
This week I finally got around to reading Revolution and Chinese Foreign Policy, published in 1970 and written by Peter Van Ness. To be honest, other than feeling compelled to read this book because it had been sitting on my bookshelf for much of the last few years, there was not much motivating me to devote a few days to this particular work. It’s not a terribly useful book if one approaches it as a comprehensive look at the interests that drove China’s foreign policy in the 1960s. Even as an examination of China’s relations with the so-called ‘Third World’ during the Mao years, it is a book of quite limited focus. Revolution and Chinese Foreign Policy is not much more than an examination of public declaration of support made by the Chinese state in the press for foreign revolutionary or national liberation movements during the rule of Mao Zedong, specifically those in Latin America, Africa, and Asia. Furthermore, only such declarations of support made in the year 1965 are examined, though the first part of the book does do a good job of sketching the broad outlines of Maoist approaches to China’s role as a global communist power vis-a-vis the Soviet Union.
I won’t go into great detail about the book other than to say that it does make a generally compelling argument that Chinese foreign policy was, even in the Mao years, dictated more by the interests of the Chinese state than by the demands of the state’s radical communist ideology. China was, to put it briefly, more interested in fostering friendly relations with other states and only issued public statements of support for foreign revolutionary organizations after the states against which these organizations fought rebuffed Chinese diplomatic overtures. In short, China was behaving like most nation states.
However, this book does afford me the opportunity to discuss a topic that is more relevant to the China of today. Putting aside the examination of China’s support for revolutionary movements during the mid-’60s, there are two observations Van Ness makes towards the end of the book that can be applied when looking at China’s current economic interests in the African continent, a topic that has been in the news recently and is of much more interest to me. First, China is a nation state and will, at the end of the day, act according to it’s own specific interests when conducting it’s foreign relations. And second, China (again, like any other state) will assist foreign nations only insofar as such assistance serves their particular (foreign policy) interests.
So let’s turn now to China’s current economic relations with Africa and examine each of Van Ness’ observations in turn, starting with the second one. Unlike the 1960s, when China issued declarations of support to revolutionary groups in the Congo and Angola, China’s interests in Africa are primarily, though not exclusively, economic. Africa presents China with both a source of raw materials to feed China’s energy and manufacturing sectors, and as a potential source for capital investment abroad. Between 2000 and 2006, China’s trade with Africa rose form $11 billion to $56 billion, with the number of Chinese firms operating in Africa doubling to 2 000 over the last two years. Much of this trade is comprised of Chinese purchases of African raw materials, particularly petroleum. China currently purchases more than 60% of Sudan’s oil exports, while Angola supplies China with half of all of China’s African oil imports. Aside from oil, China is purchasing copper and cobalt from Congo and Zambia, platinum and chrome from Zimbabwe, and timber from a range of African states. And while investment into Africa accounts for only 4% of China’s total global FDI, the rate of growth is quite astounding, with Chinese FDI growing from $100 million in 1999 to $1.25 billion in 2006. According to the Guardian, the year 2007 saw $4.5 billion of investment by China made into African infrastructure development.
China’s growing presence in Africa is not without it’s critics. While many African leaders have hailed China’s model of state-directed (but not market disregarding) economic growth as an alternative to Anglo-American neo-liberalism, there are well-founded fears that China’s growing economic investment in Africa is retarding the growth of regional light-manufacturers and the development of a skilled work force, buttressing corrupt or autocratic governments, and giving China considerable (and undue) political leverage over African states (as indicated by the recent decision of the South African government to bar the Dalai Lama from attending a conference of Nobel laureates in the country). The first of these charges appears well substantiated. Despite demands from the African Union that the majority of raw materials be processed on African soil before export, China is primarily importing unrefined raw materials from Africa, and exporting cheap consumer items which are able to successfully undercut local manufacturers, running many out of business. China’s insistence on using Chinese labour on large scale infrastructure programs has drawn criticism, both because skilled workers are locally available and because Chinese labourers are often brought over illegally by Chinese firms to work at wages less than those paid to local African workers.
The charge of buttressing corrupt or autocratic governments is even more serious. Looking at many of China’s major trading partners in Africa – Sudan, Zimbabwe, Angola – and one sees a culture of pervasive corruption. While China is not at fault for having caused such systemic corruption, it certainly can be faulted for encouraging it through high value investment and trade deals with the corrupt regimes of these countries, knowing full well that some of this money will go to lining the pockets of government officials abd businessmen. China itself is no stranger to corruption. Reading over the Transparency International Bribe Payers Index 2008, I was not surprised to find China once again near the bottom of the twenty-two country list (along with Russia, India, and Mexico).
I found it interesting, however, that the same report notes that Chinese companies were less likely to engage in bribery in Africa and the Middle East (where China’s Bribe Payers Index, or BPI, rating is 7.8, with 0 representing bribes always being paid and 10 representing bribes never being paid) than in Latin America (BPI 7.3), Asia Pacific (BPI 6.0), and Europe and the United States (BPI 5.6). This data can be interpreted in any number of ways. However, I am inclined to see it as substantiating (if only slightly) anecdotal reports that suggest that the Chinese government is warning both state and private firms to be more sensitive to local African concerns about corruption. It is not in China’s national interests to appear to be supporting crony capitalism in the region, even if in effect it is. Reducing direct Chinese contributions to a culture of corruption on the continent is, I would imagine, one way China is attempting to manage it’s image in Africa.
Let me be clear. I am not attempting to white-wash Chinese business practices at home or abroad. As a BPI rating of 7.8 indicates, Chinese firms are hardly clean when it comes to their dealings in Africa. That being said, I think it is unhelpful to think of the Chinese government as deliberately encouraging government corruption in Africa, given how sensitive the Chinese government is to corruption in it’s own ranks at home. China is aware of the high price, both in economic performance and social stability, that is to be paid for tolerating a culture of corruption and I would argue that it is no more in China’s long-term interests to support corruption among their African trading partners than it would be to for China to support government corruption at home.
However, China can – and must – be faulted for deliberately propping up autocratic, murderous regimes on the African continent. While China cannot compete with the United States, Western Europe, Israel, or Russia as a global supplier of high tech weaponry, China has become a favoured supplied of small arms for many African despots, specifically Sudan’s Omar al-Bashir and Zimbabwe’s Robert Mugabe. Between 2003 and 2006, Chinese arms transfers to the developing world accounted for $4.5 billion, $900 million of which was directed towards Africa. These arms tranfers, and the degree of political control they permit these despots to exercise in their respective nations, are intimately linked to China’s desire to secure the natural resources they have to offer. As a 2007 US Congressional report on arms transfers to developing nations makes clear:
Although the prospects for significant revenue
earnings from these arms sales are limited, China views such sales as one means of
enhancing its status as an international political power, and increasing its ability to
obtain access to significant natural resources, especially oil.
“Although the prospects for significant revenue earnings from these arms sales are limited, China views such sales as one means of enhancing its status as an international political power, and increasing its ability to obtain access to significant natural resources, especially oil.”
One can argue that China’s recent moderate criticisms of al-Bashir and their support for a UN peace keeping mission in Darfur indicate a shift away from an earlier policy of carte-blanche support for his regime. However, I just don’t think there is much evidence to support such a position. China’s attitude of non-interference in the internal affairs of sovereign states is, frankly, untenable when it is seen to be deliberately favouring one side in a divided country over another (al-Bashir over the people of Darfur, Mugabe over Morgan Tsvangirai). China clearly prizes it’s regional interests over the interests of the citizens of those states it helps to prop up – and in that way, is behaving much like any other great power (including the United States). I think we in the West tend to over-emphasize how closely Chinese foreign policy adheres to this ideal of non-interference and are prone to mistake government rhetoric for the real application of state power.
This brings us to Van Ness’ first observation: that China, as a state, will ultimately act in it’s own best interests when conducting it’s foreign affairs. In this regard, China is, I suspect, like most other states. China is interested in assisting the development of the African continent – but only insofar as such development advances Chinese interests in the region and satisfies appetites for raw materials and profits at home. If falling commodity prices have left many African countries decling state coffers and in a weaker bargaining position relative to China, it is to the advantage of China’s economic planners and their desire to exert a greater influence over the setting of commodity prices worldwide – and to the marked disadvantage of those African states dependent on high commodity prices.
China’s economic interests in Africa will continue to grow so long as economic development remains a fundamental goal (and tool) of the Chinese state. I think it is safe to assume that, despite the current global recession, Chinese FDI into Africa will continue to grow at an accelerated pace when compared with investment into other regions. African markets remain open to Chinese investors and, let’s not forget, China is nothing but patient when it comes to economic planning (as evidenced by it comes to seeing through it’s own domestic economic reforms). While China is no longer enjoying the double-digit growth rates of the late ’90s-early ’00s, it is certainly doing well by any current standards and is in a much better position to expand outward FDI than the United States and much of Western Europe. I wouldn’t be surprised if China used the current crisis as an opportunity in Africa to slip in and fill the voids left by retreating Western capital investors, and emerge stronger for it. The Chinese government has, in fact, hinted as much.
But, I would argue that China cannot afford to disregard the growing criticism of it’s presence in Africa, the contours of which I have attempted to outline in this brief piece. It might be enlightening to remember that, according to Van Ness, China tended to view US economic aid to Africa during the 1960s as,
“a typical instrument through which the neo-colonialists attempt to extend control and exploitation, even to interfere in the internal affairs of or to subvert the recipient countries.”
Might China be opening itself up to similar criticisms today? China has come a long way from the Bandung Conference of 1955, when it attempted to forge a collective political consensus among the newly independent nations of the under-developed world, or from the 1960s, when the Chinese state attempted to present Mao’s revolutionary ideology as an alternative to the rhetoric of both the USSR and the US. China has grown and become, not merely a challenger of global powers, but a growing global power itself. So much the better for China and the model of state-directed capitalism that it seeks to export to the nations of Africa. But China is, I would imagine, already discovering that it’s new-found power has opened it up to the very same charges of neo-colonialism that it once levelled at the United States.
While it might have been possible for China to present itself as a leader among the non-aligned or developing nations of the world during the Cold War, it can no longer do so. The kind of scrutiny that has been directed towards China’s activities in Africa suggest not only the immense growth in China’s global economic and political reach, but also a significant shift in national identity from the Mao and early Deng years. China is no longer the wonder kid scrambling to catch up to its older, more highly developed neighbours in East Asia and the West. China is a global power and soon will reassert itself as the imperial power it once was. The criticisms emerging from Africa concerning such imperial influence are just a taste of a larger debate that is yet to come.
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References:
Akwe Amosu, China in Africa: It’s (Still) the Governance, stupid
Tania Branigan and Julian Borger, China looks to British experience for African expansion
Deborah Brautigam and Adama Gaye, Is Chinese Investment Good for Africa?
Congressional Research Service, Conventional Arms Transfers to Devloping Nations, 1999-2006
Stephanie Hanson, China, Africa, and Oil
Barry Moody, Does crisis give China new opportunity in Africa?
Lydia Polgreen, As Chinese Investment in Africa Drops, Hope Sinks
Lydia Polgreen and Howard W. French, China’s Trade in Africa Carries a Price Tag
Transparency International, Transparency International Bribe Payers Index 2008
United Nations Conference on Trade and Development, Asian Foreign Direct Investment in Africa