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Ties grow and tip global balance
www.asianews.it
Beijing imports oil, metals and agricultural products, too. It makes funds available and exports merchandise, manpower and technical expertise. Political ties are intense, even in the face of opposition from Europe and the US. More than 700 Chinese companies are at work in 49 African countries. The global balance is shaking.
Links between China and African countries are growing fast and making an impact on global equilibrium. China, hungry for raw materials as ever, is keen on Africa because other industrialized states pose no threat as competitors. Africa, on the other hand, is desperate for overseas investments and technical expertise.
Western firms consider investing in Africa a risky business because of the weakness and corruption of governments and frequent wars. China, however, wants raw materials (oil, diamonds, gold, platinum, iron and also cotton and tobacco). Besides, the country is looking for markets for its products and even exporting manpower and technical expertise, all contributing to an increased political impact.
In 2003, trade between Beijing and the African continent amounted to 18.5 billion US dollars, an increase of more than 50% over 2002. In 2004, China imported African merchandise worth 15.7 billion US dollars and exported products for 13.8 billion.
Thirsty for oil
More than 700 Chinese firms operate in 49 African countries. In 2004, 25% of oil imported by Beijing came from Sudan, Chad, Libya, Algeria, Equatorial Guinea, Gabon and Angola. China imports a quarter of Angola's oil, and 60% of that from Sudan. In these countries, oil is a major chunk of their gross domestic product and its trade has important consequences on internal policy and social development. In the agricultural sector, China acquires merchandise and exports technical expertise and capital. In Zambia, for example, the fruit and vegetable market is practically covered by products of agricultural firms run by Chinese.
African countries appreciate Beijing because of the seriousness and rapidity with which it follows through trade agreements, and because it has everything. China supplies the money to set up infrastructures: trains, roads, buildings, electrical and telephone lines, and also mining prospects and oil refineries. In exchange, they often ask that works be undertaken by Chinese firms.
Political influence is considered necessary to safeguard one's economic interests. In international organizations, Beijing often supports lesser developed countries rather than industrialized states. In Sudan, where more than 10,000 Chinese work, it is said that Beijing, to "protect" its oil wells, gave economic and military aid to the African government during the civil war and genocide in Darfur.
A powerful ally
China opposed sanctions called for by the United Nations (UN), threatening to use its power of veto. In Angola, Chinese aid allowed the government to refuse a proposal of the International Monetary Fund (IMF) which asked for international verification of oil contracts and political reform in exchange for loans. Angola's corrupt system of power benefits the restricted elite leaving 13 million people in poverty.
Experts say that between 1998 and 2000, Beijing sold arms worth one billion dollars to both Eritrea and Ethiopia. (The war between the two countries killed tens of thousands of people.) Robert Mugabe, president of Zimbabwe, turned to China when he was "abandoned" by western countries; in 2004, Beijing invested 600 million dollars in the country and supplied military radio equipment used to block transmissions by opposition parties.
Many analysts said Beijing does not concern itself with how the money it gives to African states is used, allowing corrupt governments to siphon off sums received, while western states would often expect to know how the money is spent.
Beijing sent peace contingents to the Democratic Republic of Congo and Liberia, and supplied Mali and Angola with helicopters, Namibia and Sierra Leone with arms and Mozambique with army uniforms. African countries, said Olusegun Obasanjo, the Nigerian president, during a visit to Beijing in April, would appreciate the intervention of China to resolve their disputes, as well as "to increase collaboration in trade, investments and agriculture."
A tourist destination
China is active in setting up bodies to implement trade links with African states. At the first China-African Cooperation Forum held in Beijing in October 2000, 80 ministers from 46 out of 53 African states participated. At the end, China announced that it wanted to reduce the debt of African countries by 10 billion yuan (around 1.2 billion dollars). The sum was negligible (0.3% of the total African debt) but the gesture had a great impact. China also removed import taxes on merchandise from 25 poor African countries. It even has commercial links with countries which have diplomatic relations with Taiwan.
In November 2004, the China-Africa Trade Council was set up, promoted by Beijing and by the UN Development Program, to help private Chinese investments in Cameroon, Ghana, Mozambique, Nigeria, South Africa and Tanzania. In 2006, the third Cooperation Forum will take place in Beijing, with many heads of states attending.
Since 2003, South Africa has become the favorite tourist destination of Chinese tour operators. Chinese firms are active in the continent setting up hotels, restaurants and other tourist and recreational structures.
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The dark side of the picture
The picture has bright and dark sides. It is true that investments in Africa are steadily growing for the first time in years – due not only to China but also to Brazil, India and even South Africa – and there are badly needed. But the traditional Chinese indifference towards human rights is worrying the international community. If money is coming anyway, governments are less likely to give in to pressures to respect human rights, to stop corruption or to make peace. Even more worrisome is if the Chinese send arms, as well as money, to countries that have no intention to achieve peace.
The pragmatism expressed in the aphorism "It doesn′t matter if the cat is black or white, as long as it catches mice," very well applies to China economically and, unfortunately, this leads to a moral problem. After all, it matters what African countries do with the money received, and in whose pockets it will end. In the long term, China can be taking the place once occupied by the former Soviet Union. And the game can become very dangerous like the "Russian roulette" played with so many African countries during the Cold War.
It is unrealistic to expect that, in a time of acute shortage of oil and raw materials, the big powers will stand still watching China move its paws. And this can spell trouble. More trouble to a continent that, for centuries, only gets the spotlight when someone needs to go to a "huge supermarket" of resources and serve himself – at any cost to the Africans ("supermarket" of resources) and at almost no cost to the "eager shopper."
Charm offensive
In the UN, China will back Africa′s bid for a permanent Security Council seat, said the Chinese Foreign Affairs Minister at the end of a week-long trip to the continent. The statement is part of a "charm offensive" to boost economic and political links.
China will back Africa′s request for a permanent seat in the United Nations Security Council, the Chinese Foreign Affairs Minister said. Li Zhaoxing was speaking during a brief visit to the continent. "China is in support of Africa′s aspirations for UN reforms," he said after a quick meeting with his Nigerian counterpart, Oluyemi Adeniji, at the airport of the capital Abuja. Nigeria, Africa′s most populous country and the current head of the African Union, is one of the main backers of this proposal.
Observers say Li′s trip, which also led him to Cape Verde, Senegal, Mali and Liberia, was aimed at boosting diplomatic and political ties as well as economic links, by showing how China devotes substantial attention to African countries, often neglected by western leaders in their agendas and on matters they choose to tackle. Li announced aid of around 3.6 million US dollars for Mali. A statement, issued in the capital, Bamako, said China planned to establish ties with Africa "on the basis of ′win-win′ economics with reinforced cultural exchanges." In Senegal, the Chinese Embassy was reopened in Li′s presence; Dakar had ties with Taiwan until October last year.
China often draws attention to the fact that it was never a colonial power and that it never interferes with the internal affairs of nations. But this also means it has links with undemocratic and oppressive governments sidelined by other states. Zimbabwe is one example; the president, Robert Mugabe, was welcomed to Beijing with a red carpet treatment. Beijing has been stressing its desire to put in place military and economic collaboration on an equal basis ("win-win"). In the case of Nigeria, Chinese Foreign Ministry spokesman Kong Quan shrugged off concerns about the country's poor record on human rights and corruption saying that "China has always been
opposed to some countries, people and organizations labelling certain other countries in this or that way."
According to recent data, the volume of trade between China and the black continent has quadrupled over the past five years to 37 billion US dollars. The second largest oil consumer in the world, China nowadays gets one-third of their oil from Africa, especially from Nigeria. In January, the state-owned China National Offshore Oil Corp clinched a 2.3 billion dollar deal to acquire a major stake in a Nigerian company which has oil and gas reserves. At least 700 Chinese firms operate in the continent, especially in the sector of natural resources (oil and gas, copper, cobalt, coal and gold) and also in the construction sphere. China′s economic products are invading the market, especially in the textile sector, as is happening all over the world.
Politically, China has always had some influence in Africa. In the Sixties and Seventies, Mao′s China threw its weight on newly-independent states. Ever since, China has been keen to be a leader among developing nations. The mainland′s African policies are also dictated by a desire to keep Taiwan isolated. Offers of loans and development aid to poor African countries have been used in the diplomatic tug-of-war with Taipei to get African countries to cut ties with Taiwan. Most recent was in 2005 when Senegal switched from Taiwan to mainland China. Liberia did likewise in 2003. In the latter′s case, trade between the two hit US$ 105 million in the first three quarters of last year.
Chinese scholars like He Wenping, a researcher with the Chinese Academy of Social Sciences, have bristled at and rejected suggestions that China's policies towards Africa is neo-colonial in nature. (AsiaNews/Agencies)
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