Chairman Smith Opening Statement at Hearing on Strategic Partnerships to Secure Critical Resources & Supply Chains: America Cannot Let Communist China Control the Resources Our[...]

WASHINGTON, D.C. - Ways and Means Committee Chairman Jason Smith (MO-08) delivered the following opening statement at a Committee hearing on Strategic Partnerships to Secure Critical Resources and Supply Chains, held one week after the Chairman led a congressional delegation to Uzbekistan, Kazakhstan, and Mongolia - three nations situated between China and Russia and at the center of the world's critical mineral supply.

As prepared for delivery.

"Today this Committee meets to discuss how we confront a problem America has failed to address for far too long: our dangerous dependence on Communist China for the critical minerals our entire society, including our economy and our military, cannot function without.

"These minerals are the building blocks of nearly everything that keeps America moving: the alloys in our shipyards and steel plants, the chips in our phones and our fighter jets, the magnets in precision-guided bombs and lifesaving MRI machines, and the fuel in our nuclear reactors and our nuclear arsenal. Today, China - and therefore the Chinese Communist Party - holds dominant control over the global market for critical minerals. China is the leading global producer of 30 of the 60 minerals the United States has designated as critical and controls around 90 percent of global processing capacity for rare earth elements.

"This threatens our military readiness and our nuclear strategy. Armed conflicts in mineral-rich regions disrupt the mining and transport of such resources for months at a time. Criminal networks smuggle minerals across borders to dodge export controls and sanctions, often funneling the profits back to the very regimes we are trying to counter. And when the world's processing capacity sits overwhelmingly in one country, a single policy decision in Beijing can cut off American manufacturers overnight. In such a situation, China doesn't have to score an outright victory to beat us strategically or economically. They just have to control the supply chain. That is exactly why we cannot afford to wait any longer to reinforce our own supply chains rather than let China maintain monopoly power.

"I saw this challenge firsthand just last week when I led a congressional delegation to Uzbekistan, Kazakhstan, and Mongolia. All three countries sit at the center of the world's rare earth and critical mineral supply, squeezed between Chinese and Russian influence, and all three are looking for a strong trade partner in the United States. Kazakhstan already supplies more than a quarter of America's uranium imports; Uzbekistan is racing to nearly double its own uranium production by 2030; and Mongolia sits on one of the largest copper and gold deposits on earth. Their interest in stronger partnerships with the United States is real, and it is an opportunity this country cannot afford to let slip away. Existing law, known as the Jackson-Vanik Amendment, since 1974 has required annual waivers in order to maintain normal trade relations with certain formerly Communist nations. It seems clear from my recent visit to Central Asia that partners in the region view these restrictions as a hindrance to deepening our economic relationship. I appreciate the leadership that Representatives Carol Miller and Jimmy Panetta, as well as a number of other Members of this Committee, have shown in pushing for stronger strategic partnerships in Central Asia. And I look forward to detailed discussion today of how we can best achieve this important goal.

"Africa, as one of the most mineral-rich regions in the world, also holds incredible opportunity for developing resilient supply chains for the minerals we need. As Chairman, I've had the opportunity to lead delegations and travel the continent extensively and I can report firsthand that many African nations are eager to deepen their economic relationships with the United States. But I've also seen with my own eyes that China and Russia are also present in these countries and are racing to lock up critical supply chains through economic manipulation and exploitation. We must strengthen our partnerships with countries across Africa that are looking to the United States for a reliable economic partner. This Committee has already acted to do just that: we passed an extension of the African Growth and Opportunity Act through 2028, extending a vital program that gives eligible African nations duty-free access to U.S. markets. As one witness who is here today testified previously before this Committee, if AGOA were ever allowed to expire, 'there will be a party in Moscow; there will be a party in Beijing' - that's how vital this program is for our national and economic security. I'm thrilled to see this extension is now heading to President Trump's desk. I look forward to today's conversation on how we can carry that momentum forward and leverage an updated AGOA to build out stable supply chains across Africa.

"Diversification away from China shouldn't focus exclusively on foreign sources of critical minerals. There are domestic opportunities that we need to be doing more to incentivize as well. Our country has 47 out of the 60 designated critical minerals, including 35 that we are actively producing - but there are hurdles that must be addressed. In 2023, this Committee traveled to Kimball, Minnesota, and heard directly from that state's mining community about its cobalt reserves, and how China's grip on nearly three-quarters of the world's refined cobalt was shutting American producers out. In my own district in Southeast Missouri, we have one of the few known cobalt deposits in the continental United States. In Fredericktown, a former lead mine that helped arm this country in the Second World War sits on what may be the largest reserve of recoverable cobalt in America. A short drive north of my district, the old Pea Ridge iron mine holds rare earth elements, including the heavy rare earths such as dysprosium, terbium, and holmium, which are all essential for defense, energy, healthcare, and consumer technologies. I wholeheartedly support efforts to develop our domestic resources - but even with expanded production from what we can mine domestically, we will still be reliant on China for a sizable amount of these minerals. We have been raising this alarm for years, and we have tools to act on it, first here at home and also in both Africa and Central Asia.

"President Trump is pursuing a comprehensive strategy to secure America's mineral supply chains. His administration has worked to identify our greatest vulnerabilities, streamline permitting to increase domestic production, and empower the U.S. Trade Representative to negotiate Agreements on Trade in Critical Minerals with like-minded partners. These are significant steps, but long-term success requires Congress to play an active role in shaping these agreements and evaluating the tools the Administration is putting on the table.

"I look forward to today's hearing as this Committee has a real opportunity, and a real responsibility, to help chart a path that reduces our dependence on China, strengthens our partnerships across the globe, and secures the resources our economy and our national security depend on."