C/W Qu: China in Africa: Neo colonialism or equitable business? Aim: To outline China's trading relationship with Africa and be able to suggest a range of opportunities and challenges this has created. 11/10/17 Starter: What does this graph suggest about China's trading relationship with Africa?
Context Increasing economic ties between emerging nations and the developing world, such as those between China and African countries, can bring both opportunities and challenges within Africa and China. China s investment into the African continent has grown exponentially in recent times. In order to fuel its rapid economic development, China needs to secure a reliable supply of raw materials and a growing market for its manufactured goods. China is now Africa s largest trade partner, buying about one third of its oil from the continent. In 1980, trade between China and Africa totalled around $1 billion. In 2015, it totalled over $160 billion.
Intro task Outline criticisms of trading relationships between exisiting superpowers and developing nations. Done? Does a lack of history between Africa and China therefore represent an opportunity for both parties? What does this mean for Western powers?
Watch the first 1min 23 seconds http://www.documentarytube.com/videos/the chinese are coming
China in Africa intro Task 1. How did China's relationship with FDI change post 2000. 2. Get down 4 stats that illustrates China's investment in Africa. 3. Explain how China's involvement in Africa has led to greater interdependence. 4. When evaluating China's relationship with Africa, what two arguments could you make? To help illustrate your point you could also refer to the 'synoptic theme of players'
Activity Make a copy of the table below. Then move round the room and record the information from the posters under the correct column. Try and get some named examples/psi down for some of them. Neo Colonial challenges (relationship in favour of China) Development opportunities (Advantages for Africa) Done? Assess the extent to which developing economic ties between emerging powers and the developing world bring opportunities as well as challenges. [12 marks]
http://www.documentarytube.com/videos/the chinese are coming Angola positives 0 18 mins Zambia chickens 28 mins 38:20 Zambia copper 38.20 mins 44:30 Zimbabwe Propping up a corrupt regime... 26 mins 28:20 Congo 44:45 mins 51. Cobalt mining Tanzania 51 53:30 (railways) then 54:40 58:50 (trade with china)
China's motive behind developing infrastructure in China is to ensure they can export raw materials as cheaply and efficiently as possible. This is to help China, not Africa and some argue it is actually depriving Africa of a source of long term wealth...their natural resources.
New skilled and technical jobs created in Africa are often actually filled by Chinese immigrants rather than local people. This was estimated to be 200,000 in 2014. This can create tension among locals. http://fortune.com/2015/11/20/china africa damaging ties/
Cheap Chinese imports (clothes, shoes etc) have under cut local producers and forced them out of business. This can create tension and resentment among locals. http://fortune.com/2015/11/20/china africa damaging ties/ https://www.africaresearchinstitute.org/press room/press releases/betweenextremes china and africa 2/
Much Chinese FDI brings only temporary construction jobs; there are few long term jobs in mechanised mines and oil fields. This means long term gains for local people are rare. http://theconversation.com/africa needs more infrastructure investment that boosts longterm jobs growth 42228
China has invested heavily in roads, railways and ports to export raw materials this infrastructure is also used by Africans themselves, aiding their development with many a positive multiplier effect.
While China provides a lot of aid to Africa, much of it is tied to FDI: If the African nation allows investment from Chinese companies/ government then China will provide some aid. If not, then no aid. Some people argue aid should be unconditional, not there to benefit the donor! https://www.hhs.se/contentassets/bc7089cd2c364b2cae4c287184ad743b/yuzheng chinas aid and investment in africa.pdf The criticisms against tied aid mainly come from three aspects. First, tying aid distorts the natural patterns of trade in favor of the donor country, Second, tied aid encourages the monopoly power of donors firms
Vital jobs are created, especially by industrial, transport and energy projects which also help modernise the economy of African nations. Jobs create a positive multiplier and the new infrastructure can help attract new forms of FDI from other countries/tncs. https://www.businesslive.co.za/bd/economy/2017 05 08 research busts chinamyths on investment in africa/
Chinese factories and mines bring modern working practices, and technology to Africa. This can then help develop local business and stimulate trade. This may be slower to arrive through aid alone. http://fortune.com/2015/11/20/china africa damaging ties/ http://news.xinhuanet.com/english/2017 03/18/c_136139077.htm
Investment deals are often accompanied by aid, so the benefits of Chinese money are more widely spread in to the community. http://fortune.com/2015/11/20/china africa damaging ties/
Chinese finance has funded seventeen major HEP projects since 2000, adding 6780 MW of electricity to the continent by 2013. This helps create a sustainable energy future for many countries within Africa. http://edition.cnn.com/2017/09/14/africa/nigeria china hydropower/index.html ` (CNN)The government of Nigeria has announced the award of a $5.8 billion contract to build what will be the largest power plant in the country. The 3,050 megawatt Mambila hydroelectric power project in the state of Taraba will be delivered by a consortium of Chinese state owned construction firms. The megaproject will feature four dams between 50 and 150 meters tall, and take six years to complete, the Minister of Power, Works and Housing, Babatunde Fashola, told reporters in Abuja. The Chinese Export Import Bank will finance 85% of the development, with the Nigerian government contributing 15%. Minister Fashola claimed the project will deliver far reaching benefits. "(Mambila) will have a transformational effect on all of Nigeria's socio economic development," he said through a government spokesman, "It will have considerable positive impact on electricity supply nationwide, productivity, employment, tourism, technology transfer, rural development, irrigation, agriculture and food production."
Chinese investment has also brought environmental concerns. Their decision to move some industries (steel, cement and leather tanning) from China to Africa has caused concern in some African countries. In 2014, one Chinese steel company decided to build a steel works in South Africa creating employment, but also air and water pollution. It should be noted, however that such pollution is nothing new, or wholly Chinese in origin. Shell and other Western TNCs have been polluting the Niger Delta for years... http://www.lawschool.cornell.edu/research/ilj/upload/shinn final.pdf There is a new concern that China will address domestic industrial pollution by relocating some of its highest polluting industries such as the steel, glass, leather, and cement industries to Africa, Hebei Iron & Steel, China s largest producer owned by Hebei Province, announced in 2014 that it would build a plant capable of making five million tons of steel annually in South Africa Chinese tanneries in Africa have already raised concerns. China Africa Overseas Leather Products SC began operations in Ethiopia in 2010 and almost immediately encountered pollution complaints.152 Forced to shut down for forty days, the tannery seems to have resolved the problems.1 https://intpolicydigest.org/2015/04/08/ the environmental impact of china sinvestment in africa/ Moving in the right direction though... In 2015, Sinosteel announced plans to develop a major steel plant in Kenya. As the environmental implications of these industries become fully appreciated, people in recipient countries will almost certainly ask more questions about the advisability of accepting highly polluting industries, even though African governments desire to create jobs will likely prevail over environmental
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Homework The Chinese are coming Part 2 https://www.liveleak.com/view?i=130_1313759860 https://www.liveleak.com/view?i=cf2_1313761010 https://www.liveleak.com/view?i=6bb_1313762091 https://www.liveleak.com/view?i=596_1313763016 https://www.liveleak.com/view?i=31d_1313763941 https://www.liveleak.com/view?i=07e_1313764853
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