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Washington, D.C. - U.S. Senators Bob Casey (D-PA) and John Cornyn (R-TX) applaud today’s release of the bipartisan, independent U.S.-China Economic and Security Review Commission (China Commission) 2021 Annual Report to Congress. Within its top 15 recommendations, the report proposes introduction and passage of legislation to “screen offshoring of critical supply chains and production capabilities” to China in order to “protect U.S. national and economic security interests.” This recommendation closely aligns with the Casey-Cornyn National Critical Capabilities Defense Act, which establishes an interagency outbound investment review committee in order to better understand the vulnerabilities created in U.S. supply chains as private industries continue to offshore critical capabilities to China and other competitor economies.

“As China becomes increasingly aggressive in its willingness to manipulate supply chains for its own gain, the United States must take steps to protect our national and economic security interests,” said Senator Casey. “The China Commission’s report illustrates the risks our supply chains face and why it’s so critical to pass the National Critical Capabilities Defense Act. I will continue to work with Senator Cornyn to pass this legislation and I look forward to working with the Biden Administration to ensure we are addressing our supply chain vulnerabilities.”

“We're intensely aware of how China's aggression can impact our economy and supply chains for critical components of everything from cell phones to stealth fighter jets,” said Senator Cornyn. “There's no question that the greatest threat to the world order and to peace itself is the People’s Republic of China, and my legislation with Sen. Casey would address this.” 

The China Commission, which releases an annual report to Congress on the national security implications of the United States’ economic relationship with China, noted this year that “China has shown willingness to weaponize and politicize supply chains” where “U.S. companies may struggle to avoid critical shortages without domestic…alternatives.” The findings of the report bolster the urgent need for the Casey-Cornyn National Critical Capabilities Defense Act, which seeks to avert this vulnerability by creating transparency in what investments and offshoring by U.S. companies compromise critical supply chains. The bill also authorizes the Committee to restrict some outbound investments if they will create an acute vulnerability in a critical U.S. supply chain.

Following the release of the China Commission report today, Senators Casey and Cornyn introduced the National Critical Capabilities Defense Act as an amendment to the FY 2022 National Defense Authorization Act.

Learn more about the National Critical Capabilities Defense Act here.