Chinese Presence in Africa: Its FP and its implications both In the Developing World and IR













INTRODUCTION

A

n advocate of the developing world or seeking dominance? Africa's development partner or new colonizer? These are some of the questions that come to mind when considering the evolving China-Africa relations. Over the past two decades, China has emerged as a global superpower, reintegrating into the world economy by joining the WTO in 2001. Chinese economic and trade foreign policy has expanded beyond traditional dominant markets such as the United States and Europe to include African markets. This rise of China has sparked discussions about China's intentions in Africa, raising concerns about the socio-political and economic impacts of this relationship.

China's presence in Africa has been characterized by a fluid relationship of bilateral and multilateral engagement, with the People's Republic of China rapidly growing its influence on the continent. Through its foreign policy of "Going Global," China has increased its presence in Africa, promoting South-South cooperation and fostering Sino-Africa economic and foreign aid relations. China's foreign policy is seen as an alternative development model for developing countries, leading some African states to adopt "look East" policies instead of the traditional "look West" approach associated with developed countries.

While China claims that its foreign policy is based on equal engagement and the principles of peaceful coexistence, including mutual respect and non-interference, it has faced criticism for human rights abuses and environmental violations in countries where it operates. These concerns have raised questions about China's true intentions in Africa. This article aims to understand China's foreign policy and its intentions in Africa, examining its model, nature, and characteristics, as well as the tools and forums it employs in its engagement on the continent as an "all-weather friend." Additionally, the article will analyze the benefits and implications of China-Africa trade. Lastly, it will explore the implications of China's growing influence in Africa on other traditionally dominant powers such as the United States, as well as its impact on international relations.

It is important to approach the analysis of China's foreign policy in Africa from a realist perspective, considering both the systemic level and the role of nation-states. This does not discount the importance of domestic or individual decision-making but recognizes that China's state-directed model of development operates within a state-centric international system, contrasting with the more liberal approach of the West.

CHINESE FP IN AFRICA: THE MODEL

China's historical connection with Africa, rooted in their shared liberation struggles, has positioned China as a steadfast ally for Africa since the 1970s. This enduring friendship was reaffirmed in 2006 when China published its white papers on its China-Africa Policy, which revisited its engagement with the continent while maintaining the five principles of coexistence established in 1954. These principles emphasize equality and mutual benefit, granting Africa an equal standing in the relationship, at least in theory. As an alternative model for development, China's approach differs from the Western model by emphasizing sovereignty and non-interference in the domestic affairs of partner countries. Unlike the Western model, which is characterized by liberal principles that reduce state control on markets and facilitate one-way resource transfer, China's model promotes economic cooperation based on equality and mutual benefit, thereby addressing the historical bias that has disadvantaged the Global South.

China's model of development offers African states a departure from the neo-colonialism and political conditions imposed by the West, presenting a more equitable and mutually beneficial form of engagement. In contrast to the liberal model's neoliberal reforms that advocate limited state control over markets, African countries fear losing control of Western ideologies. China's model, on the other hand, allows for a state-directed approach to development, reinstating control over domestic markets and economic policies. Moreover, China's emphasis on symbolic diplomacy, such as national representation abroad, further reinforces the sense of equality. China accords to African countries equal diplomatic status through visits, engagements, and high-level summits, China distinguishes itself from Western powers, where African leaders often receive unequal recognition.

China's commitment to large-scale projects, including the construction of stadiums and parliament buildings, often referred to as "stadium diplomacy", adds to the allure of China's alternative development path. When coupled with aid and soft power initiatives, these projects present China as a partner offering support without strings attached. Consequently, the Beijing-African Policy ensures that African statesmen are recognized on par with leaders of dominant powers, further facilitating China's engagement with Africa. While this South-South cooperation promotes a sense of equality, it is important to approach it with caution. China's non-conditionality approach, while appealing, has implications in areas such as democracy and transparency, potentially leading to human rights violations and corruption, as will be discussed later.

UNPACKING THE MODEL FACETS

Grounded in the principles of coexistence, the Global South, particularly Africa, plays a crucial role in China's comprehensive model of international relations across four key dimensions: political, economic, security, and ideological. These dimensions foster an environment of growth and stability in China-Africa relations by establishing common interests and mutual benefits. Politically, China's engagement in Africa has effectively rebalanced power dynamics against the West. During a Non-Aligned Movement summit in Bali in 1992, the Chinese foreign minister emphasized the resolution of two critical issues: peace and development, placing South-South cooperation at the core of China's policy for opening and reforming Africa.

This foreign policy standpoint can be traced back to the events surrounding the Tiananmen Square incident in 1989, which triggered a crisis between China and the West. As a result, China reassessed its approach to developing countries, finding support from Africa, which stood by China's position against counter-revolutionary rebellion. China heavily relies on the diplomatic support of African states in international arenas and key international institutions. African states constitute a significant portion of United Nations membership and votes. In 1972, China recognized the need for a symbiotic relationship with Africa when 26 African countries voted in favor of China resuming its seat in the UN, accounting for one-third of the supporting nations. Following the events of Tiananmen Square in 1989, China faced sanctions, leading to isolation from the West and increased dependence on the Global South, particularly for political support.

Africa's political and diplomatic significance to China has been reaffirmed by various events, including the controversial China-Tibet policy. In recent years, particularly in 2008, the Chinese government faced accusations of human rights violations against the indigenous people of Tibet. The practice of Sinicization, which involves the forced cultural assimilation of Tibetan areas to resemble mainstream Chinese society, has drawn criticism as an act of cultural genocide and a violation of the Tibetan people's right to self-determination.

To navigate the controversy surrounding its Tibet policy and avoid international backlash, China sought support from African nations. The Chinese government engaged in diplomatic lobbying, urging African countries to remain silent on the issue or even lend their support. By securing African nations' support, China aimed to prevent hostile actions from the international community and the United Nations. Furthermore, China sought endorsement for its "One China Policy" and legitimacy through its diplomatic ties with Africa. The "One China Policy" advocates for Beijing's recognition as the legitimate representative rather than Taipei. Therefore, the China-Africa relationship serves as a crucial diplomatic strategy for China, enabling it to establish an international standing and maintain its legitimacy.

China's perception of Africa as an "all-weather friend" coincided with Africa's economic reform programs in the 1990s, which embraced liberal principles such as privatization and market openness to international trade. China recognized the economic opportunities presented by Africa's shift and adopted an "open door policy" towards Africa as an equal partner in international affairs. This approach emphasized cooperation and fostered bilateral and multilateral engagements between China and African nations. As a result, China's diplomatic strategy with Africa became an integral part of its foreign policy, enabling the country to pursue its economic interests while projecting its global influence.

With China's growing influence and power in international relations, particularly in the global South, its approach to development cooperation has evolved significantly. Initially described by Taylor I. (1998) as "socialism with Chinese characteristics," China's modernization process necessitated foreign investment and technological assistance. Over time, China transitioned to a state-controlled development model, emphasizing economic cooperation and mutual assistance through bilateral and multilateral engagements. To enhance socio-cultural, political, and economic engagement, China established regional organizations such as the Forum on China–Africa Cooperation (FOCAC) in 2000. FOCAC serves as a platform for collective dialogue between China and African countries, based on principles of equality, mutual benefit, peace, and development. These engagements are supported by aid, trade benefits, and debt relief mechanisms, contributing to the strengthening of China-Africa relations.

China has also taken a leadership role in establishing multilateral development institutions. Notable examples include the BRICS New Development Bank and the Asian Infrastructure Investment Bank (AIIB). These institutions are led by countries from the Global South and aim to facilitate China-Africa relations, enhance cooperation, and protect the interests of both partners. Furthermore, China's foreign policy in Africa emphasizes bilateral engagements, primarily driven by Free Trade Agreements (FTAs). These agreements enable China to secure resources from individual countries. From 2000 to 2014, China's trade with Africa witnessed a significant increase from US$10.5 billion to US$220 billion, underscoring the centrality of trade in China's foreign policy approach. China's demand for resources to support its domestic growth and its position as a manufacturing powerhouse necessitated a strategic, state-driven approach to resource acquisition.

China's pursuit of resources and markets has driven the adoption of the "going out" policy, which entails the Chinese government actively supporting domestic companies through legal and administrative means, granting them preferential access to financial resources, and offering diplomatic assistance. This policy aims to facilitate the global expansion of Chinese businesses in their quest for investment opportunities and access to resources and markets. Consequently, this has fostered the development of the China-Africa relationship, whereby China imports raw materials from Africa while exporting consumer and capital goods to the continent.

While this approach has contributed to China's remarkable economic growth and trade surpluses with Africa, it has also sparked controversies due to perceived imbalances. Critics argue that excessive Chinese exports to Africa have resulted in domestic deindustrialization in African countries. Consequently, the trade relationship has been criticized for its asymmetry, with China benefiting disproportionately. Some contend that this phenomenon reflects a neo-colonial dynamic, where Africa's raw materials are extracted to fuel Chinese factories, perpetuating an unequal trade structure. Therefore, although China's rise has often been seen as a peaceful one, concerns persist regarding the trade dynamics between China and Africa. The rapid growth of Chinese influence in Africa is seen by some as an indication of a neo-colonial relationship, characterized by an imbalanced exchange of resources.

IMPLICATIONS OF THE CHINA-AFRICA RELATIONSHIP

Considering recent developments, it is important to examine the implications of China's presence in Africa, considering the criticisms that have been raised. By analyzing the instruments of engagement between China and Africa within specific African contexts, we can identify the benefits and consequences for both Chinese and African countries within the region. This analysis serves as an extension of the dimensions of Chinese foreign policy mentioned earlier, specifically within the African context. To fully comprehend the complexities and various aspects of China-Africa relations, it is necessary to conduct an analysis at different levels: the nation-state level, the international system level, and to a lesser extent, the individual decision-maker level. This approach enables us to capture the involvement of different policy actors, both domestic and international, and assess the benefits and impacts associated with their actions.

There are two identifiable contrasting perspectives on China's policy in Africa: the optimist and pessimist views. Optimists perceive China as a development partner, offering equal and valuable economic opportunities, and presenting an alternative developmental model to the West. On the other hand, pessimists argue that China acts as a rogue actor, supporting rogue regimes in Africa and hindering fundamental development in the region. It is important to note that the perception of China's policy in Africa depends on one's vantage point, as the saying goes, "where you stand depends on where you sit". To provide a balanced analysis that combines theory and reality while avoiding broad generalizations, this section will utilize case studies and secondary data, such as newspaper articles, to shed light on China-Africa relations. By doing so, we can better understand the complexities and nuances within China's policy towards individual African countries and present a more comprehensive assessment of the relationship.

The Role of The State in The Chinese Foreign Policy: Case Study: Angola

China's African strategy is primarily driven by its resource needs, which is evident in its rhetoric of "China-Africa engagement" and "South-South partnership." Since the economic reforms of 1978, China has experienced exponential growth and emerged as a global manufacturing and production hub. This rapid development has created an insatiable demand for natural resources, particularly energy, and minerals, as outlined in its energy strategy.

Angola, being resource-rich, has become a target for China's resource acquisition. China's focus on Angola is primarily centered around oil, as it became a net importer of oil in 1993. Following the civil war in Angola, the country focused on post-war reconstruction, with oil playing a significant role in its economic revival. China's national oil companies (NOCs) have been actively involved in Angola since 2003, acquiring stakes for exploration and production while importing Angolan oil. The economic and trade ties between China and Angola have expanded since the 1980s, reaching US$120 billion in 2010, making Angola China's largest African trade partner. Angola's accession to the Organization of Petroleum Exporting Countries (OPEC) in 2007 solidified its position as Africa's top oil producer, surpassing Nigeria in 2008. Oil constituted a significant portion of Angola's GDP, exports, and government revenue, enabling economic recovery, infrastructural development, and trade opportunities with China.

While the China-Angola relationship is often hailed as a win-win cooperation and an alternative path to development without Western democratic conditions, it presents challenges to Angola's democratic processes. The "First Law of Petropolitics" by Thomas L. Friedman suggests an inverse relationship between crude oil prices and the pace of freedom and democracy. Therefore, the extensive reliance on oil revenues may hinder democratic progress in Angola. From a macroeconomic perspective, the China-Angola bilateral relationship is asymmetrical. Angola primarily uses its oil to repay Chinese debt, leading to limited benefits for Angola and a potential trap in China's so-called "debt trap diplomacy." This approach involves using natural resources as collateral security for loans, resulting in Angola's liquidity crisis, with an accumulated debt of approximately US$60 billion over two decades.

The discussion of China-Angola relations often focuses on state-level interactions, neglecting the socio-economic dimensions within Angola. The oil sector, which relies heavily on Chinese investments and loans, has failed to create enough jobs and diversify the economy. The presence of Chinese workers has also increased social tensions in Angola, where the unemployment rate reached 32.7% in 2020, causing distress in Angolan society. Additionally, the influx of cheap Chinese imports may lead to deindustrialization, although this aspect requires further examination and contextual understanding. Overall, China's foreign policy interests in Angola revolve around resource acquisition and economic cooperation, but they also have consequences for Angola's domestic economic and social dynamics. The over-dependence on Chinese investments in the oil sector and the associated challenges highlight the need for a comprehensive analysis of the long-term impacts of China's engagement in Angola.

The Role of Chinese Multinational Cooperations (MNCs) In Chinese Foreign Policy: Case Study of Tanzania And Zambia

Chinese foreign policy has been significantly shaped by its "going global" strategies, which prioritize trade diversification, secure access to raw materials, overseas investments, and contracting opportunities. In this context, Chinese multinational corporations (MNCs) play a central role, particularly in China-Africa relations, as they heavily influence the dynamics of the relationship. These state-owned and funded MNCs are transforming not only the African economic and political landscapes but also the global stage. Spanning various sectors such as telecommunications (e.g., Huawei), information and communication technology (e.g., Lenovo), agriculture, and construction, these Chinese MNCs are instrumental in furthering China's interests.

According to the latest data, China's overseas direct investment (ODI) reached $43 billion in 2022, of which about $5.2 billion was allocated to Africa. China's state-owned enterprises, such as the China National Petroleum Corporation (CNPC), have invested in oil assets in countries like Sudan and Chad. Similarly, CNOOC, another state-owned enterprise, has acquired energy interests in Morocco, Nigeria, and Gabon. According to recent data, China is the world's top importer of both crude oil and natural gas since 2018, and Africa is its second largest supplier after the Middle East. Angola, Congo Republic, and Libya are the main African exporters of crude oil to China, accounting for more than 15% of its total imports in 2019. China's NOCs are also investing heavily in the exploration and production of oil and gas resources in Africa, especially in Nigeria, Angola, Uganda, and Mozambique.

While some state-owned MNCs are undergoing structural changes and privatization to diversify industries and the economy, Chinese MNCs continue to play a crucial role in advancing Chinese foreign policy objectives. These MNCs exhibit variations in terms of size, capacity, capability, ownership structure, and methods of operation. Analyzing the diverse nature of these MNCs and their consequences is essential to understanding the broader implications for Chinese foreign policy. To explore these variations and their effects, the cases of Tanzania and Zambia will be examined as comparative studies.

A comparison of the construction industries in Tanzania and Zambia reveals some interesting differences and similarities. According to the latest data available, the construction sector in Tanzania contributed about USD 6.7 billion to the country's GDP in the first three quarters of 2021, accounting for about 14.4% of its total output. In contrast, the construction sector in Zambia added about USD 3.3 billion to its GDP in 2016, representing about 27.5% of its economic activity. Despite the disparity in their economic sizes, the analysis of Chinese construction companies in these contexts is still relevant.

In Zambia, the government, led by former President Levy Mwanawasa, implemented legislation and regulations aimed at curbing corruption in the awarding of public tenders. Consequently, local indigenous construction companies have become the dominant players in the industry. In Tanzania, however, the construction sector continues to be dominated by foreign companies, including Chinese firms. This is primarily due to the lack of competitive skills, experience, and financial resources among indigenous companies, making it difficult for them to engage in large-scale projects.

China, through its Ministry of Foreign Relations and Trade (MOFERT), continues to provide financial and economic support to both Tanzania and Zambia. This assistance primarily takes the form of soft commercial loans and aid focused on infrastructure development, including transportation and water supply projects. Additionally, China offers technical assistance across various sectors. Despite the efforts made by the two African governments to facilitate local companies' access to credit lines, Chinese firms still maintain a competitive advantage. Local companies face significant challenges in securing capital for major projects and winning tenders. Moreover, Chinese construction companies often import materials from their home country or from Dubai, arguing that the quality of local construction materials, such as iron, is inadequate due to their high carbon content. This practice negatively affects local markets that produce similar products.

The relationship between China and Africa in the construction sector has a significant dimension of labor. Chinese firms have been criticized for exploiting their own and local workers by paying low wages and exposing them to harsh working conditions. The proportion of local workers employed by Chinese companies in Africa varies widely, depending on the host country's labor regulations, the type of industry, and the size of the firm. However, they also note that there is a lack of career progression for African workers, who are often hired as casual laborers under short-term contracts and rarely attain managerial positions.

A Human Rights Watch report published on November 3, 2011, exposed the poor labor rights and safety standards of Chinese-owned companies in Zambia, especially in the copper mining and construction sectors. The report, based on interviews with 170 copper miners, revealed that workers in Chinese-run mines faced long hours, low wages, threats of dismissal, and hazardous conditions. The report also compared the situation in Zambia with a 2005 study by the International Labour Organization (ILO) that found similar abuses by Chinese contractors in Tanzania. According to the report, China's investment in Zambia's copper industry could benefit both countries, but only if the Chinese companies respect the workers' rights and comply with Zambian laws.

These findings underscore the persistent challenges faced by workers employed by Chinese enterprises in various African countries. The disregard for fundamental labor rights not only undermines the well-being and safety of the workforce but also raises concerns regarding the ethical conduct and social responsibility of these companies. Addressing these issues is crucial to ensure fair and just working conditions for all employees, regardless of their nationalities or the companies they work for.

CONCEPTS OF CHINESE FOREIGN POLICY IN AFRICA

Chinese foreign policy in Africa is centered around promoting bilateral and multilateral trade agreements that facilitate the exchange of commodities between China and African countries. Upholding the principle of mutual agreement and benefit, China has opened its market to African goods while simultaneously meeting the resource demands of its growing industries through outsourcing from Africa. A prime example of this dynamic is the China-Angola relationship, where Angola has utilized oil trade with China and Chinese investments to drive post-war reconstruction and infrastructural development. However, this relationship has also exhibited imbalances, with China leveraging oil-backed loans to its advantage and exchanging natural resources for infrastructure, resulting in limited Angolan oil reaching the open market. In line with the dependency theory, this exploitative relationship, characterized by a core-periphery dynamic, is not unique to Angola but extends to other African countries as well.

It is appropriate to look at China's exploitative engagement in Africa, using structural realism to analyze bilateral relationships in terms of relative power capabilities. As China seeks to bridge its resource gap by engaging with smaller states like Angola, it's superior military and economic might give it the upper hand. This asymmetrical and imbalanced relationship is applicable to the broader African context, aligning with the principles of structural realism. By doing so I can safely assert that great powers naturally pursue territorial gain, economic benefits, and political influence, often employing any means necessary to maximize their power and survival. As a result, weaker states find themselves caught between alliances formed by great powers, becoming pawns in the rivalries of these global actors. Consequently, Angola and many other African countries find themselves entangled in the power struggle between the West and the East, reminiscent of the historical "scramble for Africa."

Investment, particularly through foreign direct investment (FDI) and concession loans provided by Chinese international banks, is another crucial aspect of China's foreign policy in Africa. Chinese multinational companies receive financial support to secure resources and markets globally. Key institutions supporting this policy include the China Export-Import Bank (China Eximbank), established in 1994 to offer preferential government loans facilitating trade and investment, particularly in the Global South, and the China Development Bank (CDB), established with the objective of meeting China's domestic and international development needs. These banks provide credit lines and loans at low-interest rates without the conditionality of "good governance." For instance, China offered a two-billion-dollar oil-backed loan from Exim Bank to Angola, which was easily accessible compared to the neoliberal loans offered by the IMF for post-war reconstruction.

However, the lack of conditionality in Chinese aid has drawn criticism due to its potential to enable African states to disregard environmental and human rights standards. China has become one of the largest providers of foreign aid and financial assistance, but its reputation as a “rogue donor” stem from media reports highlighting substandard projects, low environmental standards, and mistreatment of workers. Cases in Zambia and Tanzania exemplify this pattern. African leaders, dissatisfied with condition-based aid from the West, have embraced China's non-condition and non-interference-based financial aid. However, such a preference has detrimental consequences for the general population, as these policies primarily benefit a select few elite individuals who have a stake in these questionable projects and deals.

To conclude Africa remains a crucial component of China's South-South cooperation. Just like any other nation, China's foreign policy towards Africa is primarily driven by its domestic and state interests. In this context, China's foreign policy is heavily influenced by its need to meet the demands of its rapidly growing economy, which requires substantial amounts of energy resources. Consequently, Africa serves as a valuable source of resources, such as oil and copper, to meet the production requirements of Chinese industries.

Furthermore, China's foreign policy is strategically designed to secure access to foreign markets, and Africa, with its large population and lower levels of production, presents a favorable environment for Chinese products. To achieve this objective, China utilizes various diplomatic tools in its arsenal. These include providing financial assistance in the form of foreign direct investment (FDI) and encouraging Chinese companies to invest abroad, thereby gaining a competitive advantage over Western counterparts. Additionally, China engages in bilateral and multilateral trade agreements. Although these agreements are often presented as based on principles of mutual benefit and equality, it is important to recognize that China, as an emerging superpower, possesses a competitive edge over African countries. Consequently, while there may be some benefits to be gained, such as Angola's successful post-war reconstruction through bilateral engagement with China, the overall relationship appears to be asymmetrical, with China deriving greater advantages from the partnership.

Finally, one key concern regarding China's foreign policy in Africa relates to the issue of governance. Chinese financial assistance to Africa is not contingent upon principles of "good governance," meaning that China's priorities prioritize its own interests above considerations of governance. This lack of conditionality raises concerns about the long-term impact on governance structures in African nations.

In summary, Africa plays a significant role in China's South-South cooperation, driven by China's domestic and state interests. The pursuit of resources and access to markets are key factors shaping China's foreign policy in Africa. While some African countries have benefited from this relationship, there remains an inherent asymmetry, with China reaping greater advantages. Additionally, the absence of conditionality in Chinese financial assistance raises governance concerns.

Comments

Popular posts from this blog

The complex challenge in translating campaign promises into effective policies and the potential disconnect between electoral outcomes and public sentiment.

Patterns of Democracy: Government Forms and Performance in Africa

What characterizes China as a development actor. Rethinking Development Assistance: The Paradox of China’s Increasing Global Outreach.