Browsing: look east policy

Globalization has encouraged open trade between continents. In a bid to gain economic dominance, the top industrialist nations have engaged in sometimes aggressive foreign policies to secure natural resources to support their growing industries. Although this is not entirely negative, there needs to be an objective analysis of whether such relations are mutually beneficial, or one party is left prejudiced while the other has gained. 

One such relationship that has garnered controversy over the past few decades is the China-Africa affiliation. This article will analyze relations between China and Africa in the context of the political, economic, and ecological environments.

Chinese interests in fostering African relations

Africa enjoys the second largest Chinese investment, after Asia. The predominant reason for this being that Africa is endowed with an abundance of natural resources and China is eager to benefit from these resources in its pursuit of economic dominance. The main interests that …

China has a well-established presence on the African continent. On the positive side, a lot of infrastructure development taking place is a direct result of Chinese funding. In addition, several big Chinese companies have taken root in Africa becoming significant contributors to employment and GDP. Examples include Citic Constructions, Sunshine group, and FAW. Mckinsey and Company research group estimates that in 2012 there were over 10000 Chinese-owned companies operating in Africa, the number has since increased. 

However, there has long been suspicion around Chinese funding, especially through debt as most deals are shrouded in mystery and hidden behind closed doors. One example is Zambia’s current debt conundrum, in which reports indicate the country owes China large sums of money but circumstances around the debt are unclear in terms of the duration and the cost. 

Additionally, indications are that some of the debt facilities come with collateralized arrangements in which Africa …