A similar scenario in which communist China dominates the world through food security is what U.S. lawmakers are trying to avoid by holding a hearing on Wednesday about “the danger China poses to American agriculture.”

South Dakota Gov. Kristi Noem told lawmakers, “The threat is very real to us every single day.”

According to her, Chinese nationals contacted her state’s Department of Agriculture and Natural Resources last summer, “wishing to meet, tour, and have conversations about how we process and grow our food.” She said her staffers declined the meetings and learned days later from the State Department that those Chinese were spies “trying to steal our Intellectual Property and crop genetics.”

‘Asymmetric Warfare’

The Grain and Material Reserves Bureau of Hebei, the province surrounding Beijing, listed the Chinese strategist’s acts as the earliest historical “food war” lessons.

For example, the duke of Qi set off the trend of wearing cotton. Citizens of Qi began to buy cotton from two neighboring states, Lu and Liang, elevating cotton prices. As a result, those states abandoned agriculture and focused on producing cotton for profit.

However, a year later, Qi stopped buying cotton and cut off its trade with Lu and Liang, which couldn’t feed their own citizens. Many people in Lu and Liang migrated to Qi. Three years later, Lu and Liang folded under Qi without a war.

Calling food warfare a form of “asymmetric warfare,” the article published by Hebei’s Grain and Material Reserves Bureau says, “Food warfare is an alternative form of war, mainly characterized by long-term siege and starvation.

“The initiator uses the form of cutting off food sources, restricting food trade, destroying food storage, and forcibly expropriating people’s rations to achieve the goals by creating manmade famine, chaos, and unrest.”

Ms. Noem is concerned about U.S. agricultural dependence on China.

At the hearing, she warned lawmakers that the Chinese Communist Party (CCP) intends to “buy up our entire food supply chain.” She said she had witnessed Chinese purchases of fertilizer companies, food processing companies, and now farmland.

“When America can’t feed itself, and we rely on other members of another country to feed us, it becomes a national security issue. The country that feeds us will control us,” she added.

Reduce Dependence on China

Members of the U.S. House Committee on Agriculture expressed bipartisan consensus on the threat the CCP poses. “Food security is national security,” lawmakers on both sides of the aisle said repeatedly throughout the hearing.

Josh Gackle, president of the American Soybean Association, shared with lawmakers China’s dominance as an export destination for U.S. soybean farmers.

China accounted for over half of the United States’ total soybean exports during the crop’s 2022/2023 marketing year, or Sept. 1, 2022, through Aug. 31, 2023. The total was $32.6 billion in 2023, of which China bought $18.8 billion, and the second largest destination was about $3.3 billion.

“The sheer scale of China’s demand for soybeans—more than 60% of global soy imports—cannot be replaced. One in three rows of soybeans grown in the U.S. is destined for China,” Mr. Gackle said, describing the current level of dependency on China.

To diversify markets, he identified Southeast Asia as a potential candidate. However, developing new markets can be rather costly. Therefore, he advocated for private-public partnerships in the United States and corresponding appropriations in the next farm bill, on a five-year update schedule required by law.

The current farm bill was enacted in 2018. President Joe Biden extended it through Sept. 30, 2024, while lawmakers firm up the updated version.

Vanguard’s $70 billion flagship emerging markets index fund includes 60 companies on the Chinese military company sanction list by the Office of Foreign Assets Control (OFAC) under the U.S. Department of Treasury, according to the report released by the Coalition for a Prosperous America (CPA) on Oct. 13. CPA is an advocacy organization representing exclusively manufacturers that have productions in the United States.

In addition, the flagship and other Vanguard funds also hold shares of eight Chinese companies sanctioned over human rights abuses in China’s Xinjiang region, where the persecution of Uyghurs has been identified by the U.S. State Department as “genocide.”

The report didn’t provide a tally of all Vanguard investments in Chinese military companies but listed a total of $100 million in three such groups.

While noting that Vanguard’s fund holdings are legal, CPA urged Congress to take urgent action on the “long-festering, structural problem” that “a weak public policy response by the U.S. government has allowed greed within the asset management industry to supersede urgent American investor protection, national security, and human rights concerns.”

“Congress must turn off the tap of American capital flowing to China and stop private and public market investments into blacklisted CCP-connected companies,” Rep. Mike Gallagher (R-Wis.), chair of the House Select Committee on the Chinese Communist Party (CCP), told The Epoch Times in an emailed statement.

“Americans do not want firms like Vanguard and BlackRock to invest their retirement savings in companies building the Chinese Communist Party’s military and implementing its ongoing genocide against the Uyghur people. If we accept the status quo, we are willfully fueling our own destruction,” he added.

Congressional scrutiny over Wall Street’s role in financing Chinese military companies has been on the rise.

Three months ago, Mr. Gallagher’s committee launched an investigation on BlackRock, another leading asset manager, and global index provider MSCI over their role in channeling money to Chinese companies involved in building weapons for the Chinese military. The committee estimated $429 million of such investment against American interests by BlackRock.

In a letter dated July 31 to BlackRock and MSCI, Mr. Gallagher and committee ranking member Rep. Raja Krishnamoorthi (D-Ill.) wrote that, through the companies’ funds, Americans were “unwittingly funding” Chinese companies that fuel the CCP’s military and the two companies were “exacerbating an already significant national security threat and undermining American values.”

Two months later, BlackRock closed its China-focused offshore fund. All shareholders would have to redeem any outstanding shares by Nov. 7 before the fund’s liquidation. BlackRock previously told The Epoch Times that its products “comply with all applicable U.S. government laws” and it’s one of 16 asset managers offering U.S. index funds with investment in Chinese companies. The company didn’t directly comment on the closure of the China fund.

In an emailed response, a Vanguard spokesperson told The Epoch Times, “Vanguard maintains the highest levels of compliance with all applicable laws and regulations, including sanctions law. We welcome additional clarity from policymakers who are in a position to determine sanctions through the formal OFAC process.”

“As one of many asset managers offering investors a range of funds to invest internationally, our clients’ investments in China are primarily through U.S.-based passive index products that provide diversified exposure to many developed and emerging economies,” the spokesperson added.

In August, President Joe Biden issued an executive order (EO), prohibiting U.S. outbound investments to China in industries such as semiconductors and quantum computing. The Treasury Department has published preliminary rules, which listed index funds as excepted transactions under the EO. The public commentary period closed on Sept. 28.