Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Industrial Policy topic
No spam. Unsubscribe anytime.
Witnesses tell senators Chinese subsidies and forced technology transfer distort competition in auto and strategic industries
Summary
Witnesses warned Chinese industrial policy — including forced technology transfer and subsidies — can displace domestic industries; one witness urged CFIUS reform and restrictions on Chinese equity in critical sectors as possible responses.
Senators questioned witnesses on whether Chinese automakers are "normal" market competitors. Robert Atkinson answered that many Chinese industries operate under nonmarket conditions, citing forced technology transfer and heavy subsidies. "There's no industry in China that's normal, and they are abnormal," Atkinson testified, noting that Chinese firms frequently require technology access in exchange for market entry.
Atkinson urged stronger screening of foreign investment and reforms to the Committee on Foreign Investment in the United States (CFIUS). He said allowing subsidized Chinese firms or Chinese equity in nationally important industries risks moving technology and production offshore. "If we do that, your senator, your point is exactly right... it's gonna be extremely detrimental to US companies," he said. Senators signaled bipartisan interest in legislation such as the Connected Vehicle Security Act and discussed potential unanimous support for measures addressing vehicle security and competitive risks.
