China-Africarelations have been a hot topic in the past five years. In anutshell, the China-Africa relation refers to the political,economic, social and cultural connections as well as historicalconnectionsbetween China andthe African continent.Africa has become one of the highly developing regions of the globe.This has in turn brought a host of investing personnel’s,organizations, and countries in different African states. Being a hubof different economic activities, the African nations have greatlydepended on foreign investorswith the much developed countries akey role in the vast development taking place in Africa. This paperanalysis the China-Africa relation and their Chinas presence inAfrica.
Chinahad little relations with Africa before 1950. Since then, therelationship between the two has rapidly increased owing to themutual benefits accrued by both parties in various sectors such astrade, technology transfer, tourism, development, and security.Currently, China is ranked as number one Africa’s trading partnermaking China a significant player in the economic growth of Africannations (Alden, 2007). However, China’s increased presence inAfrica has been a subject of debate with concerns being raised aboutexploitation and neocolonialism of the African states by the Chinese.Africans, however, see the Chinese as development partners. Thisessay discusses the expanding relationship between the China andAfrica. It emphasizes on the African regimes that favor Chineseinvestments and natural resource exploitations.
MostAfrican countries are developing with deficient infrastructure andtechnology. However, these countries are rich in unexploited naturalresources. On the other hand, China is well developed technologicallyand economically, therefore, seeks investment opportunities. Chinaalso requires enormous natural resources such as oil to cater for thehuge economy and a vast market for their goods. This combination ofneeds and resources has led to a spirited mutual China­-Africarelationship with each party exploiting the other to meet its needs(Alden, 2007). A forum was even established in China-AfricaCooperation in 2000 to promote the relationship between China andAfrica. For example, the Chinese investors have greatly influencedthe infrastructure development in Kenya. This can be attributed tothe African nations demand for development, while the Chinese takesthe opportunity to exploit the natural resources available.
Africancountries accommodate Chinese investments from the realization thatthe Chinese capital flow is vital for their economic development(Dijk,2009).The relationship, therefore, has been sustained by goodwill andself-interest. Various policy reforms in most African countries oninvestment and natural resource exploitation have played an enormousrole in the infiltration of the African mining industries by theChinese. African states lack enough capital to exploit the resourcestherefore, they have been too generous to foreigners placing fewerrestrictions on the exploitation of natural resources, attractingChinese investors. In addition, with the lack of well-developedpolicies in many of the African countries with regard to the foreigninvestors, and their role in the African nations development.
Theno questions asked policy on oil exploration has led to the increasedpercentage of oil exploited by China and imported from the Africancountries. Oil contracts place few requirements of the Chinese inexpectations of other benefits (Alden, 2007). These assistancesinclude infrastructure development, such as schools, hospitals androads, favorable loans, significant export market and new technology.These cost benefits have made the African states reduce restrictionsto China promoting its presence in the oil and gas industry.Furthermore, long-term licenses with renewal options granted toChinese companies also encourage exploration of these naturalresources for decades.
Mostof the African states do allow China to buy a large number of sharestherefore gaining control over the oil companies in the region.Previous limitations employed in the foreign purchase of local shareshave been gotten rid of in most African countries. Chinese companiescan own up to 100% of domestic stock promoting the Chinese purchaseof local shares, thereby, increasing China’s presence in Africa(Alden, 2007). Furthermore, investors have encountered fewer barrierswith incentives such as tax reductions promoting Chinese privateinvestments in Africa. The rights to purchase land in Africancountries granted to the China has also played a part in increasingthe Chinese presence in Africa (Dijk, 2009).
Inconclusion, the Chinese have turned to be a force to reckon with dueto their substantial influence in Africa, development especially interms of infrastructure. Their ever-growing presence is attributed tothe African nations creating a suitable environment for investmentand natural resource exploration. China, on the other hand, has put alot of finances in African countries. This relationship should,however, be continuously scrutinized to ensure that both parties arebenefiting equally. Its cl the African countries look to have beenthe beneficiaries that, with the chines policy of ‘NoQuestions Asked’,the African countries have looked comfortable with their approach andin turn their massive involvement in massive projects in the Africannations.
Alden,C. (2007). Chinain Africa.London New York Cape town, South Africa, New York: Zed Books DavidPhilip Distributed in the USA exclusively by Palgrave Macmillan.
Dijk,M. (2009). Thenew presence of China in Africa.Amsterdam: Amsterdam University Press.