[Senate Hearing 119-258]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 119-258

                    COMBATING THE PEOPLE'S REPUBLIC
                     OF CHINA'S ILLEGAL, COERCIVE,
                   AGGRESSIVE, AND DECEPTIVE BEHAVIOR
                          IN THE INDO-PACIFIC

=======================================================================

                                HEARING

                               BEFORE THE

                       SUBCOMMITTEE ON EAST ASIA,
                     THE PACIFIC, AND INTERNATIONAL
                          CYBERSECURITY POLICY

                                 OF THE

                     COMMITTEE ON FOREIGN RELATIONS
                          UNITED STATES SENATE

                    ONE HUNDRED NINETEENTH CONGRESS

                             FIRST SESSION

                               __________

                            OCTOBER 7, 2025

                               __________

       Printed for the use of the Committee on Foreign Relations
       
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]       

                                __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
62-398 PDF                  WASHINGTON : 2026                  
          
-----------------------------------------------------------------------------------     

                 COMMITTEE ON FOREIGN RELATIONS        

                JAMES E. RISCH, Idaho, Chairman        
PETE RICKETTS, Nebraska                JEANNE SHAHEEN, New Hampshire
DAVID MCCORMICK, Pennsylvania          CHRISTOPHER A. COONS, Delaware
STEVE DAINES, Montana                  CHRISTOPHER MURPHY, Connecticut
BILL HAGERTY, Tennessee                TIM KAINE, Virginia
JOHN BARRASSO, Wyoming                 JEFF MERKLEY, Oregon
RAND PAUL, Kentucky                    CORY A. BOOKER, New Jersey
TED CRUZ, Texas                        BRIAN SCHATZ, Hawaii
MIKE LEE, Utah                         CHRIS VAN HOLLEN, Maryland
RICK SCOTT, Florida                    TAMMY DUCKWORTH, Illinois
JOHN R. CURTIS, Utah                   JACKY ROSEN, Nevada
JOHN CORNYN, Texas
             Christopher M. Socha, Staff Director          
           Naz Durakoglu, Democratic Staff Director          
                   John Dutton, Chief Clerk          

                              (ii)        

  
                         C  O  N  T  E  N  T  S

                              ----------                              
                                                                   Page

                               Statements

Ricketts, Hon. Pete, Chairman of the subcommittee, U.S. Senator 
  from Nebraska..................................................     1

Coons, Hon. Christopher A., Ranking Member of the subcommittee, 
  U.S. Senator from Delaware.....................................     1

                               Witnesses

Singleton, Craig, China Program Director and Senior Fellow, 
  Foundation for Defense of Democracies, Washington, DC..........     6

    Prepared statement...........................................    29

Powell, Raymond, Executive Director, Sealight Foundation, 
  Stanford, CA...................................................     8

    Prepared statement...........................................    41

Ratner, Dr. Ely, Principal, The Marathon Initiative, Washington, 
  DC.............................................................     9

    Prepared statement...........................................    54



                                 (iii)

 
     COMBATING THE PEOPLE'S REPUBLIC OF CHINA'S ILLEGAL, COERCIVE, 
         AGGRESSIVE, AND DECEPTIVE BEHAVIOR IN THE INDO-PACIFIC

                              ----------                              


                        TUESDAY, OCTOBER 7, 2025

                               U.S. Senate,
                    Committee on Foreign Relations,
                Subcommittee on East Asia, the Pacific, and
                        International Cybersecurity Policy,
                                                    Washington, DC.

    The subcommittee met, pursuant to notice, at 2:30 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Pete Ricketts 
presiding.
    Present: Senators Ricketts [presiding], Cornyn, Coons, 
Shaheen, Van Hollen, and Duckworth.

            OPENING STATEMENT OF HON. PETE RICKETTS,
                   U.S. SENATOR FROM NEBRASKA

    Senator Ricketts. This hearing of the Senate Foreign 
Relations Subcommittee on East Asia and the Pacific will come 
to order.
    Before we begin I want to go over a few ground rules. There 
will be zero tolerance for protests or any efforts to 
communicate with witnesses or anybody up here on the dais.
    If you so choose to disrupt this hearing you will be 
arrested immediately and banned from this committee for 1 year. 
We invite the public to attend but we also have important 
business to attend to.
    With that said, we welcome everyone here today and thank 
our witnesses for agreeing to testify. We will begin with an 
opening statement from Senator Coons and then myself, and then 
we will hear from our witnesses.
    Following the testimoney, we will move to a 5-minute round 
of questions. I would like to start by recognizing the ranking 
member for his comments.

            STATEMENT OF HON. CHRISTOPHER A. COONS,
                   U.S. SENATOR FROM DELAWARE

    Senator Coons. Thank you so much, Senator Ricketts. I am 
grateful for the chance to serve with you on the subcommittee 
and to partner on this hearing, and thanks to our three 
talented witnesses for being here to share your expertise.
    The most significant area of enduring bipartisan consensus 
in U.S. foreign policy is the growing threat that the PRC poses 
to American security and our economy.
    That is why Senator Ricketts and I came together to lead 
this subcommittee on our trip to Taiwan and the Philippines, as 
chair and ranking. It was one of the very first bipartisan 
CODELs of this Congress, led by Senator Ricketts.
    For years, the national security establishment has 
correctly identified China as our central national security 
challenge.
    Today's hearing will explore China's gray zone activities 
which are increasingly offering Beijing an asymmetric advantage 
and that several administrations have struggled to respond to 
since they fall below the threshold of armed conflict.
    Our witnesses will spell out this wide range of activities 
used to coerce and bully and assert control over the Pacific. 
Let me give you just a few striking examples from this year of 
Beijing's brazen activities.
    In Australia, a U.S. treaty ally, for the first time we saw 
a large Chinese naval task group conduct a full 
circumnavigation of the continent and live fire exercises with 
no warning, an enormous show of force intended to intimidate 
Australia and send a signal to other regional States.
    Against Taiwan, record levels of incursion by the PLA into 
Taiwanese airspace and its economic zones, brazen election 
interference, cutting undersea cables, and much more.
    This spring, China conducted its largest ever military 
exercise around Taiwan, including simulated blockades and 
participation from the Chinese navy and coast guard.
    In 2023, the PLA conducted more than 1,700 sorties into 
Taiwan's airspace. That number jumped 80 percent in 2024 to 
more than 3,000, and this year it has already surpassed that 
number with 3 months left in the year.
    In the Philippines we saw firsthand how the PRC claims 
islands, reefs, and other features despite international legal 
rulings against it, and harasses Filipino vessels as a result, 
and the PLA is actively harassing our own pilots and vessels 
operating lawfully in international waters and airspace.
    What does this all mean and why does it matter? China is 
trying to change the facts on the ground in the Indo-Pacific 
just as Putin did with Crimea in 2014. They are hoping they can 
salami slice their way into asserting control of the region and 
forcing the United States out.
    Perhaps most ominously, they are intending to create so 
much noise in the area with their steadily increasing 
operational tempo creating a new normal that we will not be 
able to tell the difference between an invasion and an actual--
between an exercise and an actual invasion of Taiwan.
    As INDOPACOM Commander Admiral Paparo has said, China's 
military exercises are no longer drills--they are rehearsals. 
The United States is an Indo-Pacific power and we cannot and 
should not back down.
    But how do we tackle this challenge? That we will hear from 
our witnesses and Chairman Ricketts and I will discuss with you 
today.
    The good news is our allies are stepping up in ways we have 
not seen before. They are clear-eyed about the threat and 
determined to serve on the front lines of defense.
    They are spending significantly more on defense and 
security and providing troops, training, access, and materiel 
critical as we shore up deterrence.
    The bad news, as China has ramped up, the Trump 
administration has also taken steps that erode key sources of 
our strength.
    The Trump administration has been willing to do several 
things with regards to Taiwan that I view as strengthening--
excuse me--weakening our partnership: withholding prescheduled 
weapons sales and deliveries, canceling high-level defense 
dialogs, and denying the President of Taiwan transit through 
the United States.
    The administration has defunded Radio Free Asia, Voice of 
America, dismantled the Global Engagement Center, which risk 
leaving PRC disinformation unresponded to and uncontested.
    The administration has slapped our regional partners with 
significant tariffs from 10 to 50 percent, making them 
prioritize economic interests over contributions to their 
defense and our security partnerships.
    They have also withheld critical foreign assistance. One 
project, for example, is building a communications 
infrastructure in Asia that is secure and that China does not 
own.
    The administration has now embarked on a dangerous campaign 
of taking strikes against vessels in international waters off 
Venezuela, striking with impunity and creating a dubious legal 
precedent that I view as risking our own sailors in the Indo-
Pacific as they do freedom of navigation operations.
    If we do not change course, if we continue to dole out 
concessions to China and look the other way as they change 
facts on the ground, we may well lose the fight for this 
century.
    So I look forward to hearing from our witnesses about how 
we should meet the challenge of this moment, how we can 
leverage the bipartisan consensus and cooperation we have on 
this key issue, and how we can strengthen our position in the 
Indo-Pacific.
    Thank you, and thank you, Chairman Ricketts.
    Senator Ricketts. Thank you, Ranking Member Coons.
    Today's hearing is on an egregious and continuing problem 
of Communist China's illegal, coercive, aggressive, and 
deceptive actions, also known as ICAD, in the Indo-Pacific.
    You will first notice the deliberate use of ICAD, coined by 
our Filipino friends, rather than gray zone. This is not just 
semantics. Gray zone allows Communist China to muddy the waters 
with regard to its intention and its involvement.
    It is perfectly trying to hide what it is trying to do, and 
gray zone allows them to be able to do that. ICAD dispels this 
ambiguity and allows for more appropriate responses.
    It is time to call out Beijing's behavior for what it 
actually is. It is illegal, coercive, aggressive, and 
deceptive.
    In April, as Senator Coons mentioned, he and I and Senator 
Budd saw Beijing's firsthand ICAD conduct on full display on a 
CODEL that we took to the Philippines and Taiwan.
    On a P-8 over-flight of the West Philippine Sea, we 
witnessed firsthand the sheer scope of Chinese illegal 
violation of the Philippines' exclusive economic zone.
    Communist China uses the full spectrum of ICAD measures to 
try to turn the West Philippine Sea into a Chinese lake with 
Beijing's illegitimate and illegal nine-dash line and 
undermining Philippine people's will to resist.
    Xi Jinping has referred to this as the smokeless 
battlefield that will allow Communist China to win without 
fighting. Thanks to the tireless work of the Philippines, this 
hostility has been publicly documented, making it impossible 
for Communist China to deny or for the world to ignore.
    However, despite the reputational cost, Communist China's 
dangerous aggression continues. In August we saw two Chinese 
vessels collide as they belligerently tried to ram a Filipino 
coast guard ship near the Scarborough Shoal.
    While this was a reckless and embarrassing event for Xi 
Jinping, it could have been much worse, particularly if there 
was a fatal collision with a Filipino vessel. This could have 
triggered our mutual defense treaty with the Philippines and 
started a war. Rather than appreciating the severe risks of its 
aggression, Communist China has instead doubled down.
    In addition to continuing to ram ships and shoot water 
cannons, Communist China has resorted to political lawfare, 
recently declaring Scarborough Reef as a nature reserve.
    Let us be clear, this is within the Philippines' EEZ, not 
Communist China's.
    In Taiwan, the story is not any better, as my colleague 
just highlighted. Taiwan continues to endure disinformation 
campaigns, cyber attacks, bans on Taiwanese food exports, 
undersea cable cutting, violations of airspace and exclusive 
economic zone, and increasingly larger military exercises 
simulating quarantines, blockades, and evasion.
    Under President Lai, Taiwan is taking critical steps to 
strengthen its resilience to Communist China's ICAD behavior 
including increasing national level planning and conducting 
civil defense exercises.
    But Taiwan still remains particularly vulnerable to 
coercion. This was evident in a tabletop exercise that Senator 
Coons and I held with Mr. Singleton earlier this year 
simulating a Chinese pressure campaign targeting Taiwan's 
energy.
    While Taiwanese and U.S. defense planners are right to 
prepare for a PLA invasion, a more immediate risk might be that 
Communist China will use its ICAD tactics to destroy Taiwan's 
ability to push back.
    If we are to successfully neutralize Chinese ICAD tactics 
targeting Taiwan it is clear that more needs to be done to 
bolster Taiwan's whole society resilience, military 
preparedness, and level of international support.
    Concerningly, Beijing's ICAD playbook is not confined to 
the West Philippine Sea or the Taiwan Strait but is now being 
used throughout the region. In February, Chinese warships 
sailed through the Tasman Sea and circumnavigated Australia's--
sorry, circumvented Australia's coastline for more than 3 
weeks.
    They staged unprecedented live fire drills in a show of 
force meant to intimidate and stress Australia's ability to 
respond. Communist China is also increasingly militarizing the 
Yellow Sea, installing dual-purpose platforms in disputed 
territory with South Korea.
    Similarly, Beijing has stepped up construction of drilling 
rigs and other platforms along the median line with Japan in 
the East China Sea while it conducts a record number of coast 
guard patrols around the Senkaku Islands.
    So why does all this matter? To steal from Mr. Powell, as 
Sun Tzu said, the supreme excellence consists of breaking the 
enemy's resistance without fighting.
    This is right out of Sun Tzu's playbook. To be able to win, 
the greatest general never fights a battle--he defeats his 
enemy beforehand.
    Ultimately, Communist China would rather act as a python, 
slowly squeezing countries to resist rather than acting as a 
cobra and striking quickly.
    Communist China's ICAD tactics are central to this effort 
or, at the very least, they can provoke a kinetic response and 
give Beijing a pretext for self-defensive military action.
    The good news is we have allies and partners who are 
bravely confronting Beijing's ICAD behavior but they are 
currently overmatched. The United States must do more to even 
the scales and strengthen their resilience.
    Ranking Member Coons and I are working together to do just 
that. We introduced the Taiwan Energy Security and Anti-Embargo 
Act, which would facilitate increased American LNG exports to 
Taiwan, encourage cooperation with Taiwan on nuclear energy 
use, and ensure commerce with Taiwan continues in a 
contingency.
    We also introduced the Porcupine Act, which make it easier 
to quickly send arms that are critical to Taiwan to respond to 
and deter some of Communist China's ICAD activities.
    And finally, we recently introduced a resolution honoring 
the 75th anniversary of the U.S.-Philippines Mutual Defense 
Treaty to ensure Communist China knows that the United States 
will continue to stand by our ally.
    But more needs to be done and I look forward to hearing 
from our witnesses to understand the evolution of Communist 
China's use of ICAD tactics and what the U.S. and specifically 
the Congress can do to combat them.
    And so we will now turn to our witnesses. We will ask our 
witnesses to keep your oral testimony to 5 minutes, please, and 
as a reminder, your written testimony will be submitted to the 
official record.
    Our first witness today is Craig Singleton. Mr. Singleton 
is a senior director for China and a senior fellow at the 
nonpartisan Foundation for Defense of Democracies where he 
focuses on great power competition with Beijing.
    A former U.S. diplomat with nearly two decades of service, 
he has worked extensively on China, North Korea, and the Indo-
Pacific security. He also lectures at Stanford University on 
Chinese grand strategy.
    With that, Mr. Singleton, the floor is yours.

STATEMENT OF CRAIG SINGLETON, CHINA PROGRAM DIRECTOR AND SENIOR 
 FELLOW, FOUNDATION FOR DEFENSE OF DEMOCRACIES, WASHINGTON, DC

    Mr. Singleton. Chairman Ricketts, Ranking Member Coons, and 
distinguished members of the subcommittee, thank you for 
inviting me to testify.
    I am pleased to offer policy insights from the Foundation 
for Defense of Democracies, a nonpartisan research institute 
where I serve as a senior fellow.
    Today, China is preparing for a conflict it hopes never to 
fight by slowly engineering the conditions for Taiwan's 
subjugation. This is not a distant or hypothetical problem. It 
is happening now.
    Beijing's ICAD playbook is calibrated to be incremental and 
ambiguous, carefully designed to avoid tripping U.S. red lines 
while steadily degrading Taiwan's confidence in its future.
    In China's calculus, Taiwan must eventually conclude that 
resistance is futile, that capitulation, not confrontation, is 
the only rational choice.
    Beijing interprets vulnerabilities not only in Taiwan's 
defenses but also in U.S. and allied responses as validation of 
its approach.
    To date, sustained coercion below the threshold of war has 
not triggered decisive action. Instead, it has generated 
debate, delay, and uneven responses rather than unified 
pushback.
    This perception emboldens Beijing which views ambiguity and 
hesitation among democracies as exploitable gaps in deterrence, 
gaps that reinforce Beijing's conviction that time favors its 
strategy.
    One challenge is that deterrence as traditionally 
understood does not map cleanly on the problem China has 
created.
    Deterrence by denial, building enough military power to 
block an invasion, and deterrence by punishment, threatening 
retaliatory costs, both falter when the contest unfolds in the 
gray zone.
    Equally critical is resilience, Taiwan's ability to 
withstand and bounce back from sustained pressure without 
losing confidence in its future or faith in U.S. support.
    Our job is to flip China's logic, proving that Taiwan's 
society, economy, and partners can outlast coercion, that 
Taipei can get back up after each shove, and that Beijing gains 
nothing from dragging out the contest.
    But increasingly gray zone coercion is no longer a low-risk 
strategy. The more ships and planes Beijing surges around 
Taiwan the higher likelihood there is for an accident, 
collision, or exchange of fire.
    What looks like slow-motion strangulation could just as 
easily become a sudden shock, a crisis that neither side 
intended but both must confront.
    While Beijing has many avenues of coercion, one 
vulnerability stands out above all others--energy. Taiwan 
imports nearly all of its primary energy and about half of its 
electricity now comes from liquefied natural gas.
    Its storage depth is thin, barely 10 days for LNG, meaning 
even temporary disruptions could cascade quickly into political 
and social pressure.
    To stress test these risks, the Foundation for Defense of 
Democracies conducted a series of energy quarantine tabletop 
exercises in Taipei with Taiwanese officials and experts and in 
Europe and in the U.S. with public and private stakeholders.
    The findings were sobering. The exercises revealed how 
Beijing could exploit Taiwan's dependence by combining limited 
interdictions at sea, cyber-enabled disruption of energy 
infrastructure, and political disinformation, squeezing 
confidence without firing a shot.
    The lesson is clear. Energy is not just a technical 
vulnerability, it is Taiwan's Achilles' heel. So what should we 
do?
    Congress has a critical role in closing the deterrence gap. 
Three priorities stand out.
    First, help harden Taiwan's resilience. That means 
supporting efforts to diversify energy imports, strengthen 
cyber defenses around critical infrastructure, and build 
redundancy into Taiwan's power grid, ports, and defense supply 
chains.
    These are practical steps that make it harder for Beijing 
to exploit choke points and they buy time in a crisis.
    Second, strengthen allied and private sector signaling. 
Beijing counts on insurers, shippers, and markets to walk away 
at the first hint of risk, cutting off Taiwan's lifelines 
through commercial caution rather than open confrontation.
    Congress can press the administration to coordinate with 
allies on maritime insurance backstops and reflagging options 
so trade with Taiwan continues even under pressure.
    Third, make clear that coercion will carry costs. Congress 
can advance sanctions tools that target Chinese entities 
complicit in quarantine operations or cyber-enabled disruption.
    This does not mean threatening war. It means ensuring 
Beijing understands that coercion against Taiwan will trigger 
coordinated countermeasures.
    The goal is simple--to ensure Beijing concludes that 
coercion, whether slow motion strangulation or sudden shock, 
will fail.
    That is how we keep the peace, and that is why this 
committee's leadership is so essential. On behalf of the 
Foundation for Defense of Democracies, I thank you again for 
inviting me to testify today.


    [The prepared statement of Mr. Singleton is located at the 
end of this transcript begining of page 29.]


    Senator Ricketts. Thank you, Mr. Singleton.
    Our second witness is Ray Powell. Mr. Powell is the founder 
and executive director of SeaLight, a nonprofit maritime 
transparency initiative launched with the help of the Gordian 
Knot Center for National Security Innovation at Stanford 
University, California.
    He is also the co-host of the ``Why Should We Care About 
the Indo-Pacific'' podcast. Ray has served 35 years in the U.S. 
Air Force including posts in the Philippines, Japan, Germany, 
and Qatar, as well as combat tours in Iraq and Afghanistan.
    He has also served as the U.S. air attache to Vietnam and 
the U.S. defense attache to Australia.
    Mr. Powell, the floor is yours.

   STATEMENT OF RAYMOND POWELL, EXECUTIVE DIRECTOR, SEALIGHT 
                    FOUNDATION, STANFORD, CA

    Mr. Powell. Well, Chairman Ricketts, Ranking Member Coons, 
members, distinguished members, thank you so much on behalf of 
the SeaLight Foundation for the opportunity to testify today.
    The People's Republic of China is this century's most 
successful expansionist power, one that directly threatens U.S. 
interests in East Asia.
    While Russia's territorial aggressions capture headlines 
and trigger responses, it is actually China that has quietly 
achieved far greater imperial successes in the maritime domain 
through its mastery of gray zone tactics or what we now call 
illegal, coercive, aggressive, and deceptive, or ICAD, tactics.
    Yet, the United States has still not even articulated an 
effective counter-ICAD strategy. We are decades into losing a 
gray zone war we, largely, do not recognize we are supposed to 
be fighting.
    For over 50 years China has systematically seized effective 
control of vast ocean areas through patient, incremental 
expansion.
    Its campaign began with direct military action with its 
1974 Paracel Islands battle with South Vietnam but has since 
evolved into sophisticated civil-military tactics that have 
multiplied its gains across maritime East Asia.
    In blockading, occupying, and militarizing key maritime 
features across the South China Sea, Beijing has demonstrated 
strategic patience that has consistently outmaneuvered our 
outdated and inefficient response mechanisms.
    China's tactics extend beyond conquering reefs to include 
intrusive coast guard patrolling that establishes its claims of 
jurisdiction throughout its neighbors' waters in the South 
China Sea, around Taiwan and the Senkaku Islands, and in the 
Yellow Sea.
    Beijing also deploys oil platforms and aquaculture rigs to 
normalize administrative control over new areas through 
economic activities that also complicate countermeasures.
    Beijing expands its maritime empire with astonishing 
impunity. China's model represents a more successful 
expansionist threat than Russia's because it has mastered the 
art of winning without fighting.
    To do so, China has not relied solely on gray zone tactics 
at sea. It combines these tools with a highly sophisticated 
political warfare machinery that targets democratic weaknesses.
    Beijing enlists local adversaries to carry its message of 
China's inevitability, American retreat, and the futility of 
resistance so that governments will eventually make business 
decisions to accommodate Beijing's demands.
    The goals are complementary--steady erosion of the will to 
contest China's ambitions and gradual acceptance of a new 
normal, one of Chinese regional supremacy.
    In the Philippines we can see this clearly. Even as the 
world's bravest coast guard routinely faces extreme danger at 
sea from China's paramilitary ships, CCP acolytes organize 
lavish events ashore through united front-linked organizations 
assembling business and civic leaders to normalize CCP 
positions.
    It recruits and trains influencers through scholarships and 
other programs who then provide local voices for Chinese 
interests for broadcast on international media platforms.
    China's gray zone success exploits gaps in our national 
security bureaucracy designed as it was--designed as that 
bureaucracy was against historical conventional threats.
    Beijing identifies strategic features, establishes presence 
through ostensibly civilian means, then escalates through its 
maritime militia and coast guard and backed by military force, 
all while maintaining the fiction of a peacefully rising China 
persecuted by local provocations.
    Our window to act is not just closing, it is vanishing. 
Beijing is even now consolidating recent gains and turning 
toward new objectives.
    We urgently need a comprehensive national counter-ICAD 
strategy that coordinates diplomatic, informational, economic, 
legal, cyber, and security instruments to meet this challenge.
    This strategy must also learn from the Philippines example 
and creatively integrate assertive transparency as a core tool, 
proactively collecting and rapidly releasing evidence that 
systematically exposes China's gray zone aggressions to deny it 
the cover of opacity and deniability upon which it has built 
its campaign.
    We must repurpose agencies like the U.S. Agency for Global 
Media to counter political warfare, establish a development 
assistance program explicitly focused on building resilience 
against gray zone tactics, and mobilize our defense innovation 
ecosystem against this threat.
    Only a unified and well resourced national effort can 
prevent China's gray zone successes from becoming irreversible 
precedents. But to win we must first get our team on the field 
and organize for this campaign, the one we are already in.
    Thank you, and I look forward to your questions.


    [The prepared statement of Mr. Powell is located at the end 
of this transcript begining of page 41.]


    Senator Ricketts. Thank you, Mr. Powell.
    Our third witness today is Dr. Ely Ratner. Dr. Ratner is 
currently a principal at The Marathon Initiative. He served as 
Assistant Secretary of Defense for Indo-Pacific Security 
Affairs from 2021 to 2025, and as Deputy National Security 
Advisor to Vice President Joe Biden from 2015 to 2017.
    He has also worked at the State Department and in the U.S. 
Senate as a professional staff member on the Senate Foreign 
Relations Committee.
    Outside of government, Dr. Ratner has worked for a number 
of leading think tanks including the Council on Foreign 
Relations and the RAND Corporation.
    Dr. Ratner?

     STATEMENT OF DR. ELY RATNER, PRINCIPAL, THE MARATHON 
                   INITIATIVE, WASHINGTON, DC

    Dr. Ratner. Chairman Ricketts, Ranking Member Coons, 
distinguished members of the subcommittee and committee, thank 
you for the opportunity to appear before you today.
    Let me begin by commending your strong bipartisan 
leadership to advance U.S. policy in the Indo-Pacific. This is 
desperately needed and more important than ever.
    As I have testified before, our stakes in the competition 
with China are enormous and, yet, despite significant progress 
the United States is still not addressing the challenge with 
the level of urgency, attention, or resources it demands.
    This is also true in the gray zone where U.S. policy is too 
often risk averse, reactive, and inconsistent. My fellow 
witnesses today have done a great job describing and assessing 
China's ICAD behavior so, Mr. Chairman, I will spend the 
balance of my time on the question of what we should do about 
it, highlighting a few recommendations from my written 
testimony for how Congress can help shape a new approach to 
this critical challenge.
    First, we can and should do more to strengthen our allies. 
It is profoundly in America's interest to have partners who can 
provide frontline defenses against China's coercion.
    When our allies are more capable they can do more on their 
own, they can contribute more to our collective defense, and in 
doing so they can help to strengthen deterrence and reduce the 
costs and risks shouldered by U.S. forces.
    This is why the Trump administration, tactics aside, is 
doing the right thing by urging our partners to spend more on 
defense.
    But many of them cannot do it entirely on their own, 
whether in the case of the Philippines or the Pacific Islands, 
and even though we acknowledge that China is our primary 
challenge, U.S. security assistance still does not reflect that 
reality including major programs such as U.S. foreign military 
financing.
    Going forward, Congress can lead in correcting this 
imbalance by ensuring that U.S. support both in scale and focus 
reflects this prioritization of the China challenge.
    Second, this is especially true when it comes to Taiwan 
where China's gray zone activities are growing more intense by 
the day. To be frank, I am concerned that the current direction 
of U.S. policy is reducing U.S. support for Taiwan and 
undermining America's commitment to peace and stability in the 
Taiwan Strait.
    Congress can lead by advancing an all-of-the-above strategy 
for Taiwan's defense and resilience that uses the full set of 
tools available consistent with and reaffirming our commitments 
under the Taiwan Relations Act.
    That should include timely foreign military sales, foreign 
military financing, Presidential drawdown authority, and 
support for Taiwan's defense industrial base.
    Mr. Chairman, we also have work to do here in Washington to 
compete more effectively in the gray zone and that starts with 
crisis preparedness.
    The administration needs to be ready with concrete options 
for specific contingencies such as a blockade of Second Thomas 
Shoal, a military over flight of Taiwan, or a maritime 
incursion close to Taiwan's shores.
    These could include rapid U.S. military deployments, 
coordinated responses with our allies, or preauthorized 
sanctions packages. Congress should use its full authorities, 
including briefings, hearings, and legislation to ensure that 
preparation is real and ongoing.
    Finally, as you heard from my colleagues today, we have 
more to do to compete in the information domain. Information 
operations are central to China's gray zone strategy, used to 
amplify its strengths, obscure its predatory activities, and 
shape global narratives to its advantage.
    Each year China's Government spends billions of dollars on 
State propaganda and overseas influence operations and, yet, to 
our own disadvantage U.S. policy in this space is nearly 
nonexistent.
    Instead, we should be proactively exposing, documenting, 
and publicizing China's illegal and coercive activities. Doing 
so can deter malign behavior, dilute the effectiveness of 
China's actions, and strengthen the resolve of partner 
governments to resist.
    To that end, Congress should lead an effort to build new 
U.S. institutions equipped and resourced to compete with China 
in the information domain.
    Otherwise, this prevailing gap will remain one of the most 
significant shortcomings in America's ability to meet the China 
challenge both in the gray zone and more broadly.
    Mr. Chairman, those are just a few of the recommendations 
from my written testimony. Thank you again for your leadership 
and I look forward to your questions.


    [The prepared statement of Dr. Ratner is located at the end 
of this transcript begining of page 54.]


    Senator Ricketts. Great. Thank you very much.
    Now we will go into a round of 5-minute questions.
    And, Senator Cornyn, I believe you have an intel briefing 
so I am going to take my first question and offer it to you.
    Senator Cornyn. Thank you.
    Well, thank you, Mr. Chairman, for your courtesy. I would 
like to ask, maybe starting with Mr. Singleton and go down the 
row here, a few years ago when I visited Australia with Senator 
Warner, who was chairman of the Intelligence Committee, and 
Angus King and also another member of the Intelligence 
Committee, I was struck by the fact that talking to Australian 
parliamentarians that the assumption that I had made that 
Australia would join in any collective defense of Taiwan that 
the United States was involved in just as a matter of course.
    But because of the politics in their own country, the 
diaspora of Chinese in Australia, it caused me to question who 
might join us in that effort.
    Mr. Singleton, who can we rely on besides ourselves?
    Mr. Singleton. It is a great question, and I think what the 
PRC is doing is actively exploiting all the cleavages amongst 
the democracies to sow doubt on this question.
    I personally believe that in the event of a Taiwan 
contingency Canberra would step up, but it will, largely, 
depend on the political calculus in Canberra at the time, the 
makeup of its government and, of course, the Chinese get a vote 
and the leverage that they can employ over the Australians and 
all of our partners, frankly.
    I would put the most bang for my buck on the Japanese. I 
think we have seen real shifts in strategy, rhetoric, and 
resource allocation in Japan. The election of a new, very 
hawkish Japanese prime minister is an excellent sign.
    But ultimately, at the end of the day, I suspect this will 
come down to U.S. power and U.S. pressure in the region.
    Senator Cornyn. Mr. Powell, do you have a different view?
    Dr. Ratner?
    Mr. Powell. I do not. I completely agree with Mr. 
Singleton.
    I was the U.S. attach for Australia to 2020. I used to--
when I would brief our incoming delegations I would often 
remind them that Australia is, despite all of our experience on 
the military side, is not the 51st State and does not 
necessarily sign up to everything that we decide to do even 
though they have been extraordinarily consistent in supporting 
U.S. operations throughout the decades.
    I think that one of the things we often forget is that when 
we are engaged in our own internal public discourse that the 
world watches and that they are also, in many cases, 
democracies and so it is very important that we sort of 
calibrate our rhetoric so that we bring them in rather than 
sort of find reasons to sort of cleave them off.
    So it is very important, I think, that we sometimes when we 
are talking out loud remember that the Australian people are 
listening.
    Senator Cornyn. Dr. Ratner, let me withhold that answer 
from you because the time is limited and I want to get back to 
all of you on another important topic.
    A few years ago as a result of COVID we realized how 
dependent we are on extended supply chains of critical 
technology, for example, advanced semiconductors, and it 
occurred to me and not just me alone but many of us that 
another pandemic, another war, another natural disaster would 
be disastrous to the United States in terms of our access to 
advanced semiconductors that we need for virtually everything, 
including our weapons.
    So I wanted to ask about our dependency on China for 
processing of critical minerals. Ninety percent of the world's 
critical minerals are processed in China.
    They use that as enormous leverage, and while we did plus 
up the Office of Strategic Capital and the Development Finance 
Corporation and the Working Families Tax Cut Act, otherwise 
known as the One Big Beautiful Bill, how should we use that 
leverage, leverage those authorities and that funding to 
counter PRC's dominance when it comes to critical mineral 
processing?
    We will start with you, Mr. Singleton.
    Mr. Singleton. Sure. I would just add that the late Chinese 
leader Deng Xiaoping said that the Middle East has oil but 
China has rare earths and they have shown a willingness to 
weaponize it in the last year.
    I think this gets back to your last question, where are our 
partners? The Australians are a natural partner here. They are 
a mining superpower.
    The Japanese have capital and they have connections in 
countries like Malaysia where President Trump is getting ready 
to go in a few weeks.
    We should be signing deals in this space aggressively, 
thinking about capital pooling but also offload agreements, and 
I think it just represents a tremendous opportunity for 
enhancing alliance cohesion in the region.
    Senator Cornyn. Let me ask Dr. Ratner, do you have a view?
    Dr. Ratner. I would agree with Mr. Singleton and just say 
that, look, we need to build secure supply chains with our 
allies and partners, not closing ourselves off from the rest of 
the world.
    Senator Cornyn. My time is up. Thank you, sir.
    Senator Ricketts. Ranking Member Coons?
    Oh, do you want to----
    Senator Coons. I am inclined to defer to Senator Duckworth 
if she is prepared to question because we are going to do a 
number of rounds.
    Senator Duckworth. Thank you, Mr. Chairman, and thank you, 
Ranking Member Coons.
    On my frequent travels to the Indo-Pacific, the PRC's 
coercive and aggressive tactics are never far from the 
forefront.
    Two years ago, I met with the Philippine coast guard just 
as we were delivering the first Black Hawk helicopter to them 
that was eagerly anticipated and had been put to use. They had 
endless examples of videos of the wildly aggressive actions 
coming from the PRC and those actions have only continued to 
escalate.
    We have seen the PRC weaponize the tourism industry and sow 
disinformation to try to destabilize their neighbors. This is 
all part of their playbook and we all recognize it.
    Illinois soybean farmers are feeling it today, too, as they 
are being screwed over amid the Trump tariffs, bearing the 
brunt of some very real pain right now.
    So having co-led repeated bipartisan delegations to the 
Shangri-La Dialogue in recent years, I know that there is 
strong appetite for continued United States commitment to the 
region, particularly as a Pacific power ourselves, and we all 
know that in our absence the PRC will fill that vacuum and 
exploit every loophole that they can find with energy 
dependencies being another obvious target.
    And we can project our power militarily and we must 
continue to show up for our allies and partners to keep proving 
that capability. But I feel very strongly that we have to show 
up on other fronts, too, and I believe there is a bipartisan 
interest in doing so, especially on the energy front.
    Mr. Singleton, you have discussed this already, how 
Taiwan's energy dependency is an acute and severe 
vulnerability.
    Can you elaborate on your recommendations and specific 
steps that the United States should take to ensure LNG supply 
flows remain stable and accessible? And, no, Senator Sullivan 
did not pay me to say that.
    [Laughter.]
    Senator Duckworth. What about other sources of energy? 
Because I have had this conversation with the Taiwans 
themselves. Thank you.
    Mr. Singleton. No, absolutely, it is wonderful to see you 
again, ma'am.
    Energy is Taiwan's soft underbelly. There is no doubt about 
it. They are--Taiwan has one of the most taxed grids of any 
OECD country.
    In the recent TTXs--and this is a fair warning for any 
think tanker that wants to go against the senator in a think 
tank or a war game. She had my number as the PRC in move one so 
that was pretty frightening.
    But we realized pretty quickly that the Chinese were going 
to leverage low-level administrative and lawfare tactics to 
start to require permission for LNG tankers to cross the 
strait.
    You keyed in immediately on the disinformation component 
with the cyber element as well, and it was designed to create 
societal panic, to force hard choices in Taiwan between 
powering households or powering industry and it cost me as 
China very, very little.
    I think, obviously, we need to be pressuring Taiwan's key 
suppliers, including Qatar, that if they do try to cutoff 
Taiwan that they face some pretty serious consequences from the 
U.S.
    Taiwan has to do its part. They need to be thinking about 
restarting mothballed nuclear facilities. They need to be 
thinking about purchasing their own LNG tanker fleet. That is 
something we can help them with.
    But we also can help them fast track the purchase of U.S. 
LNG, which is something they would like to do, as well as 
invest in infrastructure projects, expanded terminals, 
emergency storage.
    That will all encourage resilience measures that I think 
would enjoy broad bipartisan support on Capitol Hill.
    Senator Duckworth. Thank you. So the United States military 
presence is not only an essential tool for regional defense but 
also a fundamental element for proactive engagement and power 
projection, deterring the PRC from increasingly trying out 
their luck.
    We have a number of critical alliances and partnerships in 
the region. That we do not have to go it alone has always been 
one of our distinct advantages over the PRC in the Indo-
Pacific.
    That commitment has to be a two-way street and our allies 
have to trust that we will actually show up and be there when 
the time comes. But that trust has been shaken this year.
    Mr. Powell, given your expertise on gray zone tactics, what 
strategies did the United States adopt to facilitate a 
coordinated approach with our Indo-Pacific partners in 
addressing the PRC's territorial claims and broader regional 
influences?
    Mr. Powell. Senator Duckworth, thank you for the question. 
One particular one that I have already mentioned in my opening 
comment and which we have spent a lot of time on is studying 
very hard what the Philippines has done with assertive 
transparency.
    Now, ``assertive transparency'' is a term that we developed 
at SeaLight; the Philippines itself does not use that exact 
term.
    But the systematic exposure, documentation, and release of 
information about gray zone tactics pulls back the curtain of 
China's opacity and deniability that they use to conduct their 
gray zone activities.
    In short, I think we should light up the gray zone.
    Senator Duckworth. Thank you. And can we replicate these 
strategies around the world? What can you say about specific 
regional concerns that we should bear in mind here?
    Mr. Powell. Well, do that is, I think, one reason why it is 
important to also bring in outside actors. Now, I recognize as 
an outside actor involved in the transparency space there is a 
little self-interest here.
    But I think one of the reasons that SeaLight exists is 
because we recognize it is actually very hard for governments 
to release information due to security, political, diplomatic, 
all kinds of different--just bureaucratic reasons.
    So I think there needs to be a combination of aggressively 
doing things like declassifying information, releasing 
information from government sources, which have the best 
information, but also bringing in private actors that actually 
bypass the government bureaucracies so that you can kind of 
have all hands on deck.
    Senator Duckworth. Thank you.
    I have a final question. May I--thank you, Mr. Chairman, 
for indulging me.
    I think, looking forward, there are many steps that the 
United States should take to mitigate the PRC's illegal and 
coercive actions in the Indo-Pacific but we also have to ensure 
that we keep open both diplomatic and financial channels with 
our partners to help them close their deficiencies.
    For instance, again, we talked about enhancing Taiwan's 
base load energy options. Previous administrations' efforts to 
mitigate the immediate PRC threat to Taiwan have worked.
    Yet, the Trump administration is withdrawing U.S. influence 
at a time when we actually need to show the PRC we remain with 
our friends.
    Dr. Ratner, what specific steps should the United States 
take to demonstrate its long-term commitment to the Indo-
Pacific and its allies, and what are immediate and key 
components that need to be addressed and how can we reconcile 
those needs with this administration's retreat from our 
longstanding commitments?
    Dr. Ratner. Well, thank you, Senator Duckworth.
    I mean, clearly, I think we have heard from the chairman 
and ranking member as well as the witnesses today that we do 
need what we call a whole-of-government strategy that includes 
military operations and military support and assistance and 
being with our allies, as you suggest.
    But it is much more than that. We need our State Department 
rallying the international community in support of our allies.
    During the previous administration when the PRC would 
engage in these kind of activities against the Philippines 
there would be a chorus of over a dozen countries around the 
world speaking out about the dangers and the unacceptability of 
that behavior.
    So that is quite important. We need development assistance 
to be strengthening the resilience of our partners, helping 
with their economic development.
    We need the information part of this equation more clear to 
get the message out to the region and we need to think about 
legal tactics to be pushing back on China as well.
    I will add one other thing, Senator Duckworth, in the 
context of your original question to Mr. Singleton about 
energy, which is that the PRC has its own energy 
vulnerabilities and they have been doing a lot to try to patch 
those up, but they are not there yet.
    Their energy consumption is only increasing and they have 
major vulnerabilities in that regard just like they have major 
vulnerabilities politically, diplomatically, in the information 
space, with trade, finance, and economics.
    And we need to be much more strategic about how we are not 
just playing defense and trying to put band-aids on our own 
allies and partners but, rather, thinking about how do we layer 
our strengths with our allies and partners against China's 
weaknesses and vulnerabilities to create opportunities of 
advantage to start pushing back on this.
    There are a number of places to do that. I do not think we 
have done that effectively yet and we need to be willing to ask 
hard questions.
    It does not mean regime change. It does not mean we are 
going to take actions that undermine the livelihood of the 
Chinese people.
    But there are very much clear things we can do to push back 
on the regime in Beijing that we have not done yet and we ought 
to change that.
    Senator Duckworth. Thank you, Dr. Ratner. Thank you, Mr. 
Chairman.
    Senator Ricketts. Thank you, Senator Duckworth.
    Communist China's ICAD activities are expanding in scope, 
sophistication, and coordination across the Indo-Pacific. These 
are not isolated provocations. They are pillars of a systematic 
strategy to reshape the regional order in Beijing's favor.
    We are witnessing a pattern. Maritime intimidation in the 
East and South China Seas, cyber attacks and disinformation 
campaigns undermine democratic resilience, economic coercion 
used to silence criticism, and lawfare employed to legitimize 
illegal territorial claims.
    Each tactic reinforces the next. Together, they create a 
playbook of political warfare designed to erode sovereignty, 
fracture alliances, and normalize Chinese control through 
pressure--short of the pressure of war.
    So, Mr. Singleton, given the range of tactics, you 
mentioned, obviously, energy being Taiwan's, in particular, 
soft underbelly. But what tactic do you think or what has the 
Chinese ICAD activities that has been the most effective?
    Mr. Singleton. I think that what is fascinating about what 
they are sort of executing is that all of it is very self-
reinforcing and I think Mr. Powell hit on this in his 
testimony.
    Enhanced and expanded military operations around Taiwan in 
particular feed into a political warfare messaging that you see 
that is intended to sort of wear them down and I think there is 
a psychological effect to this that over time it becomes clear 
that time is on China's side, that there is no other choice. It 
is a fait accompli.
    I think it is the use of psychological warfare that is 
unique and distinct from our model of soft power that we have 
not actually sort of contextualized and we have not built the 
tools and resources today to wage war with it.
    We did in the past, though. There is muscle memory from the 
Soviet Union when we went against Soviet active measures. I 
think we need to sort of dust off that playbook and start to 
think about how we can play in the sandbox here as well.
    I think Ray's point about sunlight is the best disinfectant 
is a cliche but I think it is particularly important as we talk 
about Chinese political warfare.
    Senator Ricketts. Mr. Powell, you talked about the need for 
strategy. Can you explain just broadly, like, what would a 
strategy look like? When you say strategy, help us understand 
specifically what you mean we should be doing.
    Mr. Powell. Chairman Ricketts, thank you.
    You know, I think it begins with having somebody whose 
responsibility it is to organize the campaign, right? So part 
of our problem is that we have--I mean, I have spent 35 years 
in the world's greatest military. It is also the world's 
biggest bureaucracy and it is--but it is primarily built around 
a hard power problem.
    As a 35-year military veteran I can tell you that in many 
ways this is not a military problem. It is a whole-of-
government problem, a whole-of-society problem, and whose job 
is that?
    I mean, is there somebody on the National Security Council 
who is taking this on and saying, how do we wage a successful 
campaign against an ICAD enemy?
    And one of the things I think the--you know, I know, 
Chairman, that you have chosen the term ICAD over gray zone. I 
actually sort of use both interchangeably in part because I 
think that both are helpful for different reasons.
    In the gray zone case, I use it because China knows how to 
fill in all of those gaps in our bureaucracy. So however it is 
that we are organized, they will organize a counter campaign 
utilizing their sort of fusion--their civil-military fusion 
organization to sort of push into the gaps.
    And so we need somebody whose job it is to build the 
counter ICAD strategy and then to get everybody together. 
Unfortunately, I do not--I cannot tell you what all the 
elements of the strategy is.
    Obviously, I am very much a fan of the tactic of assertive 
transparency, but I think it is going to take some extremely 
deep thinking to figure that out.
    Senator Ricketts. Right.
    Dr. Ratner, obviously, you have spent a lot of time in 
government.
    Can you tell us a little bit about when you were in 
government what did those strategic options to respond to ICAD 
look like and what are some concrete things that we ought to be 
thinking about?
    Dr. Ratner. Well, Senator Ricketts, it relates to the point 
in my opening statement about preparedness because one of the 
things that we did do when I was at the Defense Department with 
the interagency was in fact to do a huge number of scenario 
planning, a lot of which was organized by the National Security 
Council so included economic measures and development measures 
as well and actually built a whole set of options around 
potential contingencies and then associated with them U.S. 
policy options up against escalatory ladders of actions the PRC 
could take.
    So I think that is really important work and that ought to 
continue, but that was not addressing what we were seeing on a 
day-to-day basis and I would again reflect back on the comment 
in my opening Statement that I think, frankly, as a government 
we have been too risk averse.
    We ought not be, you know, pigheaded in terms of our--or 
overly aggressive in terms of our reactions to get into some 
escalatory spiral to the PRC.
    But I do not think we are in danger of that and what we 
have been in danger of is self-deterrence and not at all 
testing what I would describe as the elasticity of 
decisionmaking in Beijing because they themselves are also 
quite risk averse against getting into a conflict with the 
United States.
    And as I look back on the last couple of decades that I 
have had the opportunity to work in the State Department, at 
the Defense Department, in the White House, up here on the 
Hill, there are very few instances where when the United States 
asserted itself with American power with our allies and with 
conviction and commitment that Beijing then becomes and tries 
to escalate against that.
    That has not happened very much. So what we need to do, 
whether it is in the Taiwan Strait, whether it is in the South 
China Sea, is to start pushing back in a way with our power and 
conviction and allies that, again, test that risk aversion in 
Beijing as well and I do not think we have done that 
sufficiently yet.
    Senator Ricketts. Would you agree with Mr. Powell that it 
maybe starts by putting one person in charge of designing the 
strategy to combat it?
    Dr. Ratner. I think that would help. In the previous 
administration there certainly were single individuals in the 
National Security Council that were in charge of doing that 
around particular issues, whether it was the Taiwan issue set 
or the South China Sea issue set.
    Whether we need someone regionally I think that is a good 
question. But I think I have seen the process working pretty 
well when there is a single individual around an issue set, 
yes.
    Senator Ricketts. Great, thank you.
    Senator Coons?
    Senator Coons. Thank you, Senator Ricketts, and thank you 
to all of our witnesses.
    So if I could, a part of the challenge of where we are 
right now is that the National Security Council has been 
significantly downgraded in terms of its staffing, its scope, 
its reach.
    We are reinvesting significantly in our military, which I 
think is a positive. We have had some fundamental restructuring 
in terms of our development program. USAID is gone and a number 
of its key programs like the Global Media Enterprise are either 
gone or being restructured.
    I will just posit that I think our greatest strength in 
terms of pushing back on China's illegal and coercive, 
aggressive, and deceptive behavior is our full spectrum all-of-
government all-of-society approach, our economic power, and our 
alliances.
    And you had a conversation earlier with Senator Cornyn 
about Australia. I led a bipartisan CODEL to the U.S.-Australia 
Leadership Dialogue in Adelaide in the summer and was really 
struck at how uniformly the Australians are seized with the 
challenge of China, have significant reach in the region, in 
Papua New Guinea, in the Pacific Island nations, in terms of 
development, defense, diplomacy, and are a great partner.
    I would be interested in two things.
    Dr. Ratner, I was intrigued by your proposal in a recent 
Foreign Affairs article about a defense collective pact or a 
deterrence pact between the U.S., Australia, Japan, and the 
Philippines, and I would love it if you would expound on that a 
little bit more.
    And if you would, Mr. Powell and Mr. Singleton, how would 
you rebuild the capacity for a coordinated, focused engagement 
around resiliency for Taiwan and alliance coordination around 
ensuring a free and open Indo-Pacific?
    We have got a scattered range of capabilities: the 
Development Finance Corporation, whose authorization has 
expired and cannot do new deals. We have got USTR, which is 
engaged in trade.
    We have got USTDA. These are all independent agencies. We 
have got the Foreign Commercial Service. We used to have in 
USAID development entities focusing on economic strength. In 
the State Department there is an economic bureau.
    How would you pull all of this together? Would you create a 
new agency? Would you come up with a coordinated approach, and 
if so, led by whom?
    How do we get the strategy, the focus, and the leadership 
to deliver on leaning in to our alliances, economic 
development, and our soft and hard power capabilities which in 
coordination should be enough to deter China but when 
disaggregated and discoordinated and discombobulated and 
defunded, I think are issuing an open invitation to increase 
coercion by China.
    Dr. Ratner, if you would, first, on the collective pact and 
then the other two. Forgive me for the very long question.
    Dr. Ratner. Well, thank you, Senator Coons.
    The proposal that I had put forward was for a Pacific 
defense pact, a collective defense pact between the United 
States, Australia, Japan, and the Philippines.
    The rationale for it is, look, the defining national 
security question of our time is how we prevent PRC aggression 
in the Western Pacific in their ambitions to revise the Indo-
Pacific order and the international order.
    The consequences of that, as you well know, would be 
terrible for the United States and terrible for the world. If 
we do that as a team sport with our allies and partners it 
will, No. 1, be more effective, and, No. 2, come at lower cost 
and lower risk to U.S. forces.
    It is a win-win for the United States. We have great 
alliances with those three countries. We have good partnerships 
around the region but those alliances are not connected with 
each other and the question before us then is how do we make 
the whole greater than the sum of the parts as it relates to 
our alliances and how do we create structures so that we can 
actually operate together, deter together, fight together as 
necessary?
    And the fact of the matter is, whether we like it or not 
today we are not prepared to fight as a collective with our 
allies and partners. We do not have the command and control we 
need.
    We do not have the plans we need. We do not have the force 
posture we need. We are not operating together in the way that 
we need to.
    So we need institutions that bring together these countries 
to get prepared in that fashion and what I put forward was a 
proposal to do exactly that.
    Senator Coons. Well, thank you.
    I was struck at INDOPACOM at the senior level at which 
Australian military flag officers are integrated into the 
INDOPACOM, both planning and command and control, and I do 
think the Japanese have stepped up dramatically in terms of 
their defense investment and defense posture.
    And Korea over the last decade has steadily increased its 
posture, but I could not agree more it is not coordinated and 
it does not have interlocking security.
    Mr. Powell--if I might, Mr. Chairman.
    Mr. Powell. Senator Coons, thank you.
    On your question of coordination, how to build the--
essentially, the institution I think we have to start 
domestically in part because, I mean, right now, the way that 
we are putting out policy geopolitics is just--it seems to be 
kind of a minor part of the overall understanding.
    So we have things coming out of Treasury and Commerce and 
all kinds of different parts of the government that seem to be 
disaggregated from the larger strategic problems.
    And so I do think that there needs to be somebody at a very 
senior level whose job it is to think about these things and 
how they are working toward victory or at least, you know, 
competing in this space.
    Second, on the question of whether we should build new 
agencies or repurpose the ones that we have, I think, you know, 
right now as many things have been defunded or even dismantled 
the question being, you know, whether we are talking about 
USAID or USAGM or any of these things, recognizing that there 
actually was an intent behind those things, however well it was 
being carried out, and maybe taking this moment to say, well, 
how do we either build something new or repurpose this thing so 
that it is fighting this fight that we are in right now.
    Because, you know, the idea of, OK, we do not like this 
tool in the toolbox so we are just going to remove it, well, 
yes, but what are we going to put back in the toolbox?
    Because, you know, maybe the new problem--the old tool did 
not fit very well so let us make a new tool or even if we can 
just cleanup the old tool and make it work better.
    And then, finally, I hate to be a one-note Nancy on this 
but, you know, I really do think that transparency has--and, 
again, this idea of assertive transparency has a lot to be said 
for because it is the thing that helps build democratic 
resilience.
    If you look at the Philippines, where were they before they 
began their assertive transparency program in early 2023? They 
were--their primary strategy was built around the problem of 
counterterrorism. They were basically asleep to what was 
happening in the West Philippine Sea.
    Where are they today? Their people are motivated. They are 
holding their lawmakers accountable. They have completely 
remade their strategy so it is focused on archipelagic defense.
    They are investing in their coast guard and their navy and 
their air force, and they are reaching out to a lot of allies 
and making their own allies and partners.
    They are extremely aggressively putting together, and they 
are doing this because in a democracy you need the support of 
the people and in order to get the support of the people you 
have to show them why, and that is what they have done.
    Mr. Singleton. Thank you, Senator, for the question.
    I think the first step is we have to articulate our desired 
end States in the region, which we have not done, and then you 
have to catalog the players who are involved.
    I think when we think both domestically and internationally 
it is clear that not every partner is going to do the same 
thing but every partner has to do something.
    The first step, of course, is we need to talk more openly 
with our partners and our allies about the Taiwan challenge in 
particular but I would also add what is happening in the South 
China Sea.
    Too often these conversations are happening in private. We 
need to start to talk about them in public and that forces, I 
think, hard political decisions both here and abroad about what 
we are actually willing to do to push back on Chinese ICAD 
behavior.
    It is vital that we have at least some centralized 
decisionmaking in our government about this. In the cold war we 
had individuals at the National Security Council specifically 
tasked with combating these sorts of activities. Those people 
do not exist anymore and have not for some time.
    The other thing we have to do, obviously, is resource it 
where Congress comes into play and then hold the 
administration, regardless of who is in power, accountable for 
those decisions and allocations.
    But all of that starts with identifying what is our desired 
end State in the region and, frankly, multiple administrations 
have not really done that very well.
    Senator Coons. Thank you. If I could just briefly.
    As the senior Democrat on defense appropriations, we are 
investing a massive amount in shipbuilding, in networks, in 
long-range fires, in next-generation fighters, all with an eye 
toward Indo-Pacific engagement and with China as our pacing 
threat.
    If the new National Security Strategy significantly 
deprioritizes the Indo-Pacific and the PRC threat, I am 
concerned about whether or not our allies will take that as a 
signal that we are significantly disengaging or under 
investing.
    I recognize that border security and ending the scourge of 
fentanyl and drug trafficking in our country is a priority for 
national security but I think the fight of this century, the 
definitional fight for free societies, is with the PRC and the 
CCP and I hope that we will be able to work together to find 
bipartisan ways to engage, to invest in Taiwan's resilience, 
and to buildup the alliances that will make us successful.
    Thank you, Senator.
    Senator Ricketts. All right.
    So, Mr. Singleton, you were talking about energy a little 
bit earlier about being the soft underbelly of Taiwan. The 
island imports 98 percent of its energy. I think it is 42 days 
of coal it has on hand. I think you said 10--maybe it is 11 
days of natural gas.
    You mentioned that they should dust off some of their 
mothballed nuclear facilities. Senator Coons and I had a 
tabletop exercise that we led with several of our colleagues to 
go through this with you.
    The scenario underscored how quickly an embargo or a 
blockade could escalate into a crisis and highlight some of 
these things and that is why we introduced the Taiwan Energy 
Security and Anti-Embargo Act to help strengthen Taiwan's 
energy resilience.
    Based upon that tabletop exercise that you facilitated in 
May and then, as you have said, you have done in other places 
as well, what are some of the key lessons that stand out and 
some of the concrete steps that we ought to be taking to be 
able to strengthen Taiwan's energy resilience?
    Mr. Singleton. No, thank you for the question.
    I think my key takeaway was just how easy it was for the 
PRC to exert a little bit of pressure and achieve the desired 
end state that it was hoping for, which was societal panic.
    Obviously, I think some of the key provisions we need to be 
thinking about are helping Taiwan with energy diversification. 
We have lots of LNG here.
    You are right, it is 10 days of storage there. We need to 
be thinking about how we can fast track and sign long-term 
deals, offload agreements with the Taiwanese. They want to buy 
our LNG. They want to diversify away from countries like Qatar.
    What can we do to sort of fast track that, and then 
encourage greater integration I think with some of the trusted 
suppliers including countries like Australia on the coal side.
    We can help them with things like strategic stockpiling. We 
can help them buildup emergency energy reserves, particularly 
in the coal space. We want to expand and I think Dr. Ratner 
used a great term, sort of elongate and expand the sort of 
deterrence rubber band, if you will, here to think beyond 10 
days.
    How many more days can we build in to build redundancy? 
Critical infrastructure resilience in Taiwan is a massive 
problem. We need to think about hardening their energy 
infrastructure.
    That includes LNG terminals and pipelines and power grids 
and ports, making them sort of--to inoculate them against some 
of the cyber operations and disruptions that the PRC is 
orchestrating, and we have to do this with the private sector.
    I think one of the key takeaways from both the exercise we 
did with the committee but also in foreign capitals was how 
much the insurance risk market plays in here and whether it is 
thinking about reflagging operations or potential convoy 
operations to break a quarantine or a blockade, but also to 
think about war-backed insurance that could be provided in the 
event of a contingency through U.S. and allied partners to 
ensure that transit of commercial goods and LNG continues to 
flow.
    Again, there are historical precedents for all of these 
things, particularly in the 1980's under Ronald Reagan and the 
Iran-Iraq war. We just have to dust off the history and get 
that muscle memory back.
    Senator Ricketts. Now, you also mentioned that China has 
its own vulnerabilities. What are some specific steps that we 
could do that would remind Communist China that they have got 
vulnerabilities as well?
    Mr. Singleton. Let us not forget that the Chinese are 
almost wholly dependent on their food needs from other 
countries. These are countries where the United States has 
tremendous diplomatic leverage.
    Dr. Ratner mentioned energy vulnerabilities. These are 
pretty severe and intense for the Chinese. But also we have to 
remember that the Chinese economy is currently in a State of 
disarray.
    We have exceptionally low growth. We have an economic model 
that is running on fumes and an economic model that is highly 
vulnerable to sanctions. I think sanction signaling is so 
important.
    I saw that Chairman Risch introduced a bill I think today 
on that very topic. We need to make clear to the Chinese that 
specific Chinese State-owned entities and banks could become 
targets of U.S. financial sanctions in the event that they 
pursue a quarantine operation and I think that that would 
seriously challenge China's calculus.
    Senator Ricketts. Senator Sullivan has a bill that would 
spell out the sanctions that would happen in a Taiwan 
contingency.
    Do you think that putting those down in writing, passing a 
bill, is something that is helpful in deterring Communist China 
or is that giving away our playbook?
    Mr. Singleton. I do not think it gives away our playbook. I 
think consistency in messaging is essential. It forms one of 
those--part of the three-legged stool, right?
    Consistent messaging, credible capacity, which is, I think, 
an area where the Biden administration really excelled, and we 
also have to be thinking about these coordinated 
countermeasures.
    That three-legged stool, I would say, there are 
opportunities to really harden it and do so through legislation 
but also very clear signaling to the PRC that this is not 
costless, and I think today the challenge, of course, is that 
the Chinese are increasingly becoming overconfident and that 
could lead to miscalculation.
    Senator Ricketts. If we were able to pass a sanctions bill 
such as Senator Sullivan has, what about getting our allies on 
board? You have all stressed the importance of our allies and I 
agree it is the strategic competitive advantage we have that 
the PRC will never have.
    So how do we work with our allies on something that would 
be involved in sanctions?
    Mr. Singleton. I think it takes work. It takes engagement, 
of course. I am reminded of the excellent work that the Biden 
administration actually did on unifying export controls on the 
PRC.
    Tarun Chhabra in particular at the NSC was flying around 
the world convincing all of our friends and allies to exert 
tool controls on the Chinese to slow down semiconductor 
manufacturing and tool design and chip design.
    We can mirror that same--piggyback on that same model, I 
think, by convincing partners and allies that we are all going 
to do this together, that it is a unified sanctions framework, 
and that there will probably have to be some select carve-outs 
in certain cases.
    Senator Ricketts. And then encouraging our allies like 
Japan and Australia to pass similar bills?
    Mr. Singleton. Whether they pass certain bills or there is 
just a commitment in kind to follow what we do, I think that 
signaling alone really seeds doubt into China's decisionmaking 
calculus and then they are forced to contend with whether they 
can continue to sustain a war against Taiwan or continue to 
fund certain parts of its military modernization.
    Senator Ricketts. Great.
    Senator Coons?
    Senator Coons. Thank you, Senator Ricketts.
    Let me just follow along in that line, Mr. Singleton. I do 
think that one of the things we need to keep thinking and 
working and legislating around is how do we make Xi Jinping's 
morning ritual not today, not this week, not this month, and 
having a common approach to presignaling about the price that 
will be imposed on China--China's leadership, China's economy--
in exchange for their activities against Taiwan, helps deter.
    Senator Risch in particular but a number of other 
colleagues felt that if we had been more active and clear and 
aggressive in signaling to Putin the price he would pay for 
invading Ukraine we might have deterred Putin's invasion of 
Ukraine or full spectrum large-scale invasion since he 
initially invaded in 2014.
    What is your assessment of what scale and coordination of 
signaling around price would actually be most effective?
    Mr. Singleton. It is a great question. I actually think 
that some of the research that Bonny Lin has done at CSIS on 
gray zone responses is super helpful here.
    The longer that you delay a response to gray zone 
aggression you have to have a more outsized response to 
reestablish sort of a deterrent baseline. I think, as I sort of 
think about the PRC, I agree with Dr. Ratner.
    We are talking about a particularly risk-averse regime that 
is usually inward focused and I think very cognizant in their 
own discourse about their own limitations and weaknesses.
    I think us very cleanly mapping all of their dependencies 
and all of their vulnerabilities and starting to signal where 
we have leverage, whether it is in the tech space. I certainly 
think the economic space is one that has not been sort of 
addressed cohesively.
    Again, it just forces the Chinese to start to account for 
all of these potential complications that will make something 
that is already probably the most consequential and difficult 
invasion known to mankind even less likely.
    But then you cannot discount what we are seeing in the gray 
zone space and the silent subjugation and I think sort of the 
ramping up of activity there such that they are going--we want 
to buy time and slow them down.
    I think it is probably what we need to internalize as our 
strategy. Anything that does and accomplish that objective I 
think should be--get a fair shake.
    Senator Coons. Mr. Powell, last month the PRC announced a 
new national nature preserve at the Scarborough Shoal that 
would create a protected area around a whole coral reef 
ecosystem. Philippine officials have called this another PRC 
land grab.
    Could you just briefly walk through the impact of this 
designation and how it relates to a broader pattern of lawfare 
tactics designed, again, below the threshold of military 
aggression to expand PRC control in the South China Sea?
    Mr. Powell. Yes, Senator Coons. That is a great question, 
and I think as most of us know the PRC campaign for Scarborough 
Shoal really began in 2012 when it basically took effective 
control of access to Scarborough Shoal.
    And then last year--actually early in the year, what we saw 
was kind of a remarkable sequence of events. There was an 
expansion of Chinese paramilitary activity and I classify China 
coast guard and maritime militia as a paramilitary force in 
part because I think it is very important for us to realize 
that we do not have a paramilitary force, which is part of why 
we do not have a good response to these assets.
    So they began to deny Philippine access in a much more 
aggressive way early last year. They also sent in a scientific 
expedition to take a look at the condition of the shoal and two 
things happened.
    One is that they immediately banned their giant clam 
harvesting fleet, which all disappeared around June of last 
year, indicating that they probably found out that giant clam 
harvesting, which is extraordinarily destructive, had done 
great damage to the shoal, and second, they issued a report 
that said the condition of the shoal is great.
    So we then saw they also established straight baselines 
around the shoal, essentially marking it out as territory, and 
so this establishment of a nature preserve is sort of an 
environmental overlay onto that, you know, essentially land 
grab at this point.
    So we can see all of these things working together--the 
establishment of effective control, the lawfare, the 
administrative control, all of these things, and the denial of 
Philippine access.
    And in fact, Senator, I will also say that the collision 
that we observed in August was in part a result of this 
establishment of effective control because the Philippine ship 
that got in close to the shoal I think got in a lot closer than 
China expected, which was what drew in the destroyer which 
almost caused that mutual defense treaty triggering event that 
we all fear.
    So it is part of a larger campaign, and one last thing, on 
top of what Mr. Singleton has said about Taiwan and what we 
have all been talking about.
    I am one, because I have been looking at this in the South 
China Sea so long, I do not actually expect to see a large-
scale quarantine or blockade or anything like that.
    I would be more afraid of what would start happening if all 
of a sudden China announced that it was going to enact a new 
safety regime for LNG ships inbound to Taiwan and begin to, 
say, turn around one and then maybe another one.
    And, again, that would be much more in line with the ICAD 
kind of campaign that they have been waging.
    Senator Coons. I agree with you that, look, we need to plan 
for and prepare for the possibility of a full-scale invasion of 
Taiwan.
    But doctrine, history, preparedness, risk aversion strongly 
suggests that they are much more likely to engage in the 
creeping, steady, aggressive behavior that you were just 
describing and that allows them to assert sovereignty over a 
greater and greater area of the region.
    Let me--a last question, if I might.
    Dr. Ratner, you have talked about how past U.S. policy has 
been overly reactive to PRC actions. What would a more 
proactive U.S. Government approach ideally look like, given 
where we are today and looking forward, given your experience?
    Dr. Ratner. Well, I guess I would--as I mentioned in my 
written testimony, I think there are a couple ways to think 
about this.
    One is at the tactical and operational level and then 
another is at the strategic level. I think at the tactical 
level, as we have talked about there are things we can be doing 
operationally to be doing our own salami slicing back.
    There are new emerging defense technologies, autonomy, low-
cost, attritable systems that we can be using ourselves and 
providing to our partners for them to get out on the water and 
start asserting their claims instead of just defending against 
PRC incursions.
    There are things we can be doing on the development and 
assistance front to try to get ahead of the very likely forms 
of political influence operations, cyber intrusions that we 
know the PRC is conducting.
    Again, we talked about the information domain so there are 
ways to get after this. But I guess what I would say at the--
one thing I think we have to remember as we think about this 
issue set is when we see the PRC doing something out at Second 
Thomas Shoal or out at Scarborough Shoal, those very specific 
tactical features and locations are important but they are part 
of a bigger story, which is China's ambitions to control the 
South China Sea, to control the East Asian littoral.
    What we need to be doing in response and in parallel to 
China's ICAD activities is not just playing whack-a-mole, 
though we should be out there defending their tactical moves, 
but rather thinking about what are the strategic actions we 
need to be taking to ensure that they cannot, in the end, have 
that kind of effective control that they want.
    So with the Philippines, for instance, yes, we need to be 
supporting them out at Scarborough Shoal, but we ought to be 
working on our force posture in the Philippines.
    We ought to be expanding the number of locations we are 
investing in. We ought to be investing a lot more in those 
locations to develop them. We should be bringing more advanced 
capabilities into those locations.
    We should be operating more and more with our allies and 
partners, the Australians and the Japanese, who both have 
reciprocal access agreements now with the Philippines. They can 
be operating and supporting these EDCA sites as well. They can 
be contributing development assistance that are connecting 
roads to our military sites.
    So when we pick up our heads a few years from now, yes, 
maybe China has more coast guard vessels around Second Thomas 
Shoal or Scarborough Reef but, hey, look, the United States has 
a collective defense pact with our partners.
    It has got a robust rotational military presence in the 
Philippines. It has got advanced counter ship capabilities now 
in the Philippines and we are operating with our allies and 
partners like never before.
    I think that is a strategic victory for the United States. 
That is what we ought to be aiming for.
    Senator Coons. Thank you. Thank you to all the witnesses 
and, thank you, Senator Ricketts, for our trip.
    We literally got to see Scarborough Shoal, Second Thomas 
Shoal, that whole West Philippine Sea region on our trip 
together earlier this year.
    It was enormously illuminating, and thank you for this 
hearing.
    Senator Ricketts. I am now going to exercise my privilege 
as chair to ask one last question.
    Just briefly, I want to followup with Mr. Powell. Based on 
that same topic with regard to the Philippines, Senator Coons 
and I introduced the resolution celebrating the 74th 
anniversary of our defense treaty with the Philippines.
    But what are some--I will give you an opportunity to just 
talk about some--what are some of the concrete steps we can do 
to be able to help shore up that relationship with the 
Philippines and help build their confidence and resilience 
against these--you know, these behaviors from China that are 
aggressive, coercive, illegal, and deceptive?
    Mr. Powell. Mr. Chairman, thank you so much for that 
question.
    The Philippines, of course, is extremely dear to my heart. 
Not only have I been married to the Philippines for 35 years, I 
also have, you know, spent a lot of time in the Philippines 
working with the Philippine Government and others there.
    So I think one of the things--you know, back to the fact 
that the Philippines is a democracy and remembering that 
letting not just the Philippine Government but the Philippine 
people know that America is behind them is really important.
    So I commend you for the resolution. I think those kinds of 
Statements are extraordinarily important in the overall 
campaign to reinforce the U.S. commitment to the Philippines.
    I cannot tell you how many times I was asked about the 
mutual defense treaty since early 2023 every time there was a 
ramming or a water cannoning or all kinds of things.
    So there is a lot of concern there that they might be 
abandoned, and as a democracy it is important to note that 
there is a great deal of political warfare in the Philippines, 
that there are groups and--I mean, there was recently a large, 
lavish reception at a swanky hotel in Manila in which basically 
a Philippine council for the reunification of Taiwan assembled 
the Chinese Ambassador and a host of Philippine groups to 
promote Philippine-Chinese friendship, some of which receive 
money directly from China, some of which are supported by 
united front organizations, many very powerful business and 
other kinds of civic leaders.
    So they are in the game very much. So anything that helps 
strengthen the U.S. message that the U.S. has committed 
because, you know, China knows about elections.
    It knows that prior to this administration in the 
Philippines there was an administration that was much 
friendlier to it and there could be in the future, and they 
want to pave the way for that future because they believe that 
a lot more of the fruit will fall from the tree if they have a 
friendly administration.
    So one specific recommendation that might even make Dr. 
Ratner, who used to be in the Pentagon and would have received 
briefings from his people on this idea, squirm a little bit, 
but I have actually recommended that people should go and visit 
the civilian population at Thitu Island in the Spratly 
archipelago.
    I have studied the South China Sea for decades and I can 
tell you that we have as the United States avoided that because 
we have not wanted to sort of throw in our lot with any one 
claim on the fear that we would have to sort of try to then be 
forced to adjudicate all claims.
    But there is a civilian population at Thitu Island. There 
is a runway. You can easily get there by aircraft, and it would 
be a tremendous show of support for a population that wakes up 
every morning and sees dozens of coast guard and maritime 
militia ships not just on the horizon but right there just a 
couple nautical miles away from their shores reminding them 
that China believes they own that island and is coming for it 
eventually.
    So because China is pressing that claim I believe it would 
be very helpful for the United States not only to conduct 
medical civic action programs out there, bring out some 
military doctors and engineers, work alongside our Philippine 
friends and, frankly, U.S. senators should go out there and 
visit and remind them that we stand shoulder to shoulder in a 
very, very real way.
    So thank you again, sir.
    Dr. Ratner. Senator, could I respond to that very quickly?
    Senator Ricketts. Yes, absolutely.
    Dr. Ratner. Mr. Powell invoked my name. He will be happy to 
see in my written testimony that the last concrete 
recommendation that I have is that the United States actually 
revisit its position of not taking a position on the 
sovereignty disputes in the South China Sea because our 
neutrality has been existing in the context of complete PRC 
violation of international law.
    We ought to do it carefully but I think there are models 
like the way that we approach the Senkaku Islands where we 
recognize Japanese administration without taking a position on 
sovereignty.
    We could do something similar in the South China Sea that 
would open up exactly the kind of cooperation that Mr. Powell 
is talking about.
    So we ought to think about how can we support our allies 
and partners in the defense of their own contested features and 
we would need a change in our overall position on the 
sovereignty disputes to do that. So that is something we ought 
to take a careful look at.
    Senator Ricketts. Great. Thank you very much.
    Well, I want to thank all of our witnesses today for a 
really great conversation we had about what further we need to 
do to oppose the Communist China's ICAD activities in the Indo-
Pacific. Really, really valuable.
    I appreciate everybody's contribution and all your service 
to our great nation.
    And with that, the hearing is over.


    [Whereupon, at 3:51 p.m., the hearing was adjourned.]

             Prepared Statements Submitted by the Witnesses


                 Prepared Statement of Craig Singleton


               China Program Director and Senior Fellow, 
                 Foundation for Defense of Democracies

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]



                Prepared Statement of Raymond M. Powell


                Executive Director, Sealight Foundation

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]



                    Prepared Statement of Ely Ratner


                Principal at The Marathon Initiative and
                   Senior Advisor Clarion Strategies

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                            [all]