How US plans to tackle growing tech challenge from China
What's the story
A prominent advisory panel on China policy has recommended the creation of a "consolidated economic statecraft entity" by US Congress. The proposed body would address the national security challenges posed by China's evasion of US export controls and sanctions. The recommendation was made in the annual report of the United States-China Economic and Security Review Commission (USCC).
Enforcement issues
Current enforcement gaps and proposed solutions
The USCC report highlights a gap between export controls and sanctions as they are written and enforced. This gap is exploited by countries like China and Russia, diluting accountability across multiple agencies. The commission's recommendation includes creating a consolidated entity that incorporates key agencies like the Commerce Department's Bureau of Industry and Security (BIS), State Department's Bureau of International Security and Nonproliferation, and Pentagon's Defence Technology Security Administration into one entity.
New responsibilities
Proposed entity's role and integration with intelligence community
The proposed consolidated entity would have the authority to investigate and punish entities violating export controls and sanctions. It would also be integrated into the intelligence community for real-time intelligence access on evasion networks. This integration is seen as a "fundamental" shift in how economic statecraft could be approached, similar to changes made after 9/11 when financial sanctions were integrated into the intelligence community.
Recommendations
Panel's recommendations and potential challenges
The USCC's recommendations were based on six hearings with 50 experts over the past year. However, Geoffrey Gertz from the Centre for New American Strategy cautioned that bureaucratic capacity may not keep up with these changes. The commission also suggested strengthening screenings of new Chinese investments, requiring tracking technology on export-controlled advanced chips, and establishing a whistle-blower program to report export violations.
Other concerns
Technological competition and other areas of concern
The report highlighted technological competition in space, quantum, biotechnology development, and threats to the US power grid from China. These are among the top areas where Congress should act according to the commission. The recommendations are part of ongoing efforts to strengthen economic security amid rising tensions between Washington and Beijing over technology restrictions.