Springfield Standard

Senator Schmitt sends letter to Joint Economic Committee chairman, vice chairman requesting Chinese economic report

WASHINGTON – Yesterday, Senator Eric Schmitt wrote a letter to Chairman Martin Heinrich (D-NM) and Congressman David Schweikert (R-AZ), requesting the Committee revamp an unclassified report to counteract the growing Chinese economy. This report was often utilized by the United States to counter the Soviet Union and protect the American economy during the Cold War.

“The Chinese Communist Party (CCP) in the People’s Republic of China (PRC) represents a grave economic and national security threat to the United States and its partners. With currency manipulation, malicious trade practices, and theft of intellectual property, the CCP has harmed the American economy and the American worker. The United States has come to realize the malevolent intent of the CCP and has engaged in a whole-of-government approach to posture ourselves against a stronger and more aggressive CCP. Indeed, the 2022 National Defense Strategy of the United States stated that the ‘PRC remains our most consequential strategic competitor for the coming decades,’” begins the letter.

“The United States Joint Economic Committee (JEC) played a significant role in combatting the Soviet test during the 20th century. Drawing on the depth and breadth of economic knowledge in the United States, from scholars to governmental agencies, the Committee analyzed and reported on the Soviet economy. This analysis and subsequent reports were especially important, as the Soviet Union stood to gain from lying about its economic condition. The analysis born from these efforts are still cited today,” continues the letter.

“I welcome the U.S.-China Economic and Security Review Commission’s recommendation for the Committee to produce an annual report that would provide vital information on PRC economy and economic policy decisions of CCP. To that end, I call on Joint Economic Committee to hold hearing on Committee’s previous work on Soviet Union and how those efforts can be reimagined to meet geopolitical threat of 21st century posed by People’s Republic of China. Additionally, hearing should address which aspects of Chinese economy are most crucial to our understanding of country, some of which I have outlined above. JEC should be critical in shaping whole-of-government approach to challenges that China’s revanchist economic activities present, and I look forward to working with committee to that end.” concludes letter.

BACKGROUND:

The last 20-30 years have seen China growing in power since being admitted into World Trade Organization and establishing permanent normal trading relations with United States. An adversary as formidable as old Soviet Union in twentieth century, People’s Republic of China represents greatest threat to United States both militarily and economically.

The assumption that China would play by rules of global trade and gradually transition to market economy has not happened. Instead, China began dictating terms of its economic relationship with United States harming American workers and businesses in process.

China has weaponized its economic relationship with United States and other Western countries to build up its military capacity further enhancing its surveillance state. At same time Chinese housing market is experiencing crash with debt supply consumer disinterest all wreaking havoc on CCP’s ability achieve 5% GDP growth goal Beijing has for itself.

This is not first time one China's real estate groups signaled financial trouble Ever Grande was recently ordered by Hong Kong judge liquidate foreshadowing company breakup New York Times reported China's Country Garden also revealed being unable pay loans signaling property developer will default on debt.

Read full letter here.