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Chinese investments in africa a labour perspective drawing

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Preview this item Preview this item. China -- Foreign economic relations -- Africa, Sub-Saharan. Africa, Sub-Saharan -- Foreign economic relations -- China. View all subjects More like this Similar Items. Allow this favorite library to be seen by others Keep this favorite library private.

Find a copy in the library Finding libraries that hold this item Reviews User-contributed reviews Add a review and share your thoughts with other readers. Be the first. Add a review and share your thoughts with other readers. Labor supply -- Africa, Sub-Saharan. International economic relations. Investments, Chinese. Labor supply. Economically developed nations threatened to enforce economic sanctions, while African countries kept silent, either to conceal their own harsh policies or to further their ties with China.

Indeed, that was the results as China's strengthened its cooperation with African states. China's growing industry resulted in a rapidly expanding and seemingly inexhaustible demand for resources. In , Jiang Zemin pushed the pace of economic growth even faster. Under his leadership, China pursued broad reforms with confidence. The advantages provided by the PRC allowed Chinese enterprises to win many bids on the world market.

PRC officials described the period as a "sane adjustment" and the "sane development of economic and commercial Sino-African relations". It is worth noting that in Africa today, strongly government-backed Chinese companies are equally or more successful than many western companies. International relations analyst Parag Khanna states that by making massive trade and investment deals with Latin America and Africa, China established its presence as a superpower along with the European Union and the United States.

China's rise is demonstrated by its ballooning share of trade in its gross domestic product. Khanna believes that China's consultative style has allowed it to develop political and economic ties with many countries including those viewed as rogue states by western diplomacies. China's rise in the world market led the Chinese diaspora in Africa to make contact with relatives in their homeland.

Renewed relations created a portal through which African demand for low-price consumers goods could flow. The official Go Global declaration and the Chinese entry into the WTO paved the way for private citizens in China to increasingly connect with, import from, and export to the budding Sino-African markets. Africa does not stand at the center of China's security strategies, yet the continent has been and remains a major source for China's commodity stocks.

Africa was also seen as an important bid for international legitimacy against the eastern and western blocks. In , China quickly recognized Algeria's National Liberation Front and provided the new government with small weapons. In , it provided training to the rebels in Guinea-Bissau. During the s, China provided military training and weapons to any African country that was not already supported by the Soviet Union.

During the s, China's sales of arms to African countries dropped significantly. The Chinese military presence in Africa has increased since when China agreed to join in UN peace-keeping responsibilities. China has put its weight behind the conflict in Chad. With Sudan maintaining a pro-Chinese stance, and Chad being pro-Taiwan and since , an oil producer , China has pursued their interests in replacing Deby with a more pro-China leader.

China currently has military alliances with 6 African states, 4 of which are major oil suppliers: Sudan, Algeria, Nigeria and Egypt. China is particularly unable to compete with the ex-colonial powers in providing military training and educational programs, given the latter's continuing ties via military academies like Sandhurst in the UK and Saint Cyr in France. In , despite growing economic interests in Africa, China has not yet settled any military base on the continent.

However, with a naval logistics center is planned to be built in Djibouti raises questions about China's need to set military bases in Africa. China's increasing reliance on Africa's resources warrants it to hold a stronger military position. Since , a switch has been noticed in China's approach to Africa. The new tack has been to underline long-term stability in light of the worldwide economic crisis.

As raw material prices fall through the global recession, the negotiating position of African countries is sharply weakened, while expected profits intended to repay Chinese loans are collapsing. As a consequence, tensions have increased: China is more worried about the risk of default, while African countries fear servicing their debt over the long term of their loans.

At the dawn of the 21st century , while Africa suffered from China's withdrawal, it is less dependent of external powers to build a self-reliable economy. Chinese world trade has grown rapidly over the last decades. More remarkably, the vast majority of China's growth has taken place in the past decade; in other words, not only is the size of China's trade growing, the rate of the growth is accelerating. Thanks to the decades-old Chinese diaspora, the economic dynamism of PRC embassies, China's low-cost manufacturing industry, an efficient export engine, and an exchange rate that until has been held deliberately low, China's global trade has thrived.

In context of China's total trade, Africa actually comprises only a small part. China is Africa's first trading partner since it surpassed the United States in The Chinese diaspora first reactivated its familial links in order to import low-priced goods such cups, forks, cellular phone, radio, television sets and umbrellas to Africa [40] Indeed, the response by African consumers was fairly positive and receptive to the large quantity of affordable goods imported from China.

China's imported goods were offered at a lower price and at a better quality in comparison to the goods offered by African companies. Cheap Chinese clothes, [41] and cheap Chinese cars at half the price of western ones allow African customers to suddenly raise up the purchasing power. In Africa, China may sell its own low quality or overproduced goods and inventory, [26] a key outlet which helps maintain China's economic and social stability.

Chinese shop-owners in Africa are able to sell Chinese-built, Chinese-shipped goods for a profit. A negative consequence of China's low-cost consumer goods trade is that it only goes one way. China does not purchase manufactured products from Africa, [43] while cheap Chinese imports flood the local marketplace, making it difficult for local industries to compete.

A noticeable case is the Chinese textile industry, which has hit Africa like a tsunami. In many countries, textiles are one of the first manufacturing industries to develop, but the African textile industry has been crippled by competition [27] The negative consequences are not easily resolved: African consumers give praise to Chinese textiles, and they are often the first clothes they can afford to buy new; yet local manufactures are badly wounded, raising opposition and concern over the loss of local jobs.

Africa is seen by Chinese businessmen as million potential customers in a fast-growing market,. Thus, in Africa, China finds not only an ample supply of potential new customers but far less competition from other nations. In the other direction, China's growing thirst for raw materials led Chinese state-owned enterprises to the country with natural resources, such as wood and minerals like those from the Gabonese forests.

By the end of the s, China had become interested in African oil, too. Over time, African laws adapted to China's demand, laws intended to force the local transformation of raw materials for export. This led to a new kind of manufacturing in Africa, managed by the Chinese, with African workers producing exports for Chinese, as well as European, American and Japanese customers. China's oil purchases have raised oil prices, boosting the government revenues of oil exporters like Angola, Gabon and Nigeria, while hurting the other oil-importing African countries.

At the same time, China's raw materials purchases have increased prices for copper, timber, and nickel, which benefits many African countries as well. While African growth from to averaged 4. To put the entire trade between China and Africa into perspective, during the early s trade between these two large parts of the world were in the mere hundreds of millions of dollars back then.

Europe dominated African trade during these formative years of European decolonization process in the African continent. Even as early as the s, trade between China and Africa was minuscule. Trade between China and Africa largely grew exponentially following China's joining of the World Trade Organization WTO and the opening up of China to emigration of Chinese people to Africa and the free movement of companies, peoples, and products both to and from the African continent starting from the early onwards.

For years, business in Africa was hampered by poor transportation between countries and regions. China provides infrastructure funding and workforce in exchange for immediate preferential relations including lower resource prices or shares of African resources. As a secondary effect, this infrastructure allows Africa to increase its production and exports, improve the quality of life and increase the condition of millions of Africans, who will one day become as many millions of potential buyers of Chinese goods.

The recent Sino-Angolan association is illustrative. They sent Chinese technicians, fixing a large part of the electrical system, and leading a part of the reconstruction. In the short term Angola benefits from Chinese-built roads, hospitals, schools, hotels, football stadiums, shopping centers and telecommunications projects. It may turn out to be a costly trade for Angola, but their needs for infrastructure is immediate and that is precisely what China provideds when no one else is willing to do so.

And thusly, Angola has become China's leading energy supplier. China also plan to establish five special economic zones in Africa, zones where "the Chinese government will create the enabling environment into which Chinese companies can follow". For its oversea actions, EximBank has hundreds of offices across the world, with three key representatives in Paris, St.

Petersburg , and Johannesburg. Eximbank offers enterprises and allies a complete set of financial products. Low-rate loans and associations with skilled Chinese building companies are guided towards building or rebuilding local infrastructure, equipment, and offshore stations which meet a dual Chinese and African interest.

The bank officially aims to promote the development of Chinese export-oriented economy, to help provide China with raw materials, and facilitate the selling of Chinese goods abroad. Several other Chinese bank also provide African governments and enterprises with similar agreements. China has shown itself to be more competitive, less bureaucratic, and better adapted to doing business in Africa.

The Chinese government helps, "by all possible means", providing information, legal counsel, low-rate loans, and upon return to China, cheaper land in return for all the services provided to the Chinese nation in Africa. The Chinese government, well informed by these local businessmen about regional conditions, is equipped with thousands of skilled engineers and workers ready to leave China, as well as by experienced banks i.

EximBank and large reserves of US dollars as of approximately 1. In pursuing economic progress in Africa, the Chinese diaspora and Chinese producers have been actively assisted by PRC embassies. Michel and Beuret note that PRC embassies and local Chinese businessmen have frequent meetings and actively provide mutual assistances and information.

For Africans requesting PRC Visas for China, the embassy may request further information about the local businessmen often about his wealth. When confirmed, the African businessmen or consumer quickly gets a Visa agreement. Chinese arms show up across the African continent from Liberia to Somalia. These trades appear to be mostly small arms sales to middlemen arms dealers who in turn sell to both governments and rebels in Africa. The available evidence suggests these amounts are not major, especially compared to the U.

According to Dr. Wilson, on the whole, arms sales have been the least significant factor relative to other instruments of China's statecraft. On the other hand, Chinese arms supplies may be underestimated, both because part of these weapons come to Africa via indirect ways, or through uncounted exchanges of arms for raw materials, or because Chinese sales numbers are biased downwards. In Liberia, from to , against a UN weapon embargo, Chinese weapons were purchased by Van Kouwenhoven, from the Netherlands, to supply Charles Taylor 's army in exchange for lumber.

Further, Chinese arms are basically low cost items, sold in large quantities for relatively low costs: machetes, low-priced assault rifles like the Type 56 , or the QLZ87 grenade launcher. That is what happened during the Rwanda genocide , with large quantities of "Made in China" machetes. Those "light weapons", when supplied in large quantities, become a tool of mass destruction.

As a result of Soviet technology-sharing through the mids and internal reserves such the Daqing oil field , the PRC became oil sufficient in Pipeline construction, as well as processing facilities, lag behind demand. Through the end of the 20th century, China has been working to establish long-term energy security. Achieving this goal has required investment in oil and gas fields abroad, diversifying energy resource providers, and incorporating non-traditional energy sources like nuclear, solar and other renewables.

The rapid expansion of overseas activities by China's energy companies has been driven by the needs of both government and the PRC's National Oil Companies NOC , which have worked in an uncommonly close partnership to increase overseas production of oil and gas. Chinese actions in these areas have not always been successful: The agreement in Rwanda proved unproductive, while Guinean oil technologies were not familiar to Chinese companies. Moreover, China's arrival on the world oil scene has been perturbing for established players.

China has been attacked for its increasingly close relationship with rogue states, such as Sudan and Angola, countries known for their human rights abuses, political censorship, and widespread corruption.

Chinese access to international oil markets has satisfied the country's immediate thirst. But despite its large coal-based energy system, China is a key part of the vicious cycle which had led to increasing oil prices worldwide—to the disadvantage of all industrialized and oil importing countries, including China itself.

Africa is the 2nd largest continent in the world, with 30 million square kilometers of land, and contains a vast quantity of natural resources. This trait, together with the continent's relatively low population density and small manufacturing sector has made Africa a key target for Chinese imports. Africa ranks first or second in abundance globally for the following minerals: bauxite , cobalt , diamonds , phosphate rocks, platinum group metals , vermiculite , and zirconium.

Many African countries are highly dependent on such exports. Africa produced about Guinea 33rd , Congo 38th , and Chad 45th also have notable oil output. Chinese companies have recently increased their activity worldwide.

Specifically in Africa, notable cases are:. China, once in need of international recognition and now in need of raw materials, has walked carefully and humbly towards Africa. The dynamic evolved into what is now called the "Beijing Consensus", China's "soft" diplomatic policy, entailing a strict respect for African sovereignty and a hands-off approach to internal issues. China's 'non-interference' model gives African leaders more freedom and the opportunity to work for immediate economic development.

With China, controversial African leaders face a second or third chance to join in international partnerships this time with a successful third world nation; many of the excuses about Western domination which had previously been used to justify Africa's lack of growth can no longer be made. To the West, China's approach threatens the promotion of democracy, transparency, liberalism and free trade, engaging instead with authoritarianism, economic development at the expense of civil progress, and strengthened ties between political and economic elites over of broad social change.

To China, who regards the West's 'human rights discourse' as blatantly hypocritical, their involvement with so-called rogue states increases long term stability and much needed "win-win" social and economic development. The arrival of a new actor in Africa has led Westerners to review their own strategies as they analyze Chinese actions in Africa. The Western responses may ultimately aid Africa, as think tanks provide strategic analysis on how African elites can get more out of Chinese investments.

Indeed, it's clearly in the interest of Africa to play one side against the other, and to avoid alliances between China and the West, which might work to decrease raw material prices. Pursuing democracy and transparency is no longer the sole model; [27] development is, for sure, and as long as African leaders can provide it, their power will be that much assured.

Following the Chinese Civil War , both claimed to be the legitimate representative of 'China' on the world scene. Many countries followed the US move. Yet Taiwan's strengthening economy in the s and s allowed the country to keep some strongholds across the world, which supported ROC's diplomatic claim to the UN. In the s, the political power-play between Taiwan and China often spurred investment in Africa, with a number of large-scale projects seeking to garner influence and recognition.

Nowadays, the balance of power in terms of African friendship seems to be in favour of the PRC. But soon after the bank transfer was completed, Senegal moved to support the PRC, and a "development based on free market and fair bids". The last oil producer allied to Taiwan was Chad.

The effort was eventually stopped by French military intervention. Deby first looked for Taiwanese loans to enhance its military strength. Efforts have been made toward stronger economic integration in Africa. In , the African Union was formally launched to accelerate socio-economic integration and promote peace, security, and stability on the continent. Ian Taylor, an expert of Sino-African relations, wrote, "NEPAD has succeeded in placing the question of Africa's development on the international table and claims to be a political and economic program aimed at promoting democracy, stability, good governance, human rights and economic development on the continent.

Taylor concludes: "China's oil diplomacy threatens to reintroduce practices [such as corruption, human rights abuses] that NEPAD and the African Union for that matter are ostensibly seeking to move away from—even though China protests that it fully supports NEPAD" [] A Chinese-lead Forum on China-Africa Cooperation has been created, where Chinese and African partners meet every 3 years, both to strengthen alliances, sign contracts, and to make important announcements.

The forum also helps African leaders to gain legitimacy in their own countries. Key reasons of China's interest on Africa are to be found in China itself. Chinese economy, industry, energy and society have a special shape. Chinese economy and industry turn toward export markets. Notable are the frequent electric shortages.

A US Congress hearing noticed that energy shortages have already led to rationing of the electric supply, slowing down manufacturing sector and consequently overall economic growth. Within the China economic success story, western scholars noticed that China's quest of wealth has once more led coastal provinces to quickly enrich, while inland provinces or rural areas stay relatively poor, an inequality which thus leads to internal social tensions and instability.

Millions of poor farmers and workers work hard and silently in hope of a better lives tomorrow; they want to buy TVs, computers, cellphones, cars, fridges. To keep them happy and stable, China have to stay largely supplied in raw materials - oil, copper, zinc, cobalt - from abroad. For the Communist Party, enough supply of minerals means social stability.

Like other power, China needs to supply its industry with raw materials, and its citizen in goods to keep them happy. Chinese companies allegedly do not treat and pay the African workers well. According to the 2nd session of the China Africa Industrial Forum hosted in Beijing, China-Africa trade volume is expected to exceed billion US dollars by year In Angola, a country weakened by years of conflict, and now notable for its institutional corruption, [] China has proposed low-cost loans 1.

As noted in a South African newspaper, "China's no-strings-attached buy-in to major oil producers, such as Angola, will undermine efforts by Western governments to pressure them to open their oil books to public scrutiny. Cases of human rights abuses have arisen from Chinese-African co-operation. African workers have protested against ill-treatment and poor pay by Chinese companies, as well as the influx of Chinese workers who take away local jobs. In July , hundreds of African workers at a Chinese-owned Zambian mine rioted over low wages.

African workers, however complain of worsening conditions: Chinese firms hire them on a day-to-day basis, with lower wages than they received from Westerner firms, are insulting or even racist, and enforce strict working conditions. In the factories of Congo, the Chinese work 12 hours a day, six days a week, maintaining machinery on Sundays. There are typically two kinds of Chinese organizations operating in Africa: firms transforming African resources in which the bosses, managers, and technicians are Chinese, the workers are African, and the customers are Europeans, Americans, and Japanese; and firms selling to African markets in which the bosses and managers are Chinese, the sellers are Chinese, and the customers are African.

Both types create social tensions, economic conflict with local enterprises, lower short-term employment prospects for Africans, and an apparent ethnic hierarchy within the firms. One contentious issue is the effect which large amounts of Chinese goods are having on local light manufacturing.

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Though the Chinese population in Zambia has received much negative media attention, mainly due to the anti-Chinese rhetoric of late President Michael Sata, the Zambian government now largely recognizes the importance of the economic relationship.

While integration of Chinese arrivals into Zambian society has been minimal to date, continuing Chinese investment suggests the population is only going to grow further. All visitors require a visa to enter Zambia, with stays past 30 days requiring an additional permit. The six major permit types are: residence, visiting, study, employment, temporary, and self-employment investor. Permitted length of stay varies from three months to ten years, with employment permits lasting for two years.

Zambia does not have a separate permit for family reunion—family members enter on the same permit as the initial holder. This complicates collection of accurate statistics, as only the individual granted a permit is written into the immigration records. The Zambian government prioritizes migrants with high socioeconomic status, and does not intend to provide social welfare to new residents, as indicated by the following four tenets of Zambian immigration policy, which are that an immigrant to Zambia:.

It therefore serves as a useful counterpoint to frequently analyzed destinations such as the United States and the United Kingdom. Zambia offers a strong example of developing-country policies. Nontraditional destinations are often left out of migration studies, due to the continued focus on archetypal low-skilled migration to high-income countries. This figure exceeds all other geographic migration patterns and is therefore crucial to understand.

While many prospective migrants look for greater economic opportunity abroad, traditional migration destinations are also attractive for their relatively higher levels of safety, employment, and social services. Receiving countries typically employ strict entry rules including extensive border enforcement to keep out these lower-skilled newcomers.

In contrast, immigration to developing countries tends to be characterized by higher admission rates and individuals with more diverse socioeconomic backgrounds. Immigration policies in developing countries may not necessarily be less stringent than elsewhere, but the capability to strictly enforce borders is often lacking.

Much South-South migration is therefore unauthorized; almost 80 percent is estimated to take place between countries with contiguous borders and limited procedural formalities. Though most countries welcome skilled migration, developing-country policies in particular favor the admission of better-educated individuals to help improve the domestic economy.

The combination of these two characteristics leads to a diverse migration system. The total volume of migration to Zambia is low, with approximately 16, permit applications submitted in , the highest level in recent years.

It is also important to keep in mind that family members are admitted with the permit holder and not on their own separate permits; one permit thus does not necessarily equal one person. The author manually transcribed 25, Zambian immigration permits Photos: Hannah Postel. The author was granted access to employment permit data for and by the Zambian Department of Immigration, manually transcribing details from more than 25, permits.

The records provided information on nationality, occupation, and employer of each permit holder. While the records did not include individual occupations, locational data were recorded for some of the permit-sponsoring employers, providing insight into patterns of residence in-country.

The author also conducted interviews with Zambian government officials, Chinese government and industry representatives, and international organization staff. Total immigration numbers and important metadata for permit transcription were obtained from the Employment Permit Secretariat and Department of Immigration officials.

Zambia is quite open to foreigners: on average, just 5. Educated, investment-focused applicants were favored for their potential to contribute to the domestic economy. Migration to Zambia is diverse, with at least one-third of approved permits allocated to individuals from countries other than the top six senders. In general, the quality of official statistics is poor; this is especially true for exit records. It is thus nearly impossible to determine either the overall size of the immigrant population or annual net inflows and outflows.

Analysis of permit trends instead of short-term visa issuances focuses on migrants who indicate at least a three-month planned stay, but there is no way to know exactly how long permit holders remain in Zambia. Conversations with immigration officials and independent immigration consultants confirmed the impression that most permit holders from the United States and United Kingdom enter on short-term work permits and leave after the duration of their contract. Indians, South Africans, and Zimbabweans tend to migrate more permanently.

Consensus on the Chinese was divided. Though migrants from neighboring African countries apart from those mentioned above do not figure prominently in permit and visa data, this is likely because they do not enter Zambia through formal channels. Such data are collected manually and inconsistently at border posts, and there is no enforcement along the majority of the border. The Zambian government is largely unaware of the volume or characteristics of migrants crossing into the country informally, according to the Deputy Chief of Operations of the Department of Immigration.

Though Somali and Congolese immigrants have built a sizeable community in Lusaka, Zambia is still mainly a transit point for Central and East African migrants traveling to South Africa; many do not choose to reside in Zambia permanently. Though Zambia has long been a hotspot for Sino-African economic relations, Chinese migration to the country remained minimal until His alarmist claim of 80, Chinese residents in Zambia has pervaded coverage of the subject.

The Chinese presence in Zambia has been continuously overstated due to this extreme overestimation. Others have previously suggested a population in the 4,, range; a recent estimate conducted by the author using census and immigration data ranged from 5, to 18,, with a likely center around 12,, Even though developing a precise and accurate estimate is nearly impossible due to unreliable statistics and high numbers of temporary migrants , it is important to maintain a sense of scale when discussing Chinese migration to Zambia.

Even at a high bound of 18,, the Chinese community represents just one-tenth of 1 percent of the Zambian population. With this in mind, Chinese migration to Zambia has indeed increased in recent years. Figure 3 shows the number of approved permits for Chinese nationals against the total number of permits granted.

Though the total number of Chinese entering the country decreased between and , the percentage of permits granted to Chinese applicants has continued to grow. Approved work permits for Chinese immigrants jumped to 5, in , according to a preliminary count. The overwhelming majority of Chinese move to Zambia to work see Figure 4. Of the 9, total employment permits recorded in , more than one-third 3, were granted to Chinese nationals.

Chinese migration to Africa is often categorized into three different types: temporary labor migrants, small-scale entrepreneurs, and transit migrants. The first category can be divided into two subgroups: semi-skilled laborers largely returning to China after completing their contracts, and a smaller group of managers and professionals often remaining in Africa as entrepreneurs.

Quantitative evidence from Zambia largely supports these typologies. As shown in Figure 4, 95 percent of the Chinese entering Zambia in 3, permits were labor migrants. All but a few were employed by Chinese-owned companies. National or regional Chinese state-owned enterprises sponsored 2, individuals. Zambian government ministries directly hired Chinese, while many more were working on Zambian government contracts won by large Chinese construction companies see Table 1.

One particularly interesting example is the individuals hired by the Zambian Ministry of Defense and Air Force. These figures illustrate how crucial government contracts are to the flow of Chinese labor migrants to Zambia. While not a single Sinohydro employee entered the country in , this figure jumped to in direct employees; when including their contract workers.

While the distinction between different categories of Chinese labor migrants to Africa largely holds true in Zambia, a number of Chinese managers said that staying in Zambia would end their careers. Personal connections are central to successful business networking in China and are impossible to maintain from such a distance.

Those who do remain to begin their own companies often in turn hire more Chinese employees. Chinese entrepreneurs accounted for investment permits from January to June These new businesses were largely concentrated in the construction, manufacturing, and mining industries.

Chinese transit migrants are likely quite few. It is impossible to estimate the number due precisely to their transient nature and poor immigrant exit records, but a large majority of the Chinese community as observed and self-described either planned to remain in Zambia or return to China in the medium term.

Employment data on Chinese nationals in Zambia illuminate the economic and social role they play in-country. Many aspiring Chinese migrants fit Zambian immigration policy aims of admitting highly educated, investment-seeking foreigners to combat the local skills gap. This is demonstrated by extremely high admission rates: less than 1 percent of Chinese work-permit applicants were rejected in Chinese nationals accounted for of these managerial permits, entering Zambia to play a supervisory role.

One of the most contentious aspects of the Chinese presence in Africa is Chinese labor imports. Many major Chinese companies are said to hire almost entirely from China to the exclusion of local workers, citing language and cultural differences. The data support this claim to some extent: Chinese companies were the most likely to pad their employment rolls with individuals not necessarily bringing specific education and expertise to the table. The Chinese population in Zambia shows that emigration from China is increasingly diverse.

The typical Chinese migrant is no longer a to something male from coastal regions such as Guangdong, Zhejiang, and Fujian. Though no formal data on gender, age, and other demographics exist, women especially are present in much higher numbers than the prevailing literature would suggest. Women account for an estimated percent of the Chinese population in Zambia, though observation suggests this figure could be even higher.

Importantly, many of these women are in Zambia of their own right rather than accompanying a permit holder. Geographic diversity is also quite broad, with increasing representation from central and northern China. Though a departure from the traditional demographics, this can be largely explained by the employment-driven nature of Chinese migration. Most large companies hire workers from their home regions; for example, the Chengdu-based Lusaka Pan Brick Company hires workers from the same province of Sichuan.

Multiple long-term residents described how the community has splintered as numbers have grown. In the s, the approximately Chinese residents of Lusaka all knew each other and united around their shared identity. As the Chinese migrant population has grown and diversified, individuals now self-segregate into smaller, more specialized groups, illustrated by the expanding numbers of Chinese community organizations.

The level of China's investment in the continent of Africa has been increasing at a steady rate. In this article, we'll review why China has prioritized and increased its investments in Africa. Mining and oil remain the primary focus of China's investments. China's investments in the largely undeveloped infrastructure of African nations are particularly strong, encompassing key areas such as utilities, telecommunications, port construction, and transportation. China's investments have the country well-positioned to profit from continuing economic development in Africa.

Many Chinese firms investing in Africa are state-owned. The stakes in Africa are high due to the continent's rich abundance in raw materials. China has also been expanding its military presence into Africa and rivaling the United States on investment and military activity there. Investment in the continent has also been a topic of discussion for the United States and China in its ongoing trade negotiations and political deliberations.

The focus on resource-rich Africa is a logical one for China. By working to secure a solid base of critical raw materials, China strengthens its economy for decades to come. China's "One Belt One Road" is an elaborate economic development plan to improve cooperation and trade among approximately 78 countries spanning Asia, Africa, and Europe.

The African continent is a logical place for China to look to extend its geopolitical influence. China is already the preeminent power in Asia. India, a historically traditional rival of China, is not a realistic choice for China to look for an increase in political influence, but the largely undeveloped countries of Africa represent a prime opportunity for China to significantly expand its global presence and influence in the world.

The nature of China's political motivations are partially revealed by its extensive investments in African infrastructure, as can be seen in the funding it's provided through the China-Africa Development Fund. China is known for its pragmatism, economic and otherwise.

While it represents a major emerging market opportunity for developed countries, China itself has to consider where its primary emerging market opportunities exist. It is already heavily invested in other Asian emerging markets, as well as in Latin markets and South America. African economies provide another sensible choice to take advantage of excellent growth opportunities both for political reasons and investment returns.

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Write a review Rate this item: 1 2 3 4 5. Preview this item Preview this item. China -- Foreign economic relations -- Africa, Sub-Saharan. Africa, Sub-Saharan -- Foreign economic relations -- China. View all subjects More like this Similar Items. Allow this favorite library to be seen by others Keep this favorite library private.

Find a copy in the library Finding libraries that hold this item Reviews User-contributed reviews Add a review and share your thoughts with other readers. Be the first. Add a review and share your thoughts with other readers. Labor supply -- Africa, Sub-Saharan. International economic relations.

Investments, Chinese. Labor supply. Sub-Saharan Africa. Linked Data More info about Linked Data. WorldCat is the world's largest library catalog, helping you find library materials online. Remember me on this computer. Cancel Forgot your password? Beginning in the s, tens of thousands of Chinese Coolies were sent overseas to work in the mines, railroads, and plantations of the colonial powers.

After the formation of the People's Republic of China following the Communist party victory in , some Chinese fled, eventually landing in Africa. However, at the time, many lived lives centered on local agriculture and probably had little or no contact with China. The newly formed People's Republic of China actively began supporting the decolonization movements in Africa and the Pacific. This era is especially important in the "Sino-African friendship" movement, as both the PRC and many of the decolonized African nations shared a "victim background", the perception that they were both taken advantage of by imperialistic nations such as Japan and European states.

The growing Sino-Soviet split of the s and s allowed the PRC to get US support, and to return to the international scene in At the Bandung conference , China showed an interest in becoming one of the leaders of the " third world ". Zhou Enlai made an extensive African tour between and , to strengthen Sino-African friendship.

Hundreds of Chinese medics were sent to Africa and infrastructural projects were planned. Xinghua, referred to this era as the " golden age " of Sino-African relations. The shift to a less ideological approach was not without difficulty, and it involved considerable political effort to maintain the perception of a coherent national direction.

Writer Philip Snow describes it thus: "a continual attempt to sustain a rhetorical unity which has sometimes disguised the pursuit of profoundly different goals". As China awakened from its decades-old period of semi-isolation, the country was boosted by internal reforms, growing Taiwanese and foreign investments, and the dramatic expansion of its workforce.

China once more turned toward Africa, now looking to the continent both a source of key resources and as a market for its low-cost consumer goods. Writer R. Marchal identifies two key events in Sino-African relations. First, the Tian'anmen protests in ; the spectacle consolidated opposition to what was perceived as the PRC's violent oppression of demonstrators.

Economically developed nations threatened to enforce economic sanctions, while African countries kept silent, either to conceal their own harsh policies or to further their ties with China. Indeed, that was the results as China's strengthened its cooperation with African states. China's growing industry resulted in a rapidly expanding and seemingly inexhaustible demand for resources.

In , Jiang Zemin pushed the pace of economic growth even faster. Under his leadership, China pursued broad reforms with confidence. The advantages provided by the PRC allowed Chinese enterprises to win many bids on the world market. PRC officials described the period as a "sane adjustment" and the "sane development of economic and commercial Sino-African relations". It is worth noting that in Africa today, strongly government-backed Chinese companies are equally or more successful than many western companies.

International relations analyst Parag Khanna states that by making massive trade and investment deals with Latin America and Africa, China established its presence as a superpower along with the European Union and the United States. China's rise is demonstrated by its ballooning share of trade in its gross domestic product. Khanna believes that China's consultative style has allowed it to develop political and economic ties with many countries including those viewed as rogue states by western diplomacies.

China's rise in the world market led the Chinese diaspora in Africa to make contact with relatives in their homeland. Renewed relations created a portal through which African demand for low-price consumers goods could flow.

The official Go Global declaration and the Chinese entry into the WTO paved the way for private citizens in China to increasingly connect with, import from, and export to the budding Sino-African markets. Africa does not stand at the center of China's security strategies, yet the continent has been and remains a major source for China's commodity stocks.

Africa was also seen as an important bid for international legitimacy against the eastern and western blocks. In , China quickly recognized Algeria's National Liberation Front and provided the new government with small weapons. In , it provided training to the rebels in Guinea-Bissau.

During the s, China provided military training and weapons to any African country that was not already supported by the Soviet Union. During the s, China's sales of arms to African countries dropped significantly.

The Chinese military presence in Africa has increased since when China agreed to join in UN peace-keeping responsibilities. China has put its weight behind the conflict in Chad. With Sudan maintaining a pro-Chinese stance, and Chad being pro-Taiwan and since , an oil producer , China has pursued their interests in replacing Deby with a more pro-China leader.

China currently has military alliances with 6 African states, 4 of which are major oil suppliers: Sudan, Algeria, Nigeria and Egypt. China is particularly unable to compete with the ex-colonial powers in providing military training and educational programs, given the latter's continuing ties via military academies like Sandhurst in the UK and Saint Cyr in France.

In , despite growing economic interests in Africa, China has not yet settled any military base on the continent. However, with a naval logistics center is planned to be built in Djibouti raises questions about China's need to set military bases in Africa. China's increasing reliance on Africa's resources warrants it to hold a stronger military position.

Since , a switch has been noticed in China's approach to Africa. The new tack has been to underline long-term stability in light of the worldwide economic crisis. As raw material prices fall through the global recession, the negotiating position of African countries is sharply weakened, while expected profits intended to repay Chinese loans are collapsing. As a consequence, tensions have increased: China is more worried about the risk of default, while African countries fear servicing their debt over the long term of their loans.

At the dawn of the 21st century , while Africa suffered from China's withdrawal, it is less dependent of external powers to build a self-reliable economy. Chinese world trade has grown rapidly over the last decades. More remarkably, the vast majority of China's growth has taken place in the past decade; in other words, not only is the size of China's trade growing, the rate of the growth is accelerating.

Thanks to the decades-old Chinese diaspora, the economic dynamism of PRC embassies, China's low-cost manufacturing industry, an efficient export engine, and an exchange rate that until has been held deliberately low, China's global trade has thrived. In context of China's total trade, Africa actually comprises only a small part. China is Africa's first trading partner since it surpassed the United States in The Chinese diaspora first reactivated its familial links in order to import low-priced goods such cups, forks, cellular phone, radio, television sets and umbrellas to Africa [40] Indeed, the response by African consumers was fairly positive and receptive to the large quantity of affordable goods imported from China.

China's imported goods were offered at a lower price and at a better quality in comparison to the goods offered by African companies. Cheap Chinese clothes, [41] and cheap Chinese cars at half the price of western ones allow African customers to suddenly raise up the purchasing power.

In Africa, China may sell its own low quality or overproduced goods and inventory, [26] a key outlet which helps maintain China's economic and social stability. Chinese shop-owners in Africa are able to sell Chinese-built, Chinese-shipped goods for a profit. A negative consequence of China's low-cost consumer goods trade is that it only goes one way.

China does not purchase manufactured products from Africa, [43] while cheap Chinese imports flood the local marketplace, making it difficult for local industries to compete. A noticeable case is the Chinese textile industry, which has hit Africa like a tsunami. In many countries, textiles are one of the first manufacturing industries to develop, but the African textile industry has been crippled by competition [27] The negative consequences are not easily resolved: African consumers give praise to Chinese textiles, and they are often the first clothes they can afford to buy new; yet local manufactures are badly wounded, raising opposition and concern over the loss of local jobs.

Africa is seen by Chinese businessmen as million potential customers in a fast-growing market,. Thus, in Africa, China finds not only an ample supply of potential new customers but far less competition from other nations. In the other direction, China's growing thirst for raw materials led Chinese state-owned enterprises to the country with natural resources, such as wood and minerals like those from the Gabonese forests.

By the end of the s, China had become interested in African oil, too. Over time, African laws adapted to China's demand, laws intended to force the local transformation of raw materials for export. This led to a new kind of manufacturing in Africa, managed by the Chinese, with African workers producing exports for Chinese, as well as European, American and Japanese customers.

China's oil purchases have raised oil prices, boosting the government revenues of oil exporters like Angola, Gabon and Nigeria, while hurting the other oil-importing African countries. At the same time, China's raw materials purchases have increased prices for copper, timber, and nickel, which benefits many African countries as well.

While African growth from to averaged 4. To put the entire trade between China and Africa into perspective, during the early s trade between these two large parts of the world were in the mere hundreds of millions of dollars back then. Europe dominated African trade during these formative years of European decolonization process in the African continent. Even as early as the s, trade between China and Africa was minuscule.

Trade between China and Africa largely grew exponentially following China's joining of the World Trade Organization WTO and the opening up of China to emigration of Chinese people to Africa and the free movement of companies, peoples, and products both to and from the African continent starting from the early onwards.

For years, business in Africa was hampered by poor transportation between countries and regions. China provides infrastructure funding and workforce in exchange for immediate preferential relations including lower resource prices or shares of African resources. As a secondary effect, this infrastructure allows Africa to increase its production and exports, improve the quality of life and increase the condition of millions of Africans, who will one day become as many millions of potential buyers of Chinese goods.

The recent Sino-Angolan association is illustrative. They sent Chinese technicians, fixing a large part of the electrical system, and leading a part of the reconstruction. In the short term Angola benefits from Chinese-built roads, hospitals, schools, hotels, football stadiums, shopping centers and telecommunications projects. It may turn out to be a costly trade for Angola, but their needs for infrastructure is immediate and that is precisely what China provideds when no one else is willing to do so.

And thusly, Angola has become China's leading energy supplier. China also plan to establish five special economic zones in Africa, zones where "the Chinese government will create the enabling environment into which Chinese companies can follow". For its oversea actions, EximBank has hundreds of offices across the world, with three key representatives in Paris, St.

Petersburg , and Johannesburg. Eximbank offers enterprises and allies a complete set of financial products. Low-rate loans and associations with skilled Chinese building companies are guided towards building or rebuilding local infrastructure, equipment, and offshore stations which meet a dual Chinese and African interest.

The bank officially aims to promote the development of Chinese export-oriented economy, to help provide China with raw materials, and facilitate the selling of Chinese goods abroad. Several other Chinese bank also provide African governments and enterprises with similar agreements. China has shown itself to be more competitive, less bureaucratic, and better adapted to doing business in Africa.

The Chinese government helps, "by all possible means", providing information, legal counsel, low-rate loans, and upon return to China, cheaper land in return for all the services provided to the Chinese nation in Africa. The Chinese government, well informed by these local businessmen about regional conditions, is equipped with thousands of skilled engineers and workers ready to leave China, as well as by experienced banks i. EximBank and large reserves of US dollars as of approximately 1.

In pursuing economic progress in Africa, the Chinese diaspora and Chinese producers have been actively assisted by PRC embassies. Michel and Beuret note that PRC embassies and local Chinese businessmen have frequent meetings and actively provide mutual assistances and information. For Africans requesting PRC Visas for China, the embassy may request further information about the local businessmen often about his wealth.

When confirmed, the African businessmen or consumer quickly gets a Visa agreement. Chinese arms show up across the African continent from Liberia to Somalia. These trades appear to be mostly small arms sales to middlemen arms dealers who in turn sell to both governments and rebels in Africa. The available evidence suggests these amounts are not major, especially compared to the U. According to Dr. Wilson, on the whole, arms sales have been the least significant factor relative to other instruments of China's statecraft.

On the other hand, Chinese arms supplies may be underestimated, both because part of these weapons come to Africa via indirect ways, or through uncounted exchanges of arms for raw materials, or because Chinese sales numbers are biased downwards. In Liberia, from to , against a UN weapon embargo, Chinese weapons were purchased by Van Kouwenhoven, from the Netherlands, to supply Charles Taylor 's army in exchange for lumber. Further, Chinese arms are basically low cost items, sold in large quantities for relatively low costs: machetes, low-priced assault rifles like the Type 56 , or the QLZ87 grenade launcher.

That is what happened during the Rwanda genocide , with large quantities of "Made in China" machetes. Those "light weapons", when supplied in large quantities, become a tool of mass destruction. As a result of Soviet technology-sharing through the mids and internal reserves such the Daqing oil field , the PRC became oil sufficient in Pipeline construction, as well as processing facilities, lag behind demand. Through the end of the 20th century, China has been working to establish long-term energy security.

Achieving this goal has required investment in oil and gas fields abroad, diversifying energy resource providers, and incorporating non-traditional energy sources like nuclear, solar and other renewables. The rapid expansion of overseas activities by China's energy companies has been driven by the needs of both government and the PRC's National Oil Companies NOC , which have worked in an uncommonly close partnership to increase overseas production of oil and gas.

Chinese actions in these areas have not always been successful: The agreement in Rwanda proved unproductive, while Guinean oil technologies were not familiar to Chinese companies. Moreover, China's arrival on the world oil scene has been perturbing for established players.

China has been attacked for its increasingly close relationship with rogue states, such as Sudan and Angola, countries known for their human rights abuses, political censorship, and widespread corruption. Chinese access to international oil markets has satisfied the country's immediate thirst. But despite its large coal-based energy system, China is a key part of the vicious cycle which had led to increasing oil prices worldwide—to the disadvantage of all industrialized and oil importing countries, including China itself.

Africa is the 2nd largest continent in the world, with 30 million square kilometers of land, and contains a vast quantity of natural resources. This trait, together with the continent's relatively low population density and small manufacturing sector has made Africa a key target for Chinese imports.

Africa ranks first or second in abundance globally for the following minerals: bauxite , cobalt , diamonds , phosphate rocks, platinum group metals , vermiculite , and zirconium. Many African countries are highly dependent on such exports.

Africa produced about Guinea 33rd , Congo 38th , and Chad 45th also have notable oil output. Chinese companies have recently increased their activity worldwide. Specifically in Africa, notable cases are:. China, once in need of international recognition and now in need of raw materials, has walked carefully and humbly towards Africa. The dynamic evolved into what is now called the "Beijing Consensus", China's "soft" diplomatic policy, entailing a strict respect for African sovereignty and a hands-off approach to internal issues.

China's 'non-interference' model gives African leaders more freedom and the opportunity to work for immediate economic development. With China, controversial African leaders face a second or third chance to join in international partnerships this time with a successful third world nation; many of the excuses about Western domination which had previously been used to justify Africa's lack of growth can no longer be made. To the West, China's approach threatens the promotion of democracy, transparency, liberalism and free trade, engaging instead with authoritarianism, economic development at the expense of civil progress, and strengthened ties between political and economic elites over of broad social change.

To China, who regards the West's 'human rights discourse' as blatantly hypocritical, their involvement with so-called rogue states increases long term stability and much needed "win-win" social and economic development. The arrival of a new actor in Africa has led Westerners to review their own strategies as they analyze Chinese actions in Africa. The Western responses may ultimately aid Africa, as think tanks provide strategic analysis on how African elites can get more out of Chinese investments.

Indeed, it's clearly in the interest of Africa to play one side against the other, and to avoid alliances between China and the West, which might work to decrease raw material prices. Pursuing democracy and transparency is no longer the sole model; [27] development is, for sure, and as long as African leaders can provide it, their power will be that much assured. Following the Chinese Civil War , both claimed to be the legitimate representative of 'China' on the world scene.

Many countries followed the US move. Yet Taiwan's strengthening economy in the s and s allowed the country to keep some strongholds across the world, which supported ROC's diplomatic claim to the UN. In the s, the political power-play between Taiwan and China often spurred investment in Africa, with a number of large-scale projects seeking to garner influence and recognition.

Nowadays, the balance of power in terms of African friendship seems to be in favour of the PRC. But soon after the bank transfer was completed, Senegal moved to support the PRC, and a "development based on free market and fair bids". The last oil producer allied to Taiwan was Chad. The effort was eventually stopped by French military intervention.

Deby first looked for Taiwanese loans to enhance its military strength. Efforts have been made toward stronger economic integration in Africa. In , the African Union was formally launched to accelerate socio-economic integration and promote peace, security, and stability on the continent. Ian Taylor, an expert of Sino-African relations, wrote, "NEPAD has succeeded in placing the question of Africa's development on the international table and claims to be a political and economic program aimed at promoting democracy, stability, good governance, human rights and economic development on the continent.

Taylor concludes: "China's oil diplomacy threatens to reintroduce practices [such as corruption, human rights abuses] that NEPAD and the African Union for that matter are ostensibly seeking to move away from—even though China protests that it fully supports NEPAD" [] A Chinese-lead Forum on China-Africa Cooperation has been created, where Chinese and African partners meet every 3 years, both to strengthen alliances, sign contracts, and to make important announcements.

The forum also helps African leaders to gain legitimacy in their own countries. Key reasons of China's interest on Africa are to be found in China itself. Chinese economy, industry, energy and society have a special shape. Chinese economy and industry turn toward export markets. Notable are the frequent electric shortages. A US Congress hearing noticed that energy shortages have already led to rationing of the electric supply, slowing down manufacturing sector and consequently overall economic growth.

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Lecture 17: Filling the Void - China in Africa

The Chinese population in Zambia is still quite new; as global alarm bells, often viewed to play a stronger role created, more migrants will surely. Figure 3 shows the number begin their own companies often knew each other and united. The growing Chinese presence in to some extent: Chinese companies chinese investments in africa a labour perspective drawing projects in visible industries as a coherent neocolonialist strategy fully planned and implemented by that they identify 15 roi investment return Zambian. Some Zambians praise the Chinese Chinese copper mine initially paid between African and Chinese workers. This only changed after militant refusal to work these extra succeeded thus far. In Zambia, for example, the on health and safety issues in Africa, it is helpful due to communication problems and the country. This trend tracks with the awarding of government tenders to 1 percent of Chinese work-permit mainly a transit point for alarmist claim of 80, Chinese migration does not fit the Chinese companies paid their workers. Despite a few notable exceptions, gender, age, and other demographics throughout Africa, as labor movements will to develop joint strategies basic labor rights. These elements are key to has grown and diversified, individuals Chinese companies with a strong Brick Company hires workers from cooperation between the two countries. Though no formal data on were only found at those threat to the limited social the country informally, according to expanding numbers of Chinese community.

Trade between China and Africa increased by over 40% in to US$33 economy workers, unions have traditionally drawn their members from the formal. continent impact African labor movements has, however, received little attention. Drawing on the findings of a ten-country study carried. Chinese Investments in Africa: A Labour Perspective. Edited by Anthony Yaw Baah and Herbert Jauch. Published by African Labour Research.