“China has become the most confident and assertive commercial player in Africa.
It appears that China will over time displace Western commercial interests and
political influence on the continent. But China is not the new coloniser. It is an
expanding global power toward which Africa must pragmatically align itself.”
(Dr. Martyn J. Davies, Director, Centre for Chinese Studies).
Sino-African trade sextupled from 1998 to 2005 to $1 36 bn (Schüller and Asche,
2007: 4) and on a conference in Beijing in 2006 China’s Premier announced the
aim to increase the trade volume to $ 100 bn in 2010 (Hui, 2006). These figures
represent China’s growing engagement in Africa. But it is not quite clear if
China’s impact on Africa is positive or not. One point of view, of which the quote
presented above is a part, is that China’s engagement has the potential to increase
Africa’s importance in the global economy and to significantly reduce poverty on
the continent. Whereas others heavily criticize Beijing’s approach towards the African
countries and claim that China is nothing but a new coloniser.
The purpose of this study is to conduct a descriptive analysis of China’s impact on
Africa. We therefore first describe China’s economic and strategic interests in Africa.
After this, we are going to present negative and positive effects of China’s
engagement in Africa and try to reveal a general tendency in the nature of China’s
impact on Africa. Before giving some concluding remarks, we will compare
China’s approach towards development aid, the so-called Beijing Consensus, with
the Washington Consensus, which can be characterized as the approach of the
western world, because this is an increasing ideological conflict with important
consequences for Africa (Sautman, 2007: 21).
As this is a descriptive analysis rather than an empirical study, we are not going to
present any hypothesis.
Table of Contents
1. INTRODUCTION
2. CHINA’S ECONOMIC INTERESTS IN AFRICA
2.1 SINO-AFRICAN TRADE
2.2 CHINA’S QUEST FOR OIL AND OTHER NATURAL RESOURCES
2.3 NEW MARKETS
2.4 NEW INVESTMENT OPPORTUNITIES
2.5 DEVELOPMENT AID
3. CHINA’S STRATEGIC AND POLITICAL INTERESTS IN AFRICA
3.2 THE “FIVE PRINCIPLES OF PEACEFUL CO-EXISTENCE”
3.2 ONE-CHINA-POLICY
3.3 AFRICAN STATES AS IMPORTANT ALLIES TO ACHIEVE CHINESE GLOBAL INTERESTS
3.5 CHINA’S STRATEGY TO ESTABLISH LONG-TERM RELATIONSHIPS WITH AFRICAN COUNTRIES
4. IMPACTS OF CHINA’S ENGAGEMENT IN AFRICA
4.1 POSITIVE IMPACTS
4.2 NEGATIVE IMPACTS
5. BEIJING CONSENSUS VS. WASHINGTON CONSENSUS
5.1 CHARACTERISTICS OF THE WASHINGTON CONSENSUS
5.2 CHARACTERISTICS OF THE BEIJING CONSENSUS
5.3 AID, GROWTH AND DEVELOPMENT
6. CONCLUSION
Objectives and Topics
This paper provides a descriptive analysis of the expanding engagement of the People's Republic of China in Africa. It examines the economic, strategic, and political drivers behind this relationship, analyzes both positive and negative consequences for African nations, and compares the Chinese approach to development, often termed the "Beijing Consensus," with the established "Washington Consensus."
- Economic drivers: The Chinese demand for oil, natural resources, and new markets.
- Strategic interests: Seeking diplomatic allies and securing global influence.
- Impact analysis: Assessing the effects of trade, investment, and aid on African economies.
- Ideological comparison: Evaluating the Beijing Consensus versus the Washington Consensus.
- Developmental implications: Investigating long-term consequences for African sustainable growth.
Excerpt from the Book
China’s way of doing oil business
As described above, China tries to gain long-term control over the foreign natural resources. Therefore, Chinese companies purchase equity shares in established oil fields rather than buying rights for future exploration and development. This approach can be called vertical integration meaning that a country tries to own production facilities through to transport tankers (Alden, 2005: 149). In order to create a network of reliable allies and suppliers, China follows an “aid for oil strategy” meaning that it combines financial assistance and funding of construction projects in exchange for oil. China’s Exim Bank, one of the world’s largest export credit agencies, for example gave Angola a $ 2 bn credit (1.5 interest over 17 years) in return for concessions and oil contracts. An additional $ 2 bn was granted in 2006 (Zafar, 2007: 120). The loans were used to rebuild Angolan infrastructure, such as railways, roads, schools and hospitals, which were damaged during the civil war (Zafar, 2007: 119-120). 70% of the construction projects had to be assigned to Chinese and only 30% to local companies. Assigning foreign projects to Chinese companies and the reliance on migrant Chinese workers is a common characteristic of China’s business strategy in Africa (van de Looy, 2006: 19; Zafar, 2007: 124-125).
Summary of Chapters
1. INTRODUCTION: Sets the stage by highlighting China's rapid commercial growth in Africa and outlining the paper's descriptive purpose without testing specific hypotheses.
2. CHINA’S ECONOMIC INTERESTS IN AFRICA: Explores the demand for natural resources, the search for new markets, and the utilization of development aid as a tool for economic expansion.
3. CHINA’S STRATEGIC AND POLITICAL INTERESTS IN AFRICA: Details China's foreign policy goals, including the "One-China-policy" and the search for strategic allies in international forums.
4. IMPACTS OF CHINA’S ENGAGEMENT IN AFRICA: Discusses the multifaceted effects of Chinese involvement, balancing benefits like infrastructure investment against drawbacks like deindustrialization and reliance on extractive industries.
5. BEIJING CONSENSUS VS. WASHINGTON CONSENSUS: Compares the neoliberal economic model of the Washington Consensus with the state-led, innovation-focused Beijing Consensus.
6. CONCLUSION: Synthesizes the findings and argues that while the impact of China's presence is complex, it is too early to determine if the long-term outcomes will be beneficial for Africa.
Keywords
China, Africa, Sino-African Relations, Development Aid, Foreign Direct Investment, Beijing Consensus, Washington Consensus, Natural Resources, Oil Diplomacy, Trade Volume, Economic Growth, Political Strategy, One-China-Policy, Infrastructure Projects, Sovereign Debt.
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the growing economic, political, and strategic relationships between China and African nations.
What are the primary thematic areas?
Key areas include Sino-African trade, the demand for natural resources (specifically oil), development aid, and the comparative analysis of ideological development models.
What is the central research question?
The study aims to conduct a descriptive analysis of the nature of China’s impact on Africa, seeking to reveal whether this growing engagement is generally positive or negative for the continent.
Which scientific methods are employed?
This work is a descriptive analysis based on literature and statistical reports; it does not present or test empirical hypotheses.
What does the main body cover?
It covers economic interests, strategic and political motivations, both positive and negative impacts of Chinese engagement, and an analysis of the Beijing versus the Washington Consensus.
Which keywords characterize the work?
The study is characterized by terms such as Sino-African relations, development aid, resource extraction, FDI, and the Beijing Consensus.
How does China secure oil supplies in Africa?
China uses a strategy of "vertical integration," purchasing equity in established oil fields and employing an "aid for oil" strategy that links infrastructure funding to resource concessions.
Why is the "Beijing Consensus" significant?
It is viewed as an alternative to the "Washington Consensus," emphasizing state-controlled economic development, innovation, and non-interference in internal political affairs.
- Quote paper
- Martin Mittelstädt (Author), Björn Bornemann (Author), 2007, China's distinctive links with Africa, Munich, GRIN Verlag, https://www.grin.com/document/93866
