In a significant escalation of U.S.-China tensions, the U.S. House of Representatives passed the 'Countering the PRC Malign Influence Fund Authorization Act of 2023' with a sweeping vote of 351-36 on September 28, 2024. This bill proposes an allocation of $1.6 billion over five years aimed at countering China's global influence, particularly actions by the Chinese Communist Party (CCP) that are perceived to undermine international order and U.S. security [5796691b].
The legislation earmarks $325 million annually until 2027 for media and civil society initiatives, reflecting a strategic focus on enhancing U.S. propaganda capabilities against China. Critics have raised concerns about the potential for disinformation and the lack of transparency in how these funds will be utilized [5796691b].
In a parallel effort, U.S. Senators Mark R. Warner (D-VA), Mike Rounds (R-SD), and Cynthia Lummis (R-WY) introduced the 'China Financial Threat Mitigation Act of 2024' on November 25, 2024. This bipartisan act requires the U.S. Department of Treasury to analyze potential financial threats from the CCP and their impact on the U.S. economy. The report must address the effects of reforms in China's financial sector, risks to economic stability, and recommendations for international cooperation. Warner emphasized the need for proactive measures against increased Chinese aggression, while Rounds highlighted the CCP's influence over China's banking system [ef7f58a3].
This legislative move aligns with the introduction of the 'China Financial Threat Mitigation Act of 2024' on November 22, 2024, which aims to enhance U.S. analysis of financial threats from China, mandating the Department of the Treasury, in consultation with the Federal Reserve, SEC, CFTC, and State Department, to report on U.S. exposure to China's financial sector. The report will assess the impact of China's financial reforms, U.S. protective policies, risks to financial stability, and recommendations for international cooperation [f118419e].
This recent legislative action is part of a broader trend, with 25 anti-China bills passed during 'China Week' in Congress, indicating a bipartisan consensus on the perceived threats posed by China. This includes a comprehensive 28-bill package introduced by House Speaker Mike Johnson on September 9, 2024, which aims to enhance competition with China and refine U.S. export controls [2b159a4c]. The 116th and 117th Congress have introduced over double the number of China-related bills compared to the 115th, highlighting a growing legislative focus on this issue [549f62ae].
Key bills include the Protect America’s Innovation and Economic Security from CCP Act, which reinstates the controversial China Initiative, and the Intergovernmental Critical Minerals Task Force Act announced by Senate Majority Leader Chuck Schumer in May 2023. These efforts reflect a concerted push to reduce reliance on China for critical minerals and bolster U.S. economic security [2b159a4c].
However, experts warn that the escalating anti-China rhetoric could provoke a backlash from Beijing, complicating diplomatic relations further. The Chinese government has condemned these measures, labeling them as a form of 'new McCarthyism' [eebd5c99]. Furthermore, U.S. attempts to cut China from the electric vehicle (EV) supply chain could inadvertently harm its own auto industry, as companies like Ford seek cooperation with China's CATL [549f62ae].
Additionally, the proposed Biosecure Act may negatively impact the U.S. biotech industry, raising concerns among industry leaders about trade protectionism and tech isolationism. Critics argue that U.S. politicians should focus on domestic issues rather than scapegoating China, emphasizing that China's development is not aimed at defeating the U.S. [549f62ae]. As the political landscape evolves with the upcoming 2024 elections, analysts suggest that if Republicans maintain control, similar legislative measures targeting China could continue to emerge, further entrenching the narrative of China as a primary adversary in U.S. politics [eebd5c99].
In light of these developments, a recent commentary from Bernard Chan in the South China Morning Post emphasizes that the anti-China hysteria could prove self-defeating for the U.S. Chan highlights that the recent legislative actions, including the proposed HKETO Certification Act, threaten Hong Kong's economic interests by potentially revoking privileges of its trade offices in the U.S. He warns that the narrative of a rising China is being used as a political strategy to galvanize voter support amidst domestic issues, which may exacerbate racial profiling against Chinese-Americans [a5a46136]. Chan calls for a more nuanced understanding and cooperation in U.S.-China relations, stressing that the real victims of this demonization are often overlooked [a5a46136].