US panel urges Congress to act on Beijing’s expanding security and economic threats

A bipartisan U.S.-China Economic and Security Review Commission has issued a strong warning to the US Congress, saying China now poses a systematic, persistent and rapidly expanding threat to American national security, economic stability and global influence. The commission said the scale and complexity of Beijing’s activities have grown far beyond traditional military risks and now span technology, supply chains, infrastructure, space and emerging sciences, requiring urgent and coordinated policy action from lawmakers.

The report calls for the creation of a powerful new federal “economic statecraft” agency that would bring export controls, sanctions enforcement and sensitive technology monitoring under a single structure. According to the commission, the current fragmented system has created loopholes that China has been able to exploit. It also stresses that the United States must urgently focus on winning the race for artificial intelligence and other dual-use advanced technologies, warning that a loss of leadership in these areas could weaken both military and economic power.

The commission raised serious concerns about US dependence on China for pharmaceutical ingredients and essential medical supply chains, urging Congress to tighten tracking of critical imports and support the development of alternative domestic and allied manufacturing. It also warned that China could soon dominate global biotechnology industries and recommended building a strong American bio-economy through new national laboratories, expanded research funding and long-term federal procurement guarantees.

Major risks were identified in the US power grid, where Chinese-manufactured components with remote monitoring features could present vulnerabilities. The report urges stricter screening and risk assessments of energy infrastructure. In semiconductors, the commission proposed a major shift away from selling advanced chips, suggesting instead that sensitive technologies should only be accessed through controlled cloud systems with real-time tracking to prevent unauthorized use or diversion.

To improve enforcement, the commission called for the creation of a whistle-blower system that would allow confidential reporting of export control violations involving sensitive technologies. It also recommended setting a national “Quantum First” goal by 2030 to secure US leadership in quantum computing, encryption, materials science and drug development, warning that China is rapidly increasing its investments in this field.

Beyond technology and industry, the report said the United States must strengthen its position in space and establish a coordinated inter-agency task force to counter large criminal scam centers linked to China, particularly in Southeast Asia. The commission also urged the Pentagon to formally assess US military readiness under the Taiwan Relations Act, especially in the event of simultaneous global crises involving countries such as Russia, Iran or North Korea.

The commission concluded that only a comprehensive, whole-of-government strategy can effectively counter Beijing’s expanding threat matrix, rebuild American industrial strength and protect critical technologies that underpin national security and global influence.