Introduction
For decades, mineral-rich Africa has attracted China, which has invested in African mining and infrastructure. According to public data, the State Development Bank of China has transferred more than $50 billion worth of investments in 500 projects in 43 African countries in recent years. Critical experts describe China’s policy in Africa as “a new colonialism,” a “debt crisis” for African countries, and embezzlement of minerals. At the same time, others emphasize the advantages of Chinese capital investments. First of all, infrastructure projects contribute to the creation of new jobs and the socio-economic development of African countries. The research paper will concentrate on the negative consequences of China’s influence. However, the focus of the report will also center on racial issues and the problems that provoke Chinese investment.
Relations between Africa and China
In recent years, China has returned to the international arena, especially in Africa. The economic and political experts mentioned China as an economic player, making unprecedented advances on the African continent in 2000. However, then the trade volume between China and Africa was only $10 billion, but in 2016 it rose to $300 billion. Nowadays, there are more than 2,800 Chinese enterprises on the African continent. Chinese projects in Africa include roads, seaports, airports, power plants, schools, hospitals, and irrigation systems. Although, despite the potential benefits that China proposes, this policy leads to the colonialization of Africa.
The colonial nature of China’s economic activities in Africa has several negative consequences. For example, the primary beneficiaries of these activities are not Africans but Chinese companies and China as a whole. They import cheap labor from China rather than create jobs in the black continent, exploiting the corruption of African elites to advance their projects. At the same time, they pollute the environment and force African peoples to trade their resources for “mediocre infrastructure” that does not develop their economic growth enough. Accordingly, it deserves only a tiny fraction of the total value of the resources returned to the Chinese. Moreover, the Chinese do not stimulate the emergence of democracy in African countries through their financial contributions.
For centuries, the African continent had accumulated resentment against the white enslavers who brought injustice, exploitation, and slavery with the sunshine of civilization. With unprecedented cruelty, they deprived the local peoples of their natural wealth and transformed them into a disenfranchised labor force. The people have long remembered the Europeans of Africa as the enemy. After independence, African nations were still forced to appeal to white investors for assistance. Likewise to the white creditor, the white assessor of knowledge, ability, and technology only strengthened the hatred of this eternal enslaver, from whose hands also had to eat. In today’s world, the role of enslavement of the African people belongs to China. Accordingly, Africans consider the Chinese and their race the new colonialists and spread racial intolerance in their society.
China’s presence in Africa is also problematic on the social, political, and environmental sides. Indeed, the social rights of African laborers are not always respected in Chinese companies due to low wages. The introduction of Chinese labor is also problematic because China ignores the capacity building of local inhabitants. Africans are eager to work in Chinese companies and receive high incomes. Chinese investors view them as an insufficiently skilled and experienced labor force. This perception is primarily due to the prevalence of racial stereotypes in Chinese society. Consequently, black people are considered an inferior race that is only required for exploitation. Therefore, a study of the negative impact of Chinese investment in Africa will establish the root causes of this and provide future solutions to the issue.
China is a relatively new and specific investor due to its approach to goal achievement. In addition to the Russian and American model of loyal blocs of states in the international arena, China has developed its own unique algorithm of economic expansion. This mechanism China applies without being burdened by a common historical memory or the demands of democratic transformation. China’s interest in Africa is quite understandable; the region has enormous reserves of natural resources. They include about 60% of the uncultivated agricultural land, a substantial domestic market with growing purchasing power, and a whole army of potential and even low-wage laborers. Therefore, China is investing in African content for profit while simultaneously creating negative consequences for Africa.
The Importance of Africa to China
Africa has found itself in the sphere of Beijing’s interests not by accident, primarily due to China’s concern for access to sources of hydrocarbons and minerals. In 1998, the White Paper of China’s Ministry of Defense declared energy security integral to China’s strategy. The desire to gain access to raw material sources, to find areas of investment and markets for the booming industry. These are the primary motives behind China’s economic expansion in the twenty-first century. China’s attention to Africa is explained by the importance of the continent’s resource potential and its increasing political weight in the international arena. Relations with Africa are part of China’s strategy for new world order, a multipolar world, and increased South-South cooperation. China wants to play a more central role in international affairs, which is why it needs African countries to support its positions in international organizations.
In order to sustain its economic growth, China requires resources. According to forecasts, the demand for raw materials will increase by 50-60% by the middle of the 21st century. In this context, the fact that African countries, judging by various estimates, account for 30 to 40 percent of the world’s proven natural resource reserves becomes particularly important. In fact, it is more since the degree of their exploration remains low. Africa has become a zone of strategic interest for the leading states, and the competition for its mineral and hydrocarbon resources is intensifying. At the same time, Africa is a conglomerate of countries highly interested in foreign aid and investment.
Beijing is not motivated by the pure charity to buy Guinean bauxite but by the increasing Chinese economy. Therefore, aluminum, as well as other resources that can be obtained in Guinea, is constantly in demand. Niger has a second wealth, that of uranium; the solid reserves of this valuable raw material could not escape Chinese attention. The specialized China International Uranium Corporation has been actively cooperating with the authorities of the country for some time, which was the reason for the abduction of the Chinese representative. The Tuareg rebels, unhappy with the way the nation’s already meager wealth is being distributed among the population, have identified the Chinese emissary as a suitable victim to demonstrate the seriousness of their intentions. Even without these accusations, however, it is evident that China has come to Africa for severe and long-lasting reasons to suspect the China of new colonialism.
Indeed, in recent years, in concern for public opinion, the Chinese leadership and significant private and state-owned companies have become considerably neater and more polite. Still, the grip of the Chinese representatives in Africa has not waned. Importantly, “resources at any price!” phrase for understanding China’s current foreign policy strategy, a plan that is projected for decades to come. That is why Chinese capital, 12 billion only commercially profitable investments, is coming even to places where Western investors now do not realize profits. After all, in the end, African resources will still be needed, and China is attempting to secure them today to implement them in its favor.
The Negative Impact on African Employees
Chinese investment activity has specific characteristics that allow it to be considered colonial. This is because a large amount of investment is directed exclusively to the resource sector, and local labor is not too involved in the work on infrastructure facilities. At the same time, official Beijing and a small number of Chinese state-owned companies have a severe thoughtful plan for the economic occupation of the African continent. The basic scheme for investing in African infrastructure is the so-called commodity-based concept. That is, investments backed by payments in the form of minerals, namely oil, cobalt, copper ore, and bauxite. Chinese companies fine-tune import operations or become shareholders in local mining companies. Consequently, the question is whether the firms will provide jobs for the people of Africa.
The issue of the employment of Africans in Chinese projects is rather ambiguous and even counter-version. Since 2016, along with the decline in mineral costs, the number of employed Chinese also started to fall. While in 2015, it was 263,000, in 2019, it is already 182,000. Angola, Nigeria, Zambia, Kenya, and Ethiopia, not counting Maghreb Algeria, are the primary recipients of Chinese labor. They also have the highest reserves of minerals, particularly oil, the most significant financing of Chinese schemes in their regions, and, not surprisingly, top the list of Chinese debtors. It is clear that Chinese companies do not provide 100 percent of the necessary personnel with nationals of their state and hire locals, formally creating new jobs for the states.
The question emerges as to what kind of environment they work in and their positions. For example, the University of Florida’s Center for African Studios estimated in 2016 that African employees in economic cooperation zones outnumber Chinese. For instance, Nigeria’s Ogun-Guangdong zone includes 177 Chinese and 1,619 local workers, while Zambia’s Chambishi zone includes 1,372 Chinese and 7,973 local laborers. The fact is that the standard of living in the PRC is improving, which means the level of wages is also growing. It now costs a lot more to bring workers from China to Africa. At the same time, Chinese employees of the Standard Gauge Railway Company have been accused of racism, neo-colonialism, and open discrimination against Kenyan employees. The Chinese were diligent and friendly attendants to passengers and dignitaries. In their dealings with their black counterparts, they activated host status.
Nevertheless, the threat to workers’ rights lies in their working conditions. Similar to European companies, the Chinese bring in their own specialists for managerial positions. At the same time, they hire locals for low-skilled or low-qualified physical labor, often in conditions that are not completely safe. However, there are situations, such as in Ghana in 2014, when the local administration started to pursue an anti-Chinese, sometimes xenophobic policy because of the dominance of Chinese workers. Likewise, due to what the locals consider to be illegal mining. Accordingly, the social rights of African workers are not always respected in Chinese companies because of low wages. Africans aspire to work for Chinese companies and earn high incomes. Chinese investors perceive them as an insufficiently qualified and experienced labor force. This perception is primarily due to the prevalence of racial stereotypes in Chinese society. In this way, the problem of mutual disrespect and discrimination emerges.
The Negative Influence on Africa’s Potential
Against the background of increasing levels of mutual trade, there are reasons for both Africans and the international community to feel dissatisfied. For example, Chinese corporations do not enforce environmental standards. In Africa, China invests mainly in fossil fuels that pollute the environment. Two-thirds of the power plants built by the Chinese in Africa are considered “hazardous” or “very hazardous” to the environment. The industry of China, the world’s largest coal producer, suffers from overcapacity. Domestically, the Chinese are reducing the use of coal because it is too polluting, which is why African power plants will be powered by it. However, there were mass protests in the Kenyan capital of Nairobi against constructing a Chinese-funded coal-fired power plant in Lamu. There have also been sporadic protests in Zambia, Ghana, and Madagascar. Accordingly, the people of Africa oppose air and water pollution. This is because they understand especially the value of water and its scarcity on the continent.
African leaders engage in corrupt schemes, repeatedly violate the rights of African workers, and are generally willing to profit by any means while cooperating with authoritarian regimes. At the same time, more than half of Africans do not have access to electricity. Due to the electricity shortage, Africa’s economic growth rate slows down by 2-4 percentage points each year. China finances a considerable portion of new power generation projects. From 2014 to 2017, Chinese banks invested an average of $5 billion each year in energy projects, making Beijing the top electricity producer in the region. Consequently, it is a paradox that African authorities accept Chinese investment and allow the region’s resources to be used. Meanwhile, the continent’s population suffers from a lack of essential benefits such as electricity. At the same time, the Chinese opened their first military base in the east of the continent, stationing their troops in Djibouti. This demonstrates the permission of African governments for such military intervention. Accordingly, African leaders fully comply with China’s instructions as an investor.
It should be mentioned that because of China’s investments and the informal connections of power elites, African states cannot introduce democratic change. This is because state leaders and influential individuals benefit from China’s assets, while ordinary people do not have enough power to protest. China finances according to the concept of self-interest and does not demand reforms in exchange for investments as Europe does. Commerce between China and Africa was only $10 billion, but in 2016 it rose to $300 billion. There are now more than 2,800 Chinese enterprises on the African continent. Consequently, this circulation of money in the states promotes corruption and worsens living standards for ordinary citizens.
China faced several systemic problems that limited its economic development. First and foremost, these problems are related to the increasing level of energy consumption. To address this strategic challenge, China’s leadership put forward a new foreign economic strategy of actively involving Chinese manufacturers in world markets, developing the natural resources of other countries, and actively investing abroad. Africa became the continent that fulfilled all the goals of China’s strategy. In 2018, SAIS-CARI released data showing that between 2000 and 2015, the Chinese government and companies provided $94.4 billion in financing to African governments and their state-owned companies in Africa. Meanwhile, Africa remains lagging in education, business, health care, and government regulation. Therefore, it will need groundbreaking solutions rather than providing its resources to China to discover new markets and sources of income.
It is estimated that the African continent accounts for about one-third of the world’s natural resources. China currently receives from Africa 28% of its oil imports. The following statistics eloquently demonstrate China’s rapid economic expansion into Africa. For example, in 1995, China’s trade with African countries was $6 billion; in 2010, it exceeded $130 billion. Indeed, all African countries are satisfied with China’s increasing expansion. Namibia, Liberia, Cameroon, and Mozambique are dissatisfied with massive deforestation, the timber of which goes to the development of the Chinese furniture industry. In Zambia, Chinese merchants are criticized for undermining the position of local businessmen. In the same state, there are riots in copper mines owned by the Chinese. South Africa is also disgruntled because cheap Chinese textiles have undermined the local textile industry. In response, China is increasingly focused on development work in Africa. African leaders present these projects on their own merit, scoring points among the population, while locals participate in various construction projects and receive additional revenues.
The problem is that Africa’s natural resources are being depleted in this way. Moreover, if the authorities of African states could organize the extraction of their own resources, they would gain more economic advantages. An example can illustrate the negative impact of constant resource extraction in Africa. South Africa dominated world gold production in the 20th century, with over 75% of world reserves in 1970. However, due to resource depletion and high operating costs, the country’s dominance in the global gold sector has since declined from 1st place in the 1970s to 8th place in 2018. It is also essential to mention that South Africa could compete with China in the global rare earth market in the future. The Western Cape region is abode to the Steenkampskraal mine, which is the highest-grade rare earth mine in the world. Its reserves are estimated at almost 790,000 tons and rank among the top ten countries. Consequently, if the resources are not stopped in time, African countries will lose this advantage in the future. Thus, it is crucial not to allow further economic expansion by China.
The Problem Solving Project
Based on the information above, eliminating corruption and developing the African continent will stop China’s expansion. Thus, the authorities will begin to worry about citizens’ standard of living and create public jobs with high wages and internationally recognized working conditions. This will eradicate the causes of racism worldwide and the perception of Africans as an inferior and less knowledgeable race. Moreover, prudent use of our resources will enhance African states’ situation without China’s investment.
Conclusion
Thus, African resources are fundamentally crucial to China, which is why there is a large-scale investment in African states. In essence, China’s investments in Africa provide an easy global consensus on China’s interests. As African countries become increasingly dependent on economic commitments, their willingness to comply with China’s wishes increases because of their inability to survive without external economic intervention. However, China’s economic expansion has negative aspects, such as low wages, poor working conditions, and the development of racial hostility. Nevertheless, the Chinese are exhausting the resources of African states, which are more expensive to invest in and pollute the environment.
Annotated Bibliography
Nadyege, Rolland. “Political Front Lines China’s. Pursuit of Influence in Africa,” Special Report 100, (2022): 1-92.
It is essential to emphasize that the report deals with a relevant and insufficiently researched problem. This is because China’s political influence in Africa occurs at the same time as its economic impact. Accordingly, China is attempting to create a system for the coordination of African power and decision-making to ensure its own interests. The author examines the close ties of the African elite and the media with their Chinese counterparts.
Sun, Yun. “An Examination of the 2035 Vision for China-Africa Cooperation,” Brookings, 2021. Web.
A special program has been created for cooperation between China and Africa. It regulates future relations and establishes medium- and long-term perspectives. In general terms, cooperation concerns Africa’s economic development with the assistance of Chinese investments. Moreover, special attention is focused on financial investment that benefits China. This is because it will enhance China’s influence on the content and living standards of Chinese people in the first place.
Mthembu, Philani, and Faith Mabera. Africa-China Cooperation: Towards an African Policy on China? London: Springer Nature, 2020.
The authors trace the pattern of economic relations between China and Africa. At the same time, they describe China as one of the principal officials influencing the evolution of Africa. However, the book indicates that China uses the method of colonization to generate more income, but in its modern manifestation. Accordingly, the authors attempt to establish the nature of China’s effect on Africa.
Abidde, Sabella, and Ayoola Tokunbo. China in Africa: Between Imperialism and Partnership in Humanitarian Development. New York: Lexington Books, 2021.
The book notes that relations between China and Africa are complicated because of China’s interests. Accordingly, China conducts a policy of depredation of content. This is due to financial investments that are designed to create Chinese enterprises in Africa. Thus, it devastates Africa’s resources and transforms its citizens into slaves.
Benabdallah, Lina. “China’s Soft-Power Advantage in Africa.” Foreign Affairs 1, 2021: 1-7.
The author examines China’s potential benefits from significant investments in Africa. The article establishes that China has a considerable impact on the political activities of the continent and uses its natural wealth for its own enrichment. This provides the cause for China’s investment in Africa’s political, economic, and cultural sectors. At the same time, the ordinary people of Africa operate under adverse labor conditions and do not receive enough income for a decent life. Accordingly, the author deduces that China exploits Africa’s labor force.
Langan, Mark. Neo-Colonialism and the Poverty of “Developmen” in Africa. New York: Springer, 2017.
The author explores the concept of colonialism in Africa and its implications for citizens. The book discusses the causes of poverty and discrimination against Africans during the period of significant Chinese investments. Remarkably, the author focuses on the reasons for the undeveloped region. At the same time, the book describes a unique theoretical approach to explaining the benefits of China’s intervention in Africa. The author concentrates particularly on Ghana, Uganda, and Zambia to describe the politics of neocolonialism.