Hearing of the House Committee on Foreign Affairs Subcommittee on the Western Hemisphere, Civilian Security and Trade - Opening Statement of Rep. Sires, Hearing on China's growing role in Latin America

Hearing

Congressman Sires, Chairman of the House Committee on Foreign Affairs' Subcommittee on the Western Hemisphere, Civilian Security, and Trade, delivered today the following opening remarks at the subcommittee hearing on China's growing role in Latin America:

"I have long felt the United States doesn't spend enough time engaging with our own hemisphere. It is my view that under successive administrations--both Democratic and Republican--the U.S. has paid too little attention to Latin America and the Caribbean. And it's now clearer than ever that China is filling the void.

"Since 2002, China's annual trade with the region has increased from 17 billion dollars to over 300 billion dollars. 17 countries in the region have now joined its Belt and Road Initiative. The Chinese government has provided over 140 billion dollars in loans to Latin American countries. And China has now surpassed the U.S. as the top trade partner for Brazil, Chile, and Peru.

"Some of China's investments have helped countries build much-needed roads and bridges. However, I have deep concerns about the negative financial impact of many of these projects on our allies. Moreover, I believe China's involvement in the region poses significant national security challenges that we need to examine much more closely.

"In Venezuela, China has propped up a brutal dictatorship, providing nearly 70 billion dollars that enable Maduro and his cronies to plunder state resources while mortgaging their country's future. China's state-backed telecoms giant, Z-T-E, has helped the Maduro regime develop a system of social control to monitor people's activities and voting behavior and distribute or withhold state resources depending on their loyalty to the regime.

"In Ecuador, China constructed a multi-billion-dollar dam that is an engineering nightmare. The Coca Coda Sinclair dam is only two years old, but has thousands of cracks, is routinely clogged with debris, and sits next to an active volcano. In the words of Ecuador's energy minister, "China took advantage of Ecuador.' Now Ecuador is exporting 90 percent of its oil to China to pay back the debt for this disastrous dam.

"China's engagement goes well beyond securing access to natural resources. Chinese state-backed companies have carried out over 20 port projects, obtaining access to strategic waterways like the Panama Canal and creating serious security concerns for the U.S. Its telecommunications companies, Z-T-E and Huawei (WAH- WAY), have built networks in at least 24 countries, despite their record of stealing intellectual property and helping the Communist Party conduct spying and surveillance.

"In the last three years, China has worked aggressively to isolate Taiwan, successfully persuading Panama, the Dominican Republic, and El Salvador to no longer recognize Taiwan.

"China has also pursued an ambitious soft power agenda, opening more than 40 Confucius Institutes and bringing Latin American journalists to China to expose them to propaganda that whitewashes the Communist Party's repression of its own people.

"We need to be clear-eyed about China's ambitions and the impact it is having in the region. And we should meet the challenge of China's rise by deepening U.S. engagement with our own hemisphere, not by cutting our diplomatic and foreign assistance programs.

"I look forward to hearing from the experts with us today about what the U.S. can do, in coordination with our allies, to address the China challenge and advance our shared interests."

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