Opening Statement U.S. Senator Christopher Coons DelawareChairing Senate Foreign Relations African Affairs Subcommittee hearing entitled, "China's Role in Africa: Implications for U.S. Policy" As prepared for delivery on November 1, 2011:
I am pleased to convene today's hearing of the African Affairs Subcommittee and am honored to serve with my friend and partner, Senator Isakson. I would like to welcome members of the Foreign Relations Committee, and thank our distinguished witnesses: Ambassador David Shinn, adjunct professor at the George Washington University and former U.S. Ambassador to Ethiopia and Burkina Faso; Professor Deborah Brautigam, professor at American University and Senior Fellow at the International Food Policy Research Institute; and Mr. Stephen Hayes, President and CEO of the Corporate Council on Africa.
Today's hearing will take a hard look at China's rapidly expanding role on the African continent and consider how it is affecting American interests. The U.S. isn't just ceding its economic leadership in Africa to China - it may be ceding its political leadership there as well. We'll discuss whether China's expanded reach should serve as a wake-up call for enhanced U.S. trade and investment, and we'll take a close look at whether China's growing influence in Africa may counter - or even undermine - U.S. development, diplomacy, and other values-driven goals in the region. Finally, we will consider areas of common interest between the U.S. and China in Africa that could provide the basis for enhanced bilateral and multilateral cooperation.
China's reach in Africa has grown dramatically in the past decade, and the rate of increased Chinese trade and investment in Africa is truly staggering. Between 2000 and 2010, trade between China and African nations grew by more than a thousand percent. As you can see in the chart here, U.S. trade with Africa grew during this period as well - partly due to the passage of the Africa Growth and Opportunity Act - but the average rate of growth in China's trade with Africa outpaced that of the U.S. by more than 100%.
China clearly sees Africa for what it is - a continent of immense opportunity. Africa is home to six of the world's ten fastest growing economies. Increased rates of return on foreign investment, vast natural resources, and a burgeoning population have all made Africa an increasingly important player in the global economy.
But as the continent has grown economically, it has continued to have enormous development needs. The United States and China are both investing in that development, but we're doing so in very different ways. While we share some common interests in Africa that are, at times complementary, we should be clear-eyed about the very different nature of our engagements.
First, our structures of government spending are different. The United States clearly distinguishes between government assistance and private investment, while the line between the public and private sectors is blurred in China and its many state-owned enterprises. The Chinese government can offer concessionary loans to African governments to build large infrastructure projects - in some cases, with no interest required for up to twenty years - and at the same time, negotiate contracts with those same governments for mineral and oil extraction.
While the U.S. invests diplomatic capital in the promotion of democracy, freedom of expression, and human rights, our leverage on corrupt African officials and governments is weakened when those regimes can simply turn to China for support with essentially no strings attached.
If there is one message I wish to convey in this hearing, it is that the long-term American objective of promoting open societies in Africa - countries that embrace transparency and democracy, respect the environment, and protect human rights - is being challenged by China's approach to Africa. By offering an alternative "non-intrusive" source of investment and development, China offers African regimes economic opportunity at the expense of government reform and in a manner that often does not directly benefit the average African citizen.
This highlights a second key distinction - the U.S. government invests in the people of Africa, while the Chinese government invests in the infrastructure of Africa. It's tough to say precisely, given China's obvious lack of transparency, but experts estimate that 70 percent of Chinese assistance to Africa comes in the form of roads, stadiums, and government buildings, often built with Chinese materials and built by Chinese laborers. China is not transferring technology to Africa, nor is it employing many Africans. In contrast, 70 percent of U.S. government spending is directed toward investments in the African people, primarily through health programs to combat HIV/AIDS, malaria, tuberculosis and other diseases. These programs build upon the strong legacy of U.S. investment in global health established by Presidents Clinton and Bush.
America's extensive public-sector investments in Africa are not as visible as those of China. Many Africans point proudly to the Chinese-built road, building, or hospital in their capital without realizing that the doctors and nurses have been trained by Americans, and the medical supplies are provided by the U.S. government. Moreover, many rural health clinics that are lowering maternal mortality rates, vaccinating children, and donating mosquito nets across Africa are U.S.-funded. We may be winning the war on disease, while losing the battle for hearts and minds in Africa.
As we think about next steps for the U.S. public and private sectors, we must gain a better understanding of China's role and motives, and take steps to ensure the United States is not missing-out on valuable opportunities in Africa.
Senator Durbin is proposing legislation that does just that. It aims to create jobs in America by increasing U.S. exports to Africa by at least 200 percent in the next ten years. This is absolutely critical, because China has outpaced the U.S. in growth of exports to Africa over the past ten years by nearly three to one.
I want to thank Senator Durbin for initiating this legislation. We need a comprehensive U.S. trade strategy for Africa, and we must work with the Export-Import Bank and the Overseas Private Investment Corporation to increase lending for projects in Africa. USTR must find ways to expand bilateral, regional, and multilateral trade, and the Department of Commerce must continue to invest in U.S. Commercial Service officers in Africa to help make U.S. businesses more competitive. More U.S. companies selling their goods in Africa translates into more American jobs.
These are the tools by which we can take a more aggressive approach to expanding the scope of U.S. investment in Africa to the benefit of small and medium-sized American companies like Wise Power in my home state of Delaware, which sells solar-energy technology and is expanding its footprint in Africa to provide electricity, protect the environment, and create green-jobs for Americans and Africans.
The U.S. government must pursue an aggressive strategy that aims to capitalize on the vast array of opportunities in Africa. We simply cannot afford to lose out to China in the private sector, and - in the public sector - we must ensure that our values are not undermined by China's expansive political and economic agenda. I look forward to hearing from our distinguished witnesses how the United States can achieve these objectives, but first, I turn to Senator Isakson for his opening statement.
Source: United States Senate.
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