Ted Cruz Warns 'The Economy, The Energy Transition, & Even The Defense Supply Chains' Depend On China

Forbes Breaking News

During a Senate Foreign Relations Committee hearing on Wednesday, Sen. Ted Cruz (R-TX) spoke about Chinese rare earth mineral supply chains.

Transcript

00:00The committee will come to order. Welcome. I apologize that we are starting a little bit late.

00:04We had votes on the Senate floor, so, but we will get going right now.

00:10As I said at the previous hearing of this subcommittee, I intend for it to be a primary forum

00:15for both shaping and articulating the policies of the United States towards Africa.

00:22I believe that China is a global threat that must be confronted globally.

00:27And that means region by region, territory by territory, and nation by nation.

00:35The challenges posed by China and Africa are vast.

00:39However, there are also immense opportunities for advancing America's national security interests.

00:46Today's hearing focuses on China's dominance of critical minerals in Africa

00:51and on the importance of strengthening U.S.-Africa partnerships

00:55to secure the United States' supply chain of critical minerals.

00:59We face acute threats to those supply chains,

01:04and there are enormous opportunities for American businesses to flourish in Africa.

01:10For years, the Chinese Communist Party has been working systematically

01:15to dominate Africa's critical mineral sector.

01:17China is pouring billions into its Belt and Road Initiative.

01:23It uses infrastructure loans to trap African nations in debt

01:27and then leverages that debt to secure mining rights,

01:31as it does in so many other contexts to advance Chinese interests.

01:35China has gained control over cobalt, lithium, and other rare-earth minerals

01:42in countries like the Democratic Republic of Congo, Tanzania, and Zimbabwe.

01:48The CCP's activities have enabled China to attain a dominant global role

01:54in the processing and refinement of critical minerals,

01:57and to dramatically influence global supply chains, availability, and prices.

02:04Today, China refines more than 70 percent of the world's cobalt

02:08and controls a vast share of rare-earth processing.

02:13That should alarm every American, because it means the economy,

02:18the energy transition, and even the defense supply chains

02:22depend on the Chinese Communist Party.

02:25The United States relies heavily on China to refine critical minerals,

02:30even those that originate in Africa.

02:32It is a glaring, persistent, and acute national security threat.

02:39No doubt, wherever possible, we should be seeking to onshore

02:44our critical minerals supply chain.

02:46In my home state of Texas, there are bold initiatives taking place

02:51to ensure that for certain minerals, the entire chain is in the United States,

02:56from mining through manufacturing.

03:00Those projects are ongoing and will expand significantly.

03:05But it would be reckless not to simultaneously seek partners abroad

03:09to build reliable supply chains, including and especially in Africa.

03:14Under the Trump administration, and thanks to President Trump's leadership,

03:20that is exactly what the United States is doing,

03:22and that will be the focus of this hearing.

03:25Creating opportunities for American companies to enter the African market

03:28and to build lasting partnerships is essential to shaping a more secure future in Africa.

03:35The extraction, processing and refining, and manufacturing of critical minerals is complex.

03:41But it is also an opportunity to shape U.S. and to reshape U.S.-Africa relations

03:48from aid-based to investment-led engagement.

03:53One of our most promising opportunities is the Lobito Corridor,

03:59which has emerged as a strategic alternative to China's Belt and Road.

04:04Minerals and security are directly linked to the U.S. national interest.

04:09In the DRC and Rwanda, tensions over mineral-rich regions have fueled regional instability for decades.

04:17The upcoming peace agreement and the new regional economic integration framework

04:22presents a rare opportunity to achieve stability while securing access to strategic resources.

04:30But if we fail to act now, China will be able to shut the United States out of Africa entirely.

04:38That is unacceptable.

04:41The administration is pursuing an emerging commercial diplomatic strategy.

04:46We are providing tools and demonstrating to our African partners

04:50that America is a reliable partner.

04:53U.S. businesses should be integrated into the strategy

04:58and work in tandem with commercial advocacy.

05:03I look forward to hearing today's witnesses,

05:05the Honorable Jonathan Pratt and Scott Woodard, testify on this important issue.

05:10And with that, I now recognize Ranking Member Booker for his opening statement.

05:13I'm...

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