Miller Participates in Ways and Means Trade Hearing on Protecting American Innovation Through Strong Digital Trade Rules

Washington D.C. - Today, Congresswoman Carol Miller (R-WV) spoke at a Ways and Means digital trade hearing focused on protecting American innovation by establishing and enforcing strong digital trade rules.

Congresswoman Miller began her remarks by explaining how specific Korean digital policies, if passed, will end up harming U.S. businesses and threaten our national security in the Indo-Pacific.

"Korea may soon pass online platform laws and regulations that would make it difficult for U.S. companies to operate in their country. I am very concerned that such an important, strategic ally like the Republic of Korea is pursuing economic policies that target and discriminate against U.S. technology companies while welcoming state-owned Chinese companies with open arms. Chinese firms are the fastest growing tech companies in Korea, with many leveraging strategic partnerships with Korean monopolies who have a strong influence in Korea's legislature. I am very concerned about the national security implications of Korea's ill-advised economic discrimination and would urge them not to go down this path, and instead, continue our important technology partnership and the goals established in our free trade agreement. Our trade agreement with Korea is the second largest Free Trade Agreement (FTA) by trade flows, second only to the United States-Mexico-Canada Agreement (USMCA). ​​It is extremely concerning to me that our two biggest FTAs are both facing obstacles in the world of digital trade," said Congresswoman Miller.

Congresswoman Miller asked the President of Information Technology and Innovation Foundation (ITIF), Robert D. Atkinson, how China will benefit from the Korean digital policies and how this will affect the United States regarding the economy and national security.

"Can you explain how China wins if Korea pursues economic discrimination policies against the United States and why are Chinese firms seeking to drastically increase their Korean userbase? Do you believe that Korea is assisting them in their growth?" asked Congresswoman Miller.

"Last time I was there [in Korea], I tried to use google maps to figure out where to go and I couldn't. I could use a Korean app company and they say it's national security. It has nothing to do with national security. It's the fact that they wanted to favor their own domestic map companies, their own domestic players. That's what they're doing now by copying the European Digital Markets Act (DMA) and what they want to do is they want to be able to pass a law that would require American companies to turn over data to be interoperable to do other kinds of things that would benefit Korean companies. But they can't write the law so blatantly that it admits that, so it would benefit Korean companies, but it would also benefit Chinese companies. They're willing to make that trade-off because they think it's going to benefit their companies more, and it'll hurt our companies. This will benefit Chinese companies and make them stronger. I would put Korea again in the same categories as I'd put Canada. They need us a lot more than we need them. They're dependent upon us not just for military, but they're so focused right now on building technology partnerships. They want technology partnerships with us and we're going ahead and saying "yes," but I think there must be a quid pro quo with that. Yeah, we want technology partnerships with you so we can both be stronger against the Chinese, but we're not going to do partnerships with you if you do these kinds of discriminatory things," responded Dr. Atkinson.

"What are the national security concerns related to U.S. foreign policy in the Indo-Pacific should the U.S. be less economically tied to our strategic ally as they grow closer to China?" asked Congresswoman Miller.

"So, the fundamental question I think in, in the Indo-Pacific is, are these countries going to gradually move over into the China orbit or are they going to stay in the Western democratic market orbit? The Koreans don't want to pick. They want to have really close relationship with the Chinese because they know Chinese are predatory and retaliatory. They will hurt the Korean companies. They've done that before, but we need to let them know that they can't have it both ways. They have to pick. We're their defender. They need to be on the side of the allies and democracy, so I think it's a critical, critical issue that we make them choose and choose us," responded Dr. Atkinson.

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