China’s economy attack is backed by US taxpayers, says Rep. Brad Wenstrup.

The United States vs. China: The Economic Cold War

The United States is in a Cold War with China, and it’s time to take notice. While our adversary is laughing at us and enriching itself at our expense, the U.S. government continues to handicap American industry. Beijing’s provocations go far beyond its use of a spy balloon to traverse sensitive military sites across the U.S. or its military provocations. China has stolen intellectual property and used predatory trade practices and market manipulation to knock out U.S. competition. The Chinese Communist Party is engaged in a complex economic Cold War and intends to play the long game and attempt to replace the U.S. as world leader.

The Threat to National Security

China’s actions have made mining, processing, and producing rare earth minerals unaffordable in the U.S. We lack the capability to process rare earth minerals, and our largest source, a mine in Southern California’s Mountain Pass, closed in 2002 only to reopen in 2012 after China cut off rare earth exports to Japan and threatened to do the same to the U.S. China now produces at least 70% of the global mined production of rare earth metals. This monopoly allows China to drive up the costs for rare earth minerals, in turn tightening supply and squeezing manufacturers. Of great concern, about three-quarters of rare earth minerals, a key component in electric vehicle motors, batteries, cellphones, headphones, magnets, missiles, fighter jets, night-vision goggles, and more, are now sourced from China. China also controls a large share of the world’s mineral refining capacity.

In addition, millions of doctors and patients in the U.S. rely on active pharmaceutical ingredients produced in China as the source materials for medications they need. Many name-brand and generic medications that Americans rely on every day, from antibiotics to blood pressure medicines, cancer drugs, and blood thinners, are being manufactured in China or produced with materials that come from China. It is estimated that if China stopped producing these medications, the U.S. would have just two months until we run out of the drugs patients rely on.

The Need for Action

We can’t afford to let the CCP continue to undermine industry after industry in the country. We need decisive action from the federal government. Congress and the White House must work together to help create and solidify a resilient domestic supply chain so that we have reliable sources for critical health and national security needs. The U.S. must also be clear in its objectives and address China’s malign activities with a plan of its own to restore U.S. independence and unshackle our economy. The enemy is at the gates – building factories in U.S. towns, buying farms near military installations, and flying over sensitive military sites. It’s high past time that we recognize the Chinese colonization of the U.S. and act accordingly.

What Can We Do?

To help address this crisis, I introduced the American Made Medicine Act last Congress. This bill would help secure critical national health supply chains and create manufacturing jobs in the U.S. by offering tax credits for investments in medical manufacturing in the U.S. Healthcare professionals need a reliable source for personal protective equipment and pharmaceuticals – not one that can be cut off by, or tainted by, an enemy at any moment.

The U.S. must take action to restore our independence and protect our national security. We cannot afford to continue this blindness. The time for action is now.