US Senate Committee Hearing on Foreign Relations and Chinese Corrosive Capital Mention

09.18.2020 | CIPE in News

A September 17 Senate Foreign Relations Full Committee Hearing Includes Corrosive Capital Mention by Principal Deputy Assistant Secretary for Western Hemisphere Affairs, Julie Chung.



Advancing U.S. Engagement and Countering China in the Indo-Pacific and Beyond 


WASHINGTON – U.S. Senator Jim Risch (R-Idaho), chairman of the Senate Foreign Relations Committee, today convened a full committee hearing on advancing U.S. engagement and countering China in the Indo-Pacific and beyond, which included discussion of the STRATEGIC Act, legislation Risch introduced earlier this year. The committee heard witness testimony from Principal Deputy Assistant Secretary for Western Hemisphere Affairs Julie Chung, Senior Bureau Official for European and Eurasian Affairs Philip Reeker, and Assistant Secretary for East Asian and Pacific Affairs David R. Stilwell.

From Chung’s Testimony:

The united states and the western hemisphere enjoy a 1.9 trillion trading in goods and services. in comparison, china has a 330 billion trade and 120 billion fpi. Over the past decade, we have seen a dramatic increase in china’s engagement in the region. China has sought regional commodities, critical minerals, and export markets. China state-owned enterprises are investing heavily in just — into strategic categories. We’ve seen an increase in questionable Chinese loans for infrastructure projects. all of this is concerning because of the way China does business. China’s corrosive capital and put it toward lending that undermines the rule of law and good governance. A region hungry for investment finds Chinese loans attractive. The sticker price on these deals does not reflect the hidden cost. China’s corrupt practices threaten the region’s hard-won gains and the rule of law, labor rights, and the environment. Issues important to the citizens of the region. Faced with this challenge, an important part of our approaches to share with our partners information about the risks of doing business with China. We also aim to demonstrate that the United States and our allies and American businesses provide better alternatives when quality, transparency, and respect for national sovereignty are taken into account. We are catalyzing capacity building for the region’s energy and infrastructure needs. Working with U.S. companies and the inter-agency to enhance the region’s competitiveness and revitalize its economy. Chinese engagement is particularly egregious in information and communication technology.