26th
China’s Foreign Direct Investment in Africa
from this BBC story:
“China also offers “no-strings” aid, a marked contrast to Western donors who impose conditions on aid and tie trade sweeteners to human rights issues.
Critics say China’s approach has emboldened unsavoury governments, allowing them to ignore Western calls for reform, safe in the knowledge that Beijing will take up the slack.
Sudan, with its vast oil reserves, is the number one recipient of Chinese investment, and sells some two-thirds of its oil to Beijing. As a result, China has been criticised for its links with a government ostracised by many for its role in the ongoing crisis in Darfur.”
The Chinese-African trade holds the possibility to build an actual infrastructure and economy in some African countries. However, if China’s own rapidly growing state is to be taken as an example, this potentially unsustainable growth could be accomplished without regard to the environment, health, or civil rights of the people.
Western countries are nervous about the new alliance because it cuts them out of the financial gains in natural resources, labor, and new markets. I think the French will be especially worried as it will further weaken their influence in the Francophone countries.
Once Chinese money has built the mines, factories, and transportation systems for import/export, I expect the other rapidly developing Asian countries will try to get in on the trade as well. There are 680,000,000 people in Africa. A new African middle class doing business with Asia would be a huge new market, and an important protection against heavy losses due to a longterm American recession.
