[Congressional Record (Bound Edition), Volume 158 (2012), Part 4]
[Extensions of Remarks]
[Pages 4690-4691]
[From the U.S. Government Publishing Office, www.gpo.gov]




            ASSESSING THE ROLE AND IMPACT OF CHINA IN AFRICA

                                 ______
                                 

                       HON. CHRISTOPHER H. SMITH

                             of new jersey

                    in the house of representatives

                         Friday, March 30, 2012

  Mr. SMITH of New Jersey. Mr. Speaker, yesterday I chaired a hearing 
of the Subcommittee on Africa, Global Health, and Human Rights focused 
on U.S. policy regarding China's evolving role in Africa. China has 
become America's premier economic competitor in Africa, providing loans 
and making investments far beyond what the United States is currently 
prepared to provide.
  China has been engaged with African governments since the 1950s and 
has always portrayed itself as a fellow developing nation that was 
interested in solidarity with its prospective development partners. In 
reality, the Chinese government always had plans to gain the support 
they hoped to create among the newly independent African governments. 
The stadiums, other buildings and roads constructed by the Chinese were 
intended to build support for China among the African bloc of 
developing nations in its competition with the then-Soviet Union. 
Later, the goal was building support for the People's Republic of China 
replacing Taiwan as the sole China in the United Nations.
  Now they no longer have to compete with the Soviet Union, and they 
have their seat on the UN Security Council, from where they protect 
dictators such as Omar al-Bashir and Robert Mugabe. So what is their 
aim in their Africa policy?
  Is China a development partner for Africa? In 2005, the China 
Development Bank created a $1 billion Africa Trade and Investment Fund, 
but the trade and investment initiatives funded cannot take place 
without the significant involvement of Chinese suppliers. It is 
difficult to quantify Chinese development aid to Africa because they 
refuse to disclose how much aid and investment goes to specific 
countries, although we do know that Chinese investment in Africa is 
estimated to exceed $10 billion. Because the loan details are not open 
to public scrutiny, it is feared that these loans may pose a danger to 
the debt sustainability of African governments.
  Is China an economic competitor to African countries? Many believe 
that China is engaged in a short-term resource grab, which takes little 
account of local needs and concerns, whether developmental, 
environmental or with respect to issues like human rights.

[[Page 4691]]

Coupled with Chinese manufacturing and trade efficiency, this approach 
suggests that African development gains are being challenged, if not 
undermined, by Chinese competitiveness.
  China, which has increasingly attempted to lock up much of the supply 
of strategic minerals from African countries, is now the leading 
producer of what are known as rare earth elements or rare earth metals, 
which are used in various technological devices, such as 
superconductors, electronic polishers, refining catalysts and hybrid 
car components. As time goes on, these minerals will increase in 
importance in the 21st century economy. South Africa used to be the 
world's leading source for these minerals, but its production is 
dwarfed by what China produces, which now represents 95% of rare earth 
supplies. Chinese production often releases toxic wastes into the 
general water supply, and that would tend to discourage increased South 
African production absent what could be expensive environmental 
safeguards.
  Is China the new colonizer of Africa? Some would say that label is an 
exaggeration. However, China exports small businesses and labor to 
Africa. There are an estimated 800 Chinese corporations doing business 
in Africa and 750,000 Chinese working or living for extended periods in 
African countries. When their original assignments are completed, these 
Chinese workers become entrepreneurs selling subsidized Chinese 
products to out-compete their African counterparts.
  An increasing number of Africans are becoming skeptical of Chinese 
behavior in their countries. For example, the issue of Chinese business 
practices became an issue in the 2011 elections in Zambia. Some 
Zambians felt the Chinese were worse than the British colonialists in 
their behavior toward workers. Following the election there, incoming 
President Michael Sata said to Chinese investors: ``We welcome your 
investment, but as we welcome your investment, your investment should 
benefit Zambians and not Chinese.''
  One of the most prevalent charges against China's involvement in 
Africa is that they don't support international conditionality on aid 
to African countries. Therefore, Chinese involvement is seen as 
undermining the concept of tied aid that is intended to promote good 
governance. Chinese officials counter that they prefer not to interfere 
in the internal affairs of African governments.
  While much of the rest of the international community regarded Sudan 
as having committed genocide, or at least crimes against humanity in 
its Darfur region, China, a major economic partner with the government 
in Khartoum, refused at first to join in sanctions against Sudan. China 
abstained from the vote in September 2004 when the U.N. Security 
Council passed Resolution 1564 condemning the mass killing of civilians 
in the Darfur region, even though the measure stopped short of imposing 
oil sanctions. China even threatened to veto any further move to impose 
sanctions. It took concerted international pressure prior to the 2008 
Beijing Olympics to force China to move closer to the international 
position on pressing Sudan to end its human rights abuses.
  In a 2006 background report entitled, ``China's Influence in Africa: 
Implications for the United States,'' the Heritage Foundation stated 
that China has provided weapons that have prolonged African conflicts 
or entrenched dictatorships. In 2003, several Hong Kong firms were 
accused of smuggling illegal arms including Chinese-made AK-47s, 
machine guns and rocket-propelled grenade launchers into Liberia and 
neighboring Sierra Leone and Cote d'Ivoire, where rebels and 
mercenaries were involved in civil wars.
  In 2004, the report continued, China sold Zimbabwe fighter aircraft 
and military vehicles for $200 million despite the U.S. and EU arms 
embargo against Zimbabwe. China also provided a military-strength 
radio-jamming device, which the Harare government used to block 
broadcasts of anti-government reports from independent media outlets 
during the 2005 parliamentary election campaign.
  So what really are China's goals for its African engagement?

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