African Union to open Chinese-funded HQ in Ethiopia

[niceguy2011]

Wake up, kid.

This is not going to happen, be realistic. Gaddafi has no support of the people. The fall of its own capital explain it all. No resistance from people

 

[cir]

Jia Qinglin Meets AU, AUC Chiefs on Friendly Ties

2012-01-29 02:53:34 Xinhua Web Editor: Sun

Jia Qinglin (R), chairman of the National Committee of the Chinese People's Political Consultative Conference, meets with Jean Ping, chairperson of the African Union Commission , in Addis Ababa, capital of Ethiopia, Jan. 28, 2012. [Photo: Xinhua/Ding Lin]

Top Chinese political advisor Jia Qinglin met African Union (AU) Chairman Obiang Nguema Mbasogo and African Union Commission (AUC) Chairman Jean Ping on Saturday, pledging to promote the China-AU relationship to a new level.

During his meeting with Obiang, who is also president of Equatorial Guinea, Jia said the AU has played a more and more important role in Africa's internal and external affairs. Faced with complicated influence of international and regional situation, the AU has reacted independently addressing the issues in Africa and maintaining the unity and dignity of Africa.

"AU is the important cooperative partner of China in Africa and international community. China appreciated AU's consistent support for China on issues of China's core interests and major concerns," said Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference.

"China is willing to make joint efforts with AU and African countries to deepen strategic mutual trust and expand cooperation and coordination, and further promote China-AU relationships," he added.

Obiang said as Africa's great friend, China has offered selfless support and help to Africa, especially the new AU headquarter constructed with the aid of China. African countries must unite and cooperate with China to achieve development, he added.

When meeting with Jean Ping, Jia said the AU is a banner leading African countries to achieve independence and development. "China will unswervingly support Africa's unity, independence and integration process," he added.

Jia said China will provide 600 million yuan (about 95 million U.S. dollars) in aid to the AU in the next three years for projects agreed by the two sides. China will also enhance cooperation with the AU in terms of infrastructure development planning, peace and security, peacekeeping capacity building and China-AU strategic dialog mechanism.

Jean Ping said the peoples of China and Africa have witnessed a time-honored friendship and that they have supported each other in pursuit of independence and development. The AU hopes to boost cooperation with China in infrastructure construction, agriculture, manufacture and other fields, so as to improve self-development capacity of Africa.

"African people will never forget China's important role in promoting peace, stability and development of Africa," Jean Ping added.

Jia Qinglin Meets AU, AUC Chiefs on Friendly Ties

 

[CherrywoodHunter]

lol if indians wanna show africa their arrogance, be it.
we will just team up with our african friends for mutually beneficial cooperation.
in our point of view, africans are not "losers" or "slaves" as labelled by indians here.
we are improving our countries in a tremendous way and we are proud of it!

 

[billyong]

France credit rating cut puts eurozone bail-out fund at risk
The €440bn (£365bn) eurozone bail-out fund faced fresh threats last night after France, its second-largest contributor, was stripped of its AAA credit rating for the first time.
France credit rating cut puts eurozone bail-out fund at risk - Telegraph
France? wat a joke.

 

[J20!]

OK, I will stop dreaming and agree with you.

The building of the HQ will still NOT stop the resentment the Africans have towards the Chinese.

Happy?!

China provides jobs, infrastructure and billions in loans to African countries. Right now, my company just finished the construction of a world class International Airport and football stadium to boot. in Botswana, southern Africa. We provide to them what no one else can, world class infrastructure at discount rates accompanied by soft loans. China, is biulding massive influence in Africa. Resentment? Please.

 

[Ray]

China provides jobs, infrastructure and billions in loans to African countries. Right now, my company just finished the construction of a world class International Airport and football stadium to boot. in Botswana, southern Africa. We provide to them what no one else can, world class infrastructure at discount rates accompanied by soft loans. China, is biulding massive influence in Africa. Resentment? Please.

No one denies what you are doing in Africa.

On resentment, just check Zambia for a start!

 

[J20!]

No one denies what you are doing in Africa.

On resentment, just check Zambia for a start!

Contrary to western commentary, Africa is not a country, its a continent. What applies to Zambia does not apply to the whole of Africa. Zambian copper miners have issues with a Chinese mining company, that hardly applies to Chinese investment in Africa. African's complain that Chinese companies bring their own labour. But can you blame us for bringing in skilled labour when none can be found were projects are located?


What I know for sure my friend, is that African governments love China. We provide aid and investment with no-strings-attatched. The west will provide small sums of aid or investment on "conditions". "You either do what I say, or I'm not giving you aid." (France included Armand) China's relationships with their African counterparts are strictly mutually beneficial BUSINESS, not interferring in sovereign matters.

PS: Armand dont call a whole continent of people losers, that's just the hight of arrogance. Would you term Morroccao, south africa, nigeria, namibia, egypt "losers"?

 

[Ray]

Africa and China: Issues and Insights
November 7, 2008, Mortara Center Conference Room, Georgetown University

Key Findings:

"¢ China's presence in Africa results in conflicting sentiments between African elites and populations. While the elites generally have very positive responses, the populations often react much more negatively towards China's economic involvement in Africa.

"¢ Contrary to many prominent assessments, China's interests in Africa encompass a variety of broad motives and are not focused exclusively on acquisition of oil and natural resources.

"¢ Differing definitions of foreign aid, and Chinese and African deliberate secrecy or poor transparency, make China's aid to Africa a complex issue to evaluate. The overall cost to China of its aid to Africa seems much less than reported in many recent assessments.

"¢ The United States needs to identify areas of converging interests with China on Africa, and then proceed to work with China on these points. Possible areas include maritime security, money laundering and drugs, and health and agricultural projects. In addition, the United States should increase American engagement with Africa. On a strengthened foundation of improved US-China and US-Africa relations, the United States will be better positioned to deal with China on significant areas of difference with China over Chinese involvement in Africa

"¢ The intricacy and rapid growth of the Africa-China relationship demonstrate the inadequacy of much recent analysis emphasizing one or a few aspects of China's rising prominence in Africa. More comprehensive and in-depth examination of the Africa-China ties will provide the understanding needed to judge appropriate policies and approaches by Africans, Chinese, and others concerned.

China's Presence in Africa – Conflicting Elite-Popular Sentiments
China's increasing presence in Africa has led to a variety of reactions. On the surface, many Africans have generally positive sentiments towards China's entry into Africa. To them, China presents an alternative to the West and Western institutions that have failed to work effectively to help Africa. In addition, China provides new markets for Africa's natural resources thus giving Africa a boost politically and economically.

However, further investigation into these African sentiments shows that a positive African response is not a consensus. Professor Zewde demonstrated a split between the elite and popular reactions towards China's presence: the elite in African countries have a much more positive attitude towards the Chinese and welcome the Chinese without many conditions. This can be seen in few visa restrictions for Chinese in some southern African countries, enchantment with China's political support and loans without political conditions, and expectations that China's infrastructural projects and other support really helps push along African development.

Ms. Mutisi provided country-specific evidence, revealing the pragmatic and symbiotic relationship present from the point of view of the elites in China's interactions with Angola and Zimbabwe: China needs resources, Angola and Zimbabwe need development. In addition, the countries come to support each other in the international arena.

It is important to point out that not every African country's elite has the same attitudes toward China. For example, historically, Ethiopia is a country that has never been colonized. Therefore, according to conference participants and those in the audience, the government of Ethiopia seems more wary towards the Chinese presence due to a strong, individualistic Ethiopian identity. At the same time, the fact that the Chinese are prevalent in Ethiopia suggests that the Ethiopian government still welcomes the Chinese to a certain extent.

In contrast to the generally positive African elite sentiment, the African population in several respects holds a more negative and cynical view of China's presence in Africa, according to conference participants. Some participants averred popular African sentiment towards China was not always so negative. In fact, Africa felt abandoned by the West after the Cold War and China was welcomed to fill the power vacuum. In some places like Zimbabwe, there was euphoria at China's entrance into the country. For a time, the Chinese presence gave the African people great hope.

Nevertheless, these more positive sentiments have changed. Professor Zewde and Ms. Mutisi both pointed out many complaints from the average African that stem from the economic, political, and social relationships China has with Africa. Economically, Africans resent losing market competitiveness to China's cheap and sometimes low-quality goods to an extent where many people feel that China uses Africa as a dumping ground for its low-quality manufactures. Politically, Africans tend to associate the Chinese with supporting corrupt, tyrannical regimes like those in Zimbabwe or Sudan. Furthermore, the Chinese are associated with corruption, as seen by an incident cited at the conference where a Chinese telecommunications company bribed Ethiopian officials earlier this year.

Socially, Africans resent perceived exploitation of African workers by Chinese enterprises, seeming unrestrained influx of Chinese immigrants, and unwillingness of the Chinese to integrate into African society. Many Africans feel that their governments favor the Chinese excessively. For example, in Zimbabwe, it is illegal to use derogative terms against the Chinese. The dislike many Africans have towards the Chinese produces evidence of increasing xenophobia against what seems to be a new imperialist power in Africa that reinforces oppression and bad governance. The negative sentiments the African people have towards the Chinese were said to be likely to change only as the Chinese presence proves to genuinely encourage indigenous and sustainable development.

Regarding perspectives from China, Chinese elites see strong benefits in involvement in Africa. Africa provides the political support China needs internationally and the resources China seeks internally. The Chinese leaders feel that China has considerable leverage in Africa and seek to enhance their relationships. The Chinese government also acknowledges the importance of the long relationships China has had with many African countries. To many Chinese entrepreneurs, Africa is an opportunity. In fact, many of the grievances the African people have against the Chinese are from actions taken by these private entrepreneurs, not by the Chinese state.

Some of the problems that arise between the African populations and the Chinese reflect an inability to cope with Africa's vibrant civil society, a new type of phenomenon to many Chinese. With this problem in mind, President Hu Jintao during a visit to Zambia encouraged Chinese entrepreneurs to be more considerate of the local African populations. Meanwhile, a contrary view was noted during the conference as it was stated that some opinion leaders in China look to the China-Africa relationship with indifference and even question China's strong involvement with Africa in the first place.

Overall, conference participants suggested constructive paths to remedy problems in the Africa-China relationship. Professor Lyman suggested that China may need to transform its presence to be one that truly seeks sustainable development for Africa, while African countries cannot react to the current situation by shifting to protectionist policies due to popular sentiment. Ms. Mutisi and Professor Zewde both concluded that Africa and China will need to work together to ameliorate the tensions that arise on both sides.

Chinese Business Relations with Africa
China's economic interest in Africa is unprecedented. Increasingly, African leaders are coming to view China as an alternative to western development funding. According to Ambassador Shinn, China gives impressive amounts of low interest loans to many African nations. Another finding indicates that Chinese trade with Africa has grown fast and it is expected to surpass $100 billion no later than in 2010. This will make China Africa's single largest trading partner, surpassing the United States.

In the energy sector, conference participants suggested that China's objective is to extract oil from oil-rich countries in order to meet its high energy demand. According to Professor Brautigam, though oil is a big concern, China is much more involved in other sectors as well. In fact, since investment in oil is very costly and risky, China is participating in many other business opportunities. For example, Chinese trade involvement is extensive and well pronounced. It exports pharmaceuticals, equipment and machinery to many African markets.

Professor Hailu raised the question of whether China abides by international laws regarding its business practices with Africa. One conference participant, a post doctorate student from China, said the Chinese perspective on China-Africa business relations is that China should not be doing such special gestures as canceling African. He added that many Chinese businesses that operate in Africa are not run by the state; they are not nearly as well trained as Chinese officials to deal with relations with Africa; and their economic interests at times diverge from the Chinese state. .

In dealing with Chinese business in the important country of South Africa, according to Ms. Laribee, there were different groups of Chinese business migration to the country. Many Chinese immigrants came in the 1870s; their successors, second and third generation Chinese who identify themselves as South Africans represent an important business group. A significant new group of immigrants came beginning in the 1990s. Ms. Laribee's case study on Chinese traders from China found that there were individual Chinese shops located in various small towns and major cities throughout South Africa. These private entrepreneurs compete with local businesses as well as with other private Chinese businesses. She concluded that these Chinese shops follow a more individualistic and profit-oriented competition rather than forming solidarity with other Chinese shops.

On the issue of competition between Chinese and local businesses, Professor Taylor's findings indicated that many African local businesses tend to be very weak and face strong competition from Chinese businesses. Importation of cheap textiles can have a dire impact on local businesses. There have been cases reported in that a flood of textile imports from China have dismantled the local businesses and have put most of the remaining firms out of business. Along the same lines, Professor Hailu referred to independent analysis of China-Africa business relationship as detrimental to Africa's employment, manufacturing, and ecological conditions. The bilateral agreements signed by individual states and China often do not take into consideration the safety, welfare, and stability of individuals and communities.

Regarding how business deals are made between Africa and China, many at the conference indicated that most negotiations were bilateral. Chinese interests are better served in that respect since it has a greater leverage to seal deals favorable to China. According to Ambassador Shinn, the bilateral negotiations vary from country to country. He said, Angolan labor law regarding Chinese (or other foreign) projects in the country dictates that the projects should be done with 70% Angolans and 30% Chinese workers, but in reality it is 60% Angolan and 40% Chinese workers. In Ethiopia, the workers on Chinese-backed projects are mainly Ethiopians and in Sudan, the workers on such projects are mainly Chinese. These variations reflect the differences between local labor laws and their effects on the number of local and Chinese workers.

According to Ms. Wheeler, many African governments do not negotiate in the best interest of the people. She indicated the difficulty of establishing businesses for locals and the contrasting relatively easy process for the Chinese entrepreneurs to establish their businesses in Africa. In addition, she mentioned a lot of the infrastructure that is being built is geared towards maintaining the Chinese businesses.

Professor Brautigam emphasized that there were different reactions to China's business relations among many African countries. She said the bilateral relationships in strongly democratic African countries do not seem to be controversial (problematic) but are accepted as the Chinese are seen doing popular infrastructure projects and as being involved constructively in many other sectors of the economy.

Chinese Foreign Aid to Africa

Conference participants made clear that the foreign aid China gives to Africa is a difficult subject to analyze. A lack of transparency in both China and African countries makes data collection extremely difficult. Even with these obstacles, Professor Brautigam clarified two major myths regarding China's foreign aid to Africa: the size of China's aid and the reasons behind China's aid.

According to Professor Brautigam, the amount of aid China gives to Africa does not nearly reach the caliber that it is often perceived to be. China generally provides three types of aid – grants from the government, zero-interest loans from the government, and concessional loans from the Export-Import Bank which have much higher interest rates. Often, all three types of aid are considered foreign aid by the Chinese administration, but the concessionary loans should not fall under this category, according to conference participants. Despite widespread publicity to the contrary, China's heavy cooperation with Africa resulting in financial support in return for resources, labor contracts, engineering contracts and so forth often do not constitute foreign aid as defined by OECD and other global standards. The net effect of these variations is to sometime grossly inflate published numbers for Chinese aid.

Regarding the reasons for China's aid, Professor Brautigam disputed the notion that China only pursues aid relationships with oil-producing countries. In fact, China gives aid throughout Africa; the type of aid China distributes in Africa varies. For example, China only gives about 20 countries in African concessional loans because it wants to be sure that the collateral (e.g. oil or other resources) or strength of the borrower is sufficient to guarantee that China will be paid back and earn money from those loans. In contrast, China will target a different set of countries when giving grants.

Meanwhile, according to Professor Brautigam and other conference participants, the aid China gives to Africa has key differences from the aid the West gives to Africa. First, African countries feel much more ownership from Chinese aid than Western aid since Western aid often comes with preconditions and expectations. In contrast, African countries feel that Chinese aid allows Africa to spend money on what Africa wants, such as infrastructure. This brings to question exactly who decides what a country wants – the elite or the people. The type of regime of an African country determines the "who"; democratic countries are seen to allow Chinese aid to fulfill what the people want while authoritarian governments may not. Still in most African countries, democratic or not, Chinese aid goes heavily to infrastructure. There are many incidences of this aid being abused, but that is more of an internal issue in African countries.

Second, China's aid often allows for quick results because China does not go through additional social and environmental assessments that the West requires. Rather, China shortens the process by using the information African countries provide. Third, much of China's foreign aid to Africa results in long term partnerships between the countries, such as providing university scholarships or medical teams. Fourth, some Chinese experts involved in different aid projects live very simple lives in African countries, and learn more about the locals and situations in Africa, thus creating bonds with the Africans.

Gaps between Chinese and western aid practices in Africa are serious and have important implications, according to conference participants. There is a lack of aid harmonization between China and the West over aid to Africa, and Chinese administrators sometimes are wary of close association with what they see as failures of the West in aiding Africa. Because China is not a part of the aid regimes created by the OECD and does not need to follow rules set out by the OECD, it is able to follow aid practices at odds with those of the West, which endeavors to use aid to promote better governance and more sustainable development. Such implications are at the center of Mr. Colombini's ongoing research looking to determine the impact of Chinese aid in undermining Western assistance to African development.

Conference participants judged that greater transparency and collaboration among donors would help to bridge these gaps and reduce uncertainties and concerns over the size and impact of growing Chinese aid efforts in Africa.



Africa and China: Issues and Insights - Asian Studies Program - Georgetown University

 

[J20!]

Africa and China: Issues and Insights
November 7, 2008, Mortara Center Conference Room, Georgetown University

Key Findings:

"¢ China's presence in Africa results in conflicting sentiments between African elites and populations. While the elites generally have very positive responses, the populations often react much more negatively towards China's economic involvement in Africa.

"¢ Contrary to many prominent assessments, China's interests in Africa encompass a variety of broad motives and are not focused exclusively on acquisition of oil and natural resources.

"¢ Differing definitions of foreign aid, and Chinese and African deliberate secrecy or poor transparency, make China's aid to Africa a complex issue to evaluate. The overall cost to China of its aid to Africa seems much less than reported in many recent assessments.

"¢ The United States needs to identify areas of converging interests with China on Africa, and then proceed to work with China on these points. Possible areas include maritime security, money laundering and drugs, and health and agricultural projects. In addition, the United States should increase American engagement with Africa. On a strengthened foundation of improved US-China and US-Africa relations, the United States will be better positioned to deal with China on significant areas of difference with China over Chinese involvement in Africa

"¢ The intricacy and rapid growth of the Africa-China relationship demonstrate the inadequacy of much recent analysis emphasizing one or a few aspects of China's rising prominence in Africa. More comprehensive and in-depth examination of the Africa-China ties will provide the understanding needed to judge appropriate policies and approaches by Africans, Chinese, and others concerned.

China's Presence in Africa – Conflicting Elite-Popular Sentiments
China's increasing presence in Africa has led to a variety of reactions. On the surface, many Africans have generally positive sentiments towards China's entry into Africa. To them, China presents an alternative to the West and Western institutions that have failed to work effectively to help Africa. In addition, China provides new markets for Africa's natural resources thus giving Africa a boost politically and economically.

However, further investigation into these African sentiments shows that a positive African response is not a consensus. Professor Zewde demonstrated a split between the elite and popular reactions towards China's presence: the elite in African countries have a much more positive attitude towards the Chinese and welcome the Chinese without many conditions. This can be seen in few visa restrictions for Chinese in some southern African countries, enchantment with China's political support and loans without political conditions, and expectations that China's infrastructural projects and other support really helps push along African development.

Ms. Mutisi provided country-specific evidence, revealing the pragmatic and symbiotic relationship present from the point of view of the elites in China's interactions with Angola and Zimbabwe: China needs resources, Angola and Zimbabwe need development. In addition, the countries come to support each other in the international arena.

It is important to point out that not every African country's elite has the same attitudes toward China. For example, historically, Ethiopia is a country that has never been colonized. Therefore, according to conference participants and those in the audience, the government of Ethiopia seems more wary towards the Chinese presence due to a strong, individualistic Ethiopian identity. At the same time, the fact that the Chinese are prevalent in Ethiopia suggests that the Ethiopian government still welcomes the Chinese to a certain extent.

In contrast to the generally positive African elite sentiment, the African population in several respects holds a more negative and cynical view of China's presence in Africa, according to conference participants. Some participants averred popular African sentiment towards China was not always so negative. In fact, Africa felt abandoned by the West after the Cold War and China was welcomed to fill the power vacuum. In some places like Zimbabwe, there was euphoria at China's entrance into the country. For a time, the Chinese presence gave the African people great hope.

Nevertheless, these more positive sentiments have changed. Professor Zewde and Ms. Mutisi both pointed out many complaints from the average African that stem from the economic, political, and social relationships China has with Africa. Economically, Africans resent losing market competitiveness to China's cheap and sometimes low-quality goods to an extent where many people feel that China uses Africa as a dumping ground for its low-quality manufactures. Politically, Africans tend to associate the Chinese with supporting corrupt, tyrannical regimes like those in Zimbabwe or Sudan. Furthermore, the Chinese are associated with corruption, as seen by an incident cited at the conference where a Chinese telecommunications company bribed Ethiopian officials earlier this year.

Socially, Africans resent perceived exploitation of African workers by Chinese enterprises, seeming unrestrained influx of Chinese immigrants, and unwillingness of the Chinese to integrate into African society. Many Africans feel that their governments favor the Chinese excessively. For example, in Zimbabwe, it is illegal to use derogative terms against the Chinese. The dislike many Africans have towards the Chinese produces evidence of increasing xenophobia against what seems to be a new imperialist power in Africa that reinforces oppression and bad governance. The negative sentiments the African people have towards the Chinese were said to be likely to change only as the Chinese presence proves to genuinely encourage indigenous and sustainable development.

Regarding perspectives from China, Chinese elites see strong benefits in involvement in Africa. Africa provides the political support China needs internationally and the resources China seeks internally. The Chinese leaders feel that China has considerable leverage in Africa and seek to enhance their relationships. The Chinese government also acknowledges the importance of the long relationships China has had with many African countries. To many Chinese entrepreneurs, Africa is an opportunity. In fact, many of the grievances the African people have against the Chinese are from actions taken by these private entrepreneurs, not by the Chinese state.

Some of the problems that arise between the African populations and the Chinese reflect an inability to cope with Africa's vibrant civil society, a new type of phenomenon to many Chinese. With this problem in mind, President Hu Jintao during a visit to Zambia encouraged Chinese entrepreneurs to be more considerate of the local African populations. Meanwhile, a contrary view was noted during the conference as it was stated that some opinion leaders in China look to the China-Africa relationship with indifference and even question China's strong involvement with Africa in the first place.

Overall, conference participants suggested constructive paths to remedy problems in the Africa-China relationship. Professor Lyman suggested that China may need to transform its presence to be one that truly seeks sustainable development for Africa, while African countries cannot react to the current situation by shifting to protectionist policies due to popular sentiment. Ms. Mutisi and Professor Zewde both concluded that Africa and China will need to work together to ameliorate the tensions that arise on both sides.

Chinese Business Relations with Africa
China's economic interest in Africa is unprecedented. Increasingly, African leaders are coming to view China as an alternative to western development funding. According to Ambassador Shinn, China gives impressive amounts of low interest loans to many African nations. Another finding indicates that Chinese trade with Africa has grown fast and it is expected to surpass $100 billion no later than in 2010. This will make China Africa's single largest trading partner, surpassing the United States.

In the energy sector, conference participants suggested that China's objective is to extract oil from oil-rich countries in order to meet its high energy demand. According to Professor Brautigam, though oil is a big concern, China is much more involved in other sectors as well. In fact, since investment in oil is very costly and risky, China is participating in many other business opportunities. For example, Chinese trade involvement is extensive and well pronounced. It exports pharmaceuticals, equipment and machinery to many African markets.

Professor Hailu raised the question of whether China abides by international laws regarding its business practices with Africa. One conference participant, a post doctorate student from China, said the Chinese perspective on China-Africa business relations is that China should not be doing such special gestures as canceling African. He added that many Chinese businesses that operate in Africa are not run by the state; they are not nearly as well trained as Chinese officials to deal with relations with Africa; and their economic interests at times diverge from the Chinese state. .

In dealing with Chinese business in the important country of South Africa, according to Ms. Laribee, there were different groups of Chinese business migration to the country. Many Chinese immigrants came in the 1870s; their successors, second and third generation Chinese who identify themselves as South Africans represent an important business group. A significant new group of immigrants came beginning in the 1990s. Ms. Laribee's case study on Chinese traders from China found that there were individual Chinese shops located in various small towns and major cities throughout South Africa. These private entrepreneurs compete with local businesses as well as with other private Chinese businesses. She concluded that these Chinese shops follow a more individualistic and profit-oriented competition rather than forming solidarity with other Chinese shops.

On the issue of competition between Chinese and local businesses, Professor Taylor's findings indicated that many African local businesses tend to be very weak and face strong competition from Chinese businesses. Importation of cheap textiles can have a dire impact on local businesses. There have been cases reported in that a flood of textile imports from China have dismantled the local businesses and have put most of the remaining firms out of business. Along the same lines, Professor Hailu referred to independent analysis of China-Africa business relationship as detrimental to Africa's employment, manufacturing, and ecological conditions. The bilateral agreements signed by individual states and China often do not take into consideration the safety, welfare, and stability of individuals and communities.

Regarding how business deals are made between Africa and China, many at the conference indicated that most negotiations were bilateral. Chinese interests are better served in that respect since it has a greater leverage to seal deals favorable to China. According to Ambassador Shinn, the bilateral negotiations vary from country to country. He said, Angolan labor law regarding Chinese (or other foreign) projects in the country dictates that the projects should be done with 70% Angolans and 30% Chinese workers, but in reality it is 60% Angolan and 40% Chinese workers. In Ethiopia, the workers on Chinese-backed projects are mainly Ethiopians and in Sudan, the workers on such projects are mainly Chinese. These variations reflect the differences between local labor laws and their effects on the number of local and Chinese workers.

According to Ms. Wheeler, many African governments do not negotiate in the best interest of the people. She indicated the difficulty of establishing businesses for locals and the contrasting relatively easy process for the Chinese entrepreneurs to establish their businesses in Africa. In addition, she mentioned a lot of the infrastructure that is being built is geared towards maintaining the Chinese businesses.

Professor Brautigam emphasized that there were different reactions to China's business relations among many African countries. She said the bilateral relationships in strongly democratic African countries do not seem to be controversial (problematic) but are accepted as the Chinese are seen doing popular infrastructure projects and as being involved constructively in many other sectors of the economy.

Chinese Foreign Aid to Africa

Conference participants made clear that the foreign aid China gives to Africa is a difficult subject to analyze. A lack of transparency in both China and African countries makes data collection extremely difficult. Even with these obstacles, Professor Brautigam clarified two major myths regarding China's foreign aid to Africa: the size of China's aid and the reasons behind China's aid.

According to Professor Brautigam, the amount of aid China gives to Africa does not nearly reach the caliber that it is often perceived to be. China generally provides three types of aid – grants from the government, zero-interest loans from the government, and concessional loans from the Export-Import Bank which have much higher interest rates. Often, all three types of aid are considered foreign aid by the Chinese administration, but the concessionary loans should not fall under this category, according to conference participants. Despite widespread publicity to the contrary, China's heavy cooperation with Africa resulting in financial support in return for resources, labor contracts, engineering contracts and so forth often do not constitute foreign aid as defined by OECD and other global standards. The net effect of these variations is to sometime grossly inflate published numbers for Chinese aid.

Regarding the reasons for China's aid, Professor Brautigam disputed the notion that China only pursues aid relationships with oil-producing countries. In fact, China gives aid throughout Africa; the type of aid China distributes in Africa varies. For example, China only gives about 20 countries in African concessional loans because it wants to be sure that the collateral (e.g. oil or other resources) or strength of the borrower is sufficient to guarantee that China will be paid back and earn money from those loans. In contrast, China will target a different set of countries when giving grants.

Meanwhile, according to Professor Brautigam and other conference participants, the aid China gives to Africa has key differences from the aid the West gives to Africa. First, African countries feel much more ownership from Chinese aid than Western aid since Western aid often comes with preconditions and expectations. In contrast, African countries feel that Chinese aid allows Africa to spend money on what Africa wants, such as infrastructure. This brings to question exactly who decides what a country wants – the elite or the people. The type of regime of an African country determines the "who"; democratic countries are seen to allow Chinese aid to fulfill what the people want while authoritarian governments may not. Still in most African countries, democratic or not, Chinese aid goes heavily to infrastructure. There are many incidences of this aid being abused, but that is more of an internal issue in African countries.

Second, China's aid often allows for quick results because China does not go through additional social and environmental assessments that the West requires. Rather, China shortens the process by using the information African countries provide. Third, much of China's foreign aid to Africa results in long term partnerships between the countries, such as providing university scholarships or medical teams. Fourth, some Chinese experts involved in different aid projects live very simple lives in African countries, and learn more about the locals and situations in Africa, thus creating bonds with the Africans.

Gaps between Chinese and western aid practices in Africa are serious and have important implications, according to conference participants. There is a lack of aid harmonization between China and the West over aid to Africa, and Chinese administrators sometimes are wary of close association with what they see as failures of the West in aiding Africa. Because China is not a part of the aid regimes created by the OECD and does not need to follow rules set out by the OECD, it is able to follow aid practices at odds with those of the West, which endeavors to use aid to promote better governance and more sustainable development. Such implications are at the center of Mr. Colombini's ongoing research looking to determine the impact of Chinese aid in undermining Western assistance to African development.

Conference participants judged that greater transparency and collaboration among donors would help to bridge these gaps and reduce uncertainties and concerns over the size and impact of growing Chinese aid efforts in Africa.



Africa and China: Issues and Insights - Asian Studies Program - Georgetown University

Nowhere on this article does it say Africa is resentful to China and wants it out. If China is hated in Africa, then why does the US worry so much about Chinese influence in Africa? I'm sorry but your post about Africa being resentful towards China is bogus at best.

 

[Ray]

Nowhere on this article does it say Africa is resentful to China and wants it out. If China is hated in Africa, then why does the US worry so much about Chinese influence in Africa? I'm sorry but your post about Africa being resentful towards China is bogus at best.

It is evident from the above post you quote.

Notwithstanding, this will be clearer.

http://defenceforumindia.com/china/30987-africans-asking-whether-china-making-their-lunch.html

 

[Ray]

Africans are asking whether China is making their lunch or eating it

The Chinese in Africa

Trying to pull together

Africans are asking whether China is making their lunch or eating it

HU LIANGXIU gulps down Kenyan lager in a bar in Nairobi and recites a Chinese aphorism: "One cannot step into the same river twice." Mr Zhu, a shoemaker from Foshan, near Hong Kong, is on his second trip to Africa. Though he says he has come to love the place, you can hear disappointment in his voice.

On his first trip three years ago Mr Zhu filled a whole notebook with orders and was surprised that Africans not only wanted to trade with him but also enjoyed his company. "I have been to many continents and nowhere was the welcome as warm," he says. Strangers congratulated him on his homeland's high-octane engagement with developing countries. China is Africa's biggest trading partner and buys more than one-third of its oil from the continent. Its money has paid for countless new schools and hospitals. Locals proudly told Mr Zhu that China had done more to end poverty than any other country.

He still finds business is good, perhaps even better than last time. But African attitudes have changed. His partners say he is ripping them off. Chinese goods are held up as examples of shoddy work. Politics has crept into encounters. The word "colonial" is bandied about. Children jeer and their parents whisper about street dogs disappearing into cooking pots.

Once feted as saviours in much of Africa, Chinese have come to be viewed with mixed feelings—especially in smaller countries where China's weight is felt all the more. To blame, in part, are poor business practices imported alongside goods and services. Chinese construction work can be slapdash and buildings erected by mainland firms have on occasion fallen apart. A hospital in Luanda, the capital of Angola, was opened with great fanfare but cracks appeared in the walls within a few months and it soon closed. The Chinese-built road from Lusaka, Zambia's capital, to Chirundu, 130km (81 miles) to the south-east, was quickly swept away by rains.

Business, Chinese style

Chinese expatriates in Africa come from a rough-and-tumble, anything-goes business culture that cares little about rules and regulations. Local sensitivities are routinely ignored at home, and so abroad. Sinopec, an oil firm, has explored in a Gabonese national park. Another state oil company has created lakes of spilled crude in Sudan. Zimbabwe's environment minister said Chinese multinationals were "operating like makorokoza miners", a scornful term for illegal gold-panners.

Employees at times fare little better than the environment. At Chinese-run mines in Zambia's copper belt they must work for two years before they get safety helmets. Ventilation below ground is poor and deadly accidents occur almost daily. To avoid censure, Chinese managers bribe union bosses and take them on "study tours" to massage parlours in China. Obstructionist shop stewards are sacked and workers who assemble in groups are violently dispersed. When cases end up in court, witnesses are intimidated.

Tensions came to a head last year when miners in Sinazongwe, a town in southern Zambia, protested against poor conditions. Two Chinese managers fired shotguns at a crowd, injuring at least a dozen. Some still have pellets under healed skin. Patson Mangunje, a local councillor, says, "People are angry like rabid dogs."

There is anger and disappointment on the Chinese side too. In the South African town of Newcastle, Chinese-run textile factories pay salaries of about $200 per month, much more than they would pay in China but less than the local minimum wage. Unions have tried to shut the factories down. The Chinese owners ignore the unions or pretend to speak no English.

They point out that many South African firms also undercut the minimum wage, which is too high to make production pay. Without the Chinese, unemployment in Newcastle would be even higher than the current 60%. Workers say a poorly paid job is better than none. Some of them recently stopped police closing their factory after a union won an injunction.

"Look at us," says Wang Jinfu, a young factory-owner. "We are not slave drivers." He and his wife came four years ago from Fujian province in southern China with just $3,000. They sleep on a dirty mattress on the factory floor. While their 160 employees work 40 hours a week, the couple pack boxes, check inventory and dispatch orders from first light until midnight every day of the year. "Why do people hate us for that?" says Mr Wang.

Indeed, China has boosted employment in Africa and made basic goods like shoes and radios more affordable. Trade surpassed $120 billion last year (see chart 1). In the past two years China has given more loans to poor countries, mainly in Africa, than the World Bank. The Heritage Foundation, an American think-tank, estimates that in 2005-10 about 14% of China's investment abroad found its way to sub-Saharan Africa (see chart 2). Most goes in the first place to Hong Kong. The Heritage Foundation has tried to trace its final destination.

One answer to Mr Wang's question is that competition, especially from foreigners, is rarely popular. Hundreds of textile factories across Nigeria collapsed in recent years because they could not compete with cheap Chinese garments. Many thousands of jobs were lost.

Mixed blessings

Quite a bit of criticism of China is disguised protectionism. Established businesses try to maintain privileged positions—at the expense of consumers. The recent arrival of Chinese traders in the grimy alleys of Soweto market in Lusaka halved the cost of chicken. Cabbage prices dropped by 65%. Local traders soon marched their wire-mesh cages filled with livestock to the local competition commission to complain. "How dare the Chinese disturb our market," says Justin Muchindu, a seller. In Dar es Salaam, the commercial capital of Tanzania, Chinese are banned from selling in markets. The government earlier this year said Chinese were welcome as investors but not as "vendors or shoe-shiners".

Another answer, according to China's critics, is that the Chinese are bringing bad habits as well as trade, investment, jobs and skills. The mainland economy is riddled with corruption, even by African standards. International rankings of bribe-payers list Chinese managers near the top. When these managers go abroad they carry on bribing and undermine good governance in host countries. The World Bank has banned some mainland companies from bidding for tenders in Africa.

China's defenders reply that its detrimental impact on governance is limited. African leaders find it surprisingly hard to embezzle development funds. Usually money is put into escrow accounts in Beijing; then a list of infrastructure projects is drawn up, Chinese companies are given contracts to build them and funds are transferred to company accounts. Africa, for better and worse, gets roads and ports but no cash. At least that is the theory.

A third answer is that China is seen as hoarding African resources. China clearly would like to lock up sources of fuel, but for the moment its main concern is increasing global supply. Its state-owned companies often sell oil and ore on spot markets. Furthermore, its interest in Africa is not limited to resources. It is building railways and bridges far from mines and oilfields, because it pays. China is not a conventional aid donor, but nor is it a colonialist interested only in looting the land.

The ambiguities in China's relationship with Africa have created fertile ground for politicians. Opposition parties, especially in southern Africa, frequently campaign on anti-China platforms. Every country south of Rwanda has had acrimonious debates about Chinese "exploitation". Even in normally calm places like Namibia, antipathy is stirring. Workers on Chinese building sites in Windhoek, the capital, are said to get a "raw deal". In Zambia the opposition leader, Michael Sata, has made Sino-scepticism his trademark.

Much of this is wide of the mark. Critics claim that China has acquired ownership of natural resources, although service contracts and other concessions are the norm. China is also often accused of bringing prison labour to Africa—locals assume the highly disciplined Chinese workers in identical boiler suits they see toiling day and night must be doing so under duress.

Even so, the backlash is perhaps unsurprising. Africans say they feel under siege. Tens of thousands of entrepreneurs from one of the most successful modern economies have fanned out across the continent. Sanou Mbaye, a former senior official at the African Development Bank, says more Chinese have come to Africa in the past ten years than Europeans in the past 400. First came Chinese from state-owned companies, but more and more arrive solo or stay behind after finishing contract work.

Many dream of a new life. Miners and builders see business opportunities in Africa, and greater freedom (to be their own bosses and speak their minds, but also to pollute). A Chinese government survey of 1,600 companies shows the growing use of Africa as an industrial base. Manufacturing's share of total Chinese investment (22%) is catching up fast with mining (29%).

In part this spread is happening because Africans have asked for it. Some countries made industrial investments a precondition for resource deals. In Ethiopia two out of three resident Chinese firms are manufacturers. Yet the Chinese did not need much pushing. They have always wanted to do more than dig up fuel when investing abroad. They hope to build skyscrapers in Tokyo, run banks in London and make films in Hollywood. In Africa they can learn the ropes in a region where competition is weak. The continent—soon to be ringed with Chinese free-trade ports—is a stepping stone to a commercial presence around the globe.

To this end, the government in Beijing is encouraging all sorts of activity in Africa. Construction is a favourite, accounting for three-quarters of recent private Chinese investment in Africa. The commerce ministry says Chinese companies are signing infrastructure deals worth more than $50 billion a year. For investment in African farming, China has earmarked $5 billion. A lot of Africans view this anxiously.

Perhaps the most significant Chinese push has been in finance. Industrial and Commercial Bank of China has bought 20% of Standard Bank, a South African lender and the continent's biggest bank by assets, and now offers renminbi accounts to expatriate traders. Other mainland banks have opened offices too, and from their sleek towers they make collateral-free loans to Chinese companies. In theory Africans are eligible to borrow on the same terms, but this rarely happens.

The government in Beijing, which controls the banks, is alert to such criticism. China's image in Africa is sullied by more than just cowboy entrepreneurs, admits an official. Many of the government's own practices could be improved.

Suspect above all is the type of transfer that China offers to African countries. Most loans and payments are "tied"—ie, the recipient must spend the money with Chinese companies. (Japan, Spain and others followed a similar model until fairly recently.) But tied aid leads to shoddy work. With no competition, favoured firms get away with delivering bad roads and overpriced hospitals. Creditors and donors often set the wrong priorities.

Worse, the Chinese government is anything but transparent about its money. Aid figures are treated as state secrets. China Exim Bank and China Development Bank, the main lenders, publish no figures about their vast loans to poor countries. The Democratic Republic of Congo was persuaded at the last minute by international advisers to scale back a Chinese lending facility from $9 billion to $6 billion.

Firm friends

Politics can be even murkier than finance. For years China has been chummy with African despots who seem to be reliable partners. Publicly, China presents its support for odious incumbents as "non-interference" and tries to make a virtue of it. Africans are less and less convinced.

Relations get especially tricky for the Chinese when strongmen fail to maintain stability. In Zimbabwe in 2008 Robert Mugabe's sabotage of elections set off civil upheaval. Chinese investors fled, yet the ascendant opposition still linked them to the dictator. In Sudan Omar al-Bashir, who is wanted by the International Criminal Court on genocide charges, has long been a Chinese stalwart. But following a referendum in January, the oil-rich south of his country has seceded. Rulers in Beijing are belatedly trying to befriend his enemies.

Africans are not helpless in their business relations with the Chinese. Some, admittedly, have not been strong in their dealings: a usually bossy Rwanda lets Chinese investors run riot. But African governments by and large get reasonable deals; and some, like Angola, are masterful negotiators. Its president publicly told his Chinese counterpart, "You are not our only friend." Brazilians and Portuguese are numerous in Luanda, the capital, and Angolans frequently play them off against the Chinese. Angola once banished a Chinese state oil company after a disagreement over a refinery. The company came crawling back a year later, offering more money.

Increasingly, however, it is the Chinese who play Africans off against each other. Growing policy co-ordination between African embassies in Beijing is a useful first step in improving African bargaining power. The World Bank and the IMF are valuable advisers. But no matter how hard African governments try, they cannot cope with the sheer volume of new enterprises. Rules exist to protect employees and the environment, but institutions are too weak to enforce them. Labour inspectors in Lusaka, who monitor sweatshops, have use of only one car and recently it was broken for four months. In the meantime Chinese engineers built an entire cluster of garment factories from scratch.

For aeons the prospect of China and Africa coming closer together had seemed otherworldly. W.H. Auden wrote:
I'll love you, dear, I'll love you
Till China and Africa meet,
And the river jumps over the mountain
And the salmon sing in the street.

Sweet-and-sour salmon now regularly croon in sub-Saharan streets. Africans are embracing new opportunities made in China yet remain wary of all the pitfalls.

Western countries too will want to observe the progress of Chinese privateers who cross the Indian Ocean: men like Danny Lau, a 31-year-old from Shanghai, who a year ago followed a group of friends to Zambia, where he is now a successful coal trader and dabbles in property. In a few years, he says, they will move on to a richer continent. What they learn in Accra and Brazzaville will travel with them to Vancouver and Zagreb.

The Chinese in Africa: Trying to pull together | The Economist

 

[Ray]

J20!

Hopefully now you won't say the Africans love the Chinese.

However, answer or give comments on the link which I gave where it will not be off topic!

This is the link

http://defenceforumindia.com/china/30987-africans-asking-whether-china-making-their-lunch.html

 

[cir]

African Union embraces generous Chinese financing

Geoffrey York

JOHANNESBURG— From Monday's Globe and Mail

Weakened by chronic infighting and the demise of its long-time financier Moammar Gadhafi, the African Union is turning instead to the embrace of its richest new ally: China.

Col. Gadhafi, the Libyan dictator who was overthrown and killed last year, had been the biggest donor to Africa's political alliance for years. But at its latest summit this weekend, the AU made it clear that Beijing is its new Libya.

The 54-nation African organization is holding its summit in its gleaming new $200-million marble-and-glass headquarters, financed and built by the Chinese government on the site of a former maximum-security prison in Addis Ababa.

It's the tallest building in the country, and all of it – even the furniture in its spectacular 2500-seat Grand Hall – was supplied by China as a gift to the world's poorest continent.

The honoured guest and keynote speaker at the African summit is a senior Chinese official, Jia Qinglin, who announced on Sunday that China will provide $95-million in funds to the AU over the next three years – a huge boost to an organization whose annual budget is about $270-million.

"The people of China and Africa are good friends, good partners and good brothers," Mr. Jia told the summit. "Our friendship is as solid as the towering Mount Kilimanjaro and as vibrant as the Yangtze River and the Yellow River."

During the Gadhafi years, many African nations came to depend heavily on gifts and investments from Libya's oil wealth. Libya provided 15 per cent of the AU's membership revenue, and it paid the entire dues of many smaller and poorer African nations. It also spent billions of dollars on infrastructure programs and other investments across Africa to help cultivate support for Col. Gadhafi's vision of a United States of Africa.

Now, however, that vision is dead, and Africa is turning instead to China. At the summit, African leaders were quick to praise China as a model for their continent.

Ethiopian Prime Minister Meles Zenawi, speaking at the unveiling of the Chinese-built headquarters, said the recent rapid growth of many African nations was a result of their adoption of Chinese-style economic policies.

"China – its amazing re-emergence and its commitments for a win-win partnership with Africa – is one of the reasons for the beginning of the African renaissance," Mr. Meles said.

Signs of the Chinese largesse, including the construction of roads, hospitals and soccer stadiums, are increasingly visible across Africa. China's trade with Africa has soared by 13-fold in the past decade, reaching $150-billion last year, surpassing any other country's trade with Africa.

China's investment in Africa has similarly skyrocketed from $490-million to nearly $15-billion over the past eight years. And China is even contributing $4.5 million to an AU peacekeeping force in Somalia.

Perhaps most important, China attaches no strings to its aid to Africa, making no burdensome Western-style demands for democracy or anti-corruption campaigns. Its aid, however, helps Beijing win access to the African oil and minerals that are increasingly vital for fuelling China's economic growth.

The Chinese money and resources will be crucial to the AU as it struggles to overcome a year of political turmoil and failed diplomacy during the civil wars in Libya and Ivory Coast. The AU has been sharply criticized for failing to present a united front against the Western military action in Libya and for exposing its own divisions during a futile effort to negotiate a solution to the Ivory Coast conflict.

The rising discontent is expressing itself in a fierce battle for the top job at the AU Commission. The current chairman, Jean Ping of Gabon, faces a strong challenge from South Africa's candidate, former foreign minister Nkosazana Dlamini-Zuma, the ex-wife of president Jacob Zuma, in a vote scheduled for Monday.

The challenge is a result of South Africa's unhappiness with the AU's weakness and ineffectiveness, reports say.

Meanwhile, the AU is being urged to abandon its hostility to gay rights. The United Nations secretary-general, Ban Ki-moon, told the AU in an address on Sunday that the widespread discrimination against gays has been "ignored or even sanctioned by many states for too long." He added that gays are treated "second-class citizens or even criminals." Homosexuality is illegal in most African countries, and some governments – including Uganda – are toughening their laws and even threatening the death penalty for some homosexual acts.

African Union embraces generous Chinese financing - The Globe and Mail

 

[Ray]

During the Gadhafi years, many African nations came to depend heavily on gifts and investments from Libya's oil wealth. Libya provided 15 per cent of the AU's membership revenue, and it paid the entire dues of many smaller and poorer African nations. It also spent billions of dollars on infrastructure programs and other investments across Africa to help cultivate support for Col. Gadhafi's vision of a United States of Africa.
....

African nations cannot keep their country as a whole without various factions jockeying for power, how can they ever think that they can achieve a United States of Africa.

As quite a few commentaries on Africa and aid given to them mentions, the aid is normally usurped by the leaders and the elite, while the poor gets nothing. Therefore, any country giving aid will be welcomed, but it will only help in keeping the powerful happy and that is what matters in the short term. In the long term, it will have its consequences.