Chinas Involvement in Africa - Admission/Application Essay Example

China and Africa: China’s Involvement in Africa – Implications, Goals and Criticisms Introduction Recent research literatures and studies show that China has a tight economic relationship with the African countries and this relationship is further deepened by china’s political and ideological interest in the African region. Though in the first place this China-Africa bond has been tightened by the economic interests of both of the parties, its effects on the future of the African region is far-reaching and the implications of the China’s involvement in Africa is so convoluted and multifaceted that it is quite difficult to measure the circumferences of these implications. As the economic sectors of the African countries are largely affected by the sociopolitical condition of these countries, China has to play a significant role in the power politics. In order to ensure an uninterrupted flow of the raw materials to feed the booming technological sector within the national territory of China, the country has to grab a strong hold on the politics of these countries. Economic Involvement of China in Africa China’s economic relation with Africa is mainly reinforced during the 1990s through the mass entries of the Chinese multinational companies in Africa. In an article, “The Strategic Entry of China’s Emerging Multinationals into Africa” Lucy Corkin (2007: 313) states that the Chinese trade with Africa increase by 700 percent and “many high-level visits occurred from 1995” (Corkin, 2007: 313). This increase in the Sino-African trade is largely contributed to Chinese economic interests in the energy security and new markets for the Chinese technological products. These economic ventures were greatly supported by the political interventions of the Chinese Government in Africa. Since the beginning of the Chinese involvement in Africa in 1955 through the Bandung Conference in order “to reinforce and promote nonalignment and Afro-Asian economic and cultural cooperation” (Corkin, 2007: 313), the Sino-African trade reached its zenith around 1995 with the direct and indirect supports of the Chinese Government. The sectors that China is involved in Africa are: 1. telecommunication, 2. Energy sector, 3. Construction, 4. New Markets, 5. Others. In a newspaper article, ‘China’s Trade Safari in Africa’ Servant (2005) reported that about 674 Chinese companies that are officially registered were found to be active in various sectors of Africa in the years 2005. But “By the end of 2006, this number had increased to over 800 Chinese companies, engaged in a variety of sectors” (Corkin, 2007:317). In the “China-Africa trade Statistics” of the “world Atlas Trade Data” it is found that the China’s import from Africa increased from about 1427.44 million dollar to 21 billion dollar, whereas the Chinese export increased from 2493.69 million dollar to 18 billion dollar. But a comparative study of both the export and the import will disclose the Chinese increasing dependency on Africa for energy security (Corkin, 2007: 314-315), as it is evident in the following table: Source: World Atlas Trade Data in Corkin (2007: 313) In a more recent article, “Africa’s Burgeoning Ties” Jian-Ye Wang and Abdoulaye Bio-Tchané (2008:44) state, “Between 2001 and 2006, Africa’s exports to and imports from China rose on average by more than 40 percent and 35 percent” and also they found that this growth rate is “higher than the growth rate of world trade (14 percent) or commodities prices …18 percent” (Wang & Tchané, 2008: 44). Source: IMF in Wang & Tchané (2008: 44) In another comparative analysis by Jian-Ye Wang and Abdoulaye Bio-Tchané (2008: 44) it is evident that though Africa’s export to the USA and the EU remained almost the same between the years 2000 and 2006, the Africa’s export to China 2 billion dollars per year, it is in the following table: Source: IMF in Wang & Tchané (2008: 44) Since the economic uprising of China in 1977 the Government’s support and its deirect intervention in a remarkable number of cases geared up the boom in the country’s economic by fueling the import of western technology. Generally this technical enterprise of China reaches its zenith by equipping the country with innovative knowledge that enables the country to establish industries in various sectors. The country’s economic sector started to suffer the “over production” in her economic sector. Consequently the China-Africa economic relationship that started in the year 1955 took a new turn by the establishment “China Africa Cooperation” Forum in 2000. In an article scrutinizing the nature import-export nature of the Sino-African trade Naidu and Davies (2006: 70) comment, “China’s foray into the continent is as much political as it is economic” and the new turn -that is to be characterized by China’s increasing import from Africa- in the Sino-African trade necessarily refers to the desperate Chinese desire to retain the production levels (Naidu & Davies, 2006: 72). Also Meidan (2006: 78) refers to the rapid expansion of the Sino-African trade, as he says, “China’s activities in Africa have, however, not been limited to the energy sector and have, in the space of three years, expanded to include other raw materials and infrastructure projects.” (Meidan, 2006: 78). Indeed this Chinese ambition is manifested in China’s desperate search for the sources of raw materials in the African region (Corkin, 2007, p. 313). The following are the top ten materials that China imports from Africa: Source: (Naidu & Davies, 2006: 71) Chinese Goals, Business Policy and Political Involvement in Africa In the first place China’s involvement in Africa is characterized by the pressing needs of raw materials and her quest for new scopes of marketing. Though some of the analysts like Corkin, Naidu and Davies, argue that China has a far reaching political goal in this region; China’s economic interest cannot be ignored in any way. Yet China’s involvement in Africa and its political role is determined by the economic interests. After the Bandung conference to promote the Sino-African cultural and economic cooperation in 1955 China’s policy took an active turn the tour of President Zhou. This tour is considered political as well as economic because the Taiwan played a great role in the Sino-African relationship (Meidan, 2006: 75). But gradually in this relationship financial interest of both turned to be a key factor through China’s aid in “Tanzara railway project between Tanzania and Zambia” (Corkin, 2007: 313). With the establishment of the Forum of China Africa Cooperation in 2000 the country released its African Policy Paper, as Corkin (2006: 313) says that China’s African Policy was based on the “sincere friendship, equality, unity and co-operation, common development, and looking to the future” (Corkin, 2006: 313). A close analysis of China’s African policy since the beginning of the Chinese venture in Africa reveals the fact that though China’s foreign policy, especially its African policy was characterized as passive and much of an economic one, the growing interdependence of the two parties seems to force China to active initiatives to defend the country’s interest in the African. In this regard Peter Brookes and Ji Hye Shin (2006) say, “Another significant Chinese objective in Africa is to isolate Taiwan diplomatically in an effort to pres­sure Taipei toward unification” (Brooke & Shin, 2006). In the same manner, Meidan comments, The recent American call… become a “responsible stakeholder”…..highlights the need for China either to change its pragmatic attitude, or to give it better ideological backing. While China’s initial interest in Africa was undoubtedly economic and commercial, the need has arisen in Beijing to rethink China’s global policy and its diplomatic objectives. (Meidan, 2006: 77) China’s Backing for Mugabe and Sudanese Regimes: Reflection of China’s Desperate Needs for African China’s backing for the internationally isolated Mugabe and Sudanese Regimes, in return, reflects China’s desperate needs the African resource of raw materials. Sino-African trade receives a new twist with China’s arm sale in Sudan, as during the recent years, Sudan becomes a potential importer of Chinese arms. According to Peter Brookes and Ji Hye Shin (2006), “Nearly 80 percent of Sudan’s $500 million annual oil revenue is used to purchase weapons... With Chinese assistance, the Sudanese government recently built three weapons factories near Khartoum” (Brooke & Shin, 2006). China imports 25% of the imported crude oil from Sudan and Guinea and 6% of the total imported oil (Paterno, 2009). In spite of the international economic sanction on Sudan regarding the human right violation issues in Darfur, the key factor in the China-Sudan relationship appears to be the vast oil resource of within the Sudanese territory, as the U.S. Energy Information Administration reports, “Sudan had 5 billion barrels of proven oil reserves as of January, the fifth-biggest in Africa, ….The majority of the reserves are located in the Muglad and Melut basins” (Sudan Tribune, 2009). China appears to manipulate the Sudanese position in the international community. Being the second consumer of the crude oil China is largely depended on the Sudanese oil resources. On the other hand the Sudanese dependence on China for arms supply and its isolation provide China with the opportunities to manipulate the situation in the country’s favor. Steve Paterno’s (2009) analysis on the Sudanese oil export reports that China is a desperate consumer of the 60 percent of the Sudanese oil production, as he says in this regard, “The Chinese state-owned oil company, China National Petroleum (CNPC) is the largest investor in the Khartoum’s Greater Nile Petroleum Operating Company through its 40% stakes. The company’s asset…..is…. 7 billion” (Paterno, 2009). China also played and is still playing a major role in the construction of the transportation and Oil mining infrastructures since 1996. Source: World Atlas Data, 2005 in Naidu, 2007: 286 China’s relationship with Zimbabwe is different from that of China with Sudan. Whereas the economic interest in the vast Sudanese oil resource plays a key role in the China-Sudan relationship, arms business and other economic interests such as construction and engineering, telecommunication market, raw materials are considered to be the potential drivers for Mugabe-Chinese liaison. Both the Sudanese and the Mugabe regimes are the potential Chinese arms importers that facilitated the China’s import with multimillion dollar revenue. Regarding Zimbabwe’s Chinese arms import Peter Brookes and Ji Hye Shin (2006) say, “African dictatorships are regular buyers of Chi­nese weapons and military equipment…. In 2004…China sold Zimbabwe fighter aircraft and military vehicles for $200 million” (Brookes & Shin, 2006). Source: World Atlas Data, 2005 in Naidu, 2007: 286 Criticism on China’s Involvement in Africa and Effects on African Local Trade China’s involvement in Africa has been interpreted by the world leaders differently. But their stands on the Chinese issue in Africa are grossly biased by their own interests in this region, though Sino-African political relationship apart from its pure economic interest can severely be criticized on ethical ground. For the USA China-Africa burgeoning relationship is an increasing threat to the US-Africa trade, as Peter Brooke and Ji Hye Shin (2006) indentify, “China’s burgeoning relationship with Africa is alarming not only because it has facilitated Chinese energy and weapons dealings, but also because it is competing with U.S.–African trade” (Brooke & Shin, 2006). The Chinese Authority appears to benefit from the ethical and ideological restriction that the USA faces in maintaining close relationship with the African countries. China’s role in the African politics often tends to violate the political ethics of the international community. The political implication of China’s involvement in Africa is evident in her support for the Sudanese and Mugabe Regime that is often found to depict the China’s political role in the African region, as Christopher Smith (2005), a member of the US House of International Relations Committee, says that the country is playing “an increasingly influential role on the continent of Africa, and there is concern that the Chinese intend to aid and abet African dictators, gain a stranglehold on precious African natural resources” (in Naidu & Davies, 2006: 69). According to Chinese President Hu Jintao “China and Africa are good friends, good partners and good brothers” (Meidan 2006). In the same manner the African Countries in the Chinese block also characterizes it as – Robert Mugabe says- a “pro-Africa, pro-Third World; anti-imperial and anti-hegemonic” (Newzambe.com in Ruchita Beri, 2007: 297) relationship. Under the coverage of friendship, brotherhood and mutual respect the Sino African relationship tends to encroach into an area that will rather provoke the world powers in bloody conflicts. On one hand China is a potential partner in the infrastructural, agricultural and industrial development in Africa. Chinese aid for education and health in this region is making visible changes. In an interview Ethiopian Prime Minister Meles Zenawi marked Chinese involvement as “fundamental and transformative” (Liena, 2009). But there is another side of China’s economic presence in presence. The Chinese companies appear to play the role both as investors and competitors in African markets. Therefore the bilateral trade between China and Africa is both complementary and competitive, as it is repoted, “Compared to China, Africa is substantially lagging behind in terms of wages, productivity, [quality and] indirect cost of trade” (Giovannetti & Sanfilippo, 2009: 30). It is evident in the following table: Source: Giovannetti & Sanfilippo, 2009: 31 The aftereffects of competitive presence of Chinese manufacturer in African markets are also remarkable. While Chinese products are flooding the African markets, African manufacturers are proved to be fairly incompetent to survive in an open market. Especially the African textile industries are suffering much form the penetration of Chinese textile products both in local and international markets. Conclusion Chinese presence in Africa can be characterized as more of a commercial one than of political. The country’s trade with some controversial and isolated countries like Sudan and Zimbabwe has severely been criticized by the western countries. In this regard Chinese policy is something “business is business” (Besada et al, 2008: 15), as it is reflected in Zhou Wenzhong’s comment: “We try to separate politics from business…. [the West] have tried to impose a market economy and multiparty democracy on these countries which are not ready for it” (Besada et al, 2008: 15). Now the Western point of view on the issue is that business devoid of ethics and morality must be considered as violation of human right. References Besada, H., Wang, Y. and Whalley, J. (2008) China’s growing economic activity in Africa. National Bureau of Economic Research. [online] http://www.nber.org/papers/w14024 Brookes, P. and Shin, J. H. (2006) Chinas Influence in Africa: Implications for the United States. The Heritage Foundation, [online] http://www.heritage.org/Research/AsiaandthePacific/bg1916.cfm Accessed 26/10/2009 Corkin, L. (2007) The Strategic entry of China’s emerging multinationals into Africa. China Report 2007; 43(309): 309-322 Giovannetti, G. and Sanfilippo, M. (2009) China’s Involvement in Africa: empirical evidence. European Report on Development, [internet] http://erd.eui.eu/media/giovannetti-sanfilippo.pdf Accessed 26/10/2009 IMF Working Paper 07/211 (Washington: International Monetary Fund).WorldBank, 2007, The Cost of Pollution in China: Economic in Wang, J. and Bio-Tchané, A. (2008) Africa’s burgeoning ties. Finance & Development. 44-48 Liena, F. (29 Jan. 2009) Interview: "Chinas involvement in Africas infrastructure development has fundamental, transformative impact": Ethiopian PM. China View. [online] http://news.xinhuanet.com/english/2009-01/29/content_10731854.htm Accessed 26/10/2009 Meidan, M. (2006) China’s Africa policy: Business now, politics later. Asian Perspective, 30(4): 69-93. Naidu, S. (2007) The Forum on China-Africa Cooperation (FOCAC): What Does the Future Hold? China Report, 43 (283), 283-296 Naidu, S. and Davies, M. (2006) China Fuels its Future with Africa’s Riches. South African Journal of International Affairs, 13 (2): 69-83 Newzimbabwe.com, 15 October 2003, http://www.newzimbabwe.com/pages/china2.1173.html. Beri, R. (2007) China’s Rising Profile in Africa. China Report. 43(297) Paterno, S. (2009) China interference and influence in Sudan. Sudan Tribune. [Online] http://www.sudantribune.com/spip.php?article30707 Accessed 26/10/2009 Servant, J. (2005) ‘China’s Trade Safari in Africa’, Le Monde Diplomatique, in Corkin, L. (2007) The Strategic entry of China’s emerging multinationals into Africa. China Report 2007; 43(309): 309-322 The Sudan Tribune. (2009) Chinese oil firm gets $260 mln contracts for Sudan oilfield expansion. [Online] http://www.sudantribune.com/spip.php?article32728 Accessed 26/10/2009 Wang, J. and Bio-Tchané, A. (2008) Africa’s burgeoning ties. Finance & Development. 44-48 World Trade Atlas Data, 1995–2005, http://www.gtis.com/gta. Read More