US Congress to Draft Bipartisan Bill to Counter China’s Challenge (Comprehensive)

Scheduled Discussion at the Senate Foreign Affairs Committee on the 14th

[Asia Economy Reporter Yujin Cho] The U.S. Congress has introduced a bipartisan bill to support the Biden administration's strategy of "containing China." The bill defines China as a "competitor" challenging the United States economically, diplomatically, and in terms of security, and emphasizes the role of allies including South Korea, Japan, the Philippines, Australia, and Thailand in responding to this challenge.

The U.S. Senate Foreign Relations Committee is reportedly pushing for the introduction of a China containment bill named the "Strategic Competition Act of 2021," according to foreign media such as the South China Morning Post (SCMP) on the 8th (local time).

◆ "Pressuring China Using Economic and Diplomatic Means" = The draft of this bipartisan legislation reflects the shared tough stance on China by both the Democratic and Republican parties and aims to support the Biden administration's China containment efforts. The bill is scheduled to be discussed by the Senate Foreign Relations Committee on the 14th.

Senate Foreign Relations Committee Chairman Bob Menendez stated, "We are announcing an unprecedented bipartisan effort to counter the challenges China poses to the U.S. national economy and security," adding, "(To this end) we will mobilize all economic and diplomatic means." He further expressed confidence in securing overwhelming support for the bill in next week's Senate Foreign Relations Committee and subsequently in the full Senate.

The bill includes economic and security provisions such as imposing sanctions in response to human rights abuses against the Uyghur population in Xinjiang, supporting Hong Kong's pro-democracy movement, promoting humanitarian and democratic values, blocking China's attempts at technology theft, and monitoring China's acquisition of hypersonic, ballistic, and cruise missiles.

Specifically, the bill includes diplomatic and military support worth $655 million (approximately 730 billion KRW) for the Indo-Pacific region through 2026, and $450 million for maritime security activities. It also evaluates Taiwan, which China considers its territory, as a key element in the U.S. Indo-Pacific strategy and includes provisions to enhance partnerships accordingly.

South Korea is identified as one of the key allies in the Indo-Pacific region, and the bill states that the U.S. policy is to maintain maximum economic pressure on North Korea until the regime takes complete, verifiable, and irreversible steps toward denuclearization.

As a means to this end, the bill proposes pressuring all countries, including China, to enforce U.N. sanctions on North Korea. Additionally, it allocates $10 million to support democracy in Hong Kong and requires the preparation of reports on situations where the Chinese government uses Hong Kong’s status to circumvent U.S. laws.

◆ "Restricting Support to Belt and Road Initiative Participants" = Furthermore, the bill views China’s Belt and Road Initiative as a military-strategic endeavor and includes provisions to restrict support to countries participating in the initiative. It also enforces the July 2016 ruling by the Permanent Court of Arbitration (PCA) that the Philippines has sovereignty over disputed areas in the South China Sea, which China contests.

The bill also expands the review scope of the Committee on Foreign Investment in the United States (CFIUS) to block mergers and acquisitions (M&A) of advanced technology companies by foreign entities, aiming to prevent technology theft by China. The U.S. plans to strengthen CFIUS reviews by increasing the number of critical technology sectors requiring reporting from the current 27 to more.

This content was produced with the assistance of AI translation services.