House ag discusses ‘danger’ from China
The House Agriculture Committee held a hearing today titled The Danger China Poses to American Agriculture.
House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa., said in an opening statement, “The People’s Republic of China, governed by the Chinese Communist Party, has gone out of its way to reduce its reliance on American agriculture, all the while aggressively pursuing tactics that threaten our nation’s ability to feed itself.”
Thompson added, “The fact China imports almost as much food as the U.S. exports to the whole world makes this conversation more difficult. In recent years, the U.S. has seen record export values to China for soybeans, corn, beef, chicken meat, tree nuts, and sorghum, all of which are major contributors to our domestic farm economy, underscoring the importance of expanded market access and market diversity elsewhere.
“These last few years have seen China steal U.S. intellectual property, hack critical cybersecurity and related infrastructure, weaponize agricultural trade, and acquire American farmland at an alarming rate. Each of these disrupt our national security, our rural communities, and our resiliency.
“China has long used its legal and regulatory system to steal intellectual property; we have seen this in everything from semiconductors to seeds. Not to mention the scale and sophistication by which China can manipulate critical infrastructure has exposed vulnerabilities in American technologies. This interference has ranged from data breaches and theft of agricultural research to ramping up disruptions of irrigation and transportation systems.
“In 2022, Chairman Comer and I, with more than 125 of our Republican colleagues, asked the Government Accountability Office to evaluate foreign investment in U.S. farmland, and its impact on national security, trade and food security. As many of you know, in 2021, the Department of Agriculture estimated that foreign investment in U.S. agricultural land grew to nearly 40 million acres.
“A few months ago, we received the final report, which showed Congress where gaps exist in our reporting framework, and how better, more timely coordination between federal agencies could help increase visibility into potential national security risks related to foreign investment. Congress took a natural first step with the recent passage of the Consolidated Appropriations Act, where the bill addressed foreign ownership of land by improving the tracking system of it.”
Thompson continued, “So, how do we strike the balance of protecting our producers and consumers, and every piece of the agricultural value chain, while keeping pace with China’s needs? How do we reduce our reliance on one country without undermining the necessity of a strong export market? How do we think smartly about policies that mitigate threats while protecting our best assets?”
Rep. David Scott, D-Ga., ranking member on the committee, said, “The purpose of today’s hearing is to discuss the influence that China has on American agriculture. Unfortunately, some of the rhetoric surrounding this topic may derail us from tackling the real issues at hand and may contribute to violence against Asian-Americans. I want all Americans to know that we on the Agriculture Committee condemn all bigotry, including race-motivated threats and acts of violence. This is about agricultural policy, not people policy.”
Scott also noted that American farmers need large market exports and that the Trump administration “started a trade war with China, creating chaos and undermining markets for American farmers” and an opportunity for Brazilian farmers to fill the gap.
“Now Trump is calling for a 60% tariff on all Chinese goods. This would have drastic impacts on American agricultural production, increase costs for consumers, and would almost certainly lead to devastating retaliatory tariffs placed on U.S. agricultural exports,” Scott added.
American Soybean Association President Josh Gackle, who grows soybeans in North Dakota, told the committee the members need to weigh two distinct considerations as they discuss the relationship with China.
“There is a geopolitical relationship that affects national security and includes issues such as data privacy, human rights, and intellectual property; and there is the economic, commercial trading relationship. Our strong appeal is that careful consideration be given to maintain, rather than alienate, the economic relationship when discussions move forward in addressing geopolitical and other significant issues,” Gackle said.
South Dakota Gov. Kristi Noem, a former member of the committee who is considered a potential Republican vice presidential candidate on a ticket with former President Trump, testified that “China is buying up our entire food supply chain. When America can’t feed itself and relies on another country to feed us, it becomes a national security issue. The country that feeds us controls us.”
Noem avoided the implications of conflict with China on U.S. agricultural exports.
Politico pointed out that Noem avoided answering a question about Trump’s proposal to increase tariffs on Chinese products if he wins the presidency again.
“I think that that is a proposal that people are still looking at and having conversations about,” Noem said.
The committee also heard testimony from other witnesses.