Christina Safreid, a political science PhD candidate, delivers a lecture on China-Africa relations, drawing on her extensive fieldwork in Nigeria, Ethiopia, and South Africa. She begins by showcasing a video from the Forum on China-Africa Cooperation (FOCAC) in 2018, highlighting President Xi Jinping's vision for a "community with a shared future," where China pledged $60 billion in support for Africa.
Safreid challenges the audience to consider whether China's growing presence constitutes a new form of colonialism. She presents a stark comparison of China and Africa's economic trajectories since the 1980s, underscoring China's remarkable rise from poverty while many African nations remained stagnant despite adopting import substitution industrialization and IMF/World Bank structural adjustment programs. She contrasts Western disinterest with China's increasing willingness to invest and take advantage of resources in the continent.
The lecture's agenda covers a historical overview, a present-day overview of China's activities in Africa (loans, trade, investments, and military presence), key questions surrounding the relationship, case studies of Nigeria and Ethiopia, lessons learned about African bargaining power, and a future outlook. China's historical engagement dates back to the post-World War II era, seeking allies in its conflict with Taiwan. It gained support from several newly independent African nations, culminating in China regaining its UN seat in 1971 with Tanzania's vocal support.
In the 1990s, as China amassed capital surpluses, it strategically used aid to promote exports and support Chinese companies abroad. Safreid highlights China's willingness to provide assistance, exemplified by building a football stadium in Tanzania when Western lenders were bound by austerity measures. The 2008 financial crisis solidified China's confidence in its state-capitalist model, leading to initiatives like the Asian Infrastructure Investment Bank and the Belt and Road Initiative.
Safreid discusses China's loan strategy, infrastructure construction, growing investments in diverse sectors. While loans often make headlines, investments are a growing sector. She notes that the upward sloping trend line in Chinese investment contrasts with the downward trend in investment from the U.S. and the West, which seems to be more susceptible to shock or a change in political leadership, especially in the wake of the financial crisis of 2008. She highlights the increasing presence of Chinese military in Africa for peacekeeping and relief missions, raising concerns among some nations, like India.
She then poses key questions: Is China a new colonialist? Does China's presence contribute to institutional development and good governance? Are debt trap claims justified? She reveals that Nigeria and Ethiopia are key examples of aid from China. Safreid rejects the notion of a monolithic "China in Africa," identifying three distinct types of Chinese companies: state-owned enterprises, large private firms, and small private firms, each with different incentives and impacts.
Presenting Nigeria as a case study, Safreid details its reliance on oil revenues and lack of economic diversification despite its large population and cheap labor. While China has invested in special economic zones like the Lekki Free Trade Zone, these projects have faced challenges due to top-down, government-driven approaches and limited participation for locals. Ethiopian approach seems much more private.
Contrasting with Nigeria, Ethiopia has adopted a more strategic industrial policy. They take what they would like from the IMF/World Bank strategies, and implement policies much like those that China and South Korea have used. Safreid emphasizes that deal conditions matter for development outcomes and African agency determines the success of this relationship. She counters the conventional wisdom that African countries lack bargaining power.
Safreid argues that African countries possess significant bargaining power due to their abundant natural resources, cheap labor, and cheap land. She states that they should be aware of and utilize their bargaining power in order to better negotiate deal conditions with China.
Finally, she concludes that the future depends on China's ability to sustain its growth and African countries' ability to strategize and negotiate stronger deals.