#The Forum on China-Africa Cooperation Summit in Beijing 4-6 September, 2024
THE WORLD
China's investments in Africa pave the way for increased global power
PEKING. Increased political influence on the world stage is one of the driving forces for China to invest in the African continent. There is also a market here that is becoming increasingly interesting when the West punishes Chinese manufacturing industry with tariffs. This week the African leaders arrive in Beijing to conclude new agreements.
Figures recently emerged showing that China's lending to Africa last year increased for the first time in seven years. A large part deals with projects within China's infrastructure investment the new Silk Road.
- The latest statistics show that those who claim that the new Silk Road is dead and that China has stopped lending money are wrong, says Eric Olander, editor-in-chief of China-Global South, which, among other things, has a regular podcast about China's involvement in Africa.
More investments will be announced this week when the leaders of the African countries are welcomed to Beijing to participate in the first summit of Focac, a cooperation organization between China and Africa, since the pandemic.
Floral arrangements are in place along Chang'ana Avenue that passes the Great Hall of the People meeting venue and Chinese leader Xi Jinping will give the opening speech at the "great meeting of the great China-Africa family", as the Global Times propaganda agency describes the gathering.
What drives China to invest in Africa? One thing is access to raw materials and minerals. But the investments also fulfill a political function .
Strengthened ties to African countries give China increased support in the UN when votes are to be held on issues where China receives criticism from the West, such as Xinjiang or Hong Kong. In this way, friendship with African countries increases China's global influence and becomes a driving force in the goal of opposing a world order controlled by the West.
In that spirit, journalists and politicians from Africa are invited to Beijing to learn lessons in how China has fought poverty and created political stability. More Confucius Institutes, which teach Chinese language and culture, are opened in Africa. China is also involved in more technical training, such as training engineers on the African continent.
And the work seems to be bearing fruit. The opinion in Africa towards China is clearly less negative than in Europe and the USA. Over half of all Africans view China's influence in the world positively, according to a poll conducted three years ago.
However, Eric Olander objects to China being the leader of the global south, the collective name for developing countries in Africa, South America and Asia.
- It is a huge coalition of different countries that it is difficult for one country to lead. But frustration with the US and Europe has created a system they can embrace.
For China, Africa is also a market where the Chinese manufacturing industry can dispose of excess capacity at a time when the US and Europe are imposing tariffs and accusing China of dumping their goods at below-priced prices. In the West, there is concern that domestic companies will be out-competed by Chinese ones that have grown big on unfair terms. In Africa, the Chinese goods are often welcome and lack domestic competitors.
- What China wants to export is what Africa is in high demand for. So the match is pretty good. Then, of course, different African countries have different views on Chinese exports, says Cobus van der Staden, editor-in-chief of China-Global South.
And China can quite easily strengthen its interests in Africa, economically and politically. The US and Europe have left a hole to fill.
- No one in Washington DC pays much attention to Africa. And in Europe, people are preoccupied with war and migration issues. It gives China the opportunity to really create long-term deep relationships in a region that is currently ignored, says Eric Olander.
Over half of Chinese loans to Africa last year went to various financial institutions. This is a break from the trend compared to before, when large energy and transport projects accounted for the majority of investments. The change may be a sign that China wants to reduce the risk in its lending in times when the Chinese economy is going weak.
Nowadays, the Chinese leaders describe the projects within the New Silk Road as smaller, "beautiful" projects. More investments must be made in green technology and there is a greater focus on the projects being profitable.
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