China and the U.S. in Regional and Global Relations: Panel Discussion on Becoming a Stakeholder: China in International Affairs

INTRODUCTION

Thank you, Andrea Bartoli, for that kind introduction. I'm pleased to be here at Columbia to offer the view from Washington on China's involvement in Africa.

China in Africa has become a hot topic, but this is no fad; this issue has substantive policy implications. Last November's Forum on China-Africa Cooperation drew 43 heads of state and representatives from 5 other African nations – more than normally attend an African Union summit! In February, Chinese President Hu toured Africa – his third such trip in as many years.

China has important and growing interests in Africa. These include access to resources, access to markets, and pursuit of diplomatic allies. And because China has real interests there, it will of course be engaged on the continent.

The United States' goal is for China to help bolster the global system and promote peace and prosperity. As we consider China's role in Africa, it is important to consider China's role on the continent within this broader context.

CHINESE INTERESTS IN AFRICA

China has long pursued ties on the continent, but it has made a more concerted effort in recent years. The Chinese have three primary interests: access to resources, access to markets, and securing diplomatic allies.

None of these goals inherently threatens U.S. interests. Involvement in Africa, whether economic or diplomatic, is not a zero-sum game. The important thing is to encourage China to become involved in Africa in a way that supports international norms, rather than subverts them.

The Chinese economy – including its manufacturing sector – has expanded rapidly in recent years. With that growth, access to oil and other commodities has become crucial. Africa now supplies 30 percent of China's oil imports, with Angola its lead supplier. The Chinese are the largest foreign investors in Sudan. China imported over $1.9 billion worth of goods from Sudan in 2006. Most of this was crude oil. And China has access to platinum mines in isolated Zimbabwe.

A second driver is the expansion of trade and sales. China's trade with sub-Saharan Africa more than tripled in five years, from $9 billion in 2000 to over $32 billion in 2005. Based on current trends, China will surpass the United States as sub-Saharan Africa's largest trading partner in 2011. The nearly 800 million people of sub-Saharan Africa represent a sizable and growing potential market for anything the Chinese produce.

China's third major motivation is diplomatic. China wants to reduce the number of countries with diplomatic relations with Taiwan. Five African nations currently recognize Taiwan ; Chad switched sides in August 2006. More broadly, China sees sub-Saharan Africa's 48 countries as significant support in the UN and other international fora.

CHINA 'S APPEAL IN AFRICA

The Chinese appeal to Africans as well. The Chinese offer a market for African goods, albeit mostly from extractive industries. Overall, Asia accounts for 27% of Africa's exports. The Chinese offer a wide array of products at very low prices, and that appeals to African consumers.

Moreover, the Chinese offer aid to African governments with no-strings-attached. And they fund visible and much-needed infrastructure projects – railroads, bridges, dams – at a time when Western governments have largely shifted away from this sector. However, the Chinese willingly engage African governments that have poor records on governance, economic development, and respect for human rights.

China is also active in security assistance programs. The Chinese have contributed 1300 peacekeepers to international peacekeeping operations across Africa. China enjoys a dual status, as both a rising power and a developing country; some Africans believe the Chinese better understand their development challenges.

CHALLENGES TO COLLABORATION

The relationship between China and many African countries is deepening, which is not to say there are no points of disagreement. China was a thorny issue in Zambia's recent election because of various developments Zambians associate with the Chinese. Some Africans worry that the Chinese are dumping low-priced goods in Africa, undercutting indigenous industries. Some worry that trade is lopsided. Some worry that the Chinese ignore environmental and labor standards, which could negatively impact Africa over the long-term.

While the Chinese support infrastructure projects across Africa, there is little technology transfer or local job creation. Chinese projects typically employ imported Chinese workers. China's general unwillingness to coordinate its aid programs with other donors may also reduce the overall impact of multilateral initiatives.

Last, the hands-off approach to human rights and democratic governance increasingly puts China at odds with the African consensus that these are important matters. The African Union and the New Partnership for African Development emphasize good governance; Africans consider democracy, economic transparency, and respect for human rights necessary for sustainable development.

THE U.S. APPROACH

The U.S. approach to China in Africa and elsewhere is to engage China in dialogue on a strategic level, identifying areas of shared interest and coordinating our efforts. We do this in a framework of regular dialogues, the most important of which are the State-led “Senior Dialogue,” which focuses on political and security issues, and the Treasury-led “Strategic Economic Dialogue,” which deals with bilateral and global economic issues.

We encourage China to work with us and other countries in a common effort to build and strengthen the global system and promote peace and prosperity. We urge China to take responsibility in the global system commensurate with China's rising profile and influence.

The United States treats China as a serious player, among various others, in Africa. We will continue engaging with the Chinese on African issues where we can cooperate – by finding complementarity in our aid programs, continuing support for peacekeeping operations, and potentially collaborating on health and agriculture projects.

Overall, the U.S. and China have a developing relationship with regard to Africa. As part of our “Senior Dialogue” with the Chinese, Assistant Secretary for African Affairs Jendayi Frazer traveled to Beijing in November 2005 to meet with her Chinese counterparts and discuss Africa, and she met with them again last month in Washington. The Bureau of African Affairs hosted a conference on the subject of China in Africa in December 2006, and Andrew Natsios, the President's Special Envoy to Sudan, has visited China to discuss Sudan. We anticipate ongoing, long-term engagement with the Chinese.

CONCLUSION

In closing, I would like to thank you for inviting me to join you today. China is a rising strategic power throughout the world. China's outlook and interests are increasingly global – and this includes Africa. The Chinese – among many others – will continue to be important actors on the continent.

I want to reiterate that China's presence in Africa is not a zero-sum game for the United States. We see opportunities to collaborate with China in Africa in the areas of: agriculture, infrastructure development, healthcare, and security affairs.

We are urging China to engage cooperatively with international donors for a rules-based approach to aid that: strengthens institutions, promotes good governance, and stabilizes markets in Africa. If appropriately managed and coordinated with other major players on the continent, China can play a positive role in Africa and can make important contributions to Africa's development.

Thank you very much.