How Africa can get more from relations with China
A paper from the Institute of Development Studies, in the UK, examines the motives of the Chinese government and Chinese companies for trading and investing in Africa. The authors also identify areas where Africa has the potential to influence Chinese policy decisions that impact on African countries.
The relationship between China and Africa is perceived as highly unequal. China is seen as strong and strategic, as opposed to a weaker and less coherent group of African states. To a certain extent, this perception is justified: while China is increasingly economically important for Africa, Africa accounts for only three percent of China’s international trade.
But Africa is also increasingly important for China. In political-strategic terms, relations with Africa are central to China’s focus on South-South cooperation and dialogue. Economic interests are also key: China needs raw materials to sustain its rapid economic growth and its imports from Africa are mainly resource-based. And for China, engagement with Africa provides a vital counter-balance to the dominance of Western powers in global economic and political-strategic relations.
China presents its relations with Africa as being substantially different to those of the Western powers. China emphasises cooperation, development and non-interference in the internal affairs of other states (an approach summarised in the Bandung principles). But despite the good intentions, China’s presence is not always beneficial to African countries.
The authors outline some of the main concerns:
Competition from Chinese imports is threatening some African goods produced for the domestic market.
The quality of some Chinese imports is poor.
Safety and working conditions in some Chinese companies operating in Africa are not adequate.
China’s high demand for commodities such as oil, timber and minerals may have a negative environmental impact.
Trade with China may have a negative economic impact as it reinforces a division of labour based on exchanges of manufactures for African raw materials.
The authors suggest that African countries have scope to influence Chinese policies towards Africa. China cares about its image in the world and likes to present itself as a partner to developing countries rather than a donor. Africa could capitalise on this to increase its influence over Chinese policymakers.
The authors conclude that:
Africa can bargain to gain a good price for the resources it sells to China.
Africa could monitor more closely the commitments China has already made with respect to aid, trade and investment.
Africa has the potential to raise further issues of concern with Chinese policymakers, including: aid-tying (particularly the use of Chinese labour in construction projects), increasing the value added in China’s imports from Africa and restraints on Chinese manufactured exports.
Further issues, such as aid effectiveness and non-intervention and its consequences in Sudan and Zimbabwe are also on Africa's China agenda.
A forum for discussing issues with new donors would be a means of addressing these issues more systematically.
