Is China just another imperialist power exploiting Africa’s resources?

China has had a long history of trade links and diplomatic relations with Africa and the Global South. However, modern political and economic ties only began during the Mao era. During the 1960’s there was a national liberalisation movement in Africa where the Chinese government sent experts abroad to promote the revolution. After the cold war ended, Africa became ever more important for China to increase trade since the Chinese needed to look towards countries other than USSR and US for natural resources that they required for industrialisation. On the other hand, Western countries during this period did not consider African countries of being important strategically. By the time of 2007, there were more than 750,000 Chinese nationals working in various African countries. Trade between the two countries has increased by approximately 700% since the 1990s and now, China is Africa’s third largest trading partner. It can be seen that the opening up of China and the recent development of Chinese-African trade relationship has caused China to be an increasing influence on Africa’s current political and economic atmosphere. As a result, this has caused many people to question whether or not China is just still acting in its old ways, generating imperialist power and exploiting others. 

Imperialism is defined as “the policy of extending the rule or authority of an empire or nation over foreign countries, or of acquiring and holding colonies and dependencies”. Furthermore exploitation is defined as “the fact of making use of a situation to gain unfair advantage for oneself”. We can discuss whether or not China is just another imperialist power exploiting Africa’s resources based on these definitions.

It could be argued at China is indeed acting in an exploitative and extractive manner towards African countries where Chinese businesses are not working in partnership with African businesses, but in fact, in competition with them. From various research on international competitiveness of African goods and businesses, it is shown that African businesses are less efficient due to the lack of foreign capital, limited resources and inadequately educated workers. As a result, the increasing presence of more competitive Chinese firms is driving incumbent African business out of business. This can be seen in Africa’s textile industry which has dramatically deteriorated since the rise of power of Chinese firms within African countries. 

So is this a fair result? The answer appears unlikely, since there is a clear unequal balance of power between the Chinese and African countries, which suggests an imperialist act is occurring. We can turn towards some evidence of this behaviour to help us understand why this might be the case. Firstly, export taxes placed on African goods from China is very low for raw materials but extraordinarily high for manufactured goods, which discourages African businesses to take on the next stage of production of their goods since it is unlikely that they would be able to make a lot of profit from it. As a result, this de-values the goods that they produce and Chinese businesses who do manufacture the goods will be able to make a larger amount of profit. This case can be seen clearly for coffee beans and petroleum. Consequently, it can be seen that Chinese businesses have an unfair advantage due to the high tariff rates that are placed on certain African products. 

Furthermore, the “no strings attached” and “non-interference” concepts of Chinese trade policies and political agenda is questionable. It appears that although the government intend for these types of agreements, they are unlikely to be put into action, as a result the Chinese is acting in an imperialist manner, where they are indeed trying to extend their power and rule over Africa and its resources. For example, in the past, one of the conditions for trading with the Chinese was for the country to recognise that Taiwan is not a country in its own right. Furthermore, aid was given to Africa on the condition that certain business contracts were given to Chinese businesses. Not only that, the concept of Chinese non-inference has been violated, since interfering with African countries’ economics will undoubtedly result in the interference of politics. For example, in 2008, Chinese policy was softened to encourage Sudan to allow peacekeepers into their country. This was to show that China’s push to become a responsible economic player during the 2008 Olympics. As a result, trade is always interlinked with politics, and even though China may not necessarily state explicitly that they have political power over African countries, it appears that they do to a certain extent. And this is why people may consider China as being just another imperialist power, exploiting Africa’s resources for its own economic benefit. 

 

However, it could also be argued that there is a mutually benefiting relationship between the China and African countries, one which is not lopsided and only exploitative. It may be that Chinese and African businesses are working in partnership together to bring about a better economic outcome for all. One argument is that the increasing competition from Chinese firms in certain industries in Africa is not only able to attract more FDI but also is more effective in penetrating foreign markets through exports. As a result, the domestic competition and international integration with China is mutually reinforcing. It has been found that African firms that face higher competition at home have greater involvement in Chinese capital. There is a mutually reinforcing relationship which affects trade and investment on one hand and transfer of skills and technology on the other.  China has taken a large role in investing in projects to enhance infrastructure in Africa, for example, the Tazara Railway. This not only aids the transportation of goods and human capital for Chinese businesses but also will allow African businesses to take advantage of the improved infrastructure, which could offer huge opportunities to increase trade with other countries. 

 

It can be seen that China’s large involvement in African countries is not necessarily an exploitative and unfair relationship, and therefore one cannot firmly conclude that China intends to be another imperialist country even though, on the outskirts it appears to be the case. 

References:

http://en.wikipedia.org/wiki/Africa%E2%80%93China_relations

http://dictionary.reference.com/browse/Imperialism?s=t

http://oxforddictionaries.com/definition/exploitation?q=exploitation

“Africa’s Silk Road” by Harry G. Broadman

Well done maggie. Rest in peace.

Thatcher passed away a couple of weeks ago. I remember when I was much younger that I thought she was already dead, having disappeared from the public eye in the recent decade due to her poor health, suffering from dementia and other issues. But even when I was a young girl, I knew that this was one hell of a woman, she became famous because her brains and her ability to be a powerful leader.

As a I grew older, I became increasingly drawn to learn more about Margaret Thatcher. Being the first woman prime minister in Europe was something of an inspiration. It proved to me that women could be just as powerful, just as successful as any man. The latest news and attention on her, reminded me of how much I used to aspire to this woman. I've watched documentaries, read so many articles and I also watched a film about her life last year, which really allowed me to understand her more fully and the reason why she is so famous. I remember people thinking that I was crazy going to the cinema to watch a film about politics. But I was intensely interested in this woman and wanted to find out more about her, I didn't regret it a bit. Coming out of the the movie theatre, I felt a sense of ability and power. I realised I could do anything I wanted to as long as I pursue it with overwhelming passion. Don't let anyone pull you down. You are your own destiny.

Studying economics has further familiarised me with the two words; Margaret Thatcher. She had a profound influence on British politics and economy. She created change. She lead the change and her legacy is the change, which has been continued. I was studying the other day and realised just how much Thatcher has impacted UK. I believe every book in about UK or even US mentions Thatcher because of her bold policies which changed the world and the perception of both the economy and ultimately, women. She was one of the few politicians in the world who actually DID something and made change. She was so bold and brave, she had the courage to carry out what she believed in and did not budge if someone disagreed. Even though, some people feel that she bullied her colleagues and was not a nice person to work for, she managed to get her way to the very top. To be successful, you will always get haters. But another thing that this signals to me is that, people have to be mean sometimes to get what they want, and that may be a key characteristic of an able leader.

People also have negative feelings towards her due to her somewhat harmful policies. She believed in the ultimate free market theory. After the war, Britain was hugely dependent on the state and trade unions' power was becoming to get out of hand, whereby just three companies could cause the British economy to halt into a standstill. Furthermore inflation was hitting high levels which needed to be controlled. Thatcher wanted to change this. She privatised and privatised and privatised until the government owned nothing. But what did this cause? A huge surge in unemployment. This caused dissatisfaction amongst the working class, and thereby creating victims of Thatcher's policies. Not only that, Thatcher is known for her part in the war to maintain possession of the Falkland Islands. She won this war, but at the expense of many lives of those in the army. She considered this to be one of her greatest achievements, but some people hate her for the pain she inflicted in soldiers and their families for this cause which seemed so trivial.

Even though she was apparently mean and bullied those who worked for her, caused pain to a lot of people, I still think there are some good points to learn about this woman. One of the most important features are her ability to work so well and dominate men. In a parliament of the 1970's, being a woman was a disadvantage in the fact that you were mocked and looked down on. People didn't believe in your abilities, and it was one tough job just to let your voice be heard. However, Tatcher proved to millions that those old beliefs about women were wrong. Just the fact that she was a woman signalled a social progress of change, and she did carry out hat change. Another thing I think is inspirational, is her commitment to her work. She was so focused and had so much passion. Something, I believe I need to personally work on.

Despite people still hating her on the day of her funeral, it can be seen that she achieved some great things. Things that the average person would never even get a step close to. So you average people out there should stop and ponder on whether you should have done what you did. To disrespect someone who has dramatically changed our lives and led our nation into a much stronger position, even on her funeral is a disgrace. You may be a victim of her somewhat harmful policies, but the woman has died, why still fuss, let one rest in peace. People have so many dissatisfactions about life that they just have to release it on things that don't even make moral sense.

The funeral was somewhat overwhelming to watch on TV and see pictures of, only because it clearly shows the great achievements of this woman. To be able to get the attention and respect of millions of people around the world, even after you have passed away, is definitely something. I'm sure that many people were touched by the work that Thatcher did, and even during her last moments, she continues to make an impact on so many. I wish I had the chance to meet this remarkable woman. I remember seeing one of my old high school friends' Facebook statuses which made a remark on how seeing Thatcher during a school assembly was one of the most breathtaking experiences she had ever experienced and she will never forget it. I don't think the world will forget about this woman for a very long time either. It's going to take a while for us to see another Margaret Thatcher type leader.