The Chinese in Africa

An old Chinese proverb: 

 摸着石头过河 

 "Cross the River by Feeling the Stones" - Confucius 

China is still a developing country, and until very recently, China was still receiving world aid from other countries. Hence, it has to be more pragmatic in how it gives aid. So, technically the support that China does not provide aid as such, but in a way that other countries would term as zero return loans or grants. Surprisingly, it reflects how other countries, especially Japan, helped China earlier in its most recent development. Japanese aid to China was linked to a natural resource that Japan needed, like Crude Oil, unprocessed minerals, etc. This relationship was inevitable as Japan needed resources desperately for its population. Knowing China's history with Japan, China's failed invasion of the Japanese islands, subsequent Japanese isolation, then the Japanese invasion of China after the Sino-Japanese wars, Japan's invasion of Korea and occupation of Manchuria, China. The earlier part of the twentieth century was when Japan, who desperately needed these natural resources, took them by force and hence went to war with China. Now, it uses a more indirect and friendlier way of getting the natural resources it desperately needs. Using resource-backed loans or a direct exchange of natural resources for development is happening all over Africa by China now but with a significant variation. Hence, they have learnt by looking at others and "feeling the stones" when crossing the river.

China has given "aid" to all countries in Africa except Swaziland, which still officially recognizes Taiwan as China, this issue China takes very seriously. It is the only condition that China considers when giving aid; it does not impose economic or political conditions like the West, nor does it involve itself in the governments, but it does not seem to move or barge on this issue. Until recently, China was not recognized in the UN; Taiwan occupied China's official seat; later, the UN recognized two Chinas. After the Chinese civil war, the ruling Nationalist forces moved to Taiwan and formed a government in exile. These countries, mainly some African, have given China the political support and muscle it needs in the UN and other international bodies, and it takes the "One China Policy" very seriously. Although many countries see China's aid as being based on a natural resource, the book states that it was hypocritical for the West. Most Western aid is attached to buying or gaining something in return, even at least goodwill and influence, at least when looking at China's history, from the Opium wars to other wars it has been involved in. Where China was craved up and divided by the great imperial powers during the late 19th and 20th Centuries, the period that China sees as "centuries of humiliation" where it lost territories, was forced by the British to buy Opium, and Britain, Germany, Russia, France and Japan divided up China, one may say that the Chinese seem to have shown restrain.

There has been a linking aid to a natural resource, but the book claims this is different. One of the reasons why China links its payment to a natural resource is the way resource-hungry Japan, Western Countries, etc., made arrangements with China in the 1970s and 80s. Also, in this way, it does not get itself in the internal running of the country and the ability to pay back. The Western countries paternalistically build structures that it believes will benefit the countries. But China builds the infrastructure African countries request, whether railways, dams, sports stadiums or housing complexes. Compared to that that the West produces, it costs much less, as the Chinese are more likely to live among the local people in their cheap buildings in their compounds than live separately in luxurious hotels, and their staff take less salary per head. 

In China, they work harder, and weekends are workdays; they start early and leave later. The Chinese work ethic is that they function according to work left and leave when finished, usually with no breaks. Their views and approaches to work are seen differently, especially from a Western perspective. The Chinese are said to drive their partners to work harder, and many have rebuked the Chinese for "unfair" business practices. But the book said that they are making amends, especially knowing that the African attitude to work, in general, is different. They have been accused of using Chinese prison labour, and the Chinese government has denied this. 

Other claims against them are that they bring their staff for most top positions. Still, the book claims that they avoid the usual trend by NGOs in which direction to drain all the skilled labour from the government and cause an artificial shortage of engineers, which will increase labour costs. But according to the book, it is possible that the usual support staff like domestic servants, cooks, traders, etc., which are Chinese, may falsely give the impression of increased staff numbers. China has encouraged its companies to "Go Global" not only as a source of foreign exchange but it does spread Chinese influence; the aim is not to make a profit but just to cut even. The Chinese state entirely supports these, which may give Chinese companies an unfair advantage. Still, considering the governments of other countries, especially the French, British, US, etc. governments help companies of their respective countries gain contracts, nothing is abnormal other than the Chinese being new to the game expose them. The Chinese government lists countries and all the projects it wants their Chinese companies to enlist in; they also help their own companies with transport, intragovernmental agreements, laws, and other problem that might arise. Also, the influx of other South-East Asians like Japanese, South Korean, Thai, Russian, and even other Western business people who look like Chinese gives a false impression influx of Chinese.

Also, the issue is trade-backed aid, and it is said that Greece US. USA, France, Portugal, etc., give loans based on the fact that you will have to write agreements to buy certain products, and this does lock the developing countries into fulfilling certain trade obligations. These may be outside the country's best interest, but the Chinese seem less keen. Still, one thing is sure the Chinese impose the one-China policy, and because the writings and the technical specifications are in Chinese, it would require some knowledge of Chinese. Although the Chinese are changing their national bank, the Exim Bank of China is laying more Western-style loans with government oversight. The Exim Bank might lay down conditions, but these are simple and complex as other Western countries and appear cheaper.

The issue of trying to put countries in a debt trap, China has forgiven a lot of countries its debt, and this is not dependent on conditions but on the West but on the One China policy. China has cancelled more than $4 billion in low-income countries' debt since 2000. China has a more pragmatic approach to debt, and it is considered a state secret and lacks transparency. Also, the book further elucidates that it is complex and must be overestimated.  

The book has shown that Western aid is not aid but linked to conditionalities, and the Chinese are more pragmatic and do not give aid but want influence and friends across the world. With the lower cost and the projects appearing all over Africa finished in record time, working only time will tell if this is what Africa needs. Especially with China going into Space, it offers cheaper satellite services. They can provide this service for African countries with plans to build their own International Space Station after being excluded by the US. But the book claims that the African countries have the upper hand and if bright enough, can use the one-China policy to their advantage as Taiwan is always waiting in the wings to grow their influence. But after coming out of colonialism, they must be cautious as China is crossing the river by feeling the stones.