China's plans for Africa shifting to sustainability

FOR MOST PEOPLE outside China and Africa, relations between the emerging Asian giant and the developing continent seem to consist largely of footballers taking a big payout at a tycoon-run Chinese soccer club.

But China has plans for Africa that go beyond providing a home for players in the twilight of their Premiership careers, and even beyond building football stadiums in African cities.

China needs Africa’s natural resources to fuel its economic growth and Africa is a key market for Chinese goods. In return it gives juicy trade deals and loans, without loading them with conditions about human rights, corruption or reform.

At the Forum on China-Africa Co-operation in Beijing recently, attended by African leaders from many countries, including Benin, Kenya, Ivory Coast and Equatorial Guinea, China defended itself against critics who say it is in Africa only for the oil and other resources, and to use Chinese labour to build African-funded projects.

President Hu Jintao pledged €16 billion in new loans to Africa for building infrastructure and agriculture projects, and developing the manufacturing sector, promising to expand the relationship between the continent and its largest trading partner.

The loans will be paid over three years but there was no breakdown on which countries would be the recipients.

“We will continue to stand firm with the African people and forever be a good friend, good partner and good brother of the African people,” he said.

China was also offering 18,000 government scholarships and will send 1,500 medical staff to the continent, he said.

“We should oppose the practices of the big bullying the small, the strong domineering over the weak and the rich oppressing the poor,” he said. China would play a “positive and constructive role in African affairs”.

China’s two-way trade with Africa was worth €135 billion in 2011, three times the 2006 amount, and Africa has been China’s biggest trading partner since 2009.

Among the big investors are the world’s biggest bank, the Industrial and Commercial Bank of China, which has invested more than €5.7 billion in various projects across the continent. ICBC has also invested in aviation leasing in Ireland but the scale of China’s interest in Africa puts into context Irish efforts to build relations with China.

More than 20 Chinese and African companies signed economic co-operation agreements worth €278 million at the forum, the Xinhua news agency reported.

African leaders are keen to forge closer ties with China. But there are ever more voices critical of the imbalances in the relationship.

South African president Jacob Zuma warned that the trade relationship between the two sides couldn’t last, because from China comes debt relief, human resources development and investment, while Africa supplies raw materials and technology transfers.

“This trade pattern is unsustainable in the long term,” Zuma said. “Africa’s past economic experience with Europe dictates a need to be cautious when entering into partnership with other economies.”

It has also proven difficult for China to deal with the often-thorny political environment in Africa. A classic case is Sudan, where China is the main oil investor in both Sudan and South Sudan.

For his part, premier Wen Jiabao said there would from now be more of a focus on making the relationship sustainable, and on keeping a closer eye on cultural issues and environmental problems.

“As for some existing problems and new situations in China-Africa co-operation, the Chinese government is actively working with African countries to seek effective solutions and measures,” Wen said.