China in AfricaIs Chinese investment in Africa an

example of neo-colonial erosion of

sovereignty?

Ok.. let’s Break it down

Is Chinese investment - i.e. money from

government of China or Chinese Transnational

corporations going into industry, mining an

agriculture in Africa..

an example of neo-colonial - like colonialism in

the past when Britain went to Africa, obtained

cheap resources from them for little money.

however it is new.. often big TNC’s who move

into countries and overuse their power are

accused of being neo-colonial.

erosion of sovereignty? - and they lost their

political independence to choose their countries

path.

Task: You are a researcher for the Minister of Finance in a small African

Country who has had long term political and economic ties with Taiwan. You

have recently been approached by a mainland Chinese delegation who have

asked you to support them in exchange for a lot of Chinese investment in

Agriculture and some mining as well as helping develop some transport..

You have been asked to create 6 slides to explain..

a) what is China doing in Africa

b) give examples of where Chinese help is really helping any specific countries in

Africa to develop. (use Angola is best)

c) Give examples of what problems may occur by allowing Chinese investment.

d) Give a short recommendation based on specific facts and figures.

You should be able to give an opinion based on your research to tell the Minister

whether you think China’s goals are aimed at helping you or whether you should

fear a neo-colonial erosion of sovereignty.

2 covers - 10 years difference

The same voices that once proclaimed the continent dead are now predicting a rebirth for

Africa, the awakened giant with nearly incalculable natural resources (around 40 percent

of the world's raw materials and 60 percent of its uncultivated arable land), fast-

growing markets and a young, highly motivated population.

No other continent has developed as rapidly in the last decade as Africa, where real

economic growth was between 5 and 10 percent annually. In oil-rich countries, such as

Angola, it was a possibly record-breaking 22.6 percent in 2007.

A World Bank study shows that 17 of the 50 national economies currently displaying the

greatest economic progress are in Africa. The gross domestic product of the continent as a

whole -- over $1.7 trillion (€1.3 trillion) -- is nearly equal to that of Russia.

The German magazine Der Spiegel describes three forces driving Africa's boom: China's

economic offensive, the digital revolution and African women's fight for a better future.

source: Der Spiegel

Up and Coming African States

China’s involvement in Africa has been since the 50s, when as part of the Cold war they were involved in help to countries that were more left leaning. An example of Chinas aid was in the development of the Tanzam railway, linking copper mines in Zambia to the East African port of Dar Es Salaam.China's recent economic offensive in Africa began before the turn of the millennium. At first, it was very gradual and inconspicuous. But, since 2000, trade volumes between China and Africa have grown twentyfold, reaching $200 billion in 2012. China has surged ahead of the old major powers - France, the United Kingdom and the United States -- to become Africa's most important trading partner.The Washington-based Center for Global Development estimates that, between 2000 and 2011, China provided about €75 billion in aid to Africa for a total of 1,673 projects, or roughly as much as the United States did in the same period.However, it is sometimes hard to tell where profitable investment ends and altruistic initiatives begin.In return for developing the infrastructure, the Chinese receive lucrative licenses to exploit natural resources and fossil fuels. For instance, Angola, a war-torn and marginalized country until not too long ago, has become one of China's key oil suppliers, competing with Saudi Arabia for the top position.

However is China merely undermining nations sovereign rights?

Aid from China or the West?China attaches no political conditions to economic cooperation, unlike the West, which, at least on paper, demands good governance, the rule of law, anti-corruption measures and protections for human rights.With Chinese economic dominance, the West's political influence is gradually being eroded. In authoritarian countries like Ethiopia, Rwanda and Uganda, the model of the Chinese development dictatorship, which prioritizes growth over freedom, has long been a welcome alternative to liberal democracy.So in this case Aid from China and investment is not attached with these provisos, and therefore not affecting the sovereign right of the govements

Much of Western Aid is aimed at

issues relating to the Millenium

Development Goals

China’s aid aims at infrastructure

Growing Resentment and Violence

Nevertheless, there is growing resentment in South Africa, where there are reportedly already 250,000 Chinese.

In the townships, the new immigrants are berated as "yellow masters." Among South Africans, the Chinese are

often seen as greedy, ruthless and racist, as people who are exploiting Africa, flooding its markets with cheap

products and ruining an already weak domestic industry.

Union leaders in Angola complain that Chinese companies are creating too few jobs for local workers. There are

rumors in the capital, Luanda, that the Chinese are using prisoners as forced laborers on construction sites.

In Zambia, there are frequent protests against the starvation wages and inhuman working conditions in Chinese-

run coal and copper mines. Chinese guards have repeatedly fired on striking miners in recent years, causing

bloodbaths. One of the miners, after being struck by a bullet in July 2006, said: "They simply don't see us as

human beings." Angry workers killed a Chinese manager during a wage dispute in August 2012.

In Zimbabwe, Chinese products are called zhing-zhong, or junk products that don't last. Chinese vendors were

recently attacked in the Kariakoo market in Dar es Salaam. "They undercut every price and are spoiling our

business," says a woman who runs a shop at the market.

Some Africans have become resentful, though, unhappy with unbalanced relationships in which China has taken

proprietorship of African natural resources using Chinese labor and equipment without transferring skills and

technology. “China takes our primary goods and sells us manufactured ones. This was also the essence of

colonialism,” Lamido Sanusi, the governor of the Central Bank of Nigeria, wrote in the Financial Times earlier

this year.

source: The New Yorker Article - The New Imperialists

Note - although China’s outward FDI has increased rapidly it is least in Africa compared to other areas, and

is in fact declining. Most FDI is related to State linked TNC’s like Sinopec (oil)

What this does not show however is Chinas financial flows in terms of aid and loans, often which are low

interest, and have no “links”. They are often for infrastructural programmes and in some cases have been

wiped out.

Guardian - China offers $20 bn in loans to African nations

What is the Reality - China in Africa - Think again - Read and try and come up with 5 points the author uses

to say that Western common opinion is not correct.

So. Which of the following is true

A reminderYou have been asked to create 6 slides to explain..

a) what is China doing in Africa?

b) give examples of where Chinese help is really helping

any specific countries in Africa to develop. (use Angola)

c) Give examples of what problems may occur by

allowing Chinese investment.

d) Give a short recommendation based on specific facts

and figures.You can also listen to the podcast on..

Some bbc articles e.g Link

This article - “Is China good or bad for Africa?”

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