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Chris Devonshire-Ellis in China's relationship with Africa
China has stepped up its foreign policy of friendship and commerce with Africa this year in an attempt to further strengthen ties across the continent. With President Hu Jintao, who has already visited Mali, Senegal, Tanzania and Mauritius, China announced A new Beijing Summit of the African nations aimed at actively developing a strategic partnership between China and Africa. Chinese pan-African influence, uncommitted by colonial history, the politics of aid and an understanding of how dictatorial governments at some point work, is expected to increase considerably in the region
Hu's visit, which occurred during the shock waves of the global financial crisis appears structured to convince African nations that China intends to be more than a fair-weather friend. In Africa it seems, have been placed on the underside of the battery of economic importance battered by European nations, China was quick to assert its absence. Accusations that China has cherry-picked African nations of strategic alliances appear to have reversed. None of the four countries visited are particularly rich in resources. That means I take my hat off to China's foreign policy and strategy in Africa, recognizing that instead of borders national, Africa remains, despite earlier colonial attempts to draw lines, largely a tribal continent. Doing business based solely on border African national and localized or mineral resource wealth is not necessarily enough. China's Africa Strategy to deal with carefully, but on the whole, seems to be paying dividends that the former colonial powers can not match, due to its inherent historical bias.
China has also discovered a large windfall scope in its acquisition through trade of billions of U.S. dollars. While the west, the appreciation of the dollar has been hurting large segments of U.S. economy to China, far from the prying eyes of Washington, which means China and other Asian countries – like India and Thailand – have become an important purchasing power in world markets. In addition, oil and other commodities have been in their lowest levels for several years, resulting in China to meet in a negotiating position powerful in what has become a global market buyers to those nations that have the cash. China is signing agreements long-term with many African nations for a variety of natural resources. When it comes to the global recovery, as a day to be, China will be in control of a substantial part of the world's natural resources, including oil. Consequently, Africa is now in the unusual position of being courted by states U.S., EU and Asia, with China, currently the best player.
African trade is also changing. Asia is now under development and is likely to become in the largest bloc of African trading partner in the next decade, a complete change from twenty years ago, when trade in Africa and Asia barely registered. This can represent a return to the rule generally recognized. History shows us that Africa was connected to the ancient Silk Road, with sub-routes ranging from Ghana (gold) through North Africa and join the silks and other items that passed to and from China in the Middle East or in Istanbul. In fact, a trip to the Museum of Silk Road in Urumqi, the Xinjiang few years ago with a friend from Kenya, was the point. Unearthed from the sands of the Taklimakan Desert is a medium size pot, with enough distinguishing marks. Labeled "unknown origin" by the curators of the museum, my colleague immediately identified as coming from a coastal region-specific African near what is now Mombasa. Marks said, were absolutely unmistakable as coming from an African tribe that still use the same patterns today.
Africa However, the position has changed. The phrase "white elephant", meaning a major project of little use, actually originated as a direct result of colonialism Europe in Africa. With part of the Cold War is played in Africa, both in the West and the Soviet Union installed puppet dictators and lent money. With support of political rights guaranteed as a system led to grandiose projects that contractors grew rich, while most of the money went to banks, loan re- exorbitant rates. Prices of exported goods remained low, while manufactured goods became expensive. African countries became a burden with a debt spiral as their export markets were booming.
This situation has recently been turned by the arrival of Asian Tigers in the recent economic history of Africa. Exporting aggressively, and reduce traditional, mostly European producers, Asia quickly both began to see Africa as a potential export markets, but also as a resource. In some cases, however, Africa still must learn to emphasize the quality control measures. As China consolidates its political position in Africa, many of the low-end Chinese exports are only not up to standard and the country is creating a reputation for shoddy products. Friends of reference a Chinese mine was a hammer, which after just six hits for hit a wooden stake into the ground to ensure a tent safari camp, broke into several pieces – the wooden handle cutting in two the head and fracture pieces of metal. I've heard stories recurring throughout Africa of similar incidents with cheap Chinese products, perhaps the dumping of poor quality products discarded long by the most sophisticated markets? China still has a large number of low-level state-owned enterprises producing poor quality to maintain for the sake of their employees, and I would not be surprised if these products are being sent to Africa, where corruption, lack of supervision of quality control on imports, and political pressure may allow the entry of that product.
However, the volume of trade between Africa and Asia have soared. Exports Africa grew annually by 15 percent from 1990 to 1995 and has reached 20 percent for each of the last twelve years. African trade with China only in 2008 was U.S. $ 106.84billion, up 45 percent over 2007. Currently, Africa's trade with Asia is working to 30 percent of what it enjoys with the EU and the United States, however, the volume of trade has grown exponentially, partly due to improvements in infrastructure and proximity of the two continents. It takes only five hours flight from Nairobi in Kenya through the Indian Ocean to Mumbai – the time it takes to fly from Urumqi Beijing.
Currently, only five African countries representing 85 percent of all trade in Asia, however, infrastructure development and reform policy that also occurs in Africa, bottlenecks that have traditionally received in the way of the trade gradually – and in some cases quickly – being removed. The Asian demand for finished products from Africa is increasing, and has been growing at 20 percent per year, mostly in textiles and clothing. imports on the contrary Africa include machinery and equipment, vehicles (including India and China as motorcycles and trucks), and electronics and appliances. Beijing has encouraged this trade by eliminating or reducing tariffs on a wide range of imports from Africa and has indicated it can do it again to boost trade further.
long arm of Commerce is moving so steadily and strongly in Africa. It's time to pay attention.
Chris Devonshire-Ellis is also a prolific writer, having written for a number of publications across Asia and internationally.
About the Author
Chris Devonshire-Ellis is the founder of the foreign direct investment firm, Dezan Shira and Associates, which has been in operation for over 21 years.
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