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China's economic activities in Africa merit close scrutiny
In 2006, China’s trade with Africa reached $55 billion and Chinese foreign direct investment in Africa exceeded 1.25 billion, both record highs. China’s presence will encourage development in African nations, but China’s approach to trade and investment is problematic. Chinese investors loan and trade unconditionally, refusing to interfere with the domestic policies of their African partners. This indifference is facilitating corruption, violence, and environmental irresponsibility throughout the continent. In Sudan, Chinese investment is fueling oil production and expediting genocide. Sudan is Africa’s third largest oil producer and the leading recipient of Chinese direct foreign investment. China procures 64 percent of Sudan’s oil and is a key partner in the consortiums recovering Sudanese oil. China’s relationship with Sudan is undermining efforts to alleviate the bloodshed in Darfur, where over 200,000 people have been killed in Sudanese-sponsored counterinsurgency operations. Chinese investment is stimulating the Sudanese economy, emasculating transnational attempts to isolate Sudan fiscally. In addition, China has repeatedly protected the Sudanese government and much of the butchery in Darfur has reportedly been inflicted using Chinese weapons. Sudan is not the only troubled African nation with which China is involved. Nevertheless, Chinese investment should ultimately be good for the continent. Trade with the Chinese will stimulate African economies and development projects financed by China will benefit Africa’s infrastructure and provide employment opportunities to Africans. However, unlike Western lending institutions which require African borrowers to operate transparently and with regards for human rights, China distributes loans without similar conditions. African borrowers are inclined to prefer unconditional Chinese loans, but China’s system is undercutting efforts to encourage better governance in African nations. It is critical that the United Nations and regional Unions scrutinize international trade and investment; irresponsible Western investment merits comparable inspection. Responsible lending can encourage industrialization and good governance, but oversight is necessary. Ultimately, Africa is responsible for managing outside investment sensibly; the African Union should encourage investors to attach progressive conditions to loans. China’s cooperation is critical to the peace process in Darfur. China can influence the Sudanese government, and China might even be persuaded to endorse regime change in Sudan if the Chinese are insured continuing access to Sudanese oil. To alleviate the suffering in Darfur, the international community must entice China with carrots while pressuring China with bad publicity. -J.G. Sources: MacInnis, Laura. "Sudan top target for Chinese investment in Africa" Reuters Africa. March 28, 2007
The copyright of the article China's Trade Policy and Africa in International Financial Affairs is owned by Jonas Gamso. Permission to republish China's Trade Policy and Africa in print or online must be granted by the author in writing.
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