Contact:
Caroline Vik, Allison Aprahamian
Tonight, Chairman Mike Gallagher (R-WI) and the Select Committee on the Chinese Communist Party explored the growing peril for American companies operating in China.
Following three major CCP raids of American firms and the CCP’s new ‘counterespionage law’, expert witnesses Piper Lounsbury, Shehzad Qazi, and Desmond Shum warned members of the inherent risk of doing business in China under the Chinese Communist Party’s rule and questioned the American entities that uphold the CCP’s crony capitalism.
Find highlights from the hearing below.
Chairman Mike Gallagher:
“Every foreign business that enters China takes on a sometimes silent, sometimes not-so-silent business partner: the Chinese Communist Party… It’s time for American corporate executives to take off the golden blindfolds.”
Click HERE for a downloadable video of Chairman Gallagher’s remarks.
Ranking Member Raja Krishnamoorthi:
“The annual cost to the US economy from IP theft alone is…as high as $600 billion. CCP-affiliated actors are responsible for 67% of state-sponsored cyber attacks. The FBI opens up a new CCP counterintelligence operation every 12 hours.”
Click HERE for a downloadable video of Ranking Member Krishnamoorthi’s remarks.
Ms. Piper Lounsbury, Chief Research and Development Officer, Strategy Risks:
“The party’s goals are structured to promote Beijing’s stated objectives to eventually replace American firms and businesses.”
Click HERE for a downloable video of Ms. Lounsbury’s remarks.
Mr. Shehzad Qazi, Chief Operating Officer and Managing Director, China Beige Book International
“The banks engage in self-censorship to please Beijing and protect their business interests in China. The most damaging publicly-known instance of such a practice came last year when it was revealed that JP Morgan had censored an analyst’s reports.”
Click HERE for a downloadable video of Mr. Qazi’s remarks.
Mr. Desmond Shum, Author of Red Roulette: An Insider’s Story of Wealth, Power, Corruption and Vengeance in Today’s China
“Moral of the story: political power trumps everything else in China. There is no rule of law. Instead, China is ruled by law. CCP is above the law in China, and Xi Jinping is modern-day emperor on top of the CCP and the State.”
Click HERE for a downloadable video of Mr. Shum’s remarks.
Rep. Blaine Luetkemeyer (R-MO):
“I sit on the Financial Services Committee… we’ve had the CEOs of the five largest banks in front of us. We’ve asked the question — On your website you talk about all the social justice things you support… yet you go to China and you ignore the genocide? Their answer is silence.”
Click HERE for a downloadable video of Rep. Luetkemeyer‘s remarks.
Rep. Ritchie Torres (D-NY):
“Strategic competition between the US and China contains a paradox. [Our] great competitive advantage is the rule of law, but the great competitive advantage of China…is the opposite: the CCP’s lawlessness creates the economic equivalent of asymmetric warfare.”
Click HERE for a downloadable video of Rep. Ritchie Torres’ remarks.
