China Woos Africa - Not Just For Its Resources

Discussion in 'China' started by RAM, Nov 9, 2009.

  1. RAM

    RAM The southern Man Senior Member

    Joined:
    Jul 15, 2009
    Messages:
    2,242
    Likes Received:
    210
    Location:
    Bharath
    China Goes to Africa — And Not Just For Its Resources



    On Oct. 20, China announced, almost casually, that it was canceling 150 items of maturing government debt owed to it by 32 African countries. The announcement came a few days before a meeting between China's top legislator Wu Bangguo and Kenneth Marende, the Speaker of Kenya's National Assembly, to discuss cooperation between the two countries. Further, on Nov. 8, Chinese Premier Wen Jiabao was to attend the opening ceremony of the 4th Ministerial Conference of the Forum on China-Africa Cooperation to be held in


    Top-level meetings between China's leaders and their African counterparts have been occurring at the frequency of at least one every month. What is Beijing up to? When China declared 2006 to be the "Year of Africa," hosted 48 African nations at the annual 2006 China-Africa summit and rolled out the red carpet for 17 African heads of state, we assumed it was all about gaining access to oil and minerals to fuel China's awesome economic growth. But there is much more going on than a meet, greet and grab from the African continent. China has big economic plans and ambitions in Africa that go beyond oil and minerals. While much of the world still views Africa as a basket-case continent, Beijing is thinking ahead and busy establishing a foothold in Africa's potentially large consumer markets.

    Our common impression of Africa owes more to Joseph Conrad's Heart of Darkness than we would like to let on: Africa is inscrutable, wild, primitive and decades away from genuine modernization. Like the European businessmen in Conrad's 1902 novel, we assume Africa's only assets come from the land or beneath it. In the Heart of Darkness it was ivory. Now it is oil and minerals.

    But China has caught on to something that eludes most governments and companies in the West. Chinese state-owned and private enterprises believe African consumers could be the great untapped gold mine. Beijing's engagement with African leaders and governments is increasingly about ensuring that Chinese firms are best placed to sell their products when Africans start buying.

    [​IMG]

    Algiers, Algeria
    Faced by a huge housing shortage, the Algerian government sought help from the China State Construction Engineering Corporation, which built 55,000 units in record time



    While India is seen as a potential mass-consumer market in the future, statistics for Africa (if treated as one entity) are remarkably similar. For example, the African economy has been experiencing similar growth rates to India's of 6% to 7% over the past decade, and will likely see 3% to 4% growth in 2009 — impressive in the current global environment. GDP per capita in Africa is similar to that of India and, like India, the population in Africa is growing and will be similar in size to China's population in several decades.

    [​IMG]

    Workers at Imboulou Dam, in the Democratic Republic of Congo. The 120-megawatt power plant is funded by the China National Mechanical and Equipment Corporation.



    Vijay Mahajan, author of Africa Rising, says there are 50 million to 150 million economic élites in Africa with similar spending power to middle classes in the West. More importantly, there are 350 million to 500 million people in the African aspirational classes — from households with stable jobs — that resemble counterparts in China and India being courted by Western firms. These African aspirants drink Coca-Cola, want mobile phones and yearn to own a car or motorcycle. The West focuses on the bottom half of Africans living in appalling poverty; Beijing is looking at the other half who might soon buy Chinese-made T-shirts, shoes and bicycles. China's Ministry of Commerce, through banks and export agencies, is offering cheap loans and tax and export credits to Chinese state-owned companies seeking to build a base in Africa. Incentives are given to Chinese manufacturing and retail businesses in addition to exploration and construction companies. In return for so-called "no-strings-attached" aid and cheap loans to African countries, Beijing expects privileged access to oil and resources, political support in institutions like the U.N., and African governments — be they good, bad or despotic — to give Chinese companies the first opportunities to reach local consumer markets.

    [​IMG]

    A wall in the offices of the Chambishi Mine, owned by the copper giant copper, China Nonferrous Metal Mining Company, displays the Great Wall of China with Victoria Falls, a symbol of Zambia, to illustrate the unity between the two countries


    There are weaknesses to Beijing's great plan. For example, cheap Chinese goods flooding the continent sacrifice African jobs, sparking a backlash against the Chinese presence. Corruption is serious, institutions are weak and political risk in various African countries remains high, meaning the possibility of social and economic breakdown is real. No one will bet their house on continued growth in many African countries. But the West should take note: China has a plan to seize the advantage should the African consumer take flight.

    [​IMG]

    A Chinese and a Nigerian worker examine production at Federated Steel in Lagos. The Chinese government sees huge opportunity in African investment. "We will continue to have a vigorous aid program here, and Chinese companies will continue to invest as much as possible," Chinese Foreign Minister Yang Jiechi said. "It is a win-win solution


    China Woos Africa — And Not Just For Its Resources - TIME
     
  2.  
  3. icecoolben

    icecoolben Regular Member

    Joined:
    Aug 14, 2009
    Messages:
    472
    Likes Received:
    4
    This is how colonialism was taken up by europe and guess its china's turn. This period of us super power reign is relatively free b'cos US is both anti-communist and anti-imperialist. But china is neither. If china becomes world super power, then theses a dark age ahead.
     
  4. qilaotou

    qilaotou Regular Member

    Joined:
    Oct 14, 2009
    Messages:
    210
    Likes Received:
    0
    So what do you define Indian investment in Africa?
     
  5. tarunraju

    tarunraju Moderator Moderator

    Joined:
    Sep 18, 2009
    Messages:
    5,316
    Likes Received:
    3,887
    Location:
    Hyderabad
    I think this is a good time for Africa. For the past several decades, neither of the so called superpowers (USA or USSR) bothered to uplift Africa. If China is making a step to build infrastructure, good for them.
     
  6. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

    Joined:
    Jul 1, 2009
    Messages:
    1,404
    Likes Received:
    65
    I think what is going on in Afrika with China and India is a mixed bag. The good side is the development of infrastructure, construction, and telecoms is a positive thing, but it comes with a negative side. By far, the vast majority of capital spent in Afrika is to pluder its natural resources, whether that be minerals, fossil fuels, or agricultural land. This is of little benefit to the people when the leaders of many of these fragile countries are corrupt beyond any standard we are used to. Case in point, China buys up huge acerage of plantations to feed the people, hires Chinese workers, and gets off with supplying weapons to UN sanctioned governments. How does this benefit the oppressed people whom China is helping to keep down?
     
  7. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

    Joined:
    Jul 1, 2009
    Messages:
    1,404
    Likes Received:
    65
    US anti-imperialist? Is that why they occupy over 50 countries with their armed forces? Is that why they have implace several puppet governments? Is that why they illegally hold on to land taken in past wars in violation of treaty? Is that why their multi-nationals going into the third world to plunder resources became anti-imperial, globalisation covered it?
     
  8. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613

    it is not other's duty to bring African good rulers...that is the business of African themselves.

    we just do business....we pay hard cash or infrstructures for the resource we buy.....

    have you seen the film of " lord of war" or "Hotel Rwanda"?

    Africans would still kill each others with long knives and arrows,even if they could not acquire AK47 any more...

    why does resource bring Austrailia wealth but bring African disaster?
    obvioulsy, the problem roots in the mentality of African,instead the buyers of their resource.

    if one abandons itself, then nobody can save its ass. IMHO, some African countries indeed have abandoned themselves,so how can other countries save their ass?
     
  9. tarunraju

    tarunraju Moderator Moderator

    Joined:
    Sep 18, 2009
    Messages:
    5,316
    Likes Received:
    3,887
    Location:
    Hyderabad
    But at least that's a better deal the Africans are getting. Earlier, countries like US, and its Eupoean pals would push the World Bank to give out exorbitant loans to poor countries, make sure they default on them, and then plunder the 'safeguarded' natural resources. If China or India, are at least giving them a good private sector, decent infrastructure, and affordable goods and services, which hopefully will become self-reliant in the years to come, there's no harm.
     
  10. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

    Joined:
    Jul 1, 2009
    Messages:
    1,404
    Likes Received:
    65
    What I don't understand is the need to bring in so many workers from India and China when there are thousands of experienced unemployed farmes, miners, and riggers available for hire at rock bottom wages. Russian operations in Nigeria, Gabon, Sudan, and Angola hire locals for the vast majority of the work. The least you could do is employ them en mass.
     
  11. tarunraju

    tarunraju Moderator Moderator

    Joined:
    Sep 18, 2009
    Messages:
    5,316
    Likes Received:
    3,887
    Location:
    Hyderabad
    Look at those pictures. You'll find plenty of African workers. Typically, skilled workers kick off the projects, and train unskilled locals along the way.
     
  12. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

    Joined:
    Jul 1, 2009
    Messages:
    1,404
    Likes Received:
    65
    Bullocks, that is not the way Chinese do it. I have seen the labour camps in Angola for Chinese workers, dozens of them with thousands of workers. Their plantations are operated by thousands of Chinese farmers. A couple of PR pictures isn't going to fool someone who has been there.
     
  13. RPK

    RPK Indyakudimahan Senior Member

    Joined:
    Jun 29, 2009
    Messages:
    4,882
    Likes Received:
    130
    Location:
    13° 4'60.00"N 80°16'60.00"E
    Energy is never the main part of China-Africa cooperation: Chinese Premier

    Cairo (Egypt), Nov 8(ANI): Chinese Premier Wen Jiabao has said that China is not courting Africa to satisfy its booming need for energy.

    “The case is not what the Western reports described, that China went to Africa only for the energy. When we sent health care personnel to Africa, and when we sent construction teams to build the Tanzania-Zmbia Railway. We never thought about exploring oil in Africa,” The China Daily quoted Wen, as saying.

    Wen also said that China indeed has energy cooperation with Africa, but it is definitely not the aim that pushed China to go to the continent.

    “Sinopec (a Chinese state-owned oil giant) is the Chinese company holding largest oil deals with Africa, but the volume it explores and imports from Africa is less than one third of such trade volume between Mobil and the continent,” Wen said.

    “Energy is never the main part of our cooperation with Africa. What China expects is comprehensive cooperation of mutual benefits,” he added.

    Wen is scheduled to attend a ministerial meeting of the China-Africa Cooperation Forum today, the second summit between Beijing and Africa since the leaders met in the Chinese capital in 2006. (ANI)
     
  14. GokuInd

    GokuInd Regular Member

    Joined:
    Mar 31, 2009
    Messages:
    173
    Likes Received:
    38
    I really don't get their mindset. I mean coming to a country flying in thousands of own workers and finally vamoosing. Not really a fair deal!
     
  15. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

    Joined:
    Jul 1, 2009
    Messages:
    1,404
    Likes Received:
    65
    That is my complaint. The roads and rail that they leave the people don't do them any good 90% of the time considering they don't go anywhere people would want to and roads are dirt left to wash away. Afrikans are really getting the short end of the stick.
     
  16. icecoolben

    icecoolben Regular Member

    Joined:
    Aug 14, 2009
    Messages:
    472
    Likes Received:
    4
    It is the african governments themselves that are at fault. They have to think of their people's welfare before courting multi-nationals.
     
  17. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613
    labour camps?

    guy,those chinese workers might earn more salaries than you.....they leave their families for jobs in Africans just in order to make their families live a better life.
    it is a dishonour to call peopel who works hard for their families "labour camps".

    any labour for a better life deserves respect,however low-tech the labor is .

    any lazy man deseves being despised, however rich he may be.

    a nation who despise labour is a hopeless nation.
     
  18. shotgunner

    shotgunner Regular Member

    Joined:
    Jul 19, 2009
    Messages:
    173
    Likes Received:
    2


    Eyeing on sustained GDP growth, Africa should build better infrastructure, from transportation, communications, housing, power-generation, education to medical care, and these are areas China should invest. With big population, rich natural resources, Africa has good potential to sustain current growth and maybe even better.

    However other than great plans, adequate supports, what matters more is effectiveness of execution, which would be the challenge ahead.

    Wish Africa a bright future, and we have the pride in help them getting there!
     
  19. RAM

    RAM The southern Man Senior Member

    Joined:
    Jul 15, 2009
    Messages:
    2,242
    Likes Received:
    210
    Location:
    Bharath
    Wen Announces 8 Measures to Enhance Co-op with Africa

    Chinese Premier Wen Jiabao on Sunday announced eight new measures the Chinese government will take to strengthen China-Africa cooperation in the next three years.

    Wen announced the measures while addressing the opening ceremony of the Fourth Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) in the Egyptian resort of Sharm el-Sheikh.

    The eight new measures, succeeding the eight measures put forward by Chinese President Hu Jintao at the landmark Beijing Summit of the FOCAC in 2006, are aimed at pushing forward China-Africa cooperation in the next three years.

    "The Chinese people cherish sincere friendship towards the African people, and China's support to Africa's development is concrete and real," said the premier. "Whatever change may take place in the world ... our policy of supporting Africa's economic and social development will not change," Wen said.

    As the first of the eight new measures, China proposes to establish a China-Africa partnership in addressing climate change. China would enhance cooperation on satellite weather monitoring, development and utilization of new energy sources, prevention and control of desertification and urban environmental protection. China has decided to build 100 clean energy projects for Africa covering solar power, bio-gas and small hydro-power.

    Second, China will enhance cooperation with Africa in science and technology. China proposes to launch a China-Africa science and technology partnership, under which China would carry out 100 joint demonstration projects with Africa on scientific and technological research and receive 100 African postdoctoral fellows to conduct scientific research in China.

    Third, China will help Africa build up financing capacity. China would provide 10 billion U.S. dollars in concessional loans to African countries, and support Chinese financial institutions in setting up a special loan of 1 billion dollars for small- and medium-sized African businesses. For the heavily indebted countries and least developed countries in Africa having diplomatic relations with China, China would cancel their debts associated with interest-free government loans due to mature by the end of 2009.

    Fourth, China will further open up its market to African products. China would phase in zero-tariff treatment to 95 percent of the products from the least developed African countries having diplomatic relations with China, starting with 60 percent of the products within 2010.

    Fifth, China will further enhance cooperation with Africa in agriculture. China would increase the number of its agricultural technology demonstration centers in Africa to 20, send 50 agricultural technology teams to Africa and train 2,000 agricultural technology personnel for Africa, in order to help boost the continent's food security.

    Sixth, China will deepen cooperation in medical care and health. China would provide medical equipment and anti-malaria materials worth 500 million yuan (73.2 million U.S. dollars) to the 30 hospitals and 30 malaria prevention and treatment centers built by China and train 3,000 doctors and nurses for Africa.

    Seventh, China will enhance cooperation in human resources development and education. China would build 50 schools and train 1,500 school principals and teachers for African countries. By 2012, China would increase the number of Chinese government scholarships to Africa to 5,500, and would also train 20,000 professionals for Africa over the next three years.

    Eighth, China will expand people-to-people and cultural exchanges. China proposes to launch a China-Africa joint research and exchange program to increase exchanges and cooperation, share development experience, and provide intellectual support for formulating better cooperation policies by the two sides

    Wen Announces 8 Measures to Enhance Co-op with Africa
     
  20. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

    Joined:
    Jul 1, 2009
    Messages:
    1,404
    Likes Received:
    65
    Who gives a flip? We aren't talking about your working class, we are talking about your workers stealing jobs from local Afrikans. If your workers are making more than 1500 quid, your managers are bloody fools when they can get a local to do it for 50.
     
  21. shotgunner

    shotgunner Regular Member

    Joined:
    Jul 19, 2009
    Messages:
    173
    Likes Received:
    2
    "stealing" the jobs? ooops.... that's hilarious, also, very creative
    welcome to steal my job (which is high-speed railway engineer, the pay is not bad) if you like, or more accurately, if you bloody can

    "stealing jobs" ... what an inspiring word .. tell me what are the bloody ways to steal that?
     

Share This Page