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China and Africa: Building, and buying, consensus

HOME > PAST ISSUE > COMMENTARY
December 2006

If nothing else, the long line of African leaders at the Great Hall of the People in early November showed China's approach to the continent is generating interest where it was meant to

One by one, the heads of state of 48 African nations, and senior officials from 13 more, shook hands with Chinese President Hu Jintao to launch the Beijing summit of the China-Africa Cooperation Forum. It wasn't long before China pledged US$5 billion in aid, mostly loans and credit, and a more open market for African products.

African leaders greeted the promises with support and encouragement while critics quickly denounced almost every aspect of the Africa-China relationship.

Human rights activists argued that China is tacitly endorsing repressive regimes. It pointed to the summit invitations sent to President Omar Hassan Al Bashir of Sudan and Robert Mugabe of Zimbabwe, who are accused of serious human rights abuses and genocide.

Economic critics said China's tendency to deal with African nations one-on-one, and regardless of international agreements, hinders the long- term development of the continent.

All of these observations are likely to fall on deaf ears. Having carefully nurtured its Africa policy, China can hardly be expected to turn its back on the continent, especially as it is now the only economic powerhouse consistently doing deals there. Trade jumped to US$40 billion last year, up 40% from 2004, and is poised to hit US$50 billion this year.

China's growth story is one Africa would do well to emulate. In the sub-Sahara region, average spending has grown a negligible 0.2% per year in the last two decades. Meanwhile China, with a population of 1.3 billion, has created the world's fourth largest economy and reduced the number of its poor by half.

Chinese businesses are buying, building and dealing across the continent There are currently more than 600 Chinese infrastructure projects in Africa, often attached to resource extraction agreements.

A dozen companies signed US$1.9 billion in trade agreements during the summit. Sinopec will explore for oil and gas in Liberia, Sino Hydro Corporation moved forward on a US$600-million hydroelectric dam deal in Ghana, and CITIC group will build a US$938-million aluminum plant in Egypt.

African countries are happy to see Chinese investment and are willing to neglect relations with North America or Europe for cash with no human rights strings attached.

There are catches. One is that African people may grow reliant on cheap Chinese goods and neglect their own industries. Another is that the biggest beneficiaries are often Chinese corporations and the autocratic leaders critics love to parade.

The deals announced during a single weekend in Beijing feed into the stereotype of a commodities-hungry giant dropping buckets of cash in exchange for natural resources. On the other hand, leaders from 48 out of 53 African states lining up to shake hands with Hu proves that these buckets are a definite attraction.


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