China continues to aggressively seek to use its growing power to change the international order, according to a new report released by a congressionally mandated advisory body on U.S.-China relations. In particular, the report draws Washington’s attention to China’s penetration of international organizations and its expansion plans in Africa, and calls on the U.S. government to provide visa assistance to politically repressed Hong Kong residents and to elevate the director of the American Institute in Taiwan’s (AIT) Taipei office to a presidential nominee position subject to Senate approval.
On December 1, the U.S.-China Economic and Security Review Commission (USCC) released its 2020 Annual Report, which covers the U.S.-China global rivalry in a variety of areas, including U.S.-China trade, security, politics, and foreign affairs. The report also discusses Taiwan and Hong Kong in detail in two separate chapters.
“China’s hostility in its relations with the United States and other countries has reached new heights as its leaders have become increasingly aggressive and confrontational,” said Carolyn Bartholomew, vice chairwoman of the U.S.-China Economic and Security Review Commission (USCC), at Tuesday’s launch of the report.
“Today Beijing no longer even pretends to adhere to international norms, but is instead working to expand its global influence and implement the idea of a ‘community of human destiny,’ a community that echoes China’s worldview, subscribes to its priorities, and pledges allegiance to its form of government. “
According to the 587-page report, the Chinese Communist Party believes it has waged a systematic struggle with the United States and other democracies for dominance and voice in the future world order. Beijing seeks to use its growing power to change the international order and ultimately rationalize the nature of its authoritarian governance.
As the Chinese Communist Party accelerates its pursuit of status, power, and leadership in the international community, the report mentions, Beijing actively seeks other countries to accept its authoritarian, one-party model of governance as a better alternative to liberal democratic political systems and to export its authoritarian model of political rule.
Amidst all the international competition between the United States and China, Africa has become a testing ground for China to export its model of governance, Bai said. “The African continent is China’s blueprint and testing ground for achieving its goal of becoming a global and political-economic leader,” Bai said.
Commission: Africa has become a testing ground for China’s global dominance
For the first time, this year’s annual report has a separate chapter, nearly 70 pages, on China’s powerful influence in Africa. The report talks about how China sees its relationship with African countries as a blueprint for building a new China-centric world order.
China has expanded its influence on the continent through loans, building infrastructure such as digital and communications technology, training local journalists and political parties, and increasing military exchanges with African countries, Bai said.
“China has used its growing influence in Africa to garner support at the United Nations and other national organizations,” Bai said at the conference. “By leasing and owning, China’s presence in ports across Africa has raised awareness of the growing power and ambition it projects for the future. Worry.”
The report cautions that the U.S. must be wary of China’s attempts to gain control of Africa’s natural resources, posing a threat to future U.S. innovation and technology.
“We have also seen China’s interest in sourcing some of the key technology resources in African resources, and China has shifted from buying the products themselves to sourcing the materials, posing a potential threat to U.S. innovation and the ability to manufacture new products,” said Karen White.
Commission Chairman Robin Cleveland also said at the launch of the report Tuesday that if Africa’s natural resources were monopolized by China, it would have major implications for the future of the U.S. defense industry.
“We’ve seen a shift in China’s approach from buying commodities to actually owning mining assets and manufacturing and processing, which means that heavy metals like vanadium, cobalt, titanium, platinum, which are critical to our defense industry, we’re in danger of being shut out if they formally establish a monopoly,” Cleveland said.
She continued, “(A Chinese monopoly) would determine the price point, and that has serious implications for our national security.”
Increased penetration of local media and political parties is likewise key to China’s current push for influence in countries such as Latin America and the Caribbean, the report added.
Report Calls on U.S. Government to Expand Scrutiny of U.S. Companies Investing in China
In terms of Chinese investment in the United States, the report warns that the United States should increase its scrutiny of Chinese investments. The report said that investing in China could pose a risk to investors and could fund China’s militarization, which in turn could pose a national security threat to the United States.
As China announces the opening of its financial markets, the USCC said it will closely monitor U.S. private equity and hedge funds investing in China in the future.
“We need to look at the rules of the open process, not just for hedge funds, but also for investment banks and others, on how to take full advantage of this market opening in the ongoing quest for yield and profitability, and what that means for individual investors, pension funds and large institutions,” commission Chairman Cleveland said at the meeting Tuesday. We want to make sure that the opportunities they pursue are not directly contrary to our national security and economic security.”
Committee Vice Chair Karen White also spoke about the fact that China is now looking for funding to address the structural problems of its economy.
“However, there is now a growing awareness and concern about the role that U.S. companies and investment vehicles are playing, or may be about to play, in strengthening China’s militarization and in posing a direct threat to the United States,” said Karen White.
The report makes 19 recommendations, including elevating the AIT director to a presidential nomination.
The report makes 19 specific recommendations to Congress, the first of which calls for Congress to make “reciprocity” a fundamental principle in U.S.-China legislation to ensure fair review access and information, and the fair treatment of journalists, diplomats and nonprofit organizations.
“This year, we finally agreed on the principle of reciprocity, whether it’s how to treat businesses, how to treat investments, how to treat NGOs, diplomats, journalists, etc.,” Cleveland, chairman of the U.S.-China Economic and Security Review Commission, told the media on Monday.
Cleveland added that the concept of “reciprocity” stems from U.S. journalists’ comments that foreign journalists in Beijing are treated very differently than Chinese journalists in the United States.
Although the recommendations of the U.S.-China Economic and Security Review Commission report are not legally binding, they can be considered an important source of reference for congressional legislation and policy making, and their impact on U.S. policymakers should not be underestimated.
Turning to Taiwan, the report mentions that 2020 can be seen as a critical year for cross-strait relations and that China’s imposition of a national security law in Hong Kong and increased military action in Taiwan’s immediate region illustrate the determination of Beijing’s leaders to live up to their political goals.
The report calls on Congress to consider legislation that would amend the Director of the American Institute in Taiwan (AIT) Taipei Office to a position nominated by the President of the United States and subject to the Senate confirmation process. Currently, the AIT Director of Taipei is appointed directly by the Secretary of State and is not subject to a Senate confirmation vote.
“I’ve always been concerned that when we talk about Taiwan, it’s always in the context of U.S.-China relations, but the people of Taiwan have been doing a remarkable job of overcoming obstacles,” said Karen White, vice chairwoman of the U.S.-China Economic and Security Review Commission, in response to questions from reporters.
“Taiwan is an important democratic ally for us in the region, and it is an important step for us to continue to demonstrate our commitment to Taiwan at a time when China continues to increase its threat to Taiwan. It will also strengthen congressional oversight by involving Congress directly in the process.”
However, Bai also mentioned that the committee did not discuss whether to recommend that the position of AIT’s director of the Taipei office be upgraded to an ambassadorial position.
“We still see the position as a director’s position, but we will leave it to Congress to decide,” Bai added.
Report Says Hong Kong Has Become Mainland’s Financial Center, Calls for Visa Assistance for Battered Hong Kong People
With respect to Hong Kong, the report argues that the implementation of Hong Kong’s national security law places 7.5 million people in Hong Kong under the full and direct jurisdiction of the Chinese government, a move that violates China’s commitment to maintaining Hong Kong’s “one country, two systems” for 50 years.
The report also said that Beijing’s decision to introduce a national security law against Hong Kong symbolizes a deliberate choice to exert authoritarian control over the territory. But the decision would jeopardize Hong Kong’s financial dominance and its status as an international financial center.
“One of the reasons why Hong Kong has been such an important financial center in the world is because it enjoys the rule of law and an independent judiciary, and if those are weakened, it will raise concerns about businesses operating there,” said Karen White.
The report notes that the Hong Kong National Security Law and its aftermath pose significant political and personal risks for U.S. companies with investments and operations in Hong Kong. At the same time, multinational companies located in Hong Kong will tend to focus on mainland operations rather than serving international customers, and international business and information technology will be relocated outside of Hong Kong.
The report also calls on the U.S. government to assist Hong Kong residents who fear political persecution in addressing barriers to entry into the United States, including assistance in obtaining visas for Hong Kong residents fleeing political persecution.
“The Communist Party of China has made it clear that any criticism will not be tolerated,” said Cleveland, “and the purpose of the National Security Act is to sweep away those who they believe are critical of their views.”
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