[xysoom]

GOP preps anti-China economic salvo



Editor’s note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro.To get more china financial news, you can visit shine news official website.

It took one missile to pop China’s balloon. Now House Republicans are setting up a 17-bill barrage to isolate its economy and financial system.

The suite of anti-China legislation will be the focus Tuesday at the House Financial Services Committee’s first hearing of the year — underlining the issue’s importance for the GOP conference. It’s also the panel’s first hearing under new Chair Patrick McHenry.

Among the proposals: Imposing sanctions on companies tied to China’s military, admitting Taiwan to the IMF, banning use of the digital yuan by U.S. money services businesses and requiring Treasury to report on risks from the Chinese financial sector.

The experts McHenry lined up for the hearing include former White House, Treasury and Commerce officials. They will outline ways to counter China and make the case for balancing policies so they don’t backfire on the U.S. economy.

Clete Willems, former President Donald Trump’s sherpa to the G-7 and G-20, will tell the committee that it’s critical for the U.S. to play both defense to protect national security, with measures like outbound investment restrictions, while also going on offense to reduce reliance on Chinese supply chains and to open new markets for U.S. firms.

“At the same time as the United States is cutting off capital and technology, we must also be creating new opportunities for U.S. companies affected by these measures,” Willems said in prepared testimony.

You can expect Republicans to take swings at President Joe Biden for not intercepting the spy balloon sooner. But the saga hasn’t derailed the fact that China policy is one of the ripest areas for bipartisan cooperation in this Congress. If anything, the balloon has increased the urgency on both sides of the aisle.

McHenry’s counterpart across the Capitol – Senate Banking Chair Sherrod Brown — is also gearing up to take on the issue. Brown’s committee will focus on China and Russia at a Feb. 28 hearing on sanctions, export controls and other economic tools in foreign policy.