This week, a group of House lawmakers from both political parties will convene with the top executives of Apple, Disney, and Microsoft to explore the potential obstacles and advantages faced by American businesses operating in China.
The meetings, which are scheduled to take place in California, will involve discussions on how US companies can maintain a competitive edge with China while shifting product manufacturing back to the US.
Discussions to Maintain a Competitive Edge with China
Ro Khanna, a leading Democrat whose district includes Silicon Valley, told CBS News that the talks will focus on bringing more electronic production to the US for display screens, microelectronics, semiconductors, and the component parts of smartphones. The lawmakers will also discuss exports of US products to China and how businesses and the federal government can safeguard intellectual property. Khanna emphasized the importance of preventing sensitive technology from getting to China and reducing the trade deficit while increasing exports to China.
Congressional Members Meeting with Business Leaders and Venture Capitalists
The bipartisan group of congressional members is part of the Select Committee on the Chinese Communist Party (CCP). Though all members were invited, only 10 to 12 are expected to attend the meetings. Khanna and Republican Rep. Ashley Hinson of Iowa are among those who will attend the meetings. In addition to meeting with the CEOs of Disney, Apple, and Microsoft, the lawmakers will also meet with venture capitalists Marc Andreessen and Vinod Khosla later this week in Silicon Valley.
China’s consumer and labor market are essential to the American entertainment and technology industry. Last year, for instance, Apple generated almost $24 billion in revenue from China alone. The lawmakers’ meeting with high-profile business executives comes after the House Committee on Energy and Commerce grilled TikTok CEO Shou Zi Chew over that company’s ties to China and its handling of user data.
The Committee’s Purpose
The Select Committee on the Chinese Communist Party was established to examine the CCP’s impact on American politics, economy, and society. In February, during the committee’s first hearing, its Chairman, Mike Gallagher (R-Wisconsin), stated that China poses an ideological, technological, economic, and military threat to the United States.
Gallagher also mentioned in a February interview on “Face the Nation” that the committee plans to engage in constructive discussions with companies that have significant business operations in China, including Apple CEO Tim Cook and Disney CEO Bob Iger. The lawmakers aim to use these conversations to identify potential policy proposals or themes for future hearings.
US Businesses Upholding American Values
Khanna stressed the significance of US enterprises maintaining American principles and verifying that they do not employ forced labor or exploit the Uyghur community, a persecuted Muslim minority group that is frequently compelled to work in Chinese labor camps.
For several months, tensions between China and the US have been mounting in the business arena. In November, the US government prohibited the sale of communication gadgets manufactured by Chinese corporations Huawei and ZTE, citing an “unacceptable risk” to national security.
The upcoming meetings with high-profile business executives show the US government’s increased concern about China’s influence on the American economy. The Select Committee on the Chinese Communist Party’s discussions with CEOs from Apple, Disney, and Microsoft aim to address the challenges and opportunities faced by American businesses operating in China. The lawmakers hope to find ways to increase exports to China while shifting production to the US or allied countries, all while safeguarding intellectual property and upholding American values.
