The African continent is the second largest continent in the world, and is the second most populous continent. This continent has abundant natural resources like gold, diamonds, oil etc. and has been the bone of contention between the super powers of the world for a long time now. China has recently extended a friendly hand towards Africa. It has claimed that it belongs to the same world as Africa, and uses its history of being a colony, and a poor and oppressed nation to its advantage. China is trying to present itself as the privileged partner of the African continent. The recent China-Africa Summit held in Beijing, in November, has further highlighted the strengthening of the Chinese presence in Africa. Chinese investment in Africa grew from $491 million in 2003, to $ 7.8 billion in the year 2008. During the first China -Africa summit in Beijing, the Chinese President, Hu Jintao, had put $ 5 billion in the form of loans and credit, in order to assist Africa. Chinese workers are building ports, dams, roads, football stadiums etc. in Africa. Africa, a continent which has often been away from economic globalization, has opened up to China. It considers the Chinese investment to be a win-win situation, as investors in today's world are good news. Many Africans feel that the Chinese are good friends and investors. However, this new found friendship between Africa and China does not seem to have pleased everyone. Human rights activists have criticized the agreements signed between the African dictators and the authoritarian Chinese. They feel that these agreements bypass all attempts to establish democratic regimes in Africa. In this document, we will analyze if the Chinese economic presence in Africa is really good for Africa, in the short term and long term. In this perspective, we will look at the relationship that is being forged between Africa and China, objectively. We will also try to analyze if this is the beginning of a new relationship, or, if China is just a new predator, and wants to colonize Africa.
[...] It has invested in Côte d'Ivoire (unstable region), Mali, Niger, and Central Africa (areas not profitable enough for Western companies). It has boosted research in Gabon where oil reserves are expected to dry up. It took control of the loss making refinery Kaduna, Nigeria. In 1996, China Worldbest Group Co. Ldt. bought ENITEX, a textile factory in bankruptcy for 20 million yuan.This company is now one of the largest textile mills in Africa. In addition, China is trying to diversify its activities. [...]
[...] In this case, the presence of many Chinese banks in Africa makes access to credit easier for many Chinese companies, which may not necessarily be the case for African businesses. However, access to capital is a major handicap for the development of African businesses. Recall that in of Ghanaian firms felt that their main problem was access to credit . In this perspective, African construction companies will be in great danger. The African textile industry is also affected by Chinese competition that is tough, insufficiently protected, and has few ways to avoid market losses. Many jobs have been lost due to the competition from China. [...]
[...] Indeed, China's dynamic economy needs to import what Africa needs to export and vice versa And each country specializes in the area in which it enjoys a comparative advantage. Therefore, the trade results are beneficial to both parties and allow the two states to improve their economic situation and increase their GDP. Will China not ultimately become a predator for Africa? Void in growth for Africa in the long term Socio-economic risks and policies of the Chinese presence in Africa. China's presence in Africa reinforces corruption which is detrimental to sustainable development in Africa. Unlike the U.S. [...]
[...] Indeed China sells many arms to equip African countries which are politically unstable. Beijing also defends the plans on the diplomatic front. Defense of corrupt African regimes by Beijing does not help to strengthen democratic and stable regimes respectful of private property. Norinco (中国北方工业公司) amd Polytech Industries help develop the military arsenal of African dictatorships. If one assumes that the arming of African countries can lead to conflict, then the Chinese aid is not involved in the stability of African institutions. [...]
[...] China's Interest and Activity in Africa's Construction and Infrastructure Sectors Undertaking A research Evaluating China's involvement in Africa's Construction and Infrastructure sector, DFID China, for center, p.74.Chinese Studies, Stellenbosch University F. [...]
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