‘Era of wishful thinking is over’: Gallagher warns economic outreach won’t stop China’s aggression

House Select Committee on China Chairman Mike Gallagher is warning Americans against thinking that economic engagement with China will stop the communist government from aggressively pursuing global dominance.

The committee led by the Wisconsin Republican is probing how to counter the Chinese Communist Party’s worldwide aggression and several lawmakers are preparing to travel to the U.K. this week to meet with leaders in government and business about China.

Ahead of the trip, Mr. Gallagher said Wednesday that the U.S. needs to stop fueling its own destruction.  

“The era of wishful thinking is over,” Mr. Gallagher said at a hearing on Wednesday evening. “The CCP’s economic warfare uses any and all available leverage to coerce us and our allies and it’s time that we defend ourselves and the free world.”

The select committee met to hear from China policy experts, including Eric Schmidt, who formerly led Google’s parent company Alphabet.

Mr. Schmidt told lawmakers that the academic and business sectors’ research breakthroughs are not enough for America to outcompete China.  

The former tech executive believes it is time for the U.S. to spend far more taxpayer money on tech-focused policy to counter China.

“We need more strategic direction from the U.S. government,” Mr. Schmidt said in written testimony. “Just as Congress passes a yearly national defense budget, Congress must also pass technology-focused legislation annually that supports and invests in those sectors critical to U.S. innovation power and creates viable markets that incentivize the private sector.”

Mr. Schmidt’s recommendation for more taxpayer spending comes as Congress is taking early steps toward writing new industrial policy. 

Senate Majority Leader Charles E. Schumer directed fellow Senate Democrats earlier this month to work on a “China Competition Bill 2.0” to halt tech and research theft.

Ten House lawmakers led by Mr. Gallagher will meet in the U.K, this week with members of Parliament and developers of the artificial intelligence group Google DeepMind, among others.

Mr. Gallagher said the U.K. and U.S. face common economic, ideological, and military threats from the CCP.

“For the sake of both our nations and the sake of the free world, we must work hand in hand to stand up to CCP tech theft, United Front work, transnational repression, and flagrant violations of our sovereignty,” Mr. Gallagher said in a statement. “I look forward to working with my friends in Parliament and the government to build upon our special relationship and fight CCP aggression and malign influence across the globe.”