Senate Democrats Seek Bipartisan Counter to China

Senate Democrats, led by Senate Leader Chuck Schumer (D-NY), announced on Wednesday their plans to draft a comprehensive bipartisan legislative package aimed at helping the United States better compete with China.

The package is expected to build upon the CHIPS and Science Act's domestic manufacturing investment and integrate various China competitiveness provisions from the Senate-passed CHIPS legislation.

Schumer has instructed committee chairs to hold hearings and develop legislation, ideally with Republican backing, to be consolidated into a sweeping measure addressing trade enforcement, export controls, tighter investment screening, cooperation with allies, and additional domestic investments, all targeting China directly.

The Senate leader anticipates that the legislative package will be ready in the next few months, potentially before the August Congressional recess. Schumer highlighted the urgency of addressing China's global ambitions, stating, "The United States cannot sit idly by as the Chinese government continues to lie, cheat and steal its way to global dominance."

He believes there will be significant bipartisan support for the legislation in both the Senate and the House, emphasizing the need to safeguard America's future.

According to Schumer, the legislation will focus on five critical policy areas:

1. Limiting the flow of advanced technology to the Chinese Government, potentially through stronger export control laws, new sanctions, and deterrents against coercion.
2. Curtailing the flow of investment to the Chinese Government by screening investments in key sectors to prevent US capital from supporting Chinese companies.
3. Securing domestic economic investment by supporting sectors such as biotech, bio-manufacturing, and other critical technology fields.
4. Underscoring the United States' commitment to economic allies, maintaining partner alignment, and counteracting China's Belt and Road initiative.
5. Safeguarding the security of allies and partners and maintaining strategic alliances, particularly in regard to potential conflict with Taiwan.

Several Senate committee chairs, including Finance Committee Chairman Ron Wyden (D-Ore) and Agriculture Committee Chairman Debbie Stabenow (D-Mich), have already begun discussing legislation related to trade enforcement and Chinese investment in US agriculture, respectively.