Abstract
China and Africa have been economic and political allies for many years. Trade and politics are examples of the defining aspects of their relations. In the 1990s, China’s rapid industrialization increased demand for African raw materials, while Africa’s developing economies increased demand for affordable products. Debates have emerged regarding China’s equal treatment of Africa, massive foreign direct investment (FDI), the non-interference policy, and the no-string-attached aid. Politically, China’s goal is to increase its influence in Africa and convince the states to recognize Beijing and ignore Taiwan as the representative of “China” in Africa. China’s influence is growing so rapidly that the Asian nation has become Africa’s major trade partner as well as an important political ally.
Introduction
The rapid growth of China-Africa relations has become an issue of interest among economists, political analysts, and academic scholars primarily due to its effect on the development of Africa. China’s rapidly growing interest in Africa over the last three decades has led to speculations about its real interest in the future of the continent. Relations span finance, health, aid, education, and trade, among others (Alden, 2007). Trade, investment, and finance are the strongest and the most important aspects of China’s policy on Africa. Political relations are very strong because China rarely interferes with the governance of African countries (Shinn & Eisenman, 2012). The future of China-Africa relations will be defined by key economic areas that include industrialization, security and military cooperation, media cooperation, education exchanges, and environmental protection. This paper will discuss trade and political relations between China and Africa.
Brief History
Relations between China and Africa can be traced back to the late years of the 21st Century after the Chinese Civil War. In the 1950s, trade volumes increased significantly after China entered into bilateral agreements with Egypt, Morocco, Sudan, Algeria, Guinea, and Somalia (Alden, 2007). Trade volumes between the years 1950 and 1955 increased by $22.74 million. By 1965, the volume of trade between China and Africa had reached $250 million. In 1963, the leader of China toured several African countries in an effort to form ties that would increase trade and political ties, and empower African countries to fight for national liberation. The enactment of the reform and opening-up policies in the late years of the 1970s cemented the relations between China and Africa because since then, Sino-African trade has grown by 3.6 percent annually (Alden, 2007). The China-Africa relations strengthened and grew rapidly in the 1990s, largely due to trade engagements and foreign direct investment.
Trade Relations
One of the key areas that are part of China’s strategic positioning in the affairs of Africa is trade. The Chinese economy has been growing rapidly over the last three decades. This growth has resulted in the expansion of the manufacturing industry, which has been the key driver for its industrialization program (Morris & Hanauer, 2014). China’s growing interest in Africa has resulted in the erroneous assumption that Africa is critical to the sustainability of China’s rapidly growing economy and industrialization (Shinn & Eisenman, 2012).
However, economic surveys have shown that Africa only accounts for a very small percentage of China’s economic activities in foreign countries. For instance, only 5% of China’s global trade involves relations with African countries (Morris & Hanauer, 2014). Despite the small percentage, China is a major trade partner responsible for the rapid economic growth of many countries. Africa imports consumer and capital goods from China while it exports commodities that include oil, minerals, and raw materials to China (Rotberg, 2009). This pattern of exports and imports has grown expansively over the last five years. For example, the total exports involving agricultural goods to China from Sub-Saharan Africa (SSA) account for approximately 5% of all exports.
China-Africa trade relations are also based on the import and export of raw materials as well as finished products. China has a thriving manufacturing industry that produces quality and affordable products that are in high demand in Africa (Rotberg, 2009). In that regard, China produces cheap products for the African market, and African countries sell their raw materials to China (Morris & Hanauer, 2014). It is a symbiotic relationship that benefits both entities in different ways. China views Africa not as a critical component of its industrialization but as the foundation of its future strategic plans (Rotberg, 2009). China-Africa trade relations have grown stronger over the years, primarily due to China’s decision to keep off Africa’s democracy and governance issues. Unlike the Western countries, China does not impose its rules and policies on Africa (Shinn & Eisenman, 2012).
China and Africa were, for a long time, victims of historical victimization by Western countries. Therefore, they share a common bond that is based on their developing economies after many years of suppression. The volumes of bilateral exports and imports grew the most in the 1990s as relations strengthened, and China invested more in Africa. A key milestone was attained in 2000 when bilateral trade volume surpassed the $10 billion mark. In 2008, the trade volume reached a record high (106 billion) but deteriorated in 2009 due to the global financial crisis that affected most economies in the world. The trade regained momentum in 2010 after recovery from the financial crisis. In 2010, trade volumes were $126 billion, and in the following year increased by 39.4 billion (Morris & Hanauer, 2014). China’s trade engagement with Africa is extensive because it has trade relations with many countries, especially in Sub Sahara Africa reached a total value of US$ 170 billion in 2013. In the past, Europe was SSA’s largest export partner. However, China has surpassed Europe and become a major export partner.
Exports and Imports
China strengthened its trade relations with Africa so that it could export the products of its manufacturing industry to Africa. Examples of products exported include cups, mobile phones, television sets, radios, and clothes (Rotberg, 2009). Many countries in Africa have developing economies that are not strong enough to afford high-quality and expensive products from western countries. Therefore, the demand for lower-quality and cheaper products from China is very high. In that regard, China’s complementary relationship with Africa continues to grow as demand for its products increase. Another reason for the rapid growth of China’s involvement in Africa is the competition between Chinese and African companies (Rotberg, 2009).
The cost of production in Africa is higher than in China. Therefore, local products are more expensive and of lower quality. Many people prefer products from China because they are affordable and of higher quality (Rotberg, 2009). Cheap clothes and cars from China have raised the purchasing power of African countries, thus improving trade volumes of Chinese exports to Africa. Africa offers a ready market for Chinese products because it is a fast-growing market that is comprised of developing economies (Shinn & Eisenman, 2012). As mentioned earlier, China’s growing manufacturing industry has increased the demand for raw materials from Africa. African countries export raw materials such as oil, copper, nickel, and timber to China (Morris & Hanauer, 2014). China’s involvement has increased the prices of raw materials and boosted the economies of countries rich in natural resources. The growth of Sino-Africa trade relations can be attributed to China’s World Trade Organization membership and the rapid movement of Chinese people to Africa.
Political Relations
Political relations are based on the values of equality and respect for the sovereignty of individual African states. The creation of the Forum on China-Africa Cooperation (FOCAC) was a great leap toward cementing China-Africa political relations (Taylor, 2010). One of the principles that define China’s African policy is the promotion of sincerity, friendship, and equality. This political dimension is augmented by FOCAC, which brings together the 51 states that have diplomatic ties with China in order to promote their relationships (Taylor, 2010). FOCAC promotes dialogue and practical cooperation between China and Africa (Taylor, 2010). One of the key aspects of China-Africa political relations is the policy of non-interference (Rotberg, 2009).
Sino-African political relations are strong because China maintains a policy of non-interference in the domestic affairs of African states regarding governance and democracy. The policy has largely been due to China’s goal of surpassing the US and other Western countries with regard to political and economic influence in Africa (Shinn & Eisenman, 2012). China considers investment and foreign aid to Africa as effective tools to promote political ties with Africa. Unlike the United State and other Western countries, China offers no-string-attached aid to Africa (Rotberg, 2009). On the other hand, China promotes a cultural relativist notion of human rights in order to appeal to African leaders. China respects the sovereignty of African states and considers them capable of handling their issues locally without any foreign interference. The policy allows China to create strong political ties with rogue states that have attracted the attention of international bodies like the United Nations.
China sells weapons to Zimbabwe and Sudan because it does not question their political actions that are highly controversial. This policy has come under the test and influenced China’s changing foreign policy on Africa. For instance, the policy toward Sudan has changed in recent years. China’s allegiance shifted to South Sudan after its secession from the larger Sudan. This change in policy was motivated by the fact that South Sudan holds the majority of the oil resources. China sent troops seven hundred troops to South Sudan in 2014 to help resolve the internal conflicts that were destabilizing the country. Its involvement in the peacekeeping mission in Mali is proof that China is gradually abdicating the non-interference policy. Finally, an important goal of China in the China-Africa political relations is to convince African countries to recognize Beijing and not Taiwan as the legitimate representative of China in Africa (Rotberg, 2009). Many African countries support the People’s Republic of China (PRC) over the Republic of China (ROC). Only four countries recognize Taiwan.
Conclusion
Relations between China and Africa began centuries ago. However, contemporary relations date back to the 1990s when China’s period of massive industrialization began. China’s manufacturing industry was in need of raw materials that were found in abundance in Africa. Trade relations center on imports and exports. Africa exports its raw materials to China and imports affordable clothes and electronics. China has a non-interference policy that involves minimal involvement in the political affairs of African countries. This policy has strengthened political ties between China and African countries. China-Africa trade and political relations will continue to grow and provide long-term value to both entities.
References
Alden, C. (2007). China in Africa: Partner, competitor or hegemon? New York, NY: Zed Books.
Morris, L. J., & Hanauer, L. (2014). Chinese engagement in Africa: Drivers, reactions, and implications for U.S. policy. Santa Monica, CA: Rand Corporation.
Rotberg, R. I. (2009). China into Africa: Trade, aid, and influence. New York, NY: Brookings Institution Press.
Shinn, D. H., & Eisenman, J. (2012). China and Africa: A century of engagement. Philadelphia, PA: University of Pennsylvania.
Taylor, I. (2010). The Forum on China-Africa Cooperation (FOCAC). New York, NY: Routledge.