The House Financial Services Committee, under the leadership of Chairman French Hill (AR-02), recently convened a hearing titled "Examining Policies to Counter China." The session addressed various challenges posed by China, such as its role as a dominant official creditor, influence in international financial institutions, energy security issues, advancements in technology, and illicit fentanyl trafficking. The committee members also discussed strategies to surpass China through growth, innovation, and collaboration with U.S. allies.
Chairman Hill emphasized the importance of the American system in countering China's influence: “Our hearing will examine tools to counter China but make no mistake: those tools are embedded in an American system, and it’s the health of our thriving system that ultimately decides who will prevail,” he stated. He noted that while sanctions and export controls are used as tools, they were not responsible for building America's robust economy or technological prowess.
Rep. Young Kim (CA-40) highlighted China's impact as an official creditor: “According to the World Bank’s figures, the total external government debt of low- and middle-income countries increased from $1.7 trillion in 2011 to $3.5 trillion in 2021. This is a large part…that can be directly attributed to the CCP’s irresponsible and opaque lending programs like the Belt and Road Initiative.”
Addressing fentanyl trafficking concerns, Rep. De La Cruz (TX-15) remarked: “Fentanyl comes from China. It has destroyed our families... Drug overdoses are the leading cause of deaths between 18- and 45-year-olds, with fentanyl being responsible for 70% of those overdoses... Part of the solution is we need better border security, and part is that we can do work on this committee to stop the financing of fentanyl.”
Nicholas McMurray from ClearPath stressed the need for reform within International Financial Institutions (IFIs): “International Financial Institutions (IFIs) like the World Bank also have a critical role to play in advancing firm, clean, and affordable energy infrastructure worldwide... Without reform, IFIs risk becoming passive enablers of China’s broader geopolitical strategy to make developing countries dependent on Chinese technology and supply chains.”
The hearing reviewed several legislative bills aimed at addressing these challenges.