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  • Sino-African relation---- Economic benefits December 5, 2009
  • Name:Jia Haixia   Student ID:s07571  

    Research paper supervisor:Dr.Seku Conde

    Minzu University of China

    2007-2008 Academic Year

    Abstract: Sino-African relations refer to the political, economic and cultural connections between China and Africa. In November 3-5, 2006, the Sino-Africa Cooperation Forum Beijing Summit and the 3rd Ministerial Conference were held. 48 African Heads of State gathered in Beijing, and discuss future development planswhich was an important event in the history of the development of Sino-AfricanSince the two sides opened diplomatic relations 50 years ago, Sino-Africa friendship not only has withstood the test of time, but also more profound. But the so-called China threat theory and neo-colonialism, and other remarks let us reflect further on that Sino-Africa friendship touched whose interest? In this paper, we take concentration on the economic interests of Sino-Africa relations. From the view of economic interests, we discussed the different views of the Westerners, Africans and Chinese people for China-Africa economic relations, summed up China and Africa have established a strategic partnership, bilateral economic complementarily and reciprocity and harmonious development.

    Key words: Sino-African relation; economic benefits; strategic partnership

    Contents

    Introduction

    The review of Sino-African’s history

    The analysis of  Sino-African’s economic actuality

       3.1 The inevitability of Sino-African economic cooperation

       3.2 The potential development of African economy

       3.3 Sino-African economic is complementarily and reciprocity

    Different arguments of Sino-African’s economic cooperation

       4.1 Occidental’s arguments

       4.2 African’s arguments

       4.3 Chinese’s arguments

    The issue of Sino-African economic cooperation and measurement

      Conclusion

    References

     

    Introduction

    Sino-African relations refer to the political, economic and cultural connections between China and Africa. Relations began with the voyages made by Chinese admiral Zheng He and his fleet during the Ming Dynasty, coming upon the Horn of Africa and following the coast down to the Mozambique Channel. The goal of those expeditions was to spread Chinese culture by bringing gifts and granting titles from the Ming emperor to the local rulers, establishing a broad tribute ­paying circle.

    In recent years, the People's Republic of China has built increasingly stronger ties with other African nations. As of August 2007, there are more than 750,000 Chinese nationals working in different African countries. Trade between China and African nations has increased 700% during the 1990s. China is currently Africa's third largest trading partner, after the United States and former colonial power France. In 2005, the trading business volume of Central Africa reaches 39,700,000,000 dollars, China becomes African first large import country and second export country. Africa is the important resource source of our country land and market, in which for China export, petroleum takes the 25% of the petroleum total import quantity of our country. (Recourse: Wang Hong Yi: "For 50 years, cooperative rich fruit is numerous"; Chinese international problem of research institute )

    Sino-Africa relations are from the "Nan xiong nan di" in the Cold War period to “strategic partnership” today, from the whole world and change the pattern of Central Africa 50 in a development perspective observation, the relationship between the two sides in the positioning of new strategic partners, thus further enrich the connotation, Beyond the traditional political and economic level, has also increased the cultural content, the area of security cooperation, as well as in the humanities, sciences, education, human resource training and other aspects of cooperation, showing a three-dimensional, comprehensive, multi-level cooperation, but not Limited to inter-governmental diplomacy, extended to all sectors of the community interaction. The strategic partnership between China and African is beneficial to both sides.

    Sino-African strategic partnership between China and Africa showed the following characteristics: First, China and African countries in the development of relations for half a century, the relations are very stable on the whole, is called “all-weather friends”. And the relations are constant develop ,the exchange levels are more and more high, from visits to the establishment of institutions of the strategic platform - Sino-Africa Cooperation Forum, then develop to the current summit. Secondly, although China and Africa are far apart geographically, but the two sides in dealing with international issues and bilateral relations developments have a position of a strong consistency. In the fight against unilateralism, promoting democratization of international relations, strengthening the authority of the United Nations, concerned about development issues, and in the fight against terrorism and promote the reform of the United Nations and other issues, the two sides views are  almost all the same. In addition, China and African countries do not exist on the history of conflicts and disputes. Long-term friendly relations between the two sides were built by the Chinese leaders and many of Africa's heads of state. At that time, China supports African imperialism, colonialism, and provides a lot of moral and material assistance, and even military assistance to support the African national liberation, for independence and against apartheid struggle, therefore, the relations between China and Africa has a solid foundation. Even today, we can enjoy the fruits of the era of Sino-Africa friendship.
       In 2006, China and Africa opened the 50th anniversary of diplomatic relations, marking the China-Africa relations to a new stage.(
    Recourse: In 21 century, the economic report economic: “complementary of Central Africa is mutually beneficial to cooperate to enter new times”)

     

     In a world, For 50 years long, China and Africa support each other, treat each other equally and friendly cooperative relations will continue to consolidate and develop cooperation in various fields fruitful.

    The review of Sino-African’s history

    China and Africa have a long history of trade relations, sometimes over third parties, dating back as far as 202 BC and 220 AD (Snow 1998, p.2). The first mention of Africa in Chinese sources was in the Yu-yang-tsa-tsu by Tuan Cheng-shih (died 863 A.D.), a compendium of general knowledge. In this he writes about the "land of Po-pa-li", which refers to Somalia. In 1226 A.D. Chao ju kua, commissioner of foreign trade at Quanzhou in the Fujian province of China, completed his Chu-fan-chih (Description of Barbarous Peoples). It discusses Zanzibar (Ts'ong-pa) and Somalia (Pi-P'a-Lo) (Freeman-Grenville 1975).

    In October of 1415, Chinese explorer Zheng He reached the eastern coast of Africa and sent the first of two giraffes as gifts to the Chinese emperor Yong'le (Snow 1998, p. 23).

    The establishment of modern Sino-African relations dates back to the 1960s when Zhou Enlai made a ten-country tour between December 1963 and January 1964 to Africa. Relations at this time were often reflective of China's foreign policy in general. China "began to cultivate ties and offer[...] economic, technical and military support to African countries and liberation movements in an effort to encourage wars of national liberation and revolution as part of an international united front against both superpower" (Muekalia 2004, p.6). China's relations with Africa were affected by its relations with the Soviet Union and the United States. For example, China's original close ties to the anti-apartheid and liberation movement, African National Congress, in South Africa, but as China's relations with the Soviet Union worsened and the ANC moved closer to the Soviet Union, China moved further away from the ANC towards the Pan-aerialist Congress (Taylor 2000, p. 93).

    China relied on several principles, among them supporting the independence of African countries while investing in infrastructural projects. During the Cold War a few smaller nations entered in alliances with China, such as Burundi under Michel Micombero.

    Since 1997, around 30 African heads of state have visited China. The ministerial meeting, Forum on China-Africa Cooperation, held in Beijing in October 2000 was the first collective dialogue between China and African countries. The FOCAC Summit and the third Ministerial Conference were held in Beijing from November 3 to 5, 2006.

    In recent years, the People's Republic of China has built increasingly stronger ties with other African nations. As of August 2007, there are more than 750,000 Chinese nationals working in different African countries. Trade between China and African nations has increased 700% during the 1990s. China is currently Africa's third largest trading partner, after the United States and former colonial power France.

    The analysis of Sino-African’s economic actuality

    3.1 The inevitability of Sino-African economic cooperation

    In the 1980s, China's own economic development level is very low, not enough to eat and wear, but a very heavy commitment to Africa internationalist duty. Africa is also a friend of China return to the United Nations on issues such as help each other. In that period, Sino-African relations are indeed "poor to help the poor" manner. Today China's both national strength and international status have greatly strengthened in international affairs and played an increasingly important role. China still considers itself as a developing country, and takes the responsibility to defend the interests of developing countries, within the framework of international organizations and the formulation of international rules China does its best to protect African and other developing countries interests. Since entering the 21st century, China has to change "stay aloof from" practice, participate actively in the hot spots in Africa, the United Nations peacekeeping operations. In major national issue, China should coordinate with the African position, strengthen communication and cooperation. The African countries also tried to reverse the trend of being marginalized, and actively speed up the integration process and respond to the challenges of globalization. Africa has high expectations that China's share of this huge market and hoped that China would strengthen the non-investment and also hope that learning from China's development experience. The establishment of Sino-African new type of strategic partnership -----"all-round cooperation" is imaged in such circumstances. China-Africa Cooperation Forum to the development of fixed mechanism of collective dialogue, good relations between the two sides for the sustainable development provides a good platform.

    3.2 The potential development of African economy

     The economic growth rate of Africa is higher than the average of the world level last year. The African economy has a very big potential. Concrete embodiment in four areas:

    1As previously "lost" too much, so now Africa's economic growth have much large space.

    2 Most African countries are now politically stable, and regional conflicts decreased significantly .This is very beneficial to the sustained and steady economic growth.

    3 The international community’s demand for raw materials continued to rise, the prices of the primary product increased continuously , which African countries have the opportunity to get its development funds that is necessary for Africa in the process, and provide more impetus to the development.

    4Now the international community attach importance to the problem of poverty . Therefore, although Africa will not get rid of poverty in the short term, but we have to believe that Africa's economy has entered a relatively stable period of development and will maintain a fairly long period of time.

    (Recourse: Chinese youth newspaper: Beijing summit will make the relation of Central Africa stand higher)

    3.3 Sino-African economic is complementarities and reciprocity

    China's non-project assistance in the biggest projects - Tanzania-Zambia Railway, admired by the people of Africa, on the one hand it has enhanced the well-being of local people, on the other hand, has the potential to enhance China's economic interests.

    In recent years, many Chinese enterprises to Africa's economic and social development and made important contributions. Enterprise was not only economic benefits, but also brought good local social benefits, such as helping build local hospitals, construction, other infrastructure and improve the living environment, but also absorb some of the local workforce.

    Different arguments of Sino-African’s economic  cooperation

    4.1 Occidental’s arguments

      China threat theory

     United Nations Development Project Committee (UNDP) released a report, because China's cheap goods flooding the market as a whole, China's rapid economic growth become a threat to the interests of poor countries around. Asian countries have also tried opening up and with the international standards, but failed to catch up with China's pace, for their products not only unable to compete with Chinese products, but also unable to enter the Chinese market.

    UNDP report of the neighboring countries of the so-called China's "threat" is no more than two aspects: First, China's low labor costs; second, China and these countries export products are basically the same. In fact nutshell, that is, relative to developed countries, China and its neighboring countries have the same advantage, therefore, industries and the competition within the industry is inevitable.

    We believe that China not only is not a threat to the security of energy, but also is a positive factor to maintain world energy security. China in the past have not, not now, the future will not pose a threat to world energy security.

      On China's new colonialism

    China is colonizing Africa and it is very subtle. Here is the case that African leaders lacking visions of their own think that the problem of Africa is lack of money contrary to the fact: lack of vision and creative leadership. And China cunning enough has realized this fact and now luring our leaders with money. Now see what makes the situation colonization: China gives the money and tells you what to use the money for. Well, it's the same with other donors and the monies go back to them.

      China plundering of Africa's resources

    Absolutely, and in two ways - either by buying stuff from corrupt African politicians directly, or getting it on the cheap in exchange for fuel and manufactured goods when African governments are desperate because of their corruptions and incompetence. The natural resources of Africa are huge, and China will need them to continue growing, but corrupt leaders in Africa are selling out their people's birthright, and the consequences will be terrible.

    In 2006, all Africa's oil exports, China accounts for only 8.7 percent, Europe accounted for 36 percent, the United States accounted for 33 percent. If it is said that 8.7 percent of imports are suspected of plundering resources, 36% and 33% should look at how it? (Recourse: Wang Hong Yi: "For 50 years, cooperative rich fruit is numerous"; Chinese international problem of research institute )

    4.2 African’s arguments

       China's rapid development is the opportunities and challenges for Africa rather than threats. In their view, the rapid expansion of Sino-African economic and trade cooperation to Africa brought many tangible benefits.

      China's demand for commodities of African energy and resources is gradually increasing, breaking the West’s price monopoly lasted for100 years, which directly stimulating upgrade the prices of such goods, so African producers and exporters are directly profit. Chinese enterprises participated in the Africa project contracting, stirring local engineering contracting markets and greatly reducing the cost of factory Africa.

      China's exports to Africa break the West African import monopoly market for the long-term. The African consumers can spend less money to enjoy modern commodity. China's investment in Africa, not only brought the technology to Africa, also brought advanced management experience, and created employment.

    4.3 Chinese’s arguments

    China-Africa economic and trade relations developed rapidly, with China's rapid economic development are closely related. The two sides exchanges are in a transparent and mutually beneficial, in line with international rules of the circumstances of the market economy-oriented normal economic activity. And bilateral economic and trade relations are not exclusive, discriminatory arrangements. China will not be like neither the old colonialists, as the European powers and usurping the African resources nor the United States has use of secret intelligence departments involved in or even launch a military coup, supporting pro-US regime. China's non-interference in internal affairs, aid without conditions, would not seek privileges, but on mutually beneficial cooperation between the market rules, had nothing to do with colonialism. Advocating the "new colonialism", the "China threat theory" there is no market in Africa, which also necessity does not attack since break.

    China in Africa, energy and resources cooperation is conducive to the first African countries, in the past only with the West African country of multinational oil companies, now has China's accession to Africa in the market has room for choice, Africa can become the masters of their own resources. At the same time, China's participation in Africa's energy development is not plunder their resources, our basic policy and principles are mutually beneficial cooperation, but also help African countries through access to resources and enhance the capacity of sustainable economic development, make resource advantage into the advantages of capacity development, China's cooperation with Sudan is a very good proof of this. China's current oil exploitation in Africa, the scale and intensity also very small, oil imports from African import still do not go to the 1/3 that America imports from Africa. Although the Central African oil trade has developed rapidly, but is always open, transparent and mutually beneficial. Moreover, China in energy cooperation with Africa, and Western oil companies predatory exploitation of a different nature.

    (Recourse: Wang Hong Yi: "For 50 years, cooperative rich fruit is numerous"; Chinese international problem of research institute )
         
    At the same time, Sino-African trade and China Daily industrial products are affordable for people of African has provided affordable goods, and  has improved objectively the living standards of local people. In addition, trade with China benefited from the sharp increase. In recent years the sub-Saharan African countries has made nearly 6 percent annual economic growth rate, as the world's fastest economic growth in one of the regions.

    Therefore, the development of China-Africa economic and trade relations between Africa benefit from it. On the "China threat" and the so-called "new colonialism", but the West to an outdated "ling he" Cold War though to look at the relationship between China and African development, the aim is none other than to protect their vested interests in Africa, not want to see even want to impede China's expanding influence in Africa.

    At present, China's economy from total lack of effective supply for the change of insufficient effective demand, Chinese enterprises only have a comparative advantage to the transfer of excess capacity to supply the African market, including the international market, and actively participate in international competition and economic globalization Occupy a favorable position in order to continue to grow and develop. Strengthen the economic cooperation with developing countries, in particular to strengthen cooperation with African countries, will undoubtedly become a guarantee for China's sustainable economic development of the important choice. At present, African countries, widespread capital, technology, manpower shortage problem and hoped that China would increase its non-investment and transfer of technology to enhance human resources development cooperation to promote investment in Africa's exports and employment, enhance the competitiveness of local industries. With growing political stability in Africa and the increasingly improved economic situation in Africa is increasingly becoming an ideal investment place in China. From the perspective of sustainable development, many Chinese raw materials and energy at present is a structural shortage, which also can be found in Africa. In this sense, Africa needs China, and China also needs Africa, Africa to China's future economic development is very important.

     China is willing to establish and develop with Africa on the political equality and mutual trust, economic win-win cooperation and cultural exchanges under the new type of strategic partnership relations.

      China has take part in the development of Africa's energy and other resources, particularly with Angola, Democratic Republic of Congo and other countries implemented "resources for projects" cooperation ,so that these countries can get the capital and technology that is critical to the development of infrastructure.

      African countries believe that Sino-African cooperation is the problems that existed in the development, it will be resolved though friendly consultations with China. They have a clear understanding of all kinds of "neo-colonialism of China”. They deem that it was out of jealousy and were created by the West, aimed at the destruction of the China-Africa Cooperation.

    The issue of Sino-African economic cooperation and measurements

    Issues:

    1Although China-Africa trade is generally balanced,  China's imports from Africa were slightly more than Africa's exports. Due to the source of imports from Africa are relatively concentrated, China and the majority of African countries have the trade surplus.

    2 It is worth mentioning that China's exports still have some quality problems. At the same time, certain types of exports, particularly textiles, the increase of the African’s similar producers give African more competitive pressures. In addition, China's contracted projects have some quality problems, or works tardiness problem now and then.

    Measurements:

     At present, China's enterprises to enter the main force for Africa, for Africa's economic development has made important contributions, there have been labor disputes, mining accidents and other incidents.

    1Chinese enterprises should consciously norms of conduct, the Chamber of Commerce, Bank of enterprises will have to be bound

    2China should also step up publicity to fight back these attacks.

    Ⅵ Conclusion

    The world is undergoing profound changes. Given the new situation of world multi-polarization and economic globalization, to further Sino-Africa friendly relations and cooperation serves the fundamental interests of the two sides and is conducive to their common development, the reinforcement of South-South cooperation and the promotion of world peace and development. China and African countries face the common task of developing the economy and improving people's livelihood. China is a country with a strong sense of responsibility. China is ready to contribute its share in advancing win-win cooperation for sustainable development with African countries.

    In a word, Africa needs China, and China also needs Africa, Africa to China's future economic development is very important. Chinese and African peoples have close to the natural affection.

    References:

    [1] Freeman-Grenville, G.P.S. (ed.) 1975: The East African Coast. Select Documents form the first to the earlier nineteenth century. London: Rex Collings.

    [2] Muekalia, D. J. 2004. Africa and China's strategic partnership. African Security Review 13, no. 1: 5-11.

    [3] Snow, P. 1988. The star raft: China’s encounter with Africa. The Bath Press, London.

    [4] Taylor, I. 1998. China's foreign policy towards Africa in the 1990's. Journal of Modern African Studies 36, 3: 443-460.

    [5] CCTV (2002-12-24). Zheng He's Voyages. Retrieved on 2006-08-13.

    [6] China’s trade safari in Africa - Le Monde Diplomatique, May 2005

    [7] chinaembassy.org.zw Sino-African Relations

    [8] Sino-African trade to hit 50 bln U.S. dollars in 2006 - Xinhua News Agency, October 18, 2006

    [9] BBC News. "Chad chooses China over Taiwan", BBC, 2006-08-07. Retrieved on 2007-01-14. 

    [10] Is China the new colonial power in Africa? Taipei Times, November 1, 2006

    [11] "China to double its aid to Africa", BBC News, 4 November 2006

    [12] "Chinese leader boosts Sudan ties", BBC News, 2 February 2007

    [13] "President Hu's Africa Tour", china.org.cn (accessed 2 February 2007

    [14] Sino-African relations, Chinese embassy in Zimbabwe, 16 August 2004

    [15] Goldstein et al., The Rise of China and India - What's in it for Africa, Organisation for Economic Co-operation and Development, May 2006

    [16] Fairly looking upon Sino-African relations, People's Daily, 16 May 2006

    [17] China defends its African relations, BBC News, 26 June 2006

    [18] Wolfowitz criticizes China over Africa lending, Yahoo! News, 23 October 2006

    [19] Entrepreneurs From China Flourish in Africa. The New York Times. Retrieved on 2007-08-19.

     


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