UNDERSTANDING CHINA IN AFRICA An analysis of China’s Africa strategy through a case study of China’s engagement and interests in Ethiopia and Rwanda Vincent Hoffmans – 1031564 Master Thesis – International Development Studies Supervisor: Prof. dr. E. (Ewout) Frankema July 13th, 2021 1 “Is China an enemy of the Western-led liberal global order, or will she blend in? Does China aspire to conquer the world with an own ideology, like the Soviet Union and the United States? The short answer is: none of the above. China is its own kind of world power” (Dams, 2019, p. 189), own translation. 2 Abbreviations AU African Union BRI Belt and Road Initiative CARI China Africa Research Initiative CCP Chinese Communist Party DRC Democratic Republic of the Congo FOCAC Forum on China-Africa Cooperation EAC East African Community ECOWAS Economic Community of West-African States EU European Union FDI Foreign Direct Investment GPE Global Political Economy IMF International Monetary Fund IR International Relations SEZ Special Economic Zone SSA Sub-Saharan Africa SOE State Owned Enterprise PLA People’s Liberation Army PRC People’s Republic of China UN United Nations UNECA United Nations Economic Commission for Africa US United States of America WB World Bank WHO World Health Organization WTO World Trade Organization Word count: 20825, excluding quotes. 3 Abstract Since the foundation of the Peoples Republic of China (PRC), Beijing’s intentions and interests in Africa have shifted. Among scholars there is agreement about the two main contemporary Chinese interests in Africa: securing access to strategic resources, and benefitting from Africa’s growing consumer and labor markets. However, the topic still deserves further exploration and clarification, as the interests of China in individual African countries are not yet thoroughly understood. This thesis contributes to the existing knowledge on China’s Africa strategy through an in-depth analysis of China’s engagement and interests in the Republic of Ethiopia and the Republic of Rwanda. The two countries were studied because of China’s strong presence in both countries, their lack of resources and the similarities in their governance systems. The main research question was what role Ethiopia and Rwanda have in China’s overall Africa strategy. To examine this, the thesis used a qualitative research method. Besides a literature study, eighteen semi-structured expert interviews were conducted. The data from the interviews were categorized into four sub-themes: China’s general foreign policy character and interests, China’s foreign policy interests in Africa, and China’s interests in Rwanda and Ethiopia respectively. China’s main economic interests in Africa are to secure natural resources and to secure access to African markets for Chinese manufactured goods. China’s main political interests are to have the multilateral support of African votes, and to increase the legitimacy of its development model on the continent. The research has demonstrated that China’s presence in Ethiopia is valuable to China because of the country’s geopolitical and diplomatic strength, and because of its demographic and economic development. Since geopolitical interests play an important role for China in Ethiopia, the country deviates from the general pattern of China’s interests in Africa. China’s interest in Rwanda resembles China’s overall interests in Africa, as its interests are mainly economic and political. Rwanda’s attractiveness to China comes from its regional political strength, its attractive fiscal climate, its well-developed logistics sector and the status of Paul Kagame. Finally, this research has shown that both Ethiopia and Rwanda are politically valuable because China, through its presence there, increases the legitimacy of its international development model. Through Ethiopia and Rwanda, China can increase its weight in the global political arena. 4 Acknowledgements I am grateful to have learnt so much about 'China in Africa', a subject that will lose none of its relevance in the coming century. It is clear that China is still discovering its position in the new world order, but it is evident that the 21st century will be largely defined by China. I am painfully aware how incomplete my research and my understanding of the topic still is, but I am very happy and proud to graduate from the University of Wageningen. I would like to thank a number of people, without whom the completion of my thesis would not have been possible. First of all, I want to thank my supervisor, professor Ewout Frankema. I am grateful for his well-structured advice, his honest reactions and good guidance. But I am most grateful that he first asked how I was doing, before asking how my thesis was going. I am very grateful to all experts who wanted to participate in my research. Without exception, they all made more time for me than I could have hoped for. I would especially like to thank Sanne van der Lugt and Afke Groen for their lessons on doing research, and the choices that come with it. I also want to thank my family and friends. My parents and sister Robin have always been by my side during my education and I am very grateful that they have always showed such an interest in my thesis, and helped wherever they could. I am grateful for the lesson 'Interviewing 101' from Sophie and for the assessment of my English from Tibo. I am grateful to Leonie not only for the comments on the economic part, but for much more. I am very thankful for the Afterparty, a group of friends that never accepts easy answers and is always ready to discuss China’s human rights policies in the middle of the night. Finally, I want to thank Veerle. More than ever, our lifes together is something I do not take for granted. Not only are you the best proofreader I could ever wish for, you are also the love of my life. 5 Table of Content Abbreviations .................................................................................................................................................. 3 Abstract ........................................................................................................................................................... 4 Acknowledgements ......................................................................................................................................... 5 1. Introduction ................................................................................................................................................ 8 1.1. Problem statement & relevance ............................................................................................................. 8 1.2. Research questions .............................................................................................................................. 10 1.3. Thesis outline ...................................................................................................................................... 10 1.4. Theoretical framework ......................................................................................................................... 10 1.4.1. Realism ........................................................................................................................................ 11 1.4.2. Economic nationalism .................................................................................................................. 14 1.5. Literature review and hypotheses ......................................................................................................... 15 1.5.1. China’s foreign policy .................................................................................................................. 16 1.5.2. China in Africa ............................................................................................................................. 17 1.5.3. China in Ethiopia ......................................................................................................................... 20 1.5.4. China in Rwanda .......................................................................................................................... 21 2. Methodology .............................................................................................................................................. 23 2.1. Operationalization ............................................................................................................................... 23 2.2. Research nature & research method .................................................................................................... 23 2.3. Data collection .................................................................................................................................... 24 2.4. Data analysis ....................................................................................................................................... 26 2.5. Ethical considerations & limitations .................................................................................................... 27 3. China’s foreign policy ............................................................................................................................... 29 3.1. Introduction ......................................................................................................................................... 29 3.2. China’s history in the global arena .....................................................................................................