[Congressional Record Volume 164, Number 86 (Thursday, May 24, 2018)]
[Extensions of Remarks]
[Page E728]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





                      CHINESE INVESTMENT IN EUROPE

                                 ______
                                 

                              HON. TED POE

                                of texas

                    in the house of representatives

                         Thursday, May 24, 2018

  Mr. POE of Texas. Mr. Speaker, China is a rising power with interests 
that more often than not come into conflict with our own. As Secretary 
Mattis identified last year in the National Defense Strategy, we are in 
a new era of great power rivalry.
  The People's Republic of China is one of the most capable and 
competitive global rivals we face. China still adheres to an 
authoritarian philosophy with the state at the center of power. At the 
center of the state is President Xi Jinping [Shee Jin-Ping], who has 
made himself ruler for life and has made clear he wants China to be a 
dominate world power that challenges the United States.
  Under Xi [Shee], China is building up its military power to compete 
with the U.S. Soon China will possess a larger naval fleet in Asia than 
we do and has begun establishing military bases outside of its own 
region. These new Chinese outposts are positioned at strategic choke 
points to control international shipping lanes.
  The PRC does not believe in freedom of the seas or fair iternational 
order, it only believes in having an upper hand. Much like the elites 
of the communist party have over their own people.
  They are also stealing American innovation to surpass our 
technological edge both militarily and commercially. It is commonly 
known, that China has zero respect for intellectual property rights.
  But Beijing has also recognized that it can seize enormous global 
influence without firing a shot. Simply by using its checkbook and 
offering massive loans, China can manipulate weaker states eager for 
investment to bend to Beijing's will.
  At the center of its strategy to use economic power to gain 
widespread influence is China's One Belt One Road initiative. This plan 
envisions expanding Chinese exports and trade access through major 
infrastructure projects across Asia and into Europe. So far many 
central Asian states and Eastern Europe have signed on to participate. 
In their view, China's investment is an opportunity to stimulate their 
lagging economies.
  But there is a catch. With massive Chinese investment, comes Chinese 
control. According to a Bloomberg study, over the past 10 years, China 
has bought or invested in assets amounting to at least $318 billion in 
Europe, which amounts to 45 percent more Chinese-related activity than 
the U.S. in the same period. This includes buying European ports, such 
as Greece's largest port, and high technology and manufacturing firms.
  Meanwhile European companies still cannot gain much access to the 
Chinese market because of unfair business practices. This gives China 
an economic edge and growing market control that is under the thumb of 
the Chinese Communist Party.
  Some of Beijing's investments are purely about making money but 
others are about gaining influence over countries' political decisions. 
So far we have seen countries with significant Chinese investment are 
hesitant to confront Chinese bad behavior on the international stage. 
Including watering-down condemnation of China's aggressive and illegal 
behavior in the South China Sea.
  In developing countries, China has used predatory loans to force 
states to surrender sovereignty over critical infrastructure when they 
cannot repay. The same could occur in Europe.
  Europe is a free and open market just like our own and should remain 
resistant to implementing protectionist trade policies. But with 
encroaching influence from Beijing, Europe--just like here--must be 
wary of Chinese motivations.
  It is clear, China does not play fairly. It will do whatever it takes 
to gain strategic dominance.
  And that's just the way it is.

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