WASHINGTON — The Coalition for a Prosperous America (CPA) today called on Congress to include the bipartisan, bicameral National Critical Capabilities Defense Act in any China competitiveness legislation considered by the House and Senate. The legislation was introduced in the Senate by Senators Bob Casey (D-PA) and John Cornyn (R-TX). It was introduced in the House by Representatives Bill Pascrell (D-NJ), Rosa DeLauro (D-CT), Victoria Spartz (R-IN), and Brian Fitzpatrick (R-PA). This legislation will help prevent American supply chains from being offshored by establishing an outbound investment review, which covers production, development, manufacturing, or fabrication of identified critical national capabilities to countries, like China and Russia, that are deemed foreign adversaries.
The bipartisan, independent U.S.-China Economic and Security Review Commission’s 2021 Annual Report to Congress noted that “China has shown willingness to weaponize and politicize supply chains” where “U.S. companies may struggle to avoid critical shortages without domestic…alternatives.” Additionally, the report highlights that “U.S. and foreign investors have poured into China’s capital markets” despite the Chinese government and Communist Party’s strict control over their economy. Among the Commission’s top recommendations is to pass legislation that accomplishes the goals of the National Critical Capabilities Defense Act by creating the “authority to screen the offshoring of critical supply chains and production capabilities to the People’s Republic of China to protect U.S. national and economic security interests.”
“The COVID-19 pandemic has illustrated the clear and present risk posed to our nation as a result of America’s supply chain reliance on foreign adversaries and non-market economies,” said Zach Mottl, Chairman of CPA. “As a result of decades of disastrous U.S. trade policy that promoted the offshoring of American manufacturing, the U.S. faces a major vulnerability. Now, more than ever, it is clear that Congress must address our nation’s reliance on imports of materials critical to U.S. national security, from medical supplies to rare earth minerals. To prevent future supply chain issues, we need a whole-of-government process to review the offshoring of critical capacities and supply chains to foreign adversaries and non-market economies.”
CPA strongly encourages Congress to include and pass the National Critical Capabilities Defense Act as part of any legislation to address U.S. competitiveness with China and boost U.S. domestic manufacturing.
“For too long, Congress has sat idly by as our nation’s supply chains and domestic manufacturing were offshored to foreign adversaries like China,” said Michael Stumo, CEO of CPA. “Not only has this impacted countless communities as jobs were lost and factories were shuttered, but it has also threatened our nation’s national and economic security. It is time for companies to publicly defend why they believe it is in our nation’s interest to offshore domestic manufacturing and jobs to countries whose views and actions are openly at odds with those held by the American people. On behalf of CPA and our members, we strongly urge Congress to pass the National Critical Capabilities Defense Act without delay.”