China

 

The front pages of South African newspapers over the past few weeks have been dominated by one story – that of the execution of Janice Linden. Three years ago she was convicted of smuggling 3kg’s of tik through China’s Baiyun International Airport, an offence which, in China, carries the penalty of death by lethal injection.

I am going to go on record and say that I have no time for drug mules – admittedly, I do not know of their motives, whether it is for money or for pleasure, but to risk throwing away your life, literally in this case, is nothing short of idiotic.

I do however reserve some sympathy for Janice Linden. The death penalty is a shockingly outdated punishment, one that has rightly been outlawed in most parts of the world. I personally do not believe that any action is justifiably penalised by death.

This is a common view, and understandably news of Linden’s execution has been met with much outrage in her native country. China play an increasingly influential role in not just South Africa, but Africa as well, and thus the connection linking the two countries is growing stronger as each year passes.

Surely then, her fellow citizens fume, we could have put up more of a fight? Linden’s family have expressed their deepest disappointment in the South African government in the way they seemingly idly stood by whilst one of their people was put to death by one of their biggest trading partners.

There have been cases, six in total, where South Africans have been spared the death penalty in China for similar offences – although whether these were via pressure from our government is debatable.

But I think that you could argue that there was not much that could have been done. China is a vastly proud and traditional society, and this is exemplified by the fact that they have kept laws like the death penalty whilst a large part of the world seems to have moved on – in fact, China execute more of their own people, even on a per capita basis, than any other country in the world.

I am not going to pretend that I understand Chinese culture; their motives or their traditions. From our point of view, the execution was handled extremely badly in that she was told a mere few hours before it was to happen, but we live in a completely different society, so we cannot judge and criticise that which we do not understand. Whilst Janice Linden’s execution and the way in which it was carried out might seem gravely harsh to us, it seems perfectly justified to the people of China. That is the world that they, and we, live in.

In short, Janice Linden chose to risk her life, and it just so happens that she must pay the ultimate price because of the place she chose to risk her life in. Whilst we could go on about how our government did nothing to help her, in the end I do not really think there is much they could have done to change the practices of one of the oldest institutions in the world. Janice Linden chose her fate when she decided to smuggle 3kg of tik through Baiyun International Airport, and we, as fellow South Africans, must accept this.

 

China’s contribution to various medical aid projects is an aspect of its involvement in Africa that is often overlooked. Recognised as a form of soft power, sometimes dubbed “health diplomacy”, it is structured differently to the network of NGOs and charities that citizens of other countries have established, independent of their governments. Instead, China is one of the only countries that sends government-paid medical workers to Africa for extended periods.

This form of soft power is – perhaps surprisingly – not as new as China’s commercial interest in the continent. The first Chinese medical team arrived in Africa in 1963, to assist in Algeria, a brand new nation that urgently required health care.

Now that China has the financial means – and fewer governmental channels than it did in Mao’s era – it provides most of its assistance in financial terms. The figures – as is often the case with China – are impressive. China’s worldwide aid contribution totalled US$39 billion since the country first launched its foreign aid program in 1950, an article in The Guardian reports. Other estimates indicate that the amount of aid provided doubled between 2006 and 2009 alone. But what exactly constitutes aid, and where have the majority of the billions been spent in recent years? An article published in Wharton Business School’s online journal reports on the use of foreign aid funds:

“More than 40% [of foreign aid funds] were allocated to “aid gratis,” or grants, while the other 60% were distributed between interest-free loans and concessional loans. Concessional loans are used to finance major capital projects with the aim of generating profit. The money is used in the construction of transportation, communications and electricity infrastructure, while less than 9% has been given to developing oil and mineral resources, writes The Guardian. The money for the concessional loans is raised on the market by the Export-Import Bank of China, while grants and interest-free loans are distributed from government finances.”

These are the same loans that allow China to negotiate for the right to resource extraction at extremely favourable rates, but the conditions of Sino-African business arrangements are a separate matter. It is the categorisation of concessional loans as “aid” that is misleading — and worrying. In the context of somewhere like Zambia – where a large proportion of the population is concerned about the extent and nature of Chinese involvement in their country – applauding China for “aid contributions” when more than half of these funds are used for making hardnosed business deals is extremely problematic.

 

There is no denying China’s increasing influence in Africa, whether it is beneficial to both parties or not. It has been largely assumed that China’s involvement in the continent is in direct competition with Western – and specifically United States – involvement in Africa. This is not necessarily the case though, as emphasized by several senior U.S officials. In fact, statements from these officials generally reflect a desire to engage with China in Africa in a positive way.

It is firstly important to note, as stipulated by Senator Chris Coons, that the U.S. and the Chinese have fundamentally taken on different roles in Africa: 70% of Chinese assistance to Africa comes in the form of roads, stadiums and government buildings, whilst a similar proportion of U.S. aid is focused on the war against disease.

Statements in favour of bilateral cooperation in Africa are based on the theory that where U.S. and Chinese interests overlap, there can be cooperation. Both advocate the importance of political stability, encourage African economic development and are supportive of UN and African Union peacekeeping operations in the continent. Perhaps most importantly, both the United States and China seek access to African raw materials, particularly oil.

There are, naturally, obstacles that need to be overcome. The U.S. and China have had differing philosophies toward governance in the past, resulting in a sense of mutual mistrust and suspicion. Possible collaboration between the world’s economic powerhouses has also left many African countries unable to see past the possibility that they might be ganged up on.

David H. Shinn writes that there are several areas in which the U.S. and China can collaborate. These include peacekeeping operations, as well as concerted efforts in the healthcare sector to counter the colossal threat of disease. U.S and Chinese interests in Africa will continue to overlap, and this will open the door to possible coordinated diplomatic engagement. Once pride is put aside, the three parties in question, can surely only benefit, both economically and politically, from this proposed collaboration.

 

As Muammar Gaddafi’s autocratic stronghold over Libya nears its end, China is at risk of being locked out of the oil-rich country by its prospective new rulers, the rebel Transitional National Council (TNC). According to Middle East watcher James Dorsey, China’s support of Gaddafi as well as its role in obstructing the release of Libya’s frozen assets has jeopardised its future in the country. “China has scored two near fatal own goals in the race for influence and lucrative contracts in oil-rich post-Gathafi Libya,” writes Dorsey.

A document made public over the weekend contains evidence that China was preparing to supply weapons to the Gaddafi regime in July of this year, in violation of United Nations sanctions. Adding fuel to the fire, the head of the TNC, Mustafa Abdel Jalil, has accused China of blocking the release of Libya’s frozen assets. Along with the disclosure of the weapons deal, the accusation indicates that China is at a disadvantage as it competes with Russia, India, South Africa and Brazil to repair strained relations with Libya’s new rulers.

China has yet to officially recognize the TNC, but has recently sought to upgrade its relations with the rebels. These efforts will be made far more difficult by the four-page document found by Canadian newspaper The Globe and Mail, which shows that state-controlled Chinese arms manufacturers were prepared to sell weapons and ammunition worth at least $200-million to the Mr. Gaddafi. TNC officials said the documents explained the origin of brand new weapons captured on the battlefield by the rebels.

The document reports on meetings in Beijing beginning on July 16 between Gaddafi security officials and representatives of three state-controlled weapons manufacturers – China North Industries Corp. (Norinco), the China National Precision Machinery Import & Export Corp. (CPMIC), and China XinXing Import & Export Corp. The Chinese companies offered to sell their entire stock to Gaddafi’s representatives, and promised to manufacture more supplies if necessary.

In a bid to keep the door open to the rebels and retain a bargaining chip, China agreed last week to the release of $15 billion of the total $170 billion in Libyan assets frozen by the international community. Chinese Vice Foreign Minister Zhai Jun, speaking after a meeting in Paris last week with the TNC’s number two, Mahmud Jibril, said that “China is ready to grant reconstruction aid to Libya… and hopes that the TNC will take into account China’s concerns, respect its commitments and guarantee the interests of Chinese business interests in Libya.” China’s trade ministry estimates that China has 50 large-scale projects in Libya worth some $18.8 billion and it evacuated an estimated 36,000 Chinese workers from the country at the beginning of the conflict.

As the rebel TNC edge closer to full control over Libya, they appear to be distancing themselves from those who helped sustain the Gaddafi regime. Although China has made moves to rectify their relationship with the rebels, they are far behind the likes of Russia, and a senior Libyan oil official has warned that countries who are found to have been involved in “corrupt practices” during the Gaddafi era will be punished when post-Gaddafi reconstruction contracts are awarded.

It seems that China, so prominent in Africa in recent times, is at risk of having to take a backseat to a new wave of investment into “some of the world’s most important oil and gas reserves”, and the country’s policy of non-intervention, which has done more harm than good in this case, might well have to be rethought.

 


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.

 

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.

 

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.

 

I was wondering how long it would be before we got a story like this:

Sudan, after nearly constant civil war over the past five decades, is seeing tensions boil again ahead of a planned independence referendum early next year that stands to split Africa’s largest country in two. Voters from the oil-rich, largely Christian south are expected to vote to break away from the country’s largely Muslim north. As the Jan. 9, 2011, election date approaches, both sides accuse the other of amassing troops.

The vote poses a conundrum for China. Beijing has consistently opposed independence movements abroad, lest it embolden separatist sympathies at home. And despite its recent overtures to the south, Beijing seeks to maintain its longstanding economic ties with Khartoum, the seat of Sudan’s government and center of northern power. China armed and supported the north in the 23-year civil war against the south from 1983 to 2005, in which two million people are believed to have died. It continues to arm Khartoum and has built the north infrastructure projects, including the largest hydroelectric dam in Africa.

In 2008, China opened a consulate in Juba, the south’s capital, an unusual move for China in a place with separatist aspirations. Last week, a Chinese Communist Party delegation visited southern officials. Top officials from the south have also visited China, said Li Baodong, China’s U.N. ambassador, in an interview during a United Nations Security Council diplomatic mission to Sudan this month.

And Kenyan officials say China has expressed interest in a new pipeline for southern oil. Last week, the south’s government collected bids to build a route that would avoid the country’s current main line to the north, a 1,000-mile pipeline to a Chinese-financed refinery, and go through Kenya instead.

I’m not entirely surprised, because while much has been made of China’s willingness to trade with the current government, many people have pointed out that China was selling weapons to both sides. The real question seems to be what China would do if there was renewed fighting in the region, or, more optimistically, what China could do to prevent fighting in the region. But I think the current message is clear: China doesn’t care who controls South Sudan, as long as the oil keeps on flowing.

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