The Chinese Communist Party (CCP) is strategically exploiting the American principle of federalism to bypass national security measures and expand its influence within the United States. While the federal government has implemented policies to address some threats, like restricting Chinese investment in farmland, it has overlooked a more pervasive tactic: subnational engagement. Beijing cultivates relationships at the state and local levels, focusing on economic benefits like job creation and investment, which often overshadow national security concerns in the eyes of state and local officials. This approach allows China to circumvent federal oversight and achieve its strategic objectives.
The Foundation for Defense of Democracies (FDD) highlights this issue in its report, “The Near Enemy: China’s Subnational Reach Into the United States.” The report asserts that China’s influence at the subnational level surpasses that of any other foreign power, even exceeding the Soviet Union’s Cold War-era influence operations. This is achieved by prioritizing economic partnerships with state and local governments, capitalizing on their focus on economic development. Chinese state media has even boasted about the willingness of local U.S. governments to cooperate with China, despite ongoing trade tensions at the federal level. This asymmetry between federal and state priorities creates vulnerabilities that China readily exploits.
The FDD report underscores a critical structural weakness in the U.S. system: the division of labor between federal and state authorities. While the federal government is responsible for national security and trade policy, states and localities prioritize economic development and public services. This creates a gap that China fills by offering economic incentives, effectively bypassing national security mechanisms. The CCP understands that by focusing on economic benefits, they can gain access and influence at the local level, often with little resistance.
The report cites examples of both Republican and Democratic governors engaging with China, demonstrating the bipartisan nature of this issue. California Governor Gavin Newsom’s visit with Xi Jinping and Arkansas Governor Asa Hutchinson’s emphasis on subnational cooperation illustrate how state leaders often prioritize economic ties with China over national security concerns. While such engagement may appear beneficial in the short term, it contributes to China’s long-term strategy of building influence and undermining U.S. interests. These actions, while seemingly innocuous, are part of a larger pattern that facilitates China’s expanding influence network.
The FDD argues that this decentralized approach weakens the U.S. response to Chinese influence operations. The report emphasizes the need for a more coordinated approach between federal, state, and local governments to address China’s multifaceted strategy. The current lack of coordination allows China to exploit vulnerabilities within the American system, effectively playing different levels of government against each other. The report calls for a more integrated strategy to counter China’s influence across various sectors, including trade, investment, technology, education, media, and research.
The core issue, as identified by the FDD, is the fragmented nature of the U.S. response. China strategically targets state and local actors, viewing them as vulnerable entry points for influence operations. These efforts not only secure economic deals and cultural programs but also shape narratives and public opinion within the United States. The CCP actively seeks out weaknesses in U.S. defenses, exploiting the decentralized nature of American governance. To effectively counter China’s strategic advances, the U.S. must address this internal vulnerability and develop a more unified and coordinated approach to safeguarding its interests. The FDD’s report serves as a crucial warning, highlighting the need for a more comprehensive strategy to address the complex challenge posed by China’s subnational influence campaign.
