End and a Pacific Region and they also discuss china handling of coronavirus pandemic. This is just over two hours. The Senate ForeignRelations Committee will come to order. Welcome everyone, good morning. We will have senators participating both live and virtually. Since it is difficult to figure out when they showed up virtually, we will go on seniority. If that is agreeable with everyone, that is what we will do. Today, we welcome three witnesses to talk with us. Julie chung is here. We appreciate you all being here this morning. Will be talking about china presents us with many challenges. Opportunities as well but right now, challenges. There has been a lot of legislation introduced as far as china is concerned. There was a bill that we introduced earlier this year. That as early as today or yesterday, the minority introduced a bill of which senator schumer is the lead sponsor of the bill. In any event, this is not a partisan issue. This is an american issue. When i put the bill together to bringy, i did so together thought processes of all sides. Sideve people both on this of the isle and the other side, there was a lot of input from a lot of bipartisan effort in the bill. In addition to that, we went on to the think tank, both republican democrat and conservative liberal. I am glad to think there has been this bill introduced by the minority. Can bring themy altogether. This is an american issue. It is not a partisan issue. In july, the deputy secretary testify before the committee on the Administration Strategy for advancing effective competition with china. Today, we will take a deeper look at u. S. Strategy in three important regions. This hearing has three objectives. First, i look forward to the departments assessment of chinas impact in these regions, what china interests are and what it is doing to secure those interests. A lot of those activities are common knowledge. They are in the popular press. There are other things going on. I think it is important. We will see how the United States is advancing our interests and undermining chinas attempts to undermine prosperity and Good Governance in these regions. That is an important thing to shed light on for the american people. Dealinly those of us who in these kinds of things, they are well aware of chinas activities everywhere. We all know that virtually everywhere they go in the world, china is there, attempting to better its position. I think it is important that we shine a light on this in the strategic act. And grow other security partnerships. It means ensuring the region is resourced properly. As a proportion of the state Department Budget and personnel. Chinas primary Foreign Policy objective is to achieve regional supreme is he in the pacific. Getting our policy right in the region impacts the other regions we are examining today. In euro, one of my major priorities is to construct an agenda with our transatlantic s. Rtnership we have exchanged ideas and i can tell you that that idea is hitting a welcoming audience. Of the electric we are strengthening screening to protect technologies. We are cooperating to hold up the integrity of international institutions. This is a good foundation. We can and must build on it together and thwart the Chinese Government passed efforts to turn on one another. Hemisphere, the negative effects of chinese influence are clear. This includes chinas predatory finance mechanisms for Infrastructure Projects all around the world. Projects that are often of questionable value and create severe environmental damage and social unrest. Aggressive and legal chinese fishing practices violate the integrity of latin american countries, raising significant longterm security concerns. China possibly in efforts to trade on the lives of canadian citizens is appalling. I am encouraged by President Trumps efforts and his willingness to collaborate with our neighbors to promote a more prosperous future for transparent and accountable frameworks. This hearing is an opportunity to conduct oversight of u. S. Strategy and initiatives across these different regions. This coronation is important to ensuring that our strategy is articulated coherently and effectively. Take you to the witnesses for being here. Thank you, thank you for convening todays hearing. As you and i have discussed, we share a common view that we have entered a new and more competitive your with china. I china now displaying global ambitions. The reason many on this committee have concerns, they still fall well short of answering the enormity of the challenge. This is unlike any challenge we have faced as a nation before. China is more active and more assertive around the globe than ever before. The trump it mr. Risch and has only empowered chinese aggression and failed american workers. This moment demands a strong, Strategic Response that can be begin to rebuild American Leadership and invest in our ability to outcompete china in the generation ahead. Have joinedtoday i with a number of my democratic colleagues to introduce the america leads act. This bill seeks to do three things, invest in american competitiveness. Invest in american alliances and partners. Invest in our values. Our economic statecraft and make sure that china pays a price for its predatory actions. America leads provides a copy avent coherent, comprehensive, coherent strategy. This starts with the recognition that american competitiveness starts with investments at home. Driven by the need of almost four years of President Trump to retool the economy and compete in the 21st century. Approacher diplomatic is grounded in getting china right and getting the end of pacific strategy right. Alliances andr partnerships, animated by the values that make america exceptional and furthered by a forward leaning approach to our economic statecraft and a tough, pragmatic and realistic appraisal of how to best combat chinas predatory economic trade policies. The legislation also includes provisions for the development and implementation of robust Regional Strategies to meet the challenge that china poses in europe, the western hemisphere, theca, the middle east, arctic and the end of pacific itself. As we discussed at the hearing, i look forward to working with him on areas of conversion. Unified androng, bipartisan approaches on this issue. Turning more specifically to the hearing today, i am interested in hearing from misses chung to get a sense on where they stand in their respective regions of response ability. Europe and the western hemisphere. There is a lively debate across eu countries and between europe and the United States on the right approach to china. Our friends in europe should be among our closest partners. I dont know that anyone would argue that the president s destructive approach of the transatlantic bush ship has made imposing tariffs on not allies success. Recipe for insulting leaders across europe is not a recipe for success. An essential Building Block of our china response must have at transatlanticong alliance come at which today of course does not exist as it has in the past. Over too long, the u. S. Has thought to pressure europe without providing real alternative to china. Examplerhaps the best where the u. S. Did not adequately emphasize european alternatives to huawei, will simply pressuring her allies. That approach is not sustainable for forging a drink strategy on china. Even within the strained confines of President Trumps idea of Transatlantic Relations combat we have to endeavor to make progress. I welcome the call by the e. U. s Josep Borrell rail for a working group on china for a first step. Details will matter to ensure it is not just another talk shop and i look forward on hearing more about this initiative from ambassador rica. The American Economy and european economy working together provides negotiable beverage with china. It may be the factor that truly moves the needle with beijing. We should be laser focused on enhancing that leverage to the fullest extent possible. Nanosphere, chinas presence need not be viewed through the solitary lens of the game. Um however, when we fail to show up as under President Trump we have come at we shouldnt be surprised that chinas influence expands at our expense. The president s misguided belief that every challenge needs to be solved with a sledgehammer, whether he was placing punitive tariffs on our north american neighbors, or cutting foreign assistance off to our Central American partners, has only inflicted damage on the very relationships we need to counter the more corrosive elements of chinas engagement in no hemisphere. Frankly, the Trump Administrations results speak for themselves. Since 2017, at a rate of one per year, panama, the dominican republic, and el salvador have broken relations with taiwan at the behest of beijing. In venezuela, utilizing theeillance technology, maduro regime has expanded its social control over the venezuelan people and remains firmly in control of its criminal cabal. When our allies in canada rightfully arrested huaweis cfo for extradition to the United States, the Trump Administration responded with little more than press statements as beijing placed trust fishes on canadian trade and kidnapped canadian citizens under fabricated criminal charges. Most recently as latin america and the caribbean have become the epicenter of the global covid19 pandemic, the Trump Administration has overpromised and under delivered on coronavirus assistance, while chinas government committed 1 billion in new lending to government in the region for Vaccine Access and delivery. The Development Finance stoodation which congress up process you to provide a reinvigorated approach to International Finance and development assistance, in part so we could better compete with china, has yet to make significant investments in our own hemisphere. When it comes to addressing chinas residence in our hemisphere, the Trump Administrations rhetoric has outpaced its actions, in its attempts at swagger have. This groundbreaking bipartisan bill will strengthen u. S. Diplomatic them a and Security Assistance to the americas and help our closest partners acquire the tools they need to defend their National Interests from chinas predatory practices. The approach to china, europe, the western hemisphere and elsewhere, it is clear that we needed new strategy to cope with the competitive challenge of china. I look forward to a conversation with our witnesses about how we can Work Together to develop a comprehensive approach to china, to reset our strategy and diplomacy, to reinvest and replenish the resources about our National Strength and competitiveness at home, to place our partnerships and analyze first that reflects our fundamental values as americans. Thank you, mr. Chairman. We now turn to our first witness, david still welcome the bureau of east asian affairs. Fryer, he served in the air force. He retired in 2015 as Brigadier General in the asia advisor to chiefs. Rman of joint , he served multiple tours in japan and korea was Defense Attache at the u. S. Embassy in beijing, and most recently he served as director of the China Strategic Focus Group at the u. S. In the Pacific Command in hawaii. , we welcomeillwell you. The floors yours. Mr. Stillwell thank you, members of the Foreign Relations committee. I appreciate the opportunity to testify to discuss the threat posed by the Chinese Communist party. That threats to the United States, to the global order, and what we are doing about it. With several department colleagues, the fact that the three of us are testifying on ccp malign influence across three different regions is a testament to the Global Challenge we face and how the department is adjusting to meet this challenge. For years, we at the International Community credit chineseilitating the entry into the global order would lead to. Beijings persistent flooding of this has cleared those illusions. There foreign and security shape thingsto around the communist party. Beijings my line conduct is increasingly being noticed. Foreign behavior of companies and governments, many pollution of International Organizations, silencing critics abroad, and forcing tech transfer and spreading disinformation, it regis human rights abuses, the blazing or destabilizing territorial provisions. The outbreak of the covid19 especially highlighted the luckl dangers of the ccps of transparency. Today we are engaging with the Chinese Communist party as it is and not as we wish it would be for what it seeks to prevent itself as. Our competition with the republic of china need not lead to conflict. We are restoring balance and stability where the u. S. And the world previously allowed beijing to foment in balance and instability. Of what china policy efforts are guided by the National Security strategy, grouped around four tillers protect american people, homeland and way of life, from what american prosperity, preserve peace through strength, and preserve american influence. All our officers have sufficient policy, clarity, resources, training and data to successfully tackle the problem. We have developed new datadriven diplomacy tools to give our officers the information they require. In response, they have drastically increased their diplomatic reporting on ccp activities and influence. , we are also tripling our foreign deployed regionally focused china experts who identify Regional Trends in Chinese Communist party behavior. Thehe information space, battle against their malign activities requires messaging that is well informed and well executed around the world. Our Public Diplomacy teams work with the bureau of Public Affairs and the Global Engagement entertainer expose malign conduct and counter propaganda and disinformation. In the economic sphere, the prc lending and investment distorts corruption,ourages and unevens the Playing Field for american companies. We are in the forefront of raising awareness about this. We and other agencies are deploying innovative mechanisms including strategic infrastructure, Energy Commercial competition and investment screening. In the Technology Arena summit we have taken measures to deny that p. R. C. The ability to acquire sensitive technologies to advance its military strategy. These measures including assuring that researchers are not able to enter the u. S. For graduatelevel study in fields related to military monetization, and advising. Niversities of the risk more and more countries and that. Ies are doing just last month, secretary pompeo announced a Clean Networks initiative focused on safeguarding citizens privacy and companies most Sensitive Information from adversaries including via apps and app stores, and undersea cables. We also se bringing transparency to beijings vector of influence, including front organizations, state owned enterprises and more. Since february, we have designated as foreign missions, u. S. Based operations of nine propaganda outlets in the confucius institute. In july, we closed the prc consulate in houston due to serious concerns about inappropriate activities of its diplomats. We now require senior prc diplomats to seek permissions before any meetings, events, as beijing has long done to our diplomats in china. In support of these efforts, we appreciate congressional leadership in establishing the new contra china influence fund. This very important provision provides the department with a flexible mechanism that will bolster our efforts to restrict our resiliency restrict china malign influence around the world. If i could just continue this there is a lot to go through here. The resilience of the strength of our global alliances and partnerships is paramount to addressing strategic competition with china, and in no reason is this more true than in the indo pacific. It is about supporting the absurd and some of Indo Pacific States facing the threat of dominance in the region. The United States and a diverse cohort of allies can now speak freely in terms of indo pacific. Similar context have been put forward by japan, australia, taiwan, south korea, as well as the asean. We have advanced our Economic Activities in lockstep with our partners in areas like infrastructure, investment screening and many more. We are strengthening commercial diplomacy to boost alternatives to p. R. C. E