THE GREAT SUMMIT : AFRICA AND CHINA Nov 5, 2006
Chinese President Hu Jintao opened the summit in Beijing attended by nearly 50 African heads of state and ministers. China has pledged to double its aid to Africa and provide $5bn in loans and credits over the next three years. China emphasized that it has no political agenda but just doing business deals with Africa. China has been accused by the West of downplaying human rights and corruption in Africa. Chinese foreign minister, Liu rejected the accusation by World Bank President Paul Wolfwitz, who told a French newspaper last month that human rights and environmental standards are skipped by Chinese bank when lending in Africa.
"The World Bank is not the only one that provides help to African countries, and there is no individual international organization or country that can monopolize relations with African countries," he said.
Liu said that the summit will open a great chapter in China relationship with Africa.
"The establishment of a new type of strategic relationship between China and Africa is meant to promote mutual development and to raise the living standards of Africa and China, and to contribute to the development of world peace," Liu said.
China expects annual trade with Africa to total $100bn by 2010, which was $42bn in 2005.
ENVOY DEFENDS CHINA AND AFRICA GROWING RELATIONSHIP
6/4/06
Africa has rich resources and market potentials, whereas China has available effective practices and practical know-how it has gained in the course of modernization
- Chinese President Hu
China, the world's fastest growing economy and most populous nation, is quickly and effectively establishing a strategic relationship with Africa.
Recently, the charge d'affaires at China's South Africa embassy, Zhou Yuxiao “vigorously defended his country's growing economic involvement in Africa, including close trade links with Zimbabwe and Sudan.” On the later nations, the envoy said that China has a policy of non-interference and the internal political turmoil in those countries cannot halt ties.
The President of China, Mr. Hu recently embarked on official African tour that took him to Nigeria, Kenya, Morocco and others. In Nigeria, the President Hu addressed the joint National Assembly and called on greater ties between Africa and China.
AFRICA ECONOMIC TIES WITH CHINA:
Seven co-operation agreements were signed by Nigeria and China during President Hu 's visit.
China will buy a controlling stake in Nigeria's 110,000 barrel-a-day Kaduna oil refinery
Build a railway system and power stations in Nigeria
China National Petroleum acquired right for oil exploration blocks - comprise two areas in the oil-producing Niger Delta - one onshore and one in shallow water - and two areas in the higher-risk inland Chad basin, where no oil is produced at present.
Chinese state oil firm CNOOC completed a $2.3bn deal to buy a stake in a Nigerian oil field.
Chinese companies constructed factories in Nigeria and more are planned for a free trade zone in the south-east of the country
In Morocco and Kenya, President Hu signed a number of trade deals mostly on energy related and raw materials.
In many parts of Africa, there are influx of Chinese investments in small businesses and factories.
Viewpoint from Daily Trust : Thinking through Sino-Africa relations
Recent developments especially in the economic fieldhave set the stage for a significant if not a
fundamental shift in relationships between Africa and the rest of the world. Since the emergence of Communist China, successive Chinese regimes under Mao Zedung and Chou-en-Lai; later under Deng Xiao Ping to the current crop of “modern” Chinese leaders, the Chinese governments have generally supported Africa in its struggle to free itself from European colonialism and later American domination. The Chinese have consistently and strongly supported African states.
One of the landmarks of this early cooperation was in building the TaZara – Tanzania to Zambia – railway project. This monument was followed by a host of other projects throughout the continent. In those days, Africa and China had broadly the same under-development profile. Hunger, disease, backward technology and scarce investment capital. Whereas Africa was an open house for economic investors, entrepreneurs and adventurers, the Chinese case was different. They had one stable government, were disciplined enough to control the process and rely on self help and home grown economic policies to develop.
Africa was an experimental group for so many European and American economic policies through Bretton Woods institutions and bi-lateral bodies. The difference was clear.
Today the scenario is vastly different. China is able to feed its 1.5 billion people in spite of drought, floods and other natural catastrophes. Last week it was revealed that China’s foreign reserves had topped 1 trillion dollars – that is one thousand million dollars. The Chinese are awash with people as well as dollars. The Chinese have reached this pedigree because they have taken the correct economic policies according to the dictates of their requirements and with their reputation as the most industrious people in the world have built a burgeoning economy with cities transformed and countryside picking up.
In contrast, Africa presents a mixed picture. One or two countries have shown promising economic development. But the discontinuities of governments, natural disasters, disease and especially bad leadership have left us far behind everyone else. The Chinese with an eye to the main chance are now attempting to get closer to Africa because the continent is bursting with raw materials. Given the right conditions and the right terms, this initiative by China could prove a catalyst for accelerated African development.
However, this relationship is not going to be plain sailing. Chinese aggressiveness could put off many African partners. At present China is dumping huge quantities of cheap imports to the severe detriment of the manufacturing sectors in Africa. Nigerian textile industry is all but dead thanks partly to Chinese dumping, to give one painful example. Many analysts and enlightened Africans must have watched last week’s un-edifying spectacle of more than 40 African Heads of State paraded like a cattle show in front of the Chinese leadership in Beijing. The only thing more surprising than this uncharacteristic and unwise decision by Beijing to invite all African Heads of State to China was the African Heads of State’ decision to go. Propriety would have dictated that the Chinese would come to an AU Summit and see everyone individually and address the Assembly collectively which is normal in international relations. However, the predilection and passion for misuse of government funds dragged African leaders like a magnet to Beijing because it became known that China had reportedly budgeted about 50 billion dollars for loans to Africa this year alone. Some of the African leaders would be dripping with saliva and licking their chops to get a piece of the action.
Certain western institutions and governments have publicly voiced their fears about this new link between China and Africa because that would reduce their influence and commercial presence on the continent. But Western nations and financial institutions having connived with corrupt African leaders to bankrupt the Continent in the last 30 years are not the natural source of advice to us. The only way they can maintain their position if they want is to offer trade terms to Africa on the same or better terms than the Chinese.
Nevertheless, we in Africa should be aware that imperialism, colonialism and slavery can come in another guise. What we should do is to take opportunity of the competition between China and the West and obtain the best terms for our people. The internal control systems should be improved to ensure that only viable and self-liquidating loans are contracted. At all events, investment is the key to economic development and we should make sure the physical, financial, regulatory and communication infrastructure are in place before we start at long last on the road to attracting foreign capital which is a basic requirement for accelerated economic development. Without attending to the basics, we would leave our country and our people in the same desperate cycle of poverty, debt overhang, loan forgiveness, admonition and shame. 21st Century African leaders have a duty to take a different course.
MONDAY, NOVEMBER 13, 2006 / daily trust commentary
Viewpoint: China becomes Africa's suitor
By Ngozi Okonjo-Iweala, Former Nigerian finance minister
The West is in a panic. There is a new suitor on the block vying for Africa's attention.
China, with nearly $1 trillion in reserves and a voracious appetite for natural resources, has decided to spend some of its billions of dollars in savings to secure access to the oil, gas, copper, coal and other mineral riches that lie beneath the soil of many African countries.
China's aggressive - sometimes brazen - approach is causing angst among Africa's traditional partners.
I have heard China called the new colonial master.
'New power'
There is general unease about the potential moral hazard of an Africa whose debt has been cancelled by the West taking the opportunity to accumulate new debt from China.
There is no doubt that China is a new power to be reckoned with in Africa.
China knows what it means to be poor and has evolved a successful wealth creation formula that it is willing to share with African countries.
There is also no doubt that this new economic giant is pragmatic - almost to a fault - when it comes to making deals in Africa. The nature of a country or its leadership carries little weight against China's need for natural resources.
Not for China the niceties of human rights, nor long debates on macroeconomic conditionalities, and structural reform.
China is ready to transform savings into investment projects in Africa in exchange for access to mining rights.
'Economic growth'
It is true that African countries need to be wary that old trappings of bondage are not exchanged for shiny new ones - whatever form they may assume.
Nevertheless, there is more to this China-Africa relationship than meets the eye.
African countries are clear that when it comes to economic growth and transformation, China has much to offer that is relevant to present-day Africa.
China knows what it means to be poor, and has evolved a successful wealth creation formula that it is willing to share with African countries.
Africa's need for infrastructure investments - estimated at $20bn a year for the next decade - is understood and supported by China.
'Fresh approach'
When I asked the Chinese how we could get a growth rate of 10%, like theirs, their answer was simple.
Infrastructure - infrastructure and discipline.
China is thus willing to invest in railways, roads, ports and rural telephony in various African countries as part of its winning formula for economic development.
This is an area considered too risky by many of Africa's traditional partners.
China provides an alternative viewpoint, a fresh approach that diversifies and enriches the spectrum of Africa's interlocutors.
For that reason, China should be left alone to forge its unique partnership with African countries and the West must simply learn to compete.
