Ranking Member Krishnamoorthi Sounds Alarm on CCP’s Global Economic Pressure Campaign in Select Committee Hearing

WASHINGTON, D.C. – Today, the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) held a hearing titled “United We Stand: Strategies to Counter PRC Economic Coercion Against Democracies.”  The hearing examined how the Chinese Communist Party uses economic pressure to undermine democratic governments and what the United States and its allies can do to push back.

The following witnesses provided testimony:

• The Honorable Rahm Emanuel, 31st United States Ambassador to Japan
• The Honorable Scott Morrison, 30th Prime Minister of the Commonwealth of Australia

Below is a transcript of the opening statement from Ranking Member Raja Krishnamoorthi (D-IL). Footage of the Ranking Member’s opening statement can be found here, and his questions to the witnesses can be found here.

Thank you, Mr. Chair. I'd like to address three things. One, how the CCP has attempted to coerce the U.S. and our global partners. Two, some of our current vulnerabilities to CCP coercion. And three, how we can combat such coercion.

Today, we confront a truth that is hiding in plain sight. The CCP is not just building an economy—it's building leverage. It has turned globalization into a trap and has weaponized interdependence.

The CCP has a track record of using its state-controlled levers to target the U.S., our allies, and anyone who dares to defy the political will of the CCP. The CCP does not view its economic tools as democracies do. Instead of using these tools to uphold freedom, democracy, and human rights, the CCP wields its powers to punish free speech, bend democratic nations to the CCP's will, and gain even more leverage.

First, let's take a look at how the CCP has used the coercion playbook across the globe. The Chairman mentioned Australia. He mentioned Lithuania. But in Norway, they were targeted after the Nobel Peace Prize was awarded to a Chinese dissident. Japan—blocked from rare earth exports after a territorial dispute in the East China Sea. And the list goes on and on.

This brings me to my second point: America's own vulnerabilities to coercion from China. From our medicines to ships to drones, we are dangerously reliant on China.

But today, I want to focus on rare earth elements. America relies on China for over 80%—80%—of its rare earth processing. The PRC developed this control over decades of careful planning and execution.

In 1992, then–Chinese leader Deng Xiaoping famously said, "The Middle East has oil. China has rare earths."

Let’s look at why rare earths are so important. They are in something we take for granted every day—namely, rare earth magnets. And I have one in my hand.

China produces 90% of the world’s rare earth magnets. And how does that work? Well, I have something here. This is a simple motor that spins because of rare earth magnets. But it’s not just in this gadget. It’s in everyday items, including this toothbrush… and even this drill. It’s basically in everything you can possibly think of.

These rare earth magnets power almost all items that involve motors in our daily lives.

Unfortunately, the fact of the matter is, when China decides to cut off these rare earth elements, the motors stop—and our economy comes screeching to a halt.

And that’s what just happened recently. After President Trump announced a slew of tariffs, the PRC retaliated and blocked a raft of rare earth element exports, including the ones that go into these particularly important magnets.

The sudden export controls set off alarm bells for American businesses, workers, and consumers—who would be the ones to eventually pay the price for shortages.

Ford even announced that the rare earth shortage forced it to shut a factory in our hometown, Ambassador—in Chicago.

China can so much as flip a switch and cause major damage to the American economy.

That is why this morning I’m sending this letter, Mr. Chair, to the Commerce Department asking what they’re doing to ensure that China holds up their end of the recent deal on rare earth exports.

I’m also sending another letter, Mr. Chair, to the State Department urging them to work with our allies and partners to diversify our worldwide critical mineral supply chains.

This brings me to my final point. We must answer CCP coercion with resolve, unity, and resilience. That means building a collective defense among democratic nations against coercion. It means investing at home and diversifying our supply chains. And it means imposing costs—not just unilateral tariffs or sanctions, but coordinated responses that make clear: if you attempt to coerce one of us, you will face all of us.

Thank you, and I yield back.

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