BETHLEHEM, Pa. — U.S. Sen. Bob Casey said he plans to introduce a new bill Tuesday that aims to protect American industries and national security from Chinese interference.
The Chinese government has eaten into the U.S.'s economic strength by engaging in unfair trade practices, co-opting American technology through business partnerships and exploiting loopholes in free-trade agreements with third-parties, Casey said in an interview Monday.
"Increasingly, our economic security is our national security. China is our economic adversary; there's no doubt about it."U.S. Sen. Bob Casey
The Chinese government is, in turn, using these technological advances to advance its own military and intelligence goals, he said.
"Increasingly, our economic security is our national security," Casey said. "China is our economic adversary; there's no doubt about it."
Much of the danger stems from American sources, according to Casey's office.
In 2023, the Chinese Communist Party invested almost $28 billion in American industries, compared with the $126.9 billion American companies have invested in Chinese ventures, according to the Bureau of Economic Analysis.
At the same time, the rise of the global-supply chain and the logistics software that empowers the system has created an avenue for the Chinese government to track data about American trade to gain an unfair advantage, he said.
Combat Chinese Aggression Act
In a bid to protect American trade interests, Casey said he's introducing the Combat Chinese Economic Aggression Act.
The bill would merge several policies that Casey has proposed in the past — some with significant bipartisan support — into one legislative package.
Some measures of the bill already are in action at the federal level but haven't been passed through legislation.
For example, President Joe Biden last year signed an executive order declaring a national emergency, saying American companies were undermining national security by investing in emerging technologies in "countries of concern."
The order mirrors a bill authored by Casey and Sen. John Cronyn, R-Texas, that identified China, Russia, Iran and North Korea as targeted nations.
The order, whose rules still are in development, would prohibit American companies from investing in some emerging fields — potentially including artificial intelligence and quantum information technologies — in countries of concern.
American corporations also would be required to notify the federal government if they intend to invest in other, yet-to-be specified, industries, according to the order.
Another part of the bill would create protections in less cutting-edge industries that still are essential to the American economy, such as steelmaking and petrochemicals, according to a legislative memo prepared by Casey's office.
'Protect America's free market'
Currently, the federal government is authorized to monitor some foreign investments in the American tech industry and real estate purchases to monitor national security.
Under Casey's bill, the Committee on Foreign Investments in the United States would have expanded powers to monitor investments specifically by the Chinese Communist Party in American businesses and mitigate potential threats to national security.
The measures are needed to protect America's free market, Casey said. Controlled economies such as China's operate with unfair advantages such as using stolen intellectual properties and forced labor, he said.
"We have to try to get as much done as possible legislatively to push back against a really aggressive regime."U.S. Sen. Bob Casey
The bill also would try to close loopholes that let Chinese goods enter the American market through free trade agreements with American allies.
Currently, goods from non-market economies such as China can account for 50% of trade under the trade agreements, Casey said.
"We have to try to get as much done as possible legislatively to push back against a really aggressive regime," he said.
It remains unclear what chance of the proposal has of passing Congress this session, which ends in January. The House and Senate are controlled by different parties through slim majorities, making it difficult to build consensus.
On top of that, fall sessions in election years typically aren't the most productive as attention is split between legislating and campaigning.
Casey said he has not yet sought co-sponsors on the legislation, either.
Talking point of Casey's campaign
Still, Casey expressed optimism his bill could find traction following the election.
While that would leave a limited window to move legislation, both parties have expressed a desire to toughen up on Chinese trade practices.
At minimum, it could create a starting point for when the new Congress takes office in 2025, he said.
"Wherever we end up, we just need a helluva lot more information about our investments in China and countries like it."U.S. Sen. Bob Casey
"Wherever we end up, we just need a helluva lot more information about our investments in China and countries like it," Casey said.
Foreign policy toward China has frequently talking point Casey's campaign for re-election.
The rising power is a major source of fentanyl, and Republican challenger Dave McCormick has blamed Casey for failing to address the deadly drug's devastating effect on the American public.
In 2023, an estimated 74,702 Americans died from synthetic opioids, most of them because of fentanyl, according to the U.S. Centers for Disease Control.
The federal agency predicted 4,412 Pennsylvanians would die of drug overdoses in 2024, again with fentanyl being a major contributor.
Casey, meanwhile, has attacked McCormick for directing billions of dollars of investments during his tenure as chief executive officer of Brigdewater Associates, the world's largest hedge fund.
While McCormick has identified the Chinese Communist Party as a serious threat to American democracy, Bridgewater increased its Chinese holdings 108,000%, to a total of $1.7 billion during McCormick's five-year tenure leading the firm, according to CNN.
