of his China strategy unexplained: that unwanted events could take the country by surprise. If Biden and his party aim to counter China’s power without prompting an open clash, there is always the risk that they will misjudge how far they can go. Or that China could initiate a conflict for its own reasons, regardless of their precautions.

    In our conversation, Krishnamoorthi sounded most worried about a collision over Taiwan. He told me he is confident the United States would come to Taiwan’s defense and the result would be “nightmarish” for China’s military, the People’s Liberation Army.

    “Suffice it to say, there are various scenarios that don’t end well for, in my opinion, the PLA and the CCP,” Krishnamoorthi said. “But it would be a horrible situation for the world.”

    These are risks that Americans ought to understand. If Biden won’t explain them, it is incumbent on other Democrats — like Krishnamoorthi and Raimondo — to take up the challenge.

    It is a job too important to be left up to the president.

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    ( With inputs from : www.politico.com )

  • Lobbyists to Biden: Unless you want to cede to China, relax microchip rules

    Lobbyists to Biden: Unless you want to cede to China, relax microchip rules

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    The chip industry’s push underscores the tension between President Joe Biden’s plans to resurrect high-tech manufacturing in the U.S. and his administration’s effort to strengthen environmental protections. Even as the White House pushes for an advantage in the tech race with China, an exemption for federally funded chip projects would run counter to Biden’s recent rollback of Trump-era rules that sought to limit the ability of federal agencies to conduct environmental reviews.

    A spokesperson for the Commerce Department’s CHIPS Program Office declined to comment.

    At issue is the National Environmental Policy Act, a decades-old law that puts extra environmental review requirements on construction projects in which the federal government plays a major role. While many industries, like highway builders or other infrastructure contractors, have decades of experience dealing with the law, it’s something new for the semiconductor industry — and it’s hoping to avoid it, arguing that any delays could spell trouble for Washington’s broader chip plans.

    “Time is of the essence,” David Isaacs, vice president of government affairs at SIA, told POLITICO on Thursday.

    In a separate filing, the U.S. Chamber of Commerce — the largest lobbying group in the country — also pushed the Biden administration to provide new chip projects with an exemption to the review process. The Chamber highlighted the “vital and strategic role semiconductors play in both economic and national security,” and warned that NEPA reviews could cause some projects to take “as much as 7 years to be approved.”

    The semiconductor industry has also been working lawmakers on Capitol Hill. In a hearing on Feb. 1, House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) said chip manufacturers “are coming to us looking for exemptions from NEPA, because the federal dollars are triggering long and erroneous environmental reviews for them.”

    In a Friday statement, McMorris Rodgers warned that Washington will be unable to beat China in the fight over microchips and other tech if new projects are “bogged down and delayed by America’s burdensome regulatory and permitting environment.” She said the issue “should have been addressed before Congress spent tens of billions of dollars” on chip subsidies, but added that House Republicans “will continue to lead on solutions that address permitting issues for every industry in our economy.”

    The Biden administration remains worried by the concentration of advanced chip production in Taiwan, which sits just 90 miles from an increasingly hostile China. Sujai Shivakumar, director of the Renewing American Innovation Project at the Center for Strategic and International Studies think tank, said environmental concerns shouldn’t interfere with the national security goals that underpin the CHIPS and Science Act’s billions of dollars in manufacturing subsidies.

    “Some of these environmental assessments can take anywhere from two years to 4½ years,” Shivakumar said. “To some real extent, what CHIPS and Science giveth, NEPA could taketh away.”

    Some environmentalists disagree with that claim. Brett Hartl, government affairs director at the Center for Biological Diversity, said the chip lobby’s fears “feel like unnecessary paranoia that’s mostly stemming from an unfamiliarity with how NEPA works.” He said the law is frequently trotted out by industry as an “umbrella scapegoat for all types of delays in approvals of projects.” While Hartl could not say there’s a “zero chance” that taking federal chip subsidies would by itself prompt a NEPA review, he called it “a relatively unlikely thing that would trigger it.”

    But the chip lobby is still spooked. On Thursday, Isaacs said a “balance can be struck” on NEPA that allows new chip manufacturing facilities to begin operations “in a timely and environmentally responsible way, achieve the goals of the CHIPS Act, and reinforce America’s economic and national security.”

    Some lawmakers question why the chip industry didn’t make more noise about NEPA until after Biden signed the CHIPS and Science Act into law last summer. In the February hearing, McMorris Rodgers said she had previously urged manufacturers to ask Congress for permitting reform along with the federal subsidies.

    “Unfortunately, that seemed to fall on deaf ears,” McMorris Rodger said. “[The manufacturers] were really interested in the money.”

    The lobbying effort is going down to the wire. In a Thursday speech at Georgetown University, Raimondo said the Commerce Department will officially launch the application process for chip subsidies on Tuesday. But without clarity on federal environmental reviews, Shivakumar said chipmakers will struggle to draft the manufacturing proposals Commerce hopes to receive.

    “What the semiconductor companies want is some certainty,” Shivakumar said. While the companies have already factored state and local environmental procedures into their plans, Shivakumar said NEPA “is an unknown to them.”

    Chip factories use huge amounts of energy and are notoriously thirsty. The facilities require vast quantities of purified water to wash the silicon wafers used to make chips — and while much of it is later “recycled” back into the environment, the purification process is so thorough that salts and other minerals must be added back into the water before it returns to nature. Chip facilities also use a variety of corrosive chemicals to etch chips into the wafers, potentially raising additional contamination concerns.

    For industries to receive a categorical exclusion from NEPA, they must show that the “class of actions” under review (in this case, chipmaking) “do not individually or cumulatively have a significant effect on the human environment.” But Hartl said that even if the Commerce Department wanted to grant that exclusion, they’d first have to kick off a rulemaking process.

    “That is a two-year, three-year process,” said Hartl — likely small comfort for the chip lobby, whose members are hoping to receive the subsidies within the next year.

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    ( With inputs from : www.politico.com )

  • Leaders of House China panel condemn attack on Rep. Judy Chu

    Leaders of House China panel condemn attack on Rep. Judy Chu

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    Speaking last week on Fox News, Gooden said of Chu: “I question her either loyalty or competence.” Gooden, who was responding to her defense of Biden appointee Dominic Ng, also told host Jesse Watters that Chu should be barred from access to classified information.

    Chu, who was born in Los Angeles, called Gooden’s statements “racist.” “It is based on false information spread by an extreme, right-wing website,” Chu said. “Furthermore, it is racist. I very much doubt that he would be spreading these lies were I not of Chinese American descent.”

    Gallagher is the chair of a new House select committee focused on China’s ruling Communist Party and Krishnamoorthi is the panel’s ranking Democrat. Both discussed the criticism of Chu in light of their committee’s mission.

    “Absolutely, we shouldn’t question anybody’s loyalty,” Gallagher added. “And going forward, I think what’s critical and the reason we actually got the committee renamed to focus on the Chinese Communist Party, is to constantly make that distinction between the party and the people.”

    Krishnamoorthi concurred.

    “The Chinese Communist Party loves it when we are internally fractious and they like it when we are stereotyping. We have to avoid that,” he said.

    As for the work of the committee, which is designed to examine possible threats posed by the Chinese Communist Party, Gallagher said he expects to find a certain amount of bipartisan support for its efforts.

    “I want both sides in some way to look to the committee as the area for the most forward-leaning, innovative, and bipartisan policy and legislation on China,” he said.

    Host Margaret Brennan asked Gallagher how the American people can be sure the panel doesn’t end up as being seen as persecuting people, as in the 1950s loyalty hearings led by Sen. Joseph McCarthy (R-Wis.).

    “Joseph McCarthy’s from my district, he’s buried in my district; we need not exhume his body and reanimate it,” Gallagher said, adding: “We must constantly be aware of going overboard as we try and win this competition with China.”

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    ( With inputs from : www.politico.com )

  • Jake Sullivan: Aiding Russia would be a ‘bad mistake’ for China

    Jake Sullivan: Aiding Russia would be a ‘bad mistake’ for China

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    aptopix biden us ukraine 00058

    Though Sullivan said he wants to keep messages to China “in the private high-level diplomatic channels that we have established to discuss these issues,” he did say that the war “presents real complications for Beijing,” as the country’s leaders try to balance diplomatic relationships across the world.

    The reports on China’s plans to potentially aid Russia come as Beijing put forth a 12-point peace plan between Russia and Ukraine. Ukrainian President Volodymyr Zelenskyy said Friday he is open to considering parts of the proposal, but that China’s words must be followed by actions.

    On Sunday, Sullivan emphasized the importance of a meeting between Chinese and Ukraine leadership.

    “China put forward this plan without having had a single conversation since the war began between President Xi [Jinping] and President Zelenskyy,” Sullivan said during an interview on NBC’s “Meet the Press.” “The Chinese have talked to the Russians a lot, but at the most senior levels they have not talked to the Ukrainians, and it’s very difficult to advance any kind of peace initiative when there’s that kind of one-sided diplomacy going.”

    Sullivan also dove in to President Joe Biden’s long-awaited decision to send Abrams tanks to Ukraine.

    “[Biden] originally decided against sending [Abrams tanks] because his military told them that they would not be useful on the battlefield in this fight,” Sullivan said in an interview on ABC’s “This Week.”

    What would be useful, Sullivan said, were Germany’s Leopard tanks. But after German officials told the White House they would not send those alone, Biden changed his mind.

    “So, in the interest of alliance unity and to ensure that Ukraine got what it wanted, despite the fact that the Abrams aren’t the tool they need, the president said, ‘OK, I’m going to be the leader of the Free World. I will send Abrams down the road if you send Leopards now.’ Those Leopards are getting sent now,” Sullivan said.

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    ( With inputs from : www.politico.com )

  • Tharoor slams Jaishankar for China ‘bigger economy’ remark

    Tharoor slams Jaishankar for China ‘bigger economy’ remark

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    Raipur: Congress MP Shashi Tharoor on Saturday criticised External Affairs Minister S. Jaishankar for the latter’s recent remark during an interview that “China is a bigger economy” while defending India’s policy on China amid tensions along the Line of Actual Control (LAC)

    “It is shocking to hear from the External Affairs Minister that China is too rich to stand up to,” Tharoor said while speaking on the international resolution passed by the Congress during the party’s 85th plenary session being held here.

    Tharoor said the future of India is bright as long as the Congress fights the good fight and we have to send a message from here.A

    The MP from Thiruvananthapuram said that the party should be absolutely clear about its ideology if it wants to take on the BJP with full might.

    Stressing on the idea of inclusive India, Tharoor said that Congress could have been more vocal on the release of Bilkis Bano rape case convicts and cow vigilantes.

    Tharoor also targeted the Central government for ‘rampant crony capitalism’ and ‘accumulating wealth in the hands of a few friends of the Prime Minister’.

    Meanwhile, the Congress in its political resolution said that it will bring a law to punish and prevent hate crimes to combat hate politics and violence.

    The resolution said, “In the last eight-and-a-half years under the BJP government, the politics of hate has assumed alarming proportions and religious polarisation has reached its peak. Hate crimes and atrocities have increased manifold. Vigilante right wing groups incite violence on various trivial issues.

    “These groups operate with impunity and have started acting like police, spreading anarchy and fear. This fear in the minds of minorities is the aim of the BJP/RSS regime.”

    The resolution said that during the course of the Bharat Jodo Yatra, it was clear that majority of Indians yearn for love, peace and harmony.

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    ( With inputs from www.siasat.com )