The here link is nearly three hours. [background noises] [background noises] the hearing of the Senate Appropriations committee will please come to order. We are here today to discuss the u. S. china relationship the investments we need to keep our nation secure, competitive and maintain our leadership on the stage. Let me make clear from the outset we talked about competing against china encountering chinese influence we are talking about competing against its governments. Not the Chinese People are the millions of Chinese Americans to help make our country great. Im glad to have a secretary austin, blinken and were mondo here to discuss the all of government approach we need to meet this challenge. And this is our First Full Committee Hearing i do want to thank vice chair collins as well as her chairs and Ranking Member chester, kuhn and moran for working with us on this topic that i know every one of our members cares about. Like to thank all of my colleagues for their work in the recent weeks to jumpstart our appropriations process and hold more than 30 various substantive hearings on President Bidens budget request and critical issues. We have made important progress but i hope we can on track and mark up our bills soon. Vice chair collins and i had hoped this thursday would be the first full mark up she and i are working very hard i will update all of our Committee Members on when we expect to have our first markup the june work. Appropriations bills it is my goal in the big goal center call is to be marking up in the similar timeframe. Must have its voice heard and this process. That and this committee has received critical input from nearly all 100 centers as we cracked our spending bills that our nations needs for we owe it to our colleagues and our communities. Most about our constituents to put forward the shared priorities of this chamber and a slight bipartisan spending bills. This hearing offers a valuable opportunity to go indepth on one of those shared priorities. Making the investments our nation needs to stay ahead of the Chinese Government and other chinese competitors that are doing everything they can to try and overtake america economically, militarily, and on the world stage. As i have said throughout her subcommittee hearing keeping our country safe and competitive is not just about defense spending. Keeping our country safe means investing in diplomacy and development to counter political and economic coercion. To promote stability, to stand up to autocrats. To support our allies in advance our Global Leadership. Keeping our communities safe means of funding to stop deadly sentinel from crossing our borders and dangerous Cyber Attacks that can decimate our infrastructure, our schools, our hospitals and more. Means finding to make sure our supply chain for drugs, food, baby formula and more are safe, stable and not depend on the whims of beijing and others. When it comes to keeping our Competitive Edge on the world stage that means investing in American Innovation with funding for r and d. Advanced manufacturing we pass the chips and science act, clean energy jobs. Cutting edge of bio Research Emerging technologies like ai and more. Means investing in our economy every level supporting our farmers and Small Businesses maintain your ports temporaries other infrastructure we need for trade part strengthening and expanding our trade partnership so we can sell American Goods across the world. Protecting our intellectual property and of course we cannot be competitive but the Chinese Government we are not investing in the backbone of our economy, our working families. We cannot compete without investing in in highquality Public Schools for our kids. We cannot compete with that investing in Higher Education and workforce programs that help Key Industries find the workers that they need. We are spending the efforts to rebuild American Manufacturing and so many other sectors of our economy if we refuse to tackle the childcare crisis that is keeping parents out of the workforce. Not only are these issues important is our defense they are connected make no mistake, pressing forth aggressive modernization and ask manchin of military capabilities. As such investments we must make budget request the largest ever amount of funding for the deterrence initiative. We need to ensure the military has the resources it needs chinas military modernization logistical preparedness and Cyber Capabilities and more. However the secretary of defense has said repeatedly keeping our nation safe requires a whole of government approach. After all, how are weapons need chips. Making them ourselves work with likeminded partners to secure our supply chain is a matter of National Security. This is key. We need to make sure we have a regular appropriation process so every department including dod and plan for the year ahead. We cannot settle crs that frees our progress, results in yearoveryear funding cuts seriously impair every single one of our agencies ability to fulfill their mission and move our country forward for the Chinese Communist party is not governed by. They do not governed by cuts and we cant either. Which is why it has been so important to me and i note senator collins and many others to make sure we meet this moment. Do our job and get our bipartisan funding bills passed in a timely way. I am glad to say we have bipartisan agreement on the problem we are here to discuss today. Keeping ahead of the Chinese Government and our competitors. Based on her past bipartisan efforts i think we do have a shared understanding the solution here must be all of government approach. Just a few months ago we passed an appropriations bill for this fiscal year that shows that congress can take this challenge seriously. Senators shaheen and moran Work Together to increase funding for the National Science foundation from the hubs Program Building on our bipartisanships to invest in rnd innovation strong workforce. Dinner kuhn and graham, secured Additional Resources u. S. Global leadership by growing our diplomatic footprint especially in the indo pacific come increasing funding for the Indo Pacific Strategy in providing funding and flexibility for state, usaid the Development Finance corporation to address emerging strategic priorities. Murphy and capitol made critical funding increases to improve detection and seizure of narcotics like fentanyl and elicit contraband. And to dismantle and disrupt transnational critical organizations. Senators feinstein and kennedy science the department of energy and fund our national lab. We can develop Clean Energy Solutions and improve advanced manufacturing. Our funding bill in the bipartisan infrastructure law include critical investments to support improvements to ensure our ports can ship goods around the world. I think it is safe to say he showed just a few months ago there is bipartisan support for acrosstheboard effort to counter the growing influence of Chinese Communist party. If we went to stay competitive. If we want to stay ahead we have to stay the course and build on those investments. Which is why i find the approach House Republicans have called for dangerous. After a year of bipartisan consensus for maintaining Global Leadership that tactic will throw in the towel to our competitors. But the Chinese Government our spot as the global superpower of the 21st century. House republicans are not just proposing one year of cuts to diplomacy and workforce programs essentially everything that keeps us competitive. They are demanding spending caps that will tie our hands and lock it even more cuts over the next decade. I worry what is being proposed leads to a lost decade for america in a moment when we cannot afford it. Lets be clear chinas not debating whether to pay its debts were wreck its economy. China is not debating or cuts in cap the investment to keep it competitive. In china this not operate and see are the more we play with default teeter on the edge of Government Shutdown support more we prove china and our competitors are right helping them show the world it is their moment to over shadow our leadership helping them demonstrate their totalitarianism is stronger than Democratic Values here at home and around the world. That is white so critical for the senate to make its voice heard on americas future. We have to show that is a bipartisan vision to strengthen our competitiveness and security by investing in American Leadership acrosstheboard and bipartisan will to get it done. That is why been focused all of our subcommittee hearings. Thats what i hope to hear about from our witnesses today. Its why what all this to continue our work markup bipartisan spending bill soon. The bottom line we find ourselves at a real turning point for this years Government Spending bills will determine whether or not we are prepared to compete with china. Whether it will stay ahead while behind. We cannot close our eyes or plug our ears becomes a threat the Chinese Government poses. If thats a belt on the progress we have made. Keep our country safe and competitive invest in americas future. We decide what investments we do or dont make mistakes can be higher and they cannot be more serious. I want to thank everyone who is here today. Will forward to hearing your testimony today and ill turn over to vice chair collins for her opening statement. Chair marie, thank you so much for holding this important hearing. Before i turned to my formal remarks let me echo the chairs determination to keep proceeding with the appropriations process in a way that will avoid a late end of the year gigantic continuing resolution. Continues to Fund Programs that do not need funding. That prevents new programs from starting. That makes it impossible for agencies to plan. It also ends up because the taxpayer more money. So i share the chairs determination to keep proceeding. I look forward to beginning subcommittee markets in june. I would note weve gotten up to a very fast start. Subcommittees on both sides of the aisle have worked together to have a series of hearings keep the budget requests. Thats an essential start for this process. To our witnesses, i want to tell you im very much looking forward your testimony on how we can Work Together to strengthen u. S. Security and competitiveness regarding china. Americas competition with china is an increasing challenge. But it is not a new one. Chinas economic successes with 3500 years of history. Today the world faces an authoritarian government that seek to regain its past dismantlement International Order created by the United States and our allies following world war ii. To be clear chinas vision is to be the worlds of military and economic powerhouse. It is well on its way. Today china has the Worlds Largest navy, the Worlds Largest army, and the Worlds Largest economy by purchasing power parity. Competition with china occurs in every domain from the United Nations to cyberspace africa. Our focus with regard to our military competition with china must remain on deterrence which is defined by the strength of our readiness capacity and capability and that of our allies and partners. We must ask ourselves the pentagon and taiwan have the weapons you mentioned and manpower necessary to audibly deter china from using force to accomplish its objective. As secretary also knows from her hearing last week i believe the administration could do better in this regard. Secretary blinkens challenge is getting our bilateral diplomatic relations with china on a stable a footing as possible. Given the inconsistent statements by the president on u. S. Policy towards taiwan it would also be helpful at this secretary were to clarify today if there has been any change in the one china policy and the strategic ambiguity they are in. America is only as strong abroad as we are at home. Including innovation and technology we can protect. I hope to date secretary were mondo will give us an update on efforts to prevent theft of the intellectual property to bolster u. S. Leadership and advanced technologies and to impede china from exploiting American Technologies to advance its military interests. Finally as one department of Homeland Security recently testified fentanyl crisis begins and ends in china. Many precursor chemicals arithmetic in china and Chinese Organization launder the drug cartels money source the pill pressers that facilitate the distribution of this deadly poison. Just last month expecting to find mugs they ordered. Instead they found 14 kilograms thats enough to kill five times the population entire state of maine. Culp local Law Enforcement that sees the fentanyl undoubtedly saving many lives. Addressing the fentanyl crisis must speak at the top of this administrations agenda with china. Again i look forward to discussing these significant issues these witnesses this afternoon. I felt briefly introduce todays witnesses amid the testimony. Im very pleased to welcome secretary of defense, secretary of state and tingling in secretary of commerce were mondo. Im grateful to all three of her witnesses for the work they do every day keep our communities safe and help estate competitive. Answer our questions but will not move to opening remarks Secretary Office and ill begin with you. Ask chair marie, vice chair collins, members of the Committee Thanks for the opportunity to testify about americas strategic competition with the peoples republic of china. Im budget were joined by secretary blinken. We rely on each other every day because to compete and succeed we must use all of the tools of american power. Im grateful to congress for recognizing the urgency of the china challenge in taking bipartisan action to mediate. I like to underscore five key points today out the department of defense is tackling the security challenge in lockstep with our partners across the administration, around the world and here in congress. Refocusing the entire department on continuing to outpace the prc. Prc is our only competitor with both the intent and increasingly the capacity to reshape the International System to suit its autocratic preferences. Beijing has increased bullying and provocations in the end the pacific. It has embarked upon historic buildup including space and cyberspace. It is either effeminate nor inevitable. We must face up to prc growing assertiveness. The departments mission is clear to deter aggression that threatens our National Vital interest but we are investing more than ever any Formidable Fighting force in a more resilient force posture in the indo pacific. The deterrent initiative for an alltime high at 9. 1 billion. Living critical capabilities the more agile approaches to testing and acquisition but we are developing novel operational concepts for how we employ the joint force. National Defense Strategy because prc are facing challenge. Never shadowy from competition, we are working with both our rivals and our friends to strengthen the guardrails strategic competition Work Together as one team. That is my second point. Closer cooperation with our colleagues in the apartment of state commerce and elsewhere. Work with the department of state to prevent complex and break out in the first place. We protect the free and open trade lanes that drive the world economy. We are supporting the department of commerce eating all lamenting the chips in science act. Technological advantages. Third, they are determined to get the end the pacific free and open. Most countries in the region share a common vision of an open and inclusive end the pacific free of bullying and coercion. We are proud to stand together with them. Will continue to strengthen the rules based International Order by making clear the folly of aggression and maintaining open lines of communication. Fourth, the whole is working to deepen ties with the network of alliances but we are working with our friends run the endo pacific and the world for Security Cooperation and assistance. And through combined operations and exercises but we are working to develop innovative capabilities and deepen integrated deterrence. In recent months that strategy has produced historic results. In japan we are Forward Deployed more resilient