China’s Growing Economic Influence in Africa: Opportunities, Challenges, and Implications.

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In 1971, a significant decision confronted the United Nations regarding which government should represent China in its assembly. Two contenders emerged – the Republic of China and the People’s Republic of China. At that time, the United States, a major superpower, strongly opposed the People’s Republic of China and supported the Republic of China due to their robust political and military alliance.

Despite the United States’ efforts, the resolution was ultimately passed, leading to a momentous switch in the representative government for China in the UN, with the People’s Republic of China taking the position.

However, what is particularly intriguing about this case is not the result itself, but rather the countries that voted against the People’s Republic of China. Among the 35 countries that opposed the People’s Republic of China were many from Africa. This marked an early indication of the geopolitical dynamics shaping the African continent’s interactions with China.

 

Fast forward to 2007, when the United Nations gathered to vote against North Korea’s serious human rights violations. Once again, China came in support of North Korea, and to the world’s surprise, a significant number of countries from the African continent sided with China. In this vote, only Burundi, Equatorial Guinea, Eritrea, Ghana, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mauritania, and Tanzania voted against China. The other 43 African countries either abstained or voted in line with China, showcasing the shifting political and economic ties between China and Africa over the preceding four decades.

A notable transformation has taken place in Africa, where the United States’ superpower status has diminished, and much of the continent is now economically and politically aligned with China, the world’s fastest-emerging superpower. China has injected significant financial resources into Africa, strategically building alliances and strengthening its position on the global stage.

Throughout the continent, China is actively engaged in various transformative projects, both large and small, that are driving economic growth in African economies. However, it’s essential to recognize that these projects are not free. Many of the significant infrastructure projects in Africa are deemed risky by international banks, making them challenging to finance. China’s Export-Import Bank, however, offers low-interest or no-interest loans to African countries, effectively considering them a form of foreign aid. While the loans demonstrate goodwill, behind each project lies a political goal for China.

Despite China’s reputation for low-cost manufacturing, the country seeks alternative labor sources due to increased labor costs within its own borders, a consequence of its enormous economic growth over recent decades. As China reaches its geographical growth potential, and is shifting from an industrializing nation to an industrialized nation. China’s investment in African mining, farming, and infrastructure enables the country to capitalize on Africa’s growth, support its industries dependent on minerals and food, and tap into Africa’s vast labor force.
In contrast, Africa, as one of the least developed regions globally, presents an ideal environment for fast economic growth.

This strategic move may come as a surprise to some, but it highlights China’s determination to retain political and economic power over the African continent. The demographic dividend that Africa’s substantial workforce presents makes it an attractive option for China’s expanding economic ventures.

This article draws parallels between China’s activities in Africa and colonialism. Historically, European nations exploited least developed countries for their natural resources and cheap labor. Similarly, China is filling the mouths of African leaders with money and exploiting the continent’s resources and people.

China’s game plan in Africa also extends to diplomatic maneuvering at the United Nations General Assembly. Countries that recognize Taiwan as a separate country often receive fewer infrastructure projects and economic support from China. On the other hand, countries that align with China in the UN General Assembly receive preferential treatment, gaining access to better infrastructure projects and economic aid.

China’s engagement in Africa has evolved significantly since the 1970s. The continent is witnessing a strategic influx of Chinese investment and influence, transforming African economies while raising complex questions about political influence, resource exploitation, and the dynamics of international diplomacy.

 

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