Madam President, on other subjects, later today the Senate will move to the consideration of the John S. McCain National Defense Authorization Act. The annual Defense authorization is something our friend Senator McCain cares deeply about…
Madam President, on other subjects, later today the Senate will move to the consideration of the John S. McCain National Defense Authorization Act. The annual Defense authorization is something our friend Senator McCain cares deeply about and has talked to me about regularly, and we wish he were here to shepherd it on the floor as we have seen him do many times before.
It is important that we get this done for our military, for our broader national security, for Senator McCain, and to ensure that this critical authorization bill moves forward on a steady track. Any time we say the name or see the name written, ``John S. McCain,'' our hearts go pitter-patter a little bit, and we pray for his speedy recovery.
The NDAA is an opportunity to revise and improve our national security to meet the evolving threats of a world that is changing so very fast. I just
want to highlight a few provisions in the bill that are important.
Just this morning, Secretary Ross announced that the Trump administration will relax penalties on Chinese telecom giant ZTE. Instead of permanently crippling ZTE, the administration will settle for a smaller fine than the company paid in 2017 and a reorganization of the company's board. It is essentially a slap on the wrist.
As a reminder, ZTE has been a threat to our national security, and that was stated by the Republican-led FCC, Republican-led FBI, and Republican-led Pentagon. This is not a partisan issue. ZTE was guilty not only of evading U.S. sanctions but lying to U.S. officials about it afterward. ZTE has been deemed such a threat to our telecommunications networks that the FCC recommended forbidding the sale of any ZTE products in the United States.
But, inexplicably, President Trump, after talking tough, did a total reversal. Once again, it seems President Xi has outfoxed President Trump. There is absolutely no good reason that ZTE should get a second chance, but with this deal, the President has inexplicably thrown him a lifeline. President Xi must be laughing all the way to the forbidden palace. He has once again taken advantage of President Trump on an issue vital to our security.
Many believe ZTE could be a mechanism for spying on our military and on lots of different parts of the United States. China has shown no reluctance to do that in the past, and we are just rolling over for no reason, having gotten nothing in return. This is a serious mistake, a 180-degree turn away from the President's promise to be tough on China. Donald Trump should be aiming his trade fire at China, but instead he inexplicably aims it at allies, such as Canada and Europe. When it comes to China, despite his tough talk, this deal with ZTE proves that President Trump just shoots blanks. This guy--the art of the deal? He has gotten taken to the cleaners by President Xi, and the rest of the world is probably laughing at him.
We cannot allow the damage from this action by Secretary Ross to stay. We must undo it. It will be up to Congress to reverse this deal if the President goes forward with it, which he has announced this morning he will.
The Banking Committee already adopted an amendment that would prohibit the administration from weakening sanctions against the Chinese telecoms, including ZTE; however, the President has rushed to undo the sanctions before that bill could pass, so it won't affect ZTE because the sanctions have just been lifted by the administration.
Now that the President has rushed to give this company relief, we will offer a bipartisan amendment, led by Senators Cotton and Van Hollen, that retroactively imposes the sanctions originally leveled against ZTE, reversing the consent agreement signed this morning. This is a bipartisan bill. Senator Cotton and Senator Van Hollen don't agree on much, but thank God, when it comes to national security, they are agreeing. This Chamber should overwhelmingly vote for the Cotton-Van Hollen amendment, which I am proud to cosponsor, as I believe Senator Cornyn and others on the other side will do. We must do that. We hope Leader McConnell will allow a vote or, at minimum, put it in the managers' package. We cannot move forward with this danger to national security without doing something about ZTE.
There is also a provision in the Defense bill to expand the jurisdiction of the Committee on Foreign Investment in the United States, known as CFIUS, so that the board can review minority-position investments and joint ventures in critical technology and infrastructure companies.
Too often, foreign companies--usually Chinese--backed by some hostile foreign governments--usually the Chinese Government--and they are hostile to us economically, make no mistake about it. That word is not too strong. They try to gain controlling or minority positions in critical American technology companies to pilfer their intellectual property and reproduce it in their own countries. They don't allow us to sell the goods; they instead buy minority interests in American companies, learn how to do it, produce it in China, and then undercut us and sell it here. No wonder we lose millions of jobs to China.
This must be stopped. Because these foreign companies go to great lengths to avoid a CFIUS review and sneak in under the radar, we ought to widen the scope of cases that CFIUS can look at, better protecting our national security and our economic security, and the Defense bill, fortunately, is the first opportunity to do that.
Now back to ZTE, the ZTE example is perhaps the best example of how this administration's trade policies are in shambles. The President has talked tough on China. President Trump and I agree very strongly--or we had agreed. I don't know where he is now, but in the past, we have agreed. We just had a conversation a few weeks ago about the need to combat China's rapacious trade practices. Initially, I was hopeful the President would follow through. He seemed to do this out of conviction. But it seems that even though President Trump roars like a lion on China, he behaves like a lamb. Instead of ramping up pressure on China, he tells them he is weak. He tells them he will back off. He tells them he is not for real. President Trump has directed far too much of the administration's energies on trade toward punishing allies such as Canada and Europe instead of focusing on the real menace, the No. 1 menace--China.
So if President Trump is listening this morning, I tell him: Be strong on China. Don't trade away our leverage for anything short of real concessions on intellectual property theft and market access--the two things that most threaten our long-term economic standing, that most threaten the American economy, the American worker, and American jobs.