On 20 September 2011, the Zambian people elected Michael Sata as their president, marking a milestone in the country’s relationship with China. Sata is opposed to the influence that China has in Zambia, while his opponent, the incumbent Rupiah Banda, has presided over an unprecedented expansion of Chinese interests in the African country, and is even suspected of accepting funding from China for his 2011 election campaign.

President Sata’s populist campaign took a strong anti-China stance. The people of Zambia are disenchanted by the role the Chinese have been playing in the country, with many feeling that Chinese expatriates are coming into the country and taking jobs that Zambians could be doing. Mr Sata has already made his feelings known to the Chinese Ambassador, ”We welcome your investment but as we welcome your investment, your investment should benefit Zambians and not the Chinese,” he said in a official statement.

It will be interesting to watch relations between China and Zambia over the next few months, as well as the evolution of Chinese foreign policy elsewhere, because this is also not the only case where China grip on Africa appears to have loosened. In Libya, oil contracts made under Gadaffi are being reassessed, and there is every indication that China could lose out there as well.

On Friday, China, South Africa, Brazil and India all called on developed and highly industrialised countries to make greater efforts to reduce their emissions. The call comes a few months before the United Nations climate summit, which will be held in Durban, South Africa, this November. The meeting will focus on the extension of the Kyoto Protocol targets that are supposed to be met next year, as well as other plans to reduce global emissions.

The success of the Kyoto Protocol is doubtful, because neither China nor the USA has signed the agreement, even though the two countries are the world’s two heaviest polluters. UN statistics from 2007 show that the percentage increase in CO2 emissions between 1990 and 2007 has been greatest in Brazil, China, South Africa and India, especially when compared to developed industrial countries, such as the United States and the United Kingdom. China’s percentage increase, for example, was 165.7%, whereas the United States increase was only 20.2%.

Are these developing nations trying to divert the attention away from their poor attempts at reducing emissions? Or do they genuinely believe the responsibility to reduce global emissions rests on the shoulders of the developed world?

According toa recent report from Ernst & Young, the increasing global demand for commodities is encouraging resource nationalism, defined as national governments taking control of the country’s natural resources. Resource rich countries will benefit from the resulting increased price of exports, says the report, but countries that rely on imported resources could suffer badly.

China’s dependence on African resources is likely to grow, with ever more Chinese companies scouting the continent for the raw materials they need to maintain growth, but while Africa stands to benefit from the rise in demand for commodities, it also presents the continent with risks. The Ernst & Young report describes resource nationalism as the number one risk for the mining and metal sector in 2011, which “became an early target to help restore treasury conditions…because the mining and metals sector rebounded quickly from the global financial crisis.”

Namibia is one example of an African country that has made resource nationalism a part of its economic plan. The Namibian government has given the nationalised mining company, Epangelo mining, the exclusive rights to mining and mineral exploration. Epangelo, with its limited budget, will create partnerships with other companies, but will always hold the majority share, in order to have control over the mines. This has significant implications for China. The Namibian government have been rethinking their Sino-African ties, and now wants China to add value to Namibia’s raw materials domestically.

As millions in the Horn of Africa face starvation, Nanci Pelosi, a high-ranking US Democrat, has called on China to “step up their efforts” in sending aid. The UN estimates that $2.5 billion is needed to combat the effects of the famine. Some of the highest contributors so far have been the USA, which has given $122 million, Japan, which has given $28.2 million and Canada, which has given $15.1 million. Unfortunately, funding so far only comes to 58.3% of the UN’s target.

Earlier this week, the Chinese Ambassador for Ethiopia, Gu Xiaojie, announced that the Chinese government plans to give $14 million to aid the Horn of Africa, $7m of which will go directly to Ethiopia. “China is always on Africa’s side to support African governments and people during a crisis,” Gu stated.

The amounts is far less than other large donors have already committed, but it is clear that China, with its strong links to Africa, will be put under increasing international pressure to increase its aid to African countries.

Zeray Hailemariam from the Walta Information Centre interviewed the Chinese ambassador to Ethiopia, Gu Xiaojie, this week, about the relationship between the two countries and China’s special relationship which Africa.

China has had a relationship with Ethiopia for over 40 years. Gu Xiaojie said that the countries share mutual trust that there has been an increase in relations between the two countries.

Trade

According to Gu Xiaojie there are “healthy trade ties” between the two countries. China has invested heavily in Ethiopia’s National Network of Telecommunications. Its has also seen a 30% increase in imports from Ethiopia, while China’s exports to Ethiopia have also increased. Gu also said that China provides as much economic assistance to Ethiopia as it can, but that China’s ability to extend aid is limited because it is still a developing country. He emphasised that the relationship between the two countries is more than purely economical, saying there is also a relationship between the peoples of the two countries.

“The people to people relationship is the important one which laid foundation to the over all relations, we see more people coming from China to Ethiopia to do business, studying, working groups and other to get know each other.”

Investment

The Chinese ambassador believes that there are currently over 130 Chinese investors in Ethiopia. While in the past investment was more clear cut, it now appears that investors are diversifying their investments in the country.

“The unique characteristics of the Chinese investment are the ever growing interest of Chinese investors to invest in Ethiopia in diversification. Leather processing and building materials were the first investment sectors by Chinese in Ethiopia. But they are expanding and diversifying to other areas.”

Indirect Colonialism

Zeray Hailemariam asked the Chinese ambassador to Ethiopia about his views on China’s activities in Africa being labelled indirect colonialism. Gu Xiaojie argued that Africa has chosen Chinese involvement.

“From some media, I have read some irresponsible accusations made in this regards. What convincing them to do this unwarranted accusation against China could be the fact that African Governments and the people are in the best position to make a judgement on China’s involvement.”

Gu accused the Western media of portraying the Chinese government as only taking natural resources from Africa. He emphasized that the relationship between Africa and China is not colonial, but brotherly.

“China and Africa know how to treat each other on equal basis and of course the African people have acknowledged and developed sincerity to the Chinese helps.”

Climate Change

Gu Xiaojie also said that China wants to reduce carbon emissions as it recognises that the country has a fifth of the world’s population, but blamed developed nations, which have, he said, been polluting for decades. He said China is working with African countries to reduce emissions. For example, in the Africa China Cooperation Forum, it aims to develop new sources of clean energy with African countries.

Zimbabwe adopted a Look East policy seven years ago, when Western aid and investment dried up because of the Zimbabwean government’s widespread human rights abuses. In reality, Look East was a way of saying look to China, and the two countries have cultivated a close relationship, but it is now showing increasing signs of strain. Last week, the role of Chinese businesses in Zimbabwe was called into question by the president of the Confederation of Zimbabwe Industries (CZI), Joseph Kanyekanye.

Kanyekanye called for the Zimbabwean government to protect local industry and pay more attention to the country’s balance of payments. Its struggling manufacturers can’t compete with the low prices of goods from imported from China and South Africa, he said, and as these manufacturers fail, Zimbabwe’s reliance on imported goods will only increase, further depressing its beleaguered economy.

Kanyekanye did not call for an end to the Look East policy. He is still enthusiastic about Chinese investment and has tried to reassure Chinese investors who pulled out of a pulp and paper project in Manicaland, when the Zimbabwean government was unable to confirm that the land would not be invaded. The deal is particularly important in Zimbabwe because it currently has to import newsprint.

Many of China’s investments in Africa stem from the need for energy resources. However, a new report from Brookings Institution suggests that China’s energy supplies are unstable compared to the stability that countries such as America enjoy. For example, the recent turmoil seen in Libya (which supplied 3% of China’s crude oil in 2010) and the political unrest seen in the Middle East (which supplied 46% of China’s crude oil in 2010), have both highlighted the possible volatility of supply that China could face.

As consumption of oil continues to increase within China, the greater demand puts pressure on Chinese authorities to invest in stable oil supplies. Chinese researchers have pinpointed the Arctic, which contains an estimated 13% of the world’s undiscovered oil, as a possible option for investment.

As a result, China’s investment in Africa’s energy resources could continue to decrease, as they have done over the past four years. In 2006, 32% of China’s supply of oil was exported from Africa, and in 2010 this amount decreased to 22%. With the recent political upheaval within Africa, it seems inevitable that this percentage will continue to fall, and China’s dependence on African oil will decrease.