Economic Statecraft: China in Africa

Abstract

ABSTRACT: China's investment in Africa is a deliberate policy choice secure Beijing's economic and political objectives. Chinese policies may undermine or discourage US efforts create better governance and improved standards of living in Africa, but these effects are incidental and do not threaten vital American interests. The United States should encourage Beijing's participation in international economic institutions, and thereby facilitate US economic strength and promote African development. ********** In October 2000, China and forty-four African countries established the Forum on China-Africa Cooperation (FOCAC) vigorously promote further China-Africa cooperation ... so as promote the common development of China and (1) The subsequent triennial forum ministerial meetings have become elaborate celebrations of deepening China-Africa relations. Concurrently, the Western media heralded China's neo-imperialism, massive investment, and comprehensive strategy secure exclusive access Africa's resources. Beijing's success in Africa contrasts starkly with Washington's approach economic statecraft through the African Growth and Opportunity Act and its annual forums. Congress passed this act in 2000, as China was building the Forum, to assist the economies of sub-Saharan Africa and improve economic relations between the United States and the region. (2) While many extol the positive effects of the act in improving African governance, its annual forums have been lackluster meetings of bureaucrats, and the Western media highlight that most Africans remain disappointed with the amount of US investment. Similarly, President Obama's weeklong visit three African nations in July 2013 pales in comparison the seventeen African nations that Hu Jintao visited during one ten-month span of his tenure as China's president. This article peers through the public veneer of state visits and ministerial meetings examine China's influence in Africa through trade, Foreign Direct Investment, and Official Development Assistance. (3) It argues successful economic statecraft by China does not threaten any vital American interests, and the United States has several possible responses. (4) Many assess that the increase of China's trade, investment, and developmental assistance from 2000-10 as a means secure an economic and political advantage in Africa. While Beijing's economic statecraft may undermine US efforts reform African governance and economics, these effects are incidental; however, Africa would do well evaluate and balance the long-term costs with the short-term benefits of Chinese aid and investment. Recognizing that China's economic statecraft in Africa does not threaten vital US interests, America should adopt an accommodating posture toward Beijing's involvement there. As part of its overall rebalancing toward the Asia-Pacific, Washington should intensify efforts increase Beijing's participation in institutions maintain the global international economic system which facilitates US strength. Simultaneously, the United States should review its approach in Africa find alternative ways advance its interests and mitigate the risk African development inherent in the Chinese approach. Rationale and Scope Beijing's objectives in Africa stem from its going out strategy, introduced in its 10th Five Year Plan for 2001-05. This strategy included China's decision join the World Trade Organization and encouraged businesses invest abroad. (5) The resulting economic statecraft in Africa and concomitant creation of FOCAC support four broad objectives: first, access natural resources which are essential for sustained economic growth; second, new markets for increased domestic production; third, votes in the United Nations and other international forums diminish criticism of Beijing's human rights record and build support for the People's Republic of China's (PRC's) rise; and fourth, reduced diplomatic recognition of Taiwan. …