Chinese Economy Would Collapse If US Buyers Cut Support, Says Trump’s China Envoy Pick

WASHINGTON—President Donald Trump’s nominee for ambassador to China told lawmakers on Thursday that the American buyers could deal the Chinese economy a fatal blow by stopping the injection of money.

David Perdue, a former Fortune 500 CEO and one-term senator for Georgia, said in his confirmation hearing that it’s time for the United States to take a stand against Beijing’s unfair trade practices after decades of turning a blind eye.

Perdue said he believes “those days are over.”

“The way forward is for the United States to become informed about that and to stand up to the channels,” he said.

He acknowledged that some sacrifices might be necessary, as “what we’ve become seduced by are the cheap prices that we gave into over the last 30 years coming out of China,” often subsidized by the state.

“If the American public says enough’s enough, what will happen to their economy?” Sen. Rick Scott (R-Fla.) asked.

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“It’ll collapse,” Perdue replied.

Trump on April 2 imposed a 34 percent tariff on China, bringing the existing levy to 54 percent.

Experts have said that prices will likely go up for U.S. consumers with the new tariffs in effect. Still, supporters say that other economic initiatives from the Trump administration, meant to reshore manufacturing back to the United States, could help neutralize the impact.

The Chinese economy is in trouble. Unemployment rates are at a record high, and foreign investors are pulling out. Official Chinese data show that net foreign direct investment, a major avenue for the country’s GDP, dropped by $168 billion over the past year.

At the hearing, Perdue described the U.S.–China relationship as “the most consequential diplomatic challenge of the 21st century.”

Perdue said he would make human rights one of his top priorities if confirmed as the U.S. ambassador.

“One of my top responsibilities as the spokesperson for the people of America and this administration is to make sure they understand how deeply we feel about the atrocities,” he said, after Sen. Jeff Merkley (D-Ore.) brought up the regime’s suppression in Xinjiang and the transnational repression targeting the global Chinese diaspora.

Perdue characterized slave labor, which has accounted for some Chinese products’ low prices, as one tool for Beijing to “cheat” the international trade system.

“If America doesn’t stand up for that, no one else will,” he said.

To defend against such challenges at home, Perdue calls for the United States to establish an education system about the dangers posed by the regime.

“Most people are not aware that they’re in our power grid. They’re not aware that they’re collecting our data. They’re not aware that our ports can be manipulated by people in China. So that is an education process that we owe our people,” he said, adding that the United States should work with allies to develop collective messaging that promotes U.S. values.

Perdue mentioned the book “Unrestricted Warfare,” written by two Chinese military colonels in 1999. One key tenet outlined in there was about disseminating propaganda into countries the regime wants to influence, he said, and his goal as the U.S. ambassador is to make Americans aware of its “subliminal” danger.