NEWS
March 17, 2007
Posted to the web March 17, 2007
By Kalid Feki
Addis Ababa
Most African countries gained their independence in the late 1950s and early 1960s and it was during that period that the continent occupied an increasingly important place in the foreign policy of China.
Africa constitutes the primary areas of focus for contemporary Chinese foreign policy. During this period China undertook different commercial, economic and technical assistance agreements with different African countries.
Europe controlled Africa for more than four hundred years and they left the continent ravished by poverty and disease. The relationship between Africa and the West had been characterized by one of master and servant. This unbalanced relationship that kept Africa at the receiving end continued throughout the years of the cold war. During the cold war the continent had served as a battleground between East and West.
Now, the continent has started a new relationship with the newly emerging People's Republic of China. While China has long pursued ties on the continent, the Chinese have been making a more concerted effort to reach out to the countries of Africa in recent years.
Both political and economic conditions can be taken as a factor for China's growing interest in the continent. Economically, China has the interest to establish a market in Africa. There is a growing trade relationship between China and Africa. Trade between the two grew by 700 percent just in the past decade. According to the International Monetary Fund (IMF), economic exchanges between China and Africa grew from under $2 billions in 1995 to $50 billions in 2006.
This shows that the Asian giant has become the leading economic partner with Africa. China is now the continent's third most important trading partner, behind the United States and France, and ahead of Britain. Experts say Chinese companies see Africa as an excellent market for their low-cost consumer goods.
Access to natural resources is the other economic driving force for China to concentrate in Africa. China is interested in securing access to the resources as it is essential for sustaining economic growth. As global demand for energy continues to rise, China is taking its effort to find out sources of oil and other necessary raw materials across the continent. China's increasing demand for energy to feed its booming economy has led it to seek oil supplies from African countries, including Sudan, Chad, Nigeria, Angola, Algeria, Gabon, and Equatorial Guinea. China is the second largest oil importer, after the United States. Chinese official sources say that in the first ten months of 2005, Chinese companies invested a total of $175 million in African countries. China already has a significant presence in many African countries. For instance, China bought 50 percent of Sudan's oil exports in 2005, which constitute 5 percent of China's oil needs. Angola is the largest supplier of oil to China.
Politically, China is involved in Africa in pursuit of diplomatic ties. China has an interest to seek alliance with other nations who have shared interests. One of the Chinese main foreign policy goals is to reduce the number of countries maintaining diplomatic relations with Taiwan. Currently there are a few African countries who recognize Taiwan. And recently China scored a victory when Chad switched its alliance with China in 2006. More importantly China sees the continent as a significant potential sources of support in the international organizations including UN. To challenge the unipolar role of the US at the international level, the Chinese see Africa as an important battleground against the US. However, there are critics with regard to China's conduct of relationships with authoritarian regimes in the continent, including that of Zimbabwe's Robert Mugabe, whose misrule and political repression had led to seven consecutive years of economic decline and severe human right conditions. Generally, China's trade relation with Africa has grown. China's overall trade with Africa rose from $10.6 billion in 2000 to $40 billion last year and continues to increase, according to Chinese government statistics.
On the other hand, a number of African countries are exporting to China different goods, including oil, timber, textiles and different minerals. Due to its economic development, China is driven to enter into the African oil market to sustain its growth. The growth of trade relations between Africa and China is due to increased Chinese imports of oil from Sudan and other African nations. The continent has also benefited from the Chinese aid packages and debt forgiveness. In addition, Chinese loans given to Africa do not have the "killing strings" that the western countries attach to their loans.
But there are arguments with regard to who is benefiting in Sino-African relationships. Some argues that the Chinese are at a greater advantage. To mention some of these, the Chinese low cost consumer goods have market in Africa. The Chinese are exploiting the handful of resources that the continent have to sustain their growth and compete with the US. On the other hand, others argue that it is Africa that is benefiting relationships between the two. Africa had conducted a disadvantaged relationship with that of the West. It was and is still now characterized by one side dictating everything. It is the West that decided which African countries can enter their market and what product can be brought in and at what price. In this regard, the Chinese are opening their market to African products. To sum up, Africans will have to draw a lesson from the past in their relationships with the Asian giant. Whether it is going to be a win-win situation depends on whether the African leaders will adapt by creating an environment conducise to this.