China extends "soft power" in Africa
Updated
China has strengthened its influence on the African continent, by pledging ten-billion dollars worth of loans, over the next three years.
Premier Wen Jiabao told a conference on China-Africa Cooperation at the Egyptian resort of Sharm el-Sheikh that China will also cancel or relieve the debts of 31 African nations.
While ten billion dollars over three years is not a huge amount, does it nonetheless signal a firm Chinese commitment to the African continent?
Presenter: Sen Lam
Speaker: Dr Pradeep Taneja, political economist and lecturer in Chinese politics, at the University of Melbourne
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TANEJA: It certainly does, and this is double the amount that China promised about three years ago when they hosted this similar meeting in Beijing. So it may not be a huge amount, considering the problems of Africa, but it is still a significant amount.
LAM: What do you make of criticisms of neo-colonialism, that China is trying to exert through chequebook diplomacy?
TANEJA: I mean some of the criticism is fair and others of course, may be driven by feelings that China's influence around the world is growing to fast. So if you look at the positive sides of China's investments, certainly, China brings significant financial resources to the aid effort in Africa, particularly at a time when there is a shortage of credit around the world. It also has a lot of experience in agriculture, in industrialisation that is relevant to Africa. It will help in developing, I think resource industries in Africa. Africa has as everybody knows, has significant mineral resources, but many of these resources are not developed. So China's aid and investment in Africa I think will help in developing those industries. But at the same time, there are clearly some concerns and I think some serious concerns about China's strategy. One of them of course, the concern in Africa, is that Chinese companies bring their own workers and materials with them. when they come to Africa. And remember these 10 billion dollar concessional loans are largely connected to Chinese companies who will be developing various products in Africa, so it is not just money being given to Africa and they can spend it as they like. It is attached to Chinese investment in Africa.
LAM: Indeed, how do the Africans feel about the Chinese money flowing in?
TANEJA: Well, there are mixed feelings in Africa. If you look at the ruling elite in Africa, certainly they seem quite comfortable in dealing with China and particularly those leaders who are facing sanctions from Western governments, they feel quite pleased with China's efforts in Africa. But at the same time, civil society groups and trade unions in Africa and even some of the manufacturers, the small and medium industries in Africa, that there is concern that Chinese products, for example, which are flowing into Africa in huge quantity are hurting domestic industry in Africa. Many of these countries have very young or infant industries, and they are unable to compete with the Chinese imports. And the concern on the side of the trade union, are that many of these companies from China are bringing workers with them, Chinese workers, and we're not talking here only about skilled workers, we're talking about unskilled workers also, who are being brought in from China. So many of the trade unionists in Africa are concerned that Chinese aid is not contributing to creating employment in Africa.
LAM: And indeed, broadening the outlook, given China's rising status as a world power, do you think Beijing should take note of criticism of its engagement with countries such as Zimbabwe and Sudan?
TANEJA: I mean if you go back and look at Western countries' aid and investment in Africa, much of the serious addressing of those criticisms was undertaken by Western governments and companies after criticism from civil society groups. China has no such independent civil society groups, although there are NGOS in China, but these NGOS are not independent. But I think that China's foreign aid program in Africa and the Pacific and other parts of the world increases, we're going to see Chinese citizens also become concerned about how their money is being used and I mean after all, it is Chinese taxpayers' money.
LAM: And just very briefly, in terms of markets, how important is Africa to China?
TANEJA: I think Africa is very important to China, although the Chinese leaders says that there are no political conditions and Wen Jiabao said in Egypt yesterday, that it's selfless. The reality is that China is looking at the tremendous reserves of various kinds of minerals in Africa and China's industrial growth, particularly over the next 10, 15 years is going to require a significant amount of resources. So Africa certainly is a strategic decision for China, it is not as selfless as the Chinese leaders would make it out to be.
