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Saint Joseph Academic Press New Types of Exchange Cultural Identity and Emerging Relations in a Globalized World Saint Joseph Academic Press New Types of Exchange Cultural Identity and Emerging Relations in a Globalized World edited by Ivo Carneiro de Sousa Ansoumane Douty Diakite Ojo Olukayode Iwaloye Design Graphic & Layout by AxiusDesign LTd. All rights reserved May 2011 First Edition 2 CONTENTS China – Africa and the Macao Platform: the new territories of globalization Ivo Carneiro de Sousa 8 China’s Development Aid/Investments in Sub Sahara Africa (SSA): Minimising Problems and Maximising Gains Akongbowa Bramwell Amadasun 16 An Analysis of China African’s Policy and its Implication for the African Economic Integration Almeida Zacarias Machava 32 Chinese Investment Approach in Africa: Seeing Opportunities in Africa Where Others See Problems Uzoh J. Ezeonwuneme 44 Sino-African Relationship in Past, Present and Future Perspective Iqtidar Karamat Cheema 56 3 The Role of China’s Foreign Aid to Africa in Its Image Shaping 68 Zhang Xiaomin African Traders in “The World’s Factory” of South China 84 Yang Yang Africans in Macao Francisco Vizeu Pinheiro 96 Ian Chaplin China’s Design of Global Governance: The Role of Africa 110 Bo Zhiyue China’s Environmental Footprint in Africa: Tackling Trade and Climate Change Issues 126 Lawal M. Marafa From Equal Exchange to Learning from Each Other - Whither the China-Africa Cultural & Intellectual Cooperation? 138 Liu Haifang 4 Modalites Pratiques pour Investir dans L’espace Ohada Alhousseini Mouloul 156 Aid to Infrastructure Sector Development in Sub Saharan Africa: An Assesment of China Financing Approaches Ansoumane Douty Diakite 178 The Influence of Government Policies on Bilateral Trade Agreements in China and Nigeria Ojo Olukayode Iwaloye 196 China's Role in the Regional Integration of Africa Introducing Complexity Theory and Discourse Analysis into the Study of China's Role in the Regional Integration of Africa Sanne Van Der Lugt 208 China's African Policy and its Application in Tanzania Anneliese I. Gegenheimer 224 5 6 This book publishes the proceedings of the international conference “China-Africa: New Types of Exchange, Cultural Identity and Emerging Relations in a Globalized World” organized by the University of St. Joseph’s Center for African Research and Development Studies (CARDS) in Macao on 24-25 May 2010. The conference and this book are the first academic outcomes from a range of projects and events planned for coming years by the Center for African Research and Development Studies as it investigates the increasingly important relationships between Africa and China within the context of the new territories, scales and challenges of the process of globalization. The editors are especially thankful to the 16 authors of the different papers gather for this original publication. They were able to share and express their own academic and critic perspectives on China-Africa new relations from different scientific domains and research problematic. We are also particularly grateful to Professor Richard Whitfield and Felisita Morais for the scientific revision and proofreading of some of the book’s papers as well as to Filipe Bragança and Bárbara Bruxo for the beautiful and professional design of this publication. Ivo Carneiro de Sousa, Ansoumane Douty Diakite & Ojo Olukayode Iwaloye. 7 CHINA – AFRICA AND THE MACAO PLATFORM: THE NEW TERRITORIES OF GLOBALIZATION IVO CARNEIRO DE SOUSA Professor Vice-Rector for Research and International Relations University of Saint Joseph Macau 8 China – Africa and the Macao Platform: the new territories of globalization Ivo Carneiro de Sousa In the last decade, the Peoples’ Republic of China (PRC) has become a key economic player in Africa, developing a relation pattern that merges trade, investment and aid. The figures are more than impressive: PRC trade and investment in Africa has tripled since the beginning of the century, so that in 2008 China became the third largest trading partner for the continent (17%) after the European Union (32%) and the United States of America (29%). In 2008, the total value of trade between Africa and China reached almost US$106 billion, of which roughly US$50 billion were direct Chinese exports of manufactures, especially machinery (10%), textiles and clothing (4%), transport equipment (4%), footwear (2%) and plastic products (2%). By contrast, Chinese imports from Africa in 2008 were dominated by mineral products (82%), and as a consequence the leading African trade partners of the PRC were Angola (24%), South Africa (17%), Sudan (8%), and Nigeria (7%).1 In 2009, the global financial crisis led to a decrease in the value of total trade to approximately US$90 billion, mostly affecting Chinese imports from Africa, which declined by 24%. Nevertheless, the systemic structure of the economic relations didn’t change, with Chinese imports of mineral products comprising 79% of the trade balance, and with the leading partners still being Angola (19%), South Africa (17%), and with Sudan, Nigeria and Egypt each sharing 7%.2 1 Trade Law Centre for Southern Africa (TRALAC): http://www.tralac.org/cause_data/images/1694/china09.pdf 2 Trade Law Centre for Southern Africa (TRALAC): http://www.tralac.org/cause_data/images/1694/tralac_Africa- China2010.pdf China – Africa and the Macao Platform: the new territories of globalization Ivo Carneiro de Sousa 9 Despite small variations in the statistics obtained from different official and private sources, it seems clear that from 1995 onwards a growing China-Africa trade and investment partnership has arisen, and this has been stimulated by the PRC’s 2001 entry in the WTO, and even more through the creation of the Forum on China-Africa cooperation (FOCAC) in 2000. The third FOCAC summit in Beijing in 2006 gathered together 48 African leaders with the PRC leadership and was able to clarify a partnership process based on political, economic, education, science, health, social, peace and security cooperation. The summit also yielded promises of Chinese aid investment of more than US$6 billion, although 5 billion was tied to payments for projects to be done by (mainly state-owned) Chinese companies trading in Africa. Parallel to these efforts, the PRC continued its ongoing generous policy of debt reduction for 31 African countries, totaling US$1.3 billion. The final declaration adopted by the third FOCAC summit, as read out by the Chinese President Hu Jintao, the Ethiopian Prime Minister Meles Zenawi and the Egyptian President Mohammed Hosni Mubarak, stressed the strategic importance of a China-Africa partnership based on “political equality and mutual trust, economic win-win cooperation and cultural exchanges”1. Irrespective of the scale of these trade and aid figures, the structure of China- Africa economic and political relations in the last decade seems to be stable and pragmatic. Chinese investment and trade in Africa is primarily driven by resource concerns regarding oil, minerals and timber, but at a secondary level is already spreading into other economic fields, namely agriculture, construction, pharmaceuticals, retail trade, and more recently, tourism. It is anticipated that these secondary fields are going to develop and diversify at a very fast pace in coming years. Although Angola, South Africa, Nigeria, Sudan and Egypt accounted for 56% of China’s trade with Africa in 2009, Chinese economic interests are present in all 53 African states, including (on a smaller scale) the four countries still recognizing Taiwan. This Chinese pattern of foreign trade, investment and aid in Africa is completely different from the USA and EU cooperation and trade models, which are framed by clear political demands and sustainability agendas or, in the latter case, are deeply rooted in European nation-states’ interests derived from their former colonial ties. By contrast, the structure of China-Africa economic relations is supported and enhanced by the very debatable pragmatic strategy of not adding any political strings to its trade and investment policies within the framework of a general external soft power strategy (Kurlantzic, 2007; Li, 2009). In this domain – and only in this very strategic domain – the PRC economic move towards Africa claims a historical continuity rooted in Chinese policy and diplomacy that, since the famous Bandung conference of 1955 that brought together for the first time 29 Asian and African nations, has tried to fight any hegemonic foreign power presence in Africa. It explicitly accepts African nation- states sovereignty regardless of their deviations from common international and human rights values (Taylor, 2006, p.3-15). Without attaching any political strings to trade, investment and aid, the new Chinese presence in Africa has generally been optimistically welcomed by African leaders, irrespective of the huge economic asymmetries on the two regions relations. In fact, although PRC imports represent almost one-fifth of Africa’s global exports, this trade only accounts for some 1.6-2% of worldwide Chinese imports. Needless to say, foreign direct investment by African companies 1 http://www.china.org.cn/english/features/focac/187798.htm 10 China – Africa and the Macao Platform: the new territories of globalization Ivo Carneiro de Sousa in the PRC is negligible, except for the large number of small African trading firms that have settled in China, and especially in the Pearl River Delta region, to intermediate direct export of cheap Chinese manufactures to most parts of Africa. Nevertheless, these economic asymmetries between the two regions are already changing and will reach new economic patterns in the near future: the PRC has now impressively modernized industries and a paramount global export capacity along with a growing middle and upper class with rising incomes and increased purchasing power both at home and abroad. This, still sparsely researched, major socio-economic change is already affecting the mix of PRC imports from African countries, adding to the structural demand for natural resources a need for other agricultural commodities and foodstuffs, manufactured products, household consumer goods, and a genuine demand to experience Africa’s cinematically famous “exotic” natural and human environments.
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