The People’s Republic of China calls 2006 ‘the Year of Africa.’ In the summer of 2006, Premier Wen Jiabao visited seven countries in Africa. On his trip, Wen promised Angola $2 billion in aid and made many trade agreements with the Congo Republic. At a ‘summit‘ of African leaders in October 2006, China promised another $5 billion in aid to several more African countries, including Kenya. President Hu Jintao also agreed to forgive much of Africa’s debt to China. A dozen Chinese companies signed agreements for $1.9 billion worth of construction projects and investment.
China is a big trading partner with Africa. China buys oil, timber, minerals, cotton and other natural resources from sub-Saharan African countries. In turn, China sells Africa cheap consumer goods like shoes and clothing. China’s trade with Africa is about $50 billion in 2006 and will double to $100 billion by 2010. Much of sub-Saharan economic growth comes from trade with China.
In 2005, the Western members of the G8 promised to give Africa billions of dollars in aid and open their markets to Africa. The US imports 15% of its oil from Africa, mostly from Nigeria and Angola. So far, these have been empty promises. Western leaders say they will not increase aid to African nations until those nations ‘clean up corruption‘ in government. So while the West promises big and delivers little, China delivers real help to African nations with no conditions tied to it.
China’s model of economic development is more of a partnership with Africa that respects Africa’s culture and does not criticize Africa’s leaders. China buys oil from Sudan but keeps quiet about the problems in the Darfur region. China’s policy is ‘aid by trade.’ In 2004, China announced that it had extended to Angola a $2 billion oil-backed loan, an Angolan specialty in which credit is secured by future oil production. Right away, China began to buy more oil from Angola. Today, Angola is China’s biggest oil supplier.
The loans that China makes to African countries often go to pay for construction contracts with Chinese engineering companies. Angola gave China a $1.9 billion contract to build railroads, bridges, railway stations and railway equipment. In return, the Chinese companies build plants in Angola to supply the work. China also builds schools to train the workers. Nigeria recently signed an $8.3 billion agreement with Nigeria to build 1,800 miles of railway. Nigeria is another big producer of oil.
China’s style of ‘globalization‘ seems to be making friends in Africa at the same time that the West is losing influence. This may have long term consequences on the West’s supply of oil from Africa.
Your Opinion, Please
Why is China so interested in Africa?
What kind of things make China more similar to Africa than the West?
What is the US doing to help Africa today? What about the European Union?
How important is Africa to China’s future? To the future of the West?
Vocabulary Words
conditions: the way things are
consequences: what happens as a result of an action’
consumer: buyer
corruption: stealing money
criticize: to complain
engineering: engineer work
globalization: work with many nations across the world
influence: affect how someone behaves
investment: to put your money into a place that will earn more money
minerals: rocks
mostly: almost all
partnership: to work together and share
policy: a way of doing things
producer: maker
projects: a piece of work
railroads: railways
recently: in recent times
secured: made safe
specialty: a special thing
sub: below
summit: top
supplier: one who gives or sells
timber: tree wood
