Has Africa benefited from China’s economic connections to the continent?

Africa’s relationship with China has been one of domination since the 1980s and has developed into one of its most important trade and economic partners. However, has Africa benefited from China’s economic connections to the continent?

Africa as a continent has suffered throughout its history of high levels of poverty and forced economic exploitation from the world global powers. Now that China has assumed the mantle of being the leading Asian power in the world and the world’s second largest economy. Has China, with its new found economic power, been exploiting Africa’s natural resources for its own economic development like the old colonial powers of Europe?

China’s economy has been one of the rising stars of a new globalised world (after the Collapse of the Soviet Union in 1991) with economic growth in the 21^st Century averaging around 7 percent annually. China’s population too has grown exponentially to over 1 billion with the Communist Party still reigning supreme over the average Chinese citizen and worker. Economic growth and an increase in the prosperity of the Chinese people keep the crowds from storming the Communist Party Headquarters in Beijing, but how does the Chinese Communist Party sustain its spectacular economic growth in a world of economic uncertainty.

The continued expansion of the Chinese economy can be the only way to secure the Communist Party grip on power. However, this continuous expansion of the Chinese economy requires huge amounts of natural resources, with Africa becoming the prime place to extract natural resources for its own domestic use. This may be good for the average Chinese worker and the Communist Party (because they stay in power) but this leads me to my original question, does Africa benefit from China’s economic connections to the continent? Peter Hitchings would be firm by saying ‘no’ to this question, offering instead to refer to Chinese policy as ‘a new slave empire in Africa’. Although I would not use this language, it appears for the time being China is getting a better deal.

China has become one of the world’s biggest trading partners with Africa and one of its most prominent investors. Trade between Africa and China has increased massively over the past decade. In 2000 trade between the continent and the country amounted to US$6.5 billion, in 2006 this increased to US$55 billion. From 2010 trade reached US$114 billion and towards the end of 2015 trade reached US$300 billion. This increase in trade has come from the exportation of raw materials, such as oil, coal, copper, iron ore, diamonds, and natural gas (to name a few!) which has made Africa a prime target for increased Chinese involvement and interest in the continent. 

It is clear that china is benefiting from increased trade with Africa, but what does Africa get in return? China in recent years has been heavily investing in infrastructure and development projects with Beijing committing to UD$60 billion for 2017. This investment in infrastructure projects will begin the process of developing the region, but is this investment from Beijing and Chinese corporations more sinister then it may first appear? The development of Africa’s infrastructure would give China the ability to extract natural resources more easily with 1,700 infrastructure projects in 50 different African countries from 2000 to 2011. In this same time frame trade between Africa and China increased at a rapid rate (figure shown earlier in the article) again asking the question is China benefiting more than Africa from China funded infrastructure projects?  

Chinese workers have also benefited from more co-operation as they are being employed, by Chinese companies across Africa. Although Chinese workers can be more skilled in areas such as engineering, mining and other essential skills, Chinese companies have been instrumental in keeping Chinese workers employed and preventing them from being critical of the Communist Party for not providing work. This has been a benefit for Beijing because it removes potential dissentients from mainland China. On the other hand this has prevented African workers across Africa developing necessary skills so that economic development can continue without the need of foreign (Chinese) skilled labour and investment.   

Although this development of infrastructure could be a way in which Africa will industrialize in the future. Other Chinese investments especially in the extraction of minerals and other natural resources are creating enormous environmental damage, also making African countries dependant on natural resources to develop their economies. This, in my opinion, will create unsustainable economic development leaving African countries reliant on fluctuating commodity prices and ever dwindling resources to create prosperity for their citizens (just look at other countries such as Russia, Venezuela, and Nigeria whose economies have been negatively affected by a slump in oil and natural mineral resources).  With the proceeded, from the sale of oil, coal, copper, iron ore, diamonds, and natural gas, going to the elites of these countries both democratic and authoritarian. China has followed a policy of ‘don’t ask any questions, because you won’t like the answer’ when it comes to human rights violations and damage done from the extraction of these resources.       

Thus I believe that China has taken a big step to open up Africa to the world in terms trade and investment. However this has come at a price. China has been the net beneficiary of this increased trade with Africa and, so far, has been reluctant to look at what its own policies are doing to the environment, to alleviant poverty, and to create sustainable economies in Africa. I believe it is too early for us to make a judgement of the long term affects of China’s policies in Africa. However, if China continues its current policies I do not, in good conscience, think Africa will be about to shake of the shackles of economic exploitation and poverty.