[Congressional Record Volume 166, Number 9 (Wednesday, January 15, 2020)]
[Senate]
[Pages S219-S220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            CHINA TRADE DEAL

  Mrs. BLACKBURN. Mr. President, over the past few months, we have 
spent a great deal of time in this Chamber discussing our adversarial 
relationships with other countries, but

[[Page S220]]

today I want to draw attention to a truly great economic and foreign 
policy victory negotiated with one of our adversaries. In fact, it was 
signed just a few hours ago.
  When it comes to trade, we have devoted most of our energy to 
drafting and promoting the benefits of the USMCA, but we have also 
gotten a great start on two other trade deals--those that were 
negotiated with Japan that went into effect January 1 and also with 
China, signed today. We are looking forward to this Chamber passing the 
USMCA this week and sending it to the President's desk.
  Back home in Tennessee, what I hear from our agriculture community 
is, we want trade--consistent, dependable, respectful, and fair trade. 
Entrepreneurs depend on consistent, productive trade relations to keep 
their businesses up and running and to put food on their employees' 
tables.
  These Tennesseans play a special role in the U.S. relationship with 
China. In 2017, we exported $2.7 billion worth of goods to China. That 
is from the State of Tennessee. Imports from China accounted for 7.3 
percent of Tennessee's GDP in 2018. They are our third largest trading 
partner, after Canada and Mexico.
  Let me tell you, when things go south with the Chinese, Tennesseans 
feel the heat because of our ag trade. They are really paying attention 
to the ins and outs of our dealings with China, the good and the bad. 
They see the news stories about China's behavior in Hong Kong and 
Taiwan, about spying, about intellectual property theft, and about 
those shady apps that children have probably downloaded onto their 
phones and their tablets. Yes, indeed, they are rightfully concerned. 
They are concerned because they see all of this in the context of their 
day-to-day lives, and they know that diplomatic tensions have just as 
much potential to derail their operations as economic tensions.
  Make no mistake--today's signed deal with China is critical because 
it couples desperately needed relief with backstops that will help to 
keep our friends in Beijing in line. What does that look like? China 
agreed to increase purchases of American products and services by at 
least $200 billion over the next 2 years, which will reduce our trade 
deficit and take care of our farmers, our energy producers, and our 
manufacturers. They committed to reducing nontariff barriers to 
agriculture products and ease restrictions on the approval of new 
biotechnology.
  American producers are covered in terms of free-flowing goods and 
when it comes to the nuts and bolts of the business of innovation. The 
phase one deal includes stronger Chinese legal protections for patents, 
trademarks, and copyrights. We wrote in improved criminal and civil 
procedures to combat online infringement and the exchange of pirated 
and counterfeit goods. These are good signs for our creative community 
in Tennessee. It contains commitments by China to follow through on 
pledges to eliminate pressure on foreign companies to transfer 
technology to Chinese firms before they are given market access.
  I will tell you, we are going to be keeping an eagle eye on this one 
as we move to the phase two negotiations. It also includes new pledges 
by China to refrain from competitive currency devaluations and exchange 
rate manipulation. All of this is covered by enforcement measures U.S. 
officials can trigger if we discover Beijing is acting in bad faith.

  I will tell you, so many in our agriculture community have said of 
these enforcement mechanisms that this is what is going to make a 
difference in their ability to count on trade. Now, these protections 
are more than just an ace up our sleeve; it is peace of mind for every 
American who depends on trade to support their family.
  So phase one is in the books. What is next? More of the nuts and 
bolts that I just talked about.
  If you have been following the past few years of our relations with 
China, you know that businesses trying to deal with Beijing run the 
constant risk of losing control over their own inventions. Intellectual 
property theft and forced technology transfers have defined China's 
relationship with foreign businesses. This is what they complain about. 
They steal those inventions and sometimes actually beat them or match 
them moving into the marketplace.
  In phase two, we will be negotiating a deal that ensures 
participation in the Chinese market is not dependent on these 
unbalanced arrangements. Our efforts will be backed by previously 
passed legislation that enhanced our controls on the export of new 
technology--like advanced robotics and artificial intelligence--and 
strengthened reviews of foreign investment in the United States. We 
know it is an uphill battle. We certainly believe it can be done.
  I want to make it clear that no trade deal is ever going to be 
perfect. It is impossible. However, the first phase of this is a good, 
solid first step. We are taking care of our producers, taking care of 
our workers, and opening up the flow of goods and services. We are 
protecting our innovators in a way that will allow them to prospect in 
one of the globe's most competitive markets without risking the loss of 
their intellectual property. We are giving business owners and families 
peace of mind in the form of enforcement mechanisms that will kick in 
the moment officials determine our relationship with China is about to 
go off the rails.
  Today, our President signed this deal on behalf of the American 
people, and I encourage my colleagues to get involved now as we move 
forward with discussions for phase two.
  I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The senior assistant legislative clerk proceeded to call the roll.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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