Source: Congress.gov
Participants
Transcript
This morning we had a hearing on a very important issue with regard to our critical supply chains, and I appreciate our witnesses being here with us to share your wisdom. We will introduce you after our opening remarks. Trade has the ability to increase productivity, incomes, and the availability of goods. While we talk often about how increased supply and choice of goods that come from international trade benefit our consumers, we sometimes forget that this also benefits our producers. In fact, a majority of what we import each year is reinvested into more manufacturing, processing, and farming activity. Efficient and reliable supply chains help American businesses, farmers, and workers expand their production and focus their resources on the high-value aspects of industry. The issue we must be wary about is when supply chains turn unreliable, in particularly because they are controlled by countries that refuse to follow free market rules, such as China. As we are all aware, China continues its march toward expanding control over key resources and goods, and thus over the world's supply chains. For example, advanced semiconductors increasingly rely on the rare earth mineral dysprosium, 99 percent of which comes from China. This is not an isolated case where China has dominance over a strategic resource. China controls over 90% of global processing for rare earths and 70% for cobalt, which is used in batteries for electric cars, smartphones, and other components. The way China uses trade and investment to expand its control over resources outside its own borders is also particularly concerning. Indonesia has 40% of the world's reserves for nickel, the largest of any single country. Yet Chinese firms control about 75% of Indonesia's nickel refining capacity.
We need to take a hard look at the reality of our situation and develop an aggressive strategy to counter China. Our domestic policies are at fault in some instances. There are things we can produce efficiently here, but burdensome and unnecessary regulations stalls development of many important projects. We should not have to learn from another economic shock like the oil embargo of the 1970s to realize where we have the resources or potential for investment it must be unleashed. Both sides of the aisle agree that we need a strong semiconductor industry. In Asia, new semiconductor fabs are being built and deployed in under three years. In the United States, the semiconductor industry, one of the safest manufacturing sectors for workers, must contend with a myriad of permitting measures that provide only marginal, if any, benefit. And these permits guarantee increased delays and costs, often adding years to projects. As a part of its economic policy, the Trump administration has prioritized deregulation as a means to drive economic growth. And I look forward to working with them to rationalize our regulatory system. In many other cases, geography and geology do not provide the United States with all the natural resources that we require. Here, the fault rests mainly with the failure to develop an affirmative trade policy. An affirmative trade policy ensures our consumers and manufacturers have access to the resources that our nation needs to be secure and independent. Here, for example, the Trump administration was correct to exempt Canadian potash, a key nutrient for our corn and soy farmers, from recent tariffs. Another key to the administration's economic approach is to renegotiate global trade deals, including deals that reclaim America's lead over China.
Critically, these deals will be particularly useful in strengthening supply chains if they improve market access opportunities. Our trading partners must respect American investment and afford it the same treatment given to their own companies. Our partners must also realize that it bolsters their security when they do not inhibit access to cutting-edge American technology, like our state-of-the-art medical devices. Unfortunately, a number of trading partners use price controls, technology theft, weak intellectual property protections, or unreasonable government procurement policies to keep these devices out of their markets. Such actions only undermine the health of their own citizens while leaving a strategic opening for China. Today we have an opportunity to consider these issues carefully. Our four witnesses are experts on industries critical to America's economic security. we should encourage thoughtful debate on how to advance a trade policy that strengthens the security of our supply chains and creates opportunities for all Americans. I'd like to now turn to Senator Wyden for his remarks. Thank you very much, Mr. Chairman.
G
Gracelin Baskaran
Our country is now stuck in an endless trade cycle that Donald Trump has no idea how to escape. What happens is Donald Trump makes big threats. Then he imposes massive tariffs. Then, after there's a huge outcry from American farmers, investors, and families, Donald Trump caves in. And that starts the chaos all over again, having accomplished virtually nothing except damaging Americans' sacred credibility. With all this thrashing around, we're still worse off today than we were before Donald Trump took office. And this was documented this morning in several press articles. Prices are higher. Supply chains are in disarray.
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