Palmetto State News

Senator Scott highlighted the negative impact the administration’s export control policies, including the Commerce Department’s interim final rule curtailing firearms exports, have on local economies in South Carolina and across the country.

WASHINGTON — 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, Senator Tim Scott (R-S.C.), the committee’s top Republican, stressed the importance of U.S. economic leadership and called out the Biden administration’s shortsighted policies that have damaged American competitiveness, security, and industry. Senator Scott highlighted the negative impact the administration’s export control policies, including the Commerce Department’s interim final rule curtailing firearms exports, have on local economies in South Carolina and across the country, and pushed for solutions that maximize growth here at home and economic pain for our adversaries.

Senator Scott’s opening remarks as delivered:

"Thank you, Mr. Chairman.

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.

President Reagan once rightly noted that we are in 'a different world, and our defenses must be based on recognition and awareness' to combat our enemies of the modern day.

While he was talking about the Soviets, unfortunately, many of our adversaries remain the same.

Russia, China, Iran, and North Korea.

But thankfully, what also remains the same is the American spirit to innovate and to create the world’s leading technologies.

My home state of South Carolina is an excellent example.

From F16s to the world’s best luxury airliners to leading automotive manufacturing to creating next generation technologies—I’d say South Carolina is simply our future.

But to safeguard that future, we must ensure that policies created here in Washington don’t cut off growth and stifle future innovation.

We must have a global economy where America is the leader.

After more than three years of President Biden’s policies we have seen soaring inflation that is crushing everyday Americans, wars across our globe, and our enemies challenging us and our allies at every single turn.

We can—and we must frankly—do better.

So today as we discuss and evaluate some of our economic national security tools—our export controls, investment security, and the Defense Production Act—we must keep these principles in mind.

At times we must be willing to reassess our policies and re-tool our positions.

And frankly let’s consider our allies.

One thing we certainly learned through COVID was depending on China is a really bad strategy.

To be effective in countering China we must work with our allies so that China can’t easily find workarounds to U.S. export controls by simply buying these same technologies and equipment from our friends."

"A failure to look holistically at our economic strategy can—and will—damage American security competitiveness unfairly leaving U.S.-led industry behind."

"In fact a recent study by The New York Federal Reserve found that Biden administration's export control policies on semiconductor industry led decreased profitability job losses $130 billion financial loss across industry."

"With new reports these types policies directly led thousands layoffs states ranging Ohio New York—we scrutinize actions leading results."

"But it doesn’t stop there."

"In my home state South Carolina recent actions Commerce Department revoke thousands export licenses gun manufacturers resulted millions dollars losses."

"I’ve sent three letters Commerce Department issue now reports suggest see over $500 million annual losses across U.S. firearms manufacturers."

"Mr. Chairman I letter submit record."

"In my home state South Carolina small minority-owned firearms business had more than $71 million worth export licenses revoked Biden Commerce Department."

"Unfortunately meant firm defaulted multiple international contracts."

"And now those same contracts being backfilled China others."

"And it my understanding licenses revoked 'foreign policy' reasons such 'furtherance world peace.'"

"So instead supporting American companies just handed over marketplace China."

"Export controls investment security important tools like Defense Production Act should used responsible manner maximizes growth here home economic pain adversaries."

"I strongly believe when better domestic environment better ability innovate manufacture—that means America winning."

"Thank you look forward discussing important issues witnesses."