Economic security

Chinese unrestricted warfare targeting American economy, national security

Beijing has continually proven its willingness to exploit its trading relationship with the United States. As American companies share their intellectual property and technology with Chinese companies, the financial damages include both lost tax revenue as well as the lost value to U.S. national security. The Fair Trade with China Enforcement Act increases taxes on multinational corporations’ income earned in China at a rate comparable to the lost value of these technologies. Significantly, this bill would also tax Chinese investments in the U.S. which are currently not being taxed per an agreement from the 1980s. Without financial penalties, China will continue to manipulate the current, outdated system to their benefit.

In addition to undermining the U.S. economy, Beijing is also taking more direct approaches where possible – including using Chinese commercial technology to spy on the U.S. government. Allowing Huawei, ZTE, and other related entities access to U.S. government communications would be inviting Chinese surveillance into every corner of the U.S. government, which is why this bill prohibits the federal government and contractors from purchasing or leasing Huawei or ZTE equipment or services.

National security is often viewed solely as interactions with foreign nations and military security, but national security goes far beyond that narrow definition. Any threat to our people, our businesses, our economy, or our safety is a threat to the security of our nation.