At today’s U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing focused on advancing national security through export controls, investment security, and the Defense Production Act, Ranking Member Tim Scott (R-S.C.) emphasized the importance of U.S. economic leadership. He criticized the Biden administration's policies for harming American competitiveness, security, and industry.
Scott highlighted the negative impact of the administration’s export control policies, including the Commerce Department’s interim final rule curtailing firearms exports, on local economies in South Carolina and nationwide. He advocated for solutions that maximize domestic growth while inflicting economic pain on adversaries.
In his opening remarks, Scott stated: "I would like to start by reminding this room and our witnesses of the important role they play in safeguarding our nation’s economic and national security priorities." He referenced President Reagan's view that defenses must be based on recognition and awareness to combat modern-day enemies such as Russia, China, Iran, and North Korea.
Scott praised South Carolina's contributions to innovation and technology but warned against policies from Washington that could hinder growth and stifle future innovation. "We must have a global economy where America is the leader," he said.
Scott criticized President Biden's policies for leading to inflation, global conflicts, and challenges from adversaries. He called for reassessing current policies related to export controls, investment security, and the Defense Production Act while considering alliances with other nations to counter China's strategies effectively.
Citing a study by the New York Federal Reserve, Scott noted that Biden's export control policies have resulted in decreased profitability in the semiconductor industry, job losses, and $130 billion in financial losses. He also mentioned layoffs across states like Ohio and New York due to these policies.
Scott expressed concern over recent actions by the Commerce Department revoking thousands of export licenses for gun manufacturers in South Carolina. "I’ve sent three letters to the Commerce Department on this issue," he said. Reports suggest these actions could lead to over $500 million in annual losses across U.S. firearms manufacturers.
He submitted a letter for the record detailing how a small minority-owned firearms business in South Carolina had $71 million worth of export licenses revoked by the Biden Commerce Department for "foreign policy" reasons such as "the furtherance of world peace." Scott argued that these actions inadvertently handed market opportunities to China.
Concluding his remarks, Scott stated: "Export controls, investment security, and important tools like the Defense Production Act should be used in a responsible manner that maximizes growth here at home and economic pain for our adversaries."
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