April, 2004

RENEWed CHINESE INTEREST IN AFRICA

Tareq Adel Al-Sheikh

Chinese president Hu Jintao’s recent visit to Africa provides a clear indication of China’s new approach to the current world order, and reflects a transformation in Chinese policy towards Africa and the world in general.
The Chinese president surprised many by beginning his three-nation African tour – which ran from 26 January to 5 February 2004 – not on African soil but in France. There are, of course, good reasons for this: first, China depends on France to a certain extent to support it against US policies that are designed to put pressure on it; and second, France has considerable influence over a large part of Africa, ie the francophone countries.
Africa has recently become more important to large industrial countries, resulting in a state of heightened competition between them to tap the continent’s many natural resources and to capture its vast potential markets. This explains the number of visits made by senior officials of many countries to Africa as well as the considerable aid made available. Japan, for example, has granted around $12bn in aid to Africa over the last decade.
Trade exchange between China and Africa during the first nine months of 2003 was $13.39bn, and Beijing is in no doubt of its need to open more markets in Africa, for various reasons:
- China, the world’s fourth largest exporter – estimated to have exported goods to the value of $430bn in 2003 – needs to open more markets to absorb its production. Chinese predictions, meanwhile, that the world economy will develop by 5-10% this year over 2003, would mean increased competition for export markets and also raise raw material prices and hence production costs.
- China expects a decrease in the value of the dollar in 2004, which would limit the competitiveness of Chinese exports, particularly in vital western markets, and it must thus search for alternative markets.
- Entry restrictions on Chinese products are increasing in many countries.
- The fast pace of economic development in China will raise local demand for imported raw materials, and some of the best deals are to be found in Africa.
The presidential visit to Africa can thus be understood as an attempt by China to raise its profile in the continent and to increase its presence there; though this is not its first such effort. In 2000, the ministerial-level China-Africa Cooperation Forum was established, through which a new framework for Sino-African relations was formed on the basis of political and security issues; cooperation; economic development in the fields of infrastructure, agriculture and trade; social development; and follow-up mechanisms.
China has also adopted a system to encourage Sino-African economic relations through conferences and forums, with the view that more interaction will lead to more deals.
The three African nations visited by Hu – Egypt, Gabon and Algeria – were chosen as the most likely to guarantee the success of his tour and also reflect their relative importance to China.
Egypt, the first stop on the tour, is important to Beijing in the Arab, Middle Eastern and African contexts. Hu confirmed China’s support for Arab issues and causes, especially with regard to the Palestinians and Iraqis – as is reflected in his calls for the UN to take a greater role to achieve security in Iraq. This stage of Hu’s visit also saw Cairo and Beijing sign a number of economic cooperation agreements, with China keen to ensure that its increasing oil needs for economic development will be met.
Gabon has become a major exporter of oil to China, turning the trade balance between the two countries in its favour.
Algeria, too, is one of the main African oil exporters to China, and trade exchange between the two stood at $292m in 2001. Here, Hu also sought to increase cooperation in trade, infrastructure, agriculture, human resources, technology, education
and culture.
During a speech before the parliament of Gabon, Hu discussed an initiative to boost Sino-African relations based on preserving the long friendship and reinforcing the relations between the two parties; the need for both parties to recognise the principle of support for mutual benefit and common welfare; and the necessity of widening this cooperation in international affairs to protect the rights and interests of developing countries.
It is clear, then, that China’s policy towards
Africa has changed in line with the comprehensive transformation in international relations and the growing importance of foreign policy goals in general. However, what is important here, from the African perspective, is that Africa can also gain from this trend, by pushing forward with its own development.