00:00I'd like to address three things. One, how the CCP has attempted to coerce the U.S. and our global partners.
00:06Two, some of our current vulnerabilities to CCP coercion.
00:10And three, how we can combat such coercion.
00:14Today, we confront a truth that is hiding in plain sight.
00:18The CCP is not just building an economy, it's building leverage.
00:23It has turned globalization into a trap and has weaponized interdependence.
00:28The CCP has a track record of using its state-controlled levers to target the U.S., our allies, and anyone who dares to defy political will of the CCP.
00:41The CCP does not view its economic tools as democracies do.
00:45Instead of using these tools to uphold freedom, democracy, and human rights, the CCP wields its powers to punish free speech,
00:54bend democratic nations to the CCP's will, and gain even more leverage.
01:00First, let's take a look at how the CCP has used the coercion playbook across the globe.
01:06The chairman mentioned Australia. He mentioned Lithuania.
01:10But in Norway, they were targeted after the Nobel Peace Prize was awarded to a Chinese dissident.
01:16Japan? Blocked from rare-earth exports after a territorial dispute in the East China Sea.
01:23And the list goes on and on.
01:26This brings me to my second point.
01:28America's own vulnerabilities to coercion from China.
01:32From our medicines, to ships, to drones, we are dangerously reliant on China.
01:38But today, I want to focus on rare-earth elements.
01:43America relies on China for over 80 percent, 80 percent of its rare-earth processing.
01:50The PRC developed this control over decades of careful planning and execution.
01:55In 1992, then-Chinese leader Deng Xiaoping famously said,
02:01the Middle East has oil, China has rare-earths.
02:05Let's look at why rare-earths are so important.
02:09They are in something we take for granted every day, namely rare-earth magnets.
02:14And I have one in my hand.
02:16China produces 90 percent of the world's rare-earth magnets.
02:22And how does that work?
02:23Well, I have something here.
02:26This is a simple motor that spins because of rare-earth magnets.
02:31But it's not just in this gadget.
02:34It's in everyday items, including this toothbrush and even this drill.
02:42It's basically in everything you can possibly think of.
02:45These rare-earth magnets power almost all items that involve motors in our daily lives.
02:53Unfortunately, the fact of the matter is, when China decides to cut off these rare-earth elements,
03:02the motors stop and our economy comes screeching to a halt.
03:07And that's what just happened recently.
03:09After President Trump announced a slew of tariffs, the PRC retaliated and blocked a raft of rare-earth element exports,
03:17including the ones that go into these particular important magnets.
03:22The sudden export control set off alarm bells for American businesses, workers, and consumers
03:27who would be the ones to eventually pay the price for shortages.
03:32Ford even announced that the rare-earth shortage forced it to shut a factory in our hometown, Ambassador, of Chicago.
03:39China can so much as flip a switch and cause major damage to the American economy.
03:46That is why this morning I'm sending this letter, Mr. Chair, to the Commerce Department,
03:53asking what they're doing to ensure that China holds up their end of the recent deal on rare-earth exports.
04:00I'm also sending another letter, Mr. Chair, to the State Department,
04:05urging them to work with our allies and partners to diversify our worldwide critical mineral supply chains.
04:12This brings me to my final point.
04:14We must answer CCP coercion with resolve, unity, and resilience.
04:21That means building a collective defense among democratic nations against coercion.
04:26It means investing at home and diversifying our supply chains.
04:29And it means imposing costs, not just unilateral tariffs or sanctions,
04:35but coordinated responses that make clear,
04:38if you attempt to coerce one of us, you will face all of us.
