The above title is one that’s often seen in sensationalist news reports these days. But is it true? Is China really taking over Africa? And what does “taking over Africa” really mean?
“China has supported development in Africa since independence,” said Sanusha Naidu from the social networks movement Fahamu. She was speaking last week at the colloquium on China-Africa Economic Relations hosted by the Confucius Institute at Rhodes University. “So what makes it different now? This old ally of Africa is not just continuing their historical efforts but also sourcing and extracting energy and natural resources.”
The Chinese economy continues to grow and reports show that within months it will overtake Japan and become the world’s second-biggest economy. While at least half of the world’s major economies hold current account deficits and need more foreign currency than they hold, China has one of the largest current account surpluses and holds the world’s largest holding of US dollars.
China, which is essentially the planet’s factory for cheap goods, has a growing consumer base that is also demanding goods. For all of this China needs energy, raw materials and oil. But a country that has about 22% the world’s population and only 7% of the world’s arable land needs to find alternative sources. China has found that the African continent is the answer to their problems. In order to access Africa’s plentiful natural resources, the Chinese are forced to introduce the necessary infrastructure. “China now has over $4 billion of direct investment in Africa, up from just over $50 million about 20 years ago,” said Professor Tang Yuhua from Jinan University in China, speaking at the Rhodes colloquium. “It is also the largest consumer of oil after the US and imports a fifth of its oil from Africa.”
But the building of major transport networks and infrastructure is not enough to solve Africa’s problems. “While Beijing sees itself as partners in African development, unless Africa picks itself up, this won’t do no good,” said Professor Ron Sandrey of Stellenbosch University. “Africa is underperforming and lacks the policies and leadership required to turn things around on the continent.” He argued that Africa is in a terrible economic situation and though interactions with the Chinese may bring some improvements, “Africa has missed the bus and China’s growth is making it very difficult for Africa and South Africa to get back onto the bus”.
Most speakers at the colloquium criticised the claims “that China is taking over Africa and colonising it”. The relationship between Chinese enterprises and African companies and governments varies and though most deals and experiences are good for the continent, those that are not need to be exposed and changed. It was suggested that perhaps the “West is disturbed by the fact that Africa only recently gained independence after centuries of exploitative colonialism and now China seems to have replaced them at a time when these Western countries are in a shaky economic state”.
Yuhua was challenged when he spoke about “China’s non-interventionist policy” because this has dangerous implications, especially for African countries that are run by ruthless dictators. But others questioned whether encouraging Beijing to adopt interventionist policies will be much better. “Does Africa, or the world, need another global superpower that feels it can decide what is best for citizens of other countries?” questioned one delegate, without needing to mention the US and the Bush administration. Naidu cited examples of how China is becoming increasingly concerned about negative publicity and is making active efforts to address its global image.
“China is doing business in socially and politically less stable countries because Western countries have already scooped up all the other markets,” claimed economist Hannah Edinger of Stellenbosch University. She admitted that though bad examples do exist such as the arms shipment to Zimbabwe that was turned away at South African ports, the Chinese have actually rejected many more deals with Zimbabwe than have been accepted. But this does nothing to alleviate concerns and a vigilant eye needs to be kept on Chinese-African relations.
The Chinese presence in Africa seems to be bitter sweet. “China is inhibiting the African manufacturing base and is also squeezing Africa’s international growth,” said Sandrey. Africa needs visionary and dedicated leaders more than foreign investment and infrastructure development. Africa needs to get its house in order before the benefits of Chinese involvement mean anything. “Where is all the oil and mineral wealth gone? In the past 3 years alone, millions of dollars have poured into the African continent and most African people haven’t benefited.”
Though one may be naïve to believe that China’s interest in Africa is one of philanthropy, Naidu argues that Chinese development aid to Africa is important. “While there is confusion around what actually constitutes aid from China, they have promised to double aid to continent by 2009,” she added. What this means is still unclear but what is clear is that the relationship between China and Africa is a complex one.
South Africa has a bigger responsibility to the African continent and is best suited to positively influence the Chinese-African relationship. China recently overtook the US as South Africa’s biggest export destination.
What implications does this have for Africa’s biggest economy?
Can only be positive because they (China) are
paying fairly and not taking by force,causing
civil wars using mercanaries or interfering in the
running of African countries.The negative criticisms are usually from South Africans who
had this ARCHAIC ideology that chinese(asians) are inferior.
The proof of this is that the local South African
chinese people were treated this way until,can you
believe it,2008.
Ask any IGNORANT South African !!!!
China’s (Asias) aid is material and grassroots.
The rest of the world’s (western) aid to africa has been abstract.In a developed world sense it is
peanuts.In south africa we have allowed for much
too long for the western (developed) world to take
over South Africa.If you look around there are BMW,
mercedes,polo,pringles,alfa,fiat,volvo,bentleys,aston martins,ferrari,tuscan houses,fake hair,..etc..
We must be honest when we unpack China and its economy. We must remember that between 400AD to 1400AD, China was no 1 in the world’s economy. Then the West took over and it has taken China 600 yrs to regain its spot. At the present differential between economic growth rates in America and China, China is due to overtake America to become the world’s biggest by 2040. At the moment, China is the biggest holder of american treasury bills it could pull the plug on their economy simply by selling its stock or not buying more.It wont do it simply becos america is it most important export market. We also need to look at this growth against the background that a communist party runs this country. It is the best case eg of how the bourgeoisie and a govt works together. Africa, should learn and adopt from their model. If china can come out of Mao’s destructive economic policy in 1970 to uplift the conditions of 300 million people from abject poverty to a low income group then how does it spell doom for this continent. Our continent is ravaged by famine,war and idiotic politicians. That is africa’s problem and not the advent of china’s economic policies. We must challenge narrow views that continue to scare us. China moved away from the classic class struggle of bourgeoisie vs proletariat. Instead they agreed to join hands and the results speak for itself.
It will be nice if China’s response to negative publicity emanated from misgivings from its own populace instead of a cultivated international image to prevent outrage and campaigns that could hurt its trade with the West.
The thing is what is China going to buy from Africa sustainably aside of raw materials.
Implicit in the “China is colonising Africa” rumpus is the disgraceful notion that Africans are there for the taking. That they have no agency. That, like children, they need the firm guidance of the west. By the way, one of the more insightful economists in this country, Michael Power over at Investec, has written an interesting and relevant article in the Business Day: http://www.businessday.co.za/articles/Content.aspx?id=83189
China has two billions people and she is not a great food producer. China is limited in natural resources and can not produce the food like North America. If one visit the coastal cities in China, one will get the impression that China has arrived but, if one go inland, one will see a different China. No country in the world has been great without being a food producer. China doesn’t release all of those dollars in their economy because it would create demands for goods and China would have to start importing them. China might look big to Africans because Africans see themselves as being so small. Speaking of Africa, most African countries don’t have a lot of natural resources but, the resources are not used them so it appears that they have lot. A good example of Nigeria, this country is exporting energy but the people are sleeping in the dark.
if only they knew how to exercise human and animal rights