[Congressional Record Volume 165, Number 163 (Wednesday, October 16, 2019)]
[House]
[Pages H8187-H8189]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     CHINA: ONE WORLD, TWO SYSTEMS

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 3, 2019, the Chair recognizes the gentleman from Arkansas (Mr. 
Hill) for 30 minutes.
  Mr. HILL of Arkansas. Mr. Speaker, I certainly enjoyed my colleague's 
dissertation there, much of which was a criticism of the Chief 
Executive of our country, when many of the same comments she made could 
be directed at this House and its investigation of the President--not 
following the precedents set, not following the precedents set in the 
Nixon impeachment or in the Clinton impeachment.
  The Speaker has not had a vote of this House to commence an 
impeachment inquiry. That is an open system. That is the transparency 
my friend was talking about. That is the kind of accountability the 
American people would like to see. That should be the policy of this 
House. Sadly, it is not.
  She talks about contacts with Russia by political campaigns. Many of 
us look forward to the investigation by the Attorney General and by the 
U.S. attorney in Connecticut on exactly that in the 2016 campaign and 
how the opposition party, the Clinton campaign, was, in fact, the one 
digging up activities about the Trump campaign.
  So, anyway, I enjoyed that comment about Ukraine, the importance of 
Ukraine, and the importance of democracy in Ukraine. But all throughout 
that presentation, one had to endure a lot of supposition and fiction.
  Tonight, Mr. Speaker, I would like to talk, not talk about Ukraine, 
not talk about Syria, but talk about China and where we are in this 
very important, critical bilateral negotiation between the United 
States and the People's Republic of China to end China's mercantilistic 
trade environment, their lack of openness, their failure to police the 
terrible intellectual property theft that has gone on for over two 
decades there that has hurt not only American businesses but those 
elsewhere in Asia and also in Europe.
  I commend the President for calling out the challenge that we have 
had and faced in the West on how to obtain China as a better player for 
trade. President Trump has worked for nearly 3 years now to change 
China's outlook, to end its mercantilistic protectionism and join the 
world trading system truly, not just on paper, Mr. Speaker, but, in 
fact, completely, and be one with the developed world as it has grown 
its economy so mightily over those two decades.
  I commend the President's point men on this issue: Larry Kudlow at 
the National Economic Council; Secretary Mnuchin, the Secretary of the 
Treasury; and Ambassador Robert Lighthizer, who is his U.S. Trade 
Representative who has the point on trying to work out something that 
is a major change in that relationship between the U.S. and China, but 
also China and the rest of the developed world.
  At the heart of this trade dispute is the fact that we live in an 
integrated global economy with deeply connected, multicontinental 
supply chains. This integrated global economy is based on the 
extraordinary foundation of the post-World War II reductions in trade 
barriers, the expansion of the rule of law, and the extraordinary 
success of the free-market capitalist system that has lifted so many 
out of poverty around the world since World War II and enlivened the 
capitalist spirit throughout the world.
  Beginning slowly in the 1970s and 1980s, the People's Republic of 
China was encouraged to open its domestic market, increase economic 
freedom, better respect human rights and religious tolerance, and join 
the global family of nations.
  Following the fall of the Berlin Wall and the reunification of 
Germany, as that freedom breeze finally blew away the shroud of the 
Iron Curtain, reform in China remained the next great touchstone of the 
post-World War II agenda.

  The 1989 crackdown in Tiananmen Square sidetracked this progress, but 
China's integration into this world economy began in earnest in the 
1990s. That is where this story gets complicated, and that is where the 
concern of President Trump really begins.
  European and American leaders who shared values of economic freedom, 
religious tolerance, and common national security goals witnessed the 
historic and extraordinary transition of post-war Japan and the Asian 
Tigers, those countries of Singapore, Taiwan, Hong Kong, and South 
Korea.
  Over the decades, the Asian Tigers had been authoritarian, condemned 
for their rampant theft of intellectual property and spurning of 
democracy, so much so that, in 1976, when Jimmy Carter was elected 
President of the United States, he campaigned on pulling American 
troops out of South Korea, ending aid to South Korea and writing off 
South Korea as a failed experiment, that it was going to be an 
authoritarian dictatorship and never adapt to democracy, never stop 
stealing intellectual property. Basically, write it off as a failure.

                              {time}  1730

  Fortunately, this initiative was shelved and, instead, we witnessed 
Japan and the Asian Tigers expand their economies, really begin to open 
their markets, fully embrace democracy and the rule of law, and join in 
the world global progress.
  Policymakers considered China to be next, and they believed that, 
while a much larger country, under a much more authoritative communist 
regime, the economic benefits of greater freedom and global 
transparency would penetrate even the Middle Kingdom.
  In 1996, in a column in the Arkansas Democrat-Gazette offering 
suggestions to the Clinton administration on how to have a more 
directed China policy, I argued that China, too, must change. I said: 
``China, as a world power, for her part must recognize that bilateral 
and multilateral treaties are to be enforced. Lack of compliance with 
international treaty obligations must produce a known and delivered set 
of sanctions by the world community. China must clearly understand the 
consequences of noncompliance.''
  So, Mr. Speaker, that is what I wrote back in 1996 as a private 
citizen, former Bush administration official, thinking about what 
needed to change in America and Chinese relations, China's multilateral 
relations.
  So, despite encouragement and best intentions, China has not changed, 
Mr. Speaker, but, instead, has grown more

[[Page H8188]]

aggressive; hence, the challenge of one world, two systems is market-
based capitalism versus state-controlled communism. They are not 
compatible when it comes to this complex, integrated global capital 
market I described.
  In the 1990s, the epicenter of the fight was to reign in rampant 
theft of intellectual property. At the time I uttered those words in 
1996, the U.S. computer software industry, music CDs, and Hollywood 
videos all were being ripped off by the People's Republic of China. In 
1992, the Business Software Alliance testified before the U.S. Senate 
that Chinese piracy was costing the U.S. an estimated $225 million in 
software sales.
  The reality is, despite efforts in 1992 at the end of the Bush 41 
administration and vigorous efforts by President Clinton's negotiators 
Charlene Barshefsky and Mickey Kantor, essentially nothing happened. 
President Clinton threatened to impose 100 percent tariffs on select 
imports if Beijing didn't enforce Mr. Clinton's new 1995 intellectual 
property rights deal.
  So, what happened? Does this sound familiar? Is this not the exact 
conversation we are having today in 2019?
  What happened in 1995? Meeting after meeting was held, agreement 
after agreement was signed, and still the piracy continued. And to my 
point about the world delivering a known set of sanctions that China 
must clearly understand the consequences of noncompliance, instead, 
China was rewarded and admitted to the World Trade Organization, the 
WTO, in December 2001.
  Sadly, pirated goods have only increased. Recently, the Business 
Software Alliance, the same folks I quoted back in 1992, now estimate 
that 70 percent of PC software installed in China in 2015 was 
unlicensed, and the U.S. trade representative estimates that 
intellectual property theft costs between $225 billion and $600 
billion, annually.
  Thus, the world has not banded together and offered clear and known 
sanctions for not following the global trade rules. In fact, global 
trading partners have rewarded such behavior with the admission to the 
WTO and continue to tolerate IP theft, closed domestic markets, and 
dependency on frequently dominant Chinese supply chain participants.
  This is why President Trump has elected to go forward with a more 
aggressive, direct manner and deliver the message that lack of 
compliance with international treaty obligations must produce a known 
and delivered set of sanctions by the world community. However, the 
President's success in this endeavor may well be diluted by the opening 
up of trade disputes all over the world simultaneously, including 
disputes with America's allies.
  Specifically, I am talking about across-the-board unilateral steel 
and aluminum tariffs, for example, or trying to renegotiate every trade 
treaty that we have all at the same time, while we are trying to press 
China.
  Now, that is not to take anything away from the extraordinary work of 
the President and Ambassador Lighthizer to update the North American 
Free Trade Agreement with the new USMCA, updating the U.S.-South Korea 
Free Trade Agreement, and initiating and completing an agricultural 
agreement with Japan. But I have to say that doing all that at once and 
not engaging our allies fully and publicly to be at our side impressing 
China, I think, makes it more difficult, because, as I have traced over 
the past 25 years the lack of success with China, the one thing that I 
would argue that will make it different this time--always dangerous 
words to utter--would be if we had the European Union, Japan, Malaysia, 
Vietnam, the Philippines, South American countries all at our side as 
we tried to get a concrete change in China's mercantilistic behavior.
  In my view, the President would be more successful if he focused on 
this Chinese challenge and rallied the world to a common purpose of 
focusing China on that important point to clearly understand the 
consequences of noncompliance. We have done many things in this country 
that are improving that relationship and fighting, but we must have 
full global support in order, I think and I believe, to ultimately 
lever China into compliance.
  Not successful in Bush 41, not successful with President Clinton, not 
successful with President George W. Bush, little effort by President 
Obama, so I admire President Trump for identifying this challenge that 
benefits the whole world, not just the United States; but it is going 
to take a sustained multiyear, multilateral effort to do that, and I 
wish him well, and those of us in this House stand by him as he tries 
to get a quality, substantive deal to bring China truly into 
compliance.


                       Congratulating Carl Carter

  Mr. HILL of Arkansas. Mr. Speaker, I want to recognize some Arkansans 
who have done extraordinary things in my home district in central 
Arkansas.
  I rise today to recognize Carl Carter for being awarded the 2019 
Community Service Award by the Real Estate Educators of America for 
exceptional spirit of service.
  Carl is a second-year student attending the University of Arkansas 
Clinton School of Public Service in Little Rock. Carl credits his 
strong community service to his mom, Beverly Carter, who lost her life 
at the hands of two people posing as real estate clients.
  Carl founded the Beverly Carter Foundation in her memory, an 
organization dedicated to the cause of helping real estate agent 
safety.
  Through the Beverly Carter Foundation, Carl works to improve agent 
safety through traveling and talking to escrow agents, lenders, agents, 
and brokers all over the United States on how to avoid being the 
victims of crime.
  I know this is only the beginning for Carl, and I am excited to see 
where his ambition and his kind heart take him, and I congratulate him 
on this good work.


                   Recognizing Searcy Fire Department

  Mr. HILL of Arkansas. Mr. Speaker, I rise today to recognize the 
Searcy Fire Department and the firefighters from Station 1 for going 
above and beyond the call of duty.
  Earlier this summer, firefighters responded to a call for a fire 
alarm at a resident's home in Searcy, Arkansas. Fortunately, the 
resident was not in immediate danger, but they did notice one issue: 
The resident could not leave his home without assistance, as there was 
not a wheelchair ramp.
  The firefighters at Station 1 took it upon themselves to fix this 
situation. They reached out to the community for help, including the 
local Lowe's Home Improvement store. They got discounted supplies. The 
Searcy Fire Department Ladies Auxiliary provided funding, and these 
firefighters were able to build a ramp for this resident.
  This is just a small example of how the Searcy Fire Department and 
central Arkansas law enforcement officers go above and beyond the call 
when keeping Arkansans safe. I thank them for their continued hard work 
and service.


                       Congratulating Ryan Davis

  Mr. HILL of Arkansas. Mr. Speaker, I rise today to congratulate Ryan 
Davis for receiving the Arkansas Emergency Medical Technician 
Association Air Medical Award of Excellence. This award honors those 
who help the air medical industry continue to see growth.
  Ryan grew up in Quitman, Arkansas, and is currently the fire chief 
for this community. Ryan is a nationally registered emergency medical 
technician and paramedic and is flight paramedic certified.
  Ryan has served his community since 2003 and also works for Air Evac 
Lifeteam 30 in Morrilton. Ryan has served on numerous State-level 
boards and committees, including the American Heart Association, the 
National Association of EMTs, and also the Arkansas Air Medical 
Society, where he serves as president.
  I would like to extend my congratulations to Ryan Davis for receiving 
this prestigious award.


                        Recognizing Jamie Cheney

  Mr. HILL of Arkansas. Mr. Speaker, I rise today to honor Jamie Cheney 
of Greenbrier, Arkansas, for her outstanding service to our community 
and the State of Arkansas.
  Jamie serves as a local medical technician and also as a volunteer 
firefighter on her day off. She gained her EMT skills at the University 
of Arkansas Community College at Morrilton, where she juggled school 
while working at the Greenbrier Nursing and Rehab Center.
  Jamie received the Phoenix Award while serving as an EMT in North 
Little Rock. This award is bestowed onto

[[Page H8189]]

first responders who successfully revive a patient who has suffered 
from cardiac arrest.
  I am proud to have such a dedicated member of my district 
volunteering and assisting those in need, and I join all Arkansans in 
thanking Jamie Cheney for her selflessness and wish her continued 
success.


                     Recognizing Lindsay Henderson

  Mr. HILL of Arkansas. Mr. Speaker, I rise today to recognize and 
congratulate an emerging leader from the Conway Area Chamber of 
Commerce, Lindsay Henderson.
  Lindsay is a Bald Knob resident and serves as the chief revenue 
officer for the Conway Area Chamber of Commerce. Lindsay was awarded 
the Association of Chamber of Commerce Executives' 40 Under 40 award.
  The 40 Under 40 award honors young professionals who have 
demonstrated significant success in their career, as well as having 
made noteworthy accomplishments in their community.
  The Association of Chamber of Commerce Executives recognizes emerging 
leaders from chambers across the country and honors 40 such chamber 
professionals who exemplify creativity, dedication, and innovation in 
their work towards their chamber's mission.
  I congratulate Lindsay on achieving this 40 Under 40 award and wish 
her continued success.
  Mr. Speaker, I yield back the balance of my time.

                          ____________________