27th Parliamentary-Intelligence Security Forum – Economic Security/Trade

Jake Parker spoke last, building on the prior panelists’ points about trade, manufacturing, and U.S.-China competition. He provided an overview of the House Select Committee on the CCP, which he serves on for the Republican side. The committee, created by Speaker McCarthy, coordinates efforts across congressional committees to strengthen U.S. competitiveness against China.

Parker highlighted several legislative successes over the past two years, including:

• TikTok legislation requiring divestment or sale of U.S. operations.
• Biosecure Act restricting certain Chinese healthcare companies from accessing U.S. procurement.
• A House bill increasing DOJ enforcement resources for U.S. trade crimes.

He emphasized the committee’s December economic report and the bipartisan consensus on “decoupling” or “de-risking” from China, noting that China has repeatedly failed to implement commitments since joining the WTO. Parker argued that granting China most-favored-nation (MFN) status was a strategic mistake that didn’t achieve the expected economic or political outcomes, prompting the committee’s 150 policy recommendations.

Regarding Trump-era trade actions, Parker noted that Section 301 tariffs on China were highly effective: a 1% tariff increase corresponded to a 2% reduction in imports from China, with negligible inflationary effects. He also critiqued the Phase One trade deal for not being fully implemented, and emphasized that the USMCA rules of origin strengthened North American manufacturing content.

On current U.S. policy, Parker observed that President Biden maintained tariffs primarily on finished goods, which is insufficient because supply chains are complex—covering rare earth minerals, battery materials, and EV components. He stressed that U.S. reliance on China cannot be reduced simply by focusing on final products.

Finally, Parker highlighted the tension between climate policy and reliance on China: accelerating electrification increases dependence on Chinese supply chains. He argued Republicans would adopt a more nuanced approach, ensuring guardrails so that Chinese companies aren’t subsidized by U.S. taxpayers, and predicted that new statutory or regulatory measures may tighten these safeguards under a future Congress or administration.