One hundred billion dollars in trade and a five billion dollar investment fund. China pursues its offensive in Africa.

by Robert Adandé, Cotonou

Scathing criticism has recently been levelled against the policies of the Chinese government, be it at home, in Tibet, or in Sub-Saharan Africa. It did not take long for Beijing to muster a response. Hongyi Wang, assistant director of the department of studies at CIIS (China Institute of International Studies) Developing World Centre and a diplomat specialising in Africa, stepped up to the podium on 18th April, in Paris, to announce China’s counterattack. During a press conference under the theme “Is China in Africa only for energy resources?” Mr. Wang reminded his audience that the friendly relations that China and Africa share date back to a distant past, adding that China was already providing Africa and other regions of the world with economic assistance from the socialist era. He also alluded to the unique role that African countries had played in enabling the People’s Republic of China to gain its seat on the United Nations Security Council – a seat held by Taiwan until 1971. Today, Afro-Chinese relations have evolved into an economic and trade partnership that assumes global proportions. Described as a “win-win” situation by the Chinese representative, this partnership enables China to have access to raw materials and create an export market for its technological products. In return, Africa is able to have more favourable trade arrangements and a transfer of technologies and infrastructure. China wants to go even farther.

100 billion dollars In 2010, the People’s Republic of China plans to raise the volume of its trade with Africa to 100 billion dollars. According to Mr. Wang, this unprecedented level of trade would be even higher than those reached in the 2002-2007 period. During this era, Afro-Chinese trade had increased by more than 30%. For the assistant director of Developing World Studies at CIIS, this increase in trade volume would be one of the priorities of China and Africa, a context which would justify the government’s decision to encourage Chinese businesses to increase their importation of African goods and simultaneously extend the processing reserved for rural customs tariffs on most products imported from the dark continent.

Amounting to 5 billion dollars, this fund enables the accompaniment of Chinese enterprises investing in Africa. 

A 5 billion dollar African fund China plans to strengthen its cooperation with Africa, particularly in investments and exchanging technology. It also intends to get its most credible, best performing companies to invest and establish themselves in African countries. At the governmental level, revealed Hongyi Wang, Beijing has decided to create an Afro-Chinese development fund. Amounting to 5 billion dollars, this fund enables the accompaniment of Chinese enterprises investing in Africa. In addition, the emphasis on training local human resources will alleviate the handicaps that hinder the African work force. This will be done through annual training for 500 to 600 African technicians to replace Chinese workers. Trade between China and Africa has been progressing at an average rate of 22% per year. According to the Chinese Ministry of Trade, it increased from 10 billion dollars in 2000 to 40 billion in 2005 before reaching 55.5 billion the following year.

Debt Remission Chinese president Hu Jintao also promised that Beijing would gradually do away with some of the debt accrued by some the poorest African countries and grant exoneration from customs duties on the importation of African products. To date, China has erased the debt of 31 African countries and granted around 5.5 billion dollars in aid and grants.

China’s safari in Africa is worrying Europe
Europe is anxious. China has been keeping her up at night. According to the Old Continent, China is on a virtual “safari” in Africa. What’s the rush? No doubt the need to satisfy the People’s Republic of China’s insatiable appetite for raw materials – particularly oil. From Europe’s point of view, China has become keenly aware of Africa’s immense potential and its presence there is increasing “exponentially”. Europe now realises that it must act. In this context, on 27th November 2007, the European Parliament’s Commission on Development issued a report on “China’s policies and their effects on Africa”. Prepared by Member of Parliament Ana Maria Gomes, this report was to be examined on 22nd April in an open session of the European Parliament representatives. European Commissioner for Development, Louis Michel, has planned the finalising of the trilateral partnership among the European Union, Africa and China. In fact, the European Union is in the process of launching a new communication campaign: The EU, Africa and China: Towards a trilateral dialogue and a cooperation on peace, stability and sustainable development in Africa” which should be finalised at the end of the year. Members of parliament are hoping that, “China assumes responsibilities as a permanent member of the United Nations’ Security Council, particularly “to protect” by recognising that the sole presence of China in Africa, independent of any desire to promote policies of ingerence, has a real impact on the host country, including at the political level.” And Africa? It will be up to her to awaken to her potential and the value of her wealth to take advantage of them.

Chérif Elvalide Sèye, Dakar