ASSESSING CHINA’S ROLE AND INFLUENCE IN AFRICA - House

ASSESSING CHINA'S ROLE AND INFLUENCE IN AFRICA

HEARING

BEFORE THE

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH, AND HUMAN RIGHTS

OF THE

COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES

ONE HUNDRED TWELFTH CONGRESS

SECOND SESSION

MARCH 29, 2012

Serial No. 112?138

Printed for the use of the Committee on Foreign Affairs

(

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COMMITTEE ON FOREIGN AFFAIRS

ILEANA ROS-LEHTINEN, Florida, Chairman

CHRISTOPHER H. SMITH, New Jersey DAN BURTON, Indiana ELTON GALLEGLY, California DANA ROHRABACHER, California DONALD A. MANZULLO, Illinois EDWARD R. ROYCE, California STEVE CHABOT, Ohio RON PAUL, Texas MIKE PENCE, Indiana JOE WILSON, South Carolina CONNIE MACK, Florida JEFF FORTENBERRY, Nebraska MICHAEL T. MCCAUL, Texas TED POE, Texas GUS M. BILIRAKIS, Florida JEAN SCHMIDT, Ohio BILL JOHNSON, Ohio DAVID RIVERA, Florida MIKE KELLY, Pennsylvania TIM GRIFFIN, Arkansas TOM MARINO, Pennsylvania JEFF DUNCAN, South Carolina ANN MARIE BUERKLE, New York RENEE ELLMERS, North Carolina ROBERT TURNER, New York

HOWARD L. BERMAN, California GARY L. ACKERMAN, New York ENI F.H. FALEOMAVAEGA, American

Samoa BRAD SHERMAN, California ELIOT L. ENGEL, New York GREGORY W. MEEKS, New York RUSS CARNAHAN, Missouri ALBIO SIRES, New Jersey GERALD E. CONNOLLY, Virginia THEODORE E. DEUTCH, Florida DENNIS CARDOZA, California BEN CHANDLER, Kentucky BRIAN HIGGINS, New York ALLYSON SCHWARTZ, Pennsylvania CHRISTOPHER S. MURPHY, Connecticut FREDERICA WILSON, Florida KAREN BASS, California WILLIAM KEATING, Massachusetts DAVID CICILLINE, Rhode Island

YLEEM D.S. POBLETE, Staff Director RICHARD J. KESSLER, Democratic Staff Director

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH, AND HUMAN RIGHTS

CHRISTOPHER H. SMITH, New Jersey, Chairman

JEFF FORTENBERRY, Nebraska TOM MARINO, Pennsylvania ANN MARIE BUERKLE, New York ROBERT TURNER, New York

KAREN BASS, California RUSS CARNAHAN, Missouri

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C O N T E N T S

Page

WITNESSES Mr. Donald Y. Yamamoto, Principal Deputy Assistant Secretary, Bureau of

African Affairs, U.S. Department of State ......................................................... 7 Ms. Carolyn Bartholomew, Commissioner, United States-China Economic and

Security Review Commission .............................................................................. 29 J. Peter Pham, Ph.D., director, Michael S. Ansari Africa Center, Atlantic

Council .................................................................................................................. 49 Mr. Stephen Hayes, president and chief executive officer, The Corporate

Council on Africa .................................................................................................. 65 The Honorable David H. Shinn, adjunct professor, Elliott School of Inter-

national Affairs, George Washington University .............................................. 72 LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING

Mr. Donald Y. Yamamoto: Prepared statement .................................................... 9 Ms. Carolyn Bartholomew: Prepared statement ................................................... 33 J. Peter Pham, Ph.D.: Prepared statement ........................................................... 53 Mr. Stephen Hayes: Prepared statement .............................................................. 67 The Honorable David H. Shinn: Prepared statement ........................................... 75

APPENDIX Hearing notice .......................................................................................................... 98 Hearing minutes ...................................................................................................... 99 The Honorable Russ Carnahan, a Representative in Congress from the State

of Missouri: Prepared statement ......................................................................... 100

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ASSESSING CHINA'S ROLE AND INFLUENCE IN AFRICA

THURSDAY, MARCH 29, 2012

HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH,

AND HUMAN RIGHTS, COMMITTEE ON FOREIGN AFFAIRS,

Washington, DC. The subcommittee met, pursuant to notice, at 2:00 p.m., in room 2172, Rayburn House Office Building, Hon. Christopher H. Smith (chairman of the subcommittee) presiding. Mr. SMITH. The subcommittee will come to order. And good afternoon to everyone. Today's hearing focuses 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 the 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 U.N. Security Council, from where they protect dictators such as Omar al-Bashir and Robert Mugabe. So what is their aim in their African policy now? 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.

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