Championing U.S. Conditionality Phoebe Benich Brief No. 6.2 P I P S The Project on International Peace and Security Institute for the Theory and Practice of International Relations The College of William and Mary The Project on International Peace and Security Launched in 2008, the Project on International Peace and Security (PIPS) is an undergraduate think tank based at the College of William and Mary. PIPS represents an innovative approach to undergraduate education that highlights the value of applied liberal arts training to producing the next generation of foreign policy analysts, leaders, and engaged citizens. PIPS is premised on two core beliefs: (1) rigorous policy-relevant research is a core component of a student’s education; and (2) when guided by faculty and members of the foreign policy community, undergraduates can make meaningful contributions to policy debates; their creativity and energy are untapped resources. To this end, PIPS each year selects six research fellows and six research interns. Research fellows identify emerging international security challenges and develop original policy papers. Research interns support the work of the fellows and learn the craft of conducting policy research and writing briefs. For more on PIPS, visit www.wm.edu/pips. Amy Oakes, Ph.D. Dennis A. Smith, Ph.D. Directors The Project on International Peace and Security © 2014 All rights reserved. Please direct inquiries to: The Project on International Peace and Security (PIPS) Institute for the Theory and Practice of International Relations The College of William and Mary 427 Scotland Street Williamsburg, Virginia 23185 tele. 757.221.1441 fax. 757.221.4650 [email protected] Electronic copies of this report are available at www.wm.edu/pips Championing U.S. Conditionality A Strategy to Counter Chinese Economic Influence in Africa APRIL 2014 Phoebe Benich Championing U.S. Conditionality A Strategy to Counter Chinese Economic Influence in Africa Since 2009, Chinese investment and aid to Africa have exceeded that of the United States. The subsequent increase in Chinese influence undermines U.S. security initiatives on the continent, threatens access to key resources, and increases China’s power in multilateral bodies. However, growing African resentment towards China’s predatory economic practices creates an opportunity for the United States to counter Chinese influence in Africa. The United States should fund nongovernmental organizations interested in promoting strong labor practices, governance and capacity building, thereby drawing attention to the flaws of Chinese economic activities. Additionally, Washington should publicize the domestic political and economic benefits of U.S. foreign aid conditionality to implicitly critique questionable Chinese behaviors. By contrasting the two countries’ relationship with Africa, the United States can regain grassroots support on the continent. Introduction China’s economic involvement in Africa has grown dramatically since the 1980s, causing concern among many in the U.S. foreign policy community. For example, in May 2013, Senator Chris Coons, who sits on the Senate Foreign Relations Committee, stated that “China, which has made dramatic inroads across the continent in recent years, may undermine or even counter value-driven U.S. goals in the region, and should serve as a wake-up call for enhanced American trade and investment.”1 Despite such concerns, China’s economic practices in Africa—which hinders government transparency, exploits workers, and fails to build local capacity—have evoked a growing popular backlash among citizens of the continent. This emerging resentment provides an opportunity for Washington. Instead of viewing U.S. conditionality as a liability relative to China, the United States should robustly champion the political and economic benefits for African’s of conditionality, while supporting local groups that focus on good governance and building indigenous economic capacity. Such a policy would: (1) build grassroots support for the United States among Africans by highlighting the extractive nature of Chinese practices, and (2) may alter China’s approach to development in Africa. This proposed policy also would require a more vigorous, coordinated, and focused approach to U.S. public diplomacy and aid allocation on the continent. Growing Chinese Influence in Africa This heightened engagement in Africa by China since the mid-1990s has important implications for the United States. China now offers African countries another political 1 and especially economic alternative to the United States and the West generally. − Ambassador David Shinn, 20112 Beijing has spent the past three decades building a relationship with Africa based on aid, investment, and trade, with little attention paid to political conditions on the continent or building local capacity. Growing Chinese Economic Involvement in Africa China has contributed enormous sums of resources towards African development through Official Development Assistance (ODA), investment, and trade. Increasing Chinese foreign aid. China spent $84.4 billion on African development aid between 2000 and 2012. This aid can be broken down into three categories: Official Development Assistance (ODA), Other Official Flows (OOF), and remaining unspecified contributions.3 ODA is defined as aid given by official agencies, “with the promotion of the economic development and welfare of developing countries as its main objective.”4 OOF are transactions that do not meet the requirements for ODA because their primary purpose is not development.5 “Unspecified” indicates any transaction that does not fit into either category due to lack of sufficient information.6 Figure 1 highlights the relative small size of Chinese ODA, which is focused on promoting the development and welfare of a recipient nation, compared to China’s OFF and unspecified contributions.7 Figure 1: Chinese Aid to Africa Unspeci3ied" 18" OOF7like" 16" ODA7like" 14" In#U.S.#Billion#Dollars# • 12" 10" 8" 6" 4" 2" 2000" 2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010" 2011" 2012" Year# 2 • Increasing Chinese investment. China also invests heavily on the African continent. Such investments include Foreign Direct Investments and Joint Ventures. Estimates of the total of Chinese investment in Africa from 2005-2011 reach roughly $13.5 billion.8 • Increasing Chinese trade with Africa. In 2009, China surpassed the United States as Africa’s largest trading partner. Three years later, Chinese two-way trade with the African continent reached $198 billion, doubling that of the United States.9 Ambassador David Shinn writes that easy financing by Chinese banks and lower bids by construction companies, “make it difficult for American and Western companies to compete.”10 This policy is leading to a dominant Chinese economic presence on the African continent. Figure 2: Total Trade with Africa 250,000" In#USD#Millions# 200,000" 150,000" 100,000" 50,000" 2000" 2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010" 2011" 2012" Year# China" U.S." The Threat of Growing Chinese Influence Chinese growing involvement in Africa jeopardizes United States’ security interests—both on the continent and globally. Chinese Influence Undermines U.S. Security Initiatives By providing African governments with an alternative source of economic support, Beijing’s involvement in Africa serves as an obstacle to political reform and contributes to the grow of radicalism and narcotrafficking on the continent. 3 • Hinders U.S. efforts to encourage political reform. In contrast to Washington’s development standards, China contributes to Africa regardless of regime type or government practices. Consequently, African leaders prefer the ease of Chinese aid over the conditionality of U.S. aid. Even Washington’s close allies in Africa such as Ethiopia, Kenya, Angola, Ghana, and South Africa selectively apply guidance from the United States to improve their human rights and governance practices because they can rely on China for support.11 Furthermore, Angolan journalist Rafael Marques indicates that Angola is encountering a reverse democratization process in which the government has revived a regime similar to Beijing’s one-party system but without China’s economic growth. This results in a system in which the African ruling elites maximize their profits, while allowing China to gain control of key economic assets through privatization.12 • Hinders U.S. efforts to combat terrorism. The Chinese contribute investment and aid to Africa regardless of regime type or willingness to cooperate with anti-terrorist operations. These contributions insulate African nations from U.S. pressure to cooperate on antiterrorism initiatives by offering an economic alternative. 13 For example, Chinese investment and aid to Sudan allows the government to ignore U.S. pressure that seeks to alter Khartoum’s support for radical groups. • Hinders U.S. efforts to combat narcotrafficking. The instability of African governments’ and their lack of resources makes the continent an inviting region of transit for narcotrafficking. The United States Senate Caucus on International Narcotics Control stated that, “Illicit activities surrounding the West African drug trade jeopardize U.S. goals in the region. The drug trade destabilizes governments and funds terrorist organizations, including Hezbollah and Al Qaeda in the Land of the Islamic Maghreb.”14 However, China indiscriminate invests in nations that are centers of drug trafficking, such as Ghana, insulates governments from U.S. pressure to combat narcotrafficking.15 Chinese Involvement Jeopardizes U.S. Access to Resources By building an economic relationship with Africa, China has gained significant control over African rare earth metals and other natural resources, compromising U.S. access to these resources. • Competition for rare earth metals. Rare earth metals are crucial for many defense applications such as “jet fighter engines, missile guidance systems, antimissile defense, and satellite and communication systems.”16 Rare earth metals also are essential for many products such as rechargeable batteries and medical devices.17 The PRC already controls 80 percent of the world’s output of rare earth metals, leaving the United States heavily dependent on imports of rare earth metals from China.18 Discovery of rare earth mineral deposits in Africa provide a possible long-term alternative to Chinese sources. 19 However, with China currently mining these deposits in Africa, Beijing is still in a key position to control access to these metals.20 China demonstrated its ability to capitalize on 4 this power in 2010 when it withheld rare earth metals from Japan over a maritime dispute.21 • Competition for African minerals. With its growth in industry, China competes with the United States for other resources in Africa. In 2012, 81 percent of U.S. imports from subSaharan Africa were mineral products, including oil and precious stones.22 Eighty percent of China’s imports from Africa also consist of mineral products.23 China threatens U.S. production capacity through its control over African resources. In some cases China maintains a strategic monopoly over these resources, with the potential of cutting off international access in times of conflict. In other cases, China is a major competitor of the United States for African resources. Chinese Influence Threatens the United States’ Power in Multilateral Bodies Growing Chinese influence in Africa increases the PRC’s power in international institutions. By building financial relationships, China cultivates a strong partner in many African nations. This relationship translates into African support for Beijing’s, rather than Washington’s, interests in multilateral bodies. With 54 member states, African nations form the largest regional group in the United Nations.24 The U.S Department of State believes that one of China’s three main objectives in providing aid to Africa is to increase China’s global reputation as a leader of the developing world.25 Current U.S. Policy in Africa The United States currently promotes its partnerships in Africa; however, growing Chinese involvement in Africa requires a more robust and coordinated response. General Promotion of U.S. Values in Africa The United States currently operates under a policy of minimal involvement in China’s relationship with Africa. Instead of entangling itself in China’s missteps, the United States focuses on improving its relationship with many African nations. • Promotes African business. The U.S. Department of State has a number of programs that promote the development of African business. Through the Bureau of African Affairs’ Office of Economic Policy’s Commercial Unit, the State Department provides specialized counseling on expanding business on the continent. The Department of Commerce also works to help U.S. investors and facilitate U.S.-African trade through their Trade Informational Center.26 • Builds capacity. One of the key components of the State Department’s efforts to build 5 indigenous capacity in Africa is the variety of education and leadership programs that it sponsors, such as the President’s Young African Leaders Initiative.27 The Global Peace Operations Initiative, for example, assists Africans in developing their own peacekeeping training.28 • Promotes African development. USAID engages in a variety of programs in Africa to assist African economic development. The agency assists African businesses by negotiating trade agreements with international economic partners and informing the African businesses of opportunities to increase these links with the United States.29 Programs like the U.S. Global Health Initiative create partnerships between U.S. and African governments and private organizations to promote health and wellness.30 USAID also provides monetary resources to help African governments democratize, reduce corruption, improve human rights practices, and quickly respond to humanitarian crises.31 An Emerging African Popular Backlash Against China Many U.S. policymakers view China’s increasing economic involvement in Africa as cause for concern. However, inadequacies in Beijing’s policy towards Africa have resulted in a backlash among Africans. Failure or Inadequacy of Current Chinese Policy Chinese projects in Africa have contributed to development; however they suffer from three main problems: • Hinders strong, transparent governance. China’s disregard for human rights and corruption enables authoritarian regimes such as those in Sudan, Libya, and Zimbabwe. Ambassador David Shinn notes that, “China gives its highest foreign policy priority to developing strong links with governments irrespective of the nature of the governing regime.”32 For example, Sudan is one of China’s crucial oil exporters in spite of its poor human rights record. China invited Omar al-Bashir, the President of Sudan and a war crimes suspect, to visit Beijing in 2011 to solidify friendly relations with China.33 This contrasts with the U.S. opposition to Sudan on the grounds of its indictment by the ICC.34 Additionally, Amnesty International condemned China’s acceptance of Bashir, stating that China risked becoming a “safe haven for alleged perpetrators of genocide.”35 • Enacts unfair labor practices. Beijing has brought its notoriously poor labor practices from China to Africa. Chinese involvement in Chad exemplifies the PRC’s exploitive practices. In September 2013, for example, China dumped excess crude oil into ditches south of Chad’s capital and then had Chadian workers to remove it without protection.36 Additionally, employees at Chinese-run copper mines in Zambia must work for two years before receiving safety helmets. Fatal accidents occur almost daily when this dangerous practice is combined with the poor ventilation of the mines. The Chinese avoid 6 condemnation for this practice by bribing union leaders.37 While the Chinese government has officially maintained that its businesses comply with local laws, violators are rarely forced to answer to Beijing. Yoon Jung Park, a ChinaAfrica researcher with Australia’s Monash University finds that the migrant Chinese living in Africa often fail to follow instructions from Beijing without significant repercussions.38 • Fails to build capacity. China hinders the development of African capabilities in three categories: 1. Neglecting African managerial capacity. Africans depend on Chinese workers to set up and manage aid projects. A Chinese researcher stated that in the case of Tanzania, “Once the Chinese side stopped ‘blood transfusion,’ the projects could not operate properly. Efficiency declined, machines became worn out, and finally the whole project became paralyzed.”39 Deborah Brautigam confirms that issues with Chinese projects in Africa forced the Chinese to commit to a long-term partnership. 40 Therefore, rather than building self-sufficient managerial capacity, China created a continent of economies dependent on its guidance for operation. 2. Undermining Africa’s industrial capacity. By importing cheaper Chinese goods, Beijing has damaged African industry and contributed to local unemployment. Between 2001 and 2010, South Africa lost 78,000 jobs to Chinese imports. Researcher Rhys Jenkins has stated that with Chinese imports, the African manufacturing sector expels rather than absorbs labor.41 Additionally, estimates of the number of Chinese migrant workers in Africa ranges from 270,000 to one million.42 These figures represent the number of Africans who lost their jobs to Chinese workers.43 3. Building poor quality infrastructure. The Chinese often build projects with poor infrastructure. For example, the Chinese Overseas Engineering Group Company spent $8 million (contrasted with the $80 million Portugal spent to construct a private clinic for the country) to build an 80,000 square hospital in Angola’s capital of Luanda. However, in June 2010 cracks in the building walls and disintegrating bricks forced the hospital to evacuate all staff and patients.44 Additionally, Angolan roads and the roofs of building built by China often deteriorate quickly.45 These are only a few of the many examples of China’s poor building practices. Signs of an Emerging Backlash As a result of Chinese practices, African resent of China has increased, manifesting in a variety of ways: • Leadership dissatisfaction. Many African elites have expressed displeasure with Chinese practices on the continent. Lamido Sanusi, governor of the Central Bank of Nigeria, 7 stated, “So China takes our primary goods and sells us manufactured ones. This was also the essence of colonialism.”46 In July of 2012, South African President Jacob Zuma also illustrated this attitude when he described his nation’s trade relationship with China as, “unsustainable in the long term.”47 Additionally, after leading a strike against Chinese company, New Era Investments, for breaching minimum wage agreements, General Secretary of the Metal and Allied Namibian Workers Union Bernard Milinga commented on the 418 workers that were fired as a result, “This is an unfair labor practice and the exploitation of worker of the highest order.”48 • Public opinion. China’s unfair labor practices and poor project quality have decreased African approval towards the Chinese. A Gallup poll based on data from 2006 to 2008 found that 73 percent of Sub-Saharan African countries approve of American leadership, while only 65 percent approve of Chinese leadership.49 • Unrest. Africans also have expressed their displeasure through vandalism, strikes, kidnapping, and even murder. 50 For example, on January 8, 2014, more than 200 Mozambican construction workers held a strike in January against alleged beatings by their Chinese employers, poor working conditions, and unfair payments. A worker reported, “These Chinese have no respect for the people. They insult us, beat and send us away when they want and for no reason.”51 Given the prevalence of Chinese involvement in Africa, the backlash that has emerged could potentially spread across the continent. Troubling Trajectory China’s practices have the potential to get worse—and the potential for an African backlash greater—with time. • Stagnated growth. China’s rate of economic growth has slowed. Chinese GDP growth fell from 9.3 percent in 2011 to 8.8 percent in 2012.52 Additionally, the growth of urban household income declined from 9.7 percent in early 2012 to 6.5 percent in the same period of 2013.53 China’s Development Research Council expects GDP growth to drop to six percent by 2020.54 Given the millions of rural Chinese moving to cities, the Chinese government has established 8 percent as the minimum annual growth rate necessary in order to mitigate unemployment and prevent domestic unrest.55 • Consequences for Africa. With this slower growth, at best, China’s extractive practices in Africa are unlikely to change and, at worst, may deteriorate as Beijing seeks higher rates of return from its investments on the continent. Thus China will increasingly exploit Africa as a source of profit to boost its slowing growth rate. At the same time, it will lessen its already minimal attention to labor practices, industrial capacity, and infrastructure quality on the continent. 8 As the Chinese economy’s rate of growth decreases, the likelihood of Chinese foreign malpractices increases. Chinese behavior will become more focused on profit and less concerned with supporting Africa. Therefore, the United States should expect resentment among the African people to grow. Championing U.S. Conditionality and Values Forward-thinking African leaders are seeking new investors, especially American investors. They like the fact that when American companies invest, they hire, train and promote local staff, they invest in the communities and they’re focused not just on taking resources out of the continent, but investing in the human resources of the continent as well. - Michael Froman, United States Trade Representative, 2013 The United States should adopt a two-pronged initiative to indirectly challenge China’s problematic economic practices in Africa and increase the appeal of U.S. development assistance. First, the United States should provide NGOs with grants to promote good development policies in Africa. Second, the United States should conduct a public relations campaign to advertise the responsible, sustainable practices of its own agencies. Together, these policies will draw attention to the wide gap between U.S. and Chinese economic activities in the region and engender more favorable attitudes towards the United States among the African public. • Grants program. The United States should offer grants to relevant NGOs to promote good development policies in Africa. These organizations could trumpet the need for foreign firms and development agencies to engage in responsible labor practices, respect human rights, build capacity, and construct sustainable infrastructure. While the United States already conducts similar activity with NGOs involved in Africa, Washington should scale up its existing programs to increase the impact of these initiatives. As awareness of good development practices grows, the African public is more likely to embrace the conduct of U.S. aid agencies—in particular the conditionality of American assistance. It is also likely that Chinese economic activities will face greater scrutiny and sharper criticism—building opposition to China’s presence in the region. Grants could be awarded to NGOs such as Global Hand, which teaches good business practices to disadvantaged individuals in order to encourage entrepreneurship and help them secure a stable income.56 Global Hand could use U.S. funds to encourage foreign firms and development agencies to invest in developing African-owned businesses. Another potential recipient is the Center for Democracy and Development, which researches challenges to the democratization and development of West Africa.57 The United States could offer the Center funds to investigate barriers to democratic development on the continent. This research could ultimately reveal how Chinese aid and investment are an obstacle to promoting good governance. There are a number of other NGOs that would be good candidates to receive similar grants from the United States. 9 Funding independent organizations to seek to improve development in Africa will benefit the United States in two ways. First, these NGOs will provide further evidence of the divergence between U.S. and Chinese practices. Second, reports from these organizations are more likely to be perceived as unbiased. As a result, they may build support among the Africans (and eventually African governments) for U.S. development agencies— perhaps at the expense of China. Beijing may object to this program. However, compared to a more aggressive U.S. policy—one that openly criticizes Chinese practices—this approach will likely have a minimal effect on Washington’s relationship with China. • Public diplomacy initiative. The United States should launch a campaign through the Department of State, in particular the office of the Under Secretary for Public Diplomacy and Public Affairs, that highlights the good development practices of U.S. agencies in Africa, including their commitment to constructing sustainable infrastructure, assisting management capacity, creating jobs, defending human rights, and supporting transparent, democratic governments. The Department of State can build on existing initiatives, such as a program in the Bureau of Public Affairs that connects local, regional, and national foreign media with Department of State officials to facilitate information sharing regarding U.S. foreign policy in Africa. Additionally, the Bureau of International Information Programs distributes information about current U.S. policies and values through social media and other websites to foreign audiences in order to increase transparency about American foreign policy.58 The Department of State should charge these programs with also highlighting U.S. development activities that deviate from Chinese practices. Washington should target this campaign at areas of Africa in which the Chinese are more heavily invested. The practices of U.S. development agencies abroad are in stark contrast with those of China. As the gap between American and Chinese values become more widely known, resentment towards the Chinese in Africa may increase. As Ambassador David Shinn observed, “The most serious tension over the short-term is likely to result from the different approach that China and the West have on human rights and democratization in Africa…The strength of the recent protests and calls for reform across North Africa has clearly given China reason for concern. Beijing’s silence is deafening.” 59 Thus, by advertising good U.S. development practices—and thereby implicitly critiquing Beijing’s malpractices—the United States can intensify the backlash among Africans against China. Some policymakers may fault this policy for failing to confront the Chinese directly regarding their questionable practices. However, a more aggressive policy would unnecessarily heighten tensions with Beijing. By adopting the policy recommended here, the United States can win over the African public, while eroding support for China— without provoking significant conflict with Beijing. This approach is also more consistent with U.S. values, by encouraging the African people to demand change. Thus, the United States should implement policies that will serve to foment wider public dissatisfaction with Chinese economic practices, encouraging African states to turn away from China and seek development assistance from Washington. 10 Conclusion The rise of China may undermine U.S. influence—how much is yet unknown. While, many U.S. policymakers worry that Beijing’s aid to and investment in countries in Africa threatens U.S. interests, China’s involvement in these countries creates an opportunity for Washington to shape this future. By hindering strong governance, enacting unfair labor practices, and failing to develop capacity in Africa, there is growing resentment towards China among many Africans, which will only increase with a downturn in the Chinese economy. To shift the allegiance of states currently partnering with China towards the United States, Washington should enact a twopronged initiative. It should offer grants to NGOs to promote responsible development policies and conduct a public relations campaign to advertise U.S. standards in foreign development. This initiative will encourage African states to replace Chinese aid and investment with development assistance from the United States and thus counter Chinese influence in Africa. This policy allows the United States to expand its influence even as China rises. 1 Doug Palmer, “U.S. losing ground to China on Africa trade, investment-sector says,” Reuters, March 7, 2013, http://206.132.6.105/article/angolaNews/idAFL1N0BZ7UH2013"0307 2 “China’s Growing Role in Africa- Implications for U.S. Policy.” All Africa, November 1, 2011. ProQuest. http://search.proquest.com/pais/docview/901494515/14335602C53312D50F/19?accountid=15053 3 As named by the College of William & Mary’s AidData database. See: “Frequently Asked Questions,” AidData. http://china.aiddata.org/content/frequently_asked_questions#how_much_aid_does_china_give_what_is_the_differe nce_between_odaoof 4 The OECD defines concessional as, “These are loans that are extended on terms substantially more generous than market loans. The concessionality is achieved either through interest rates below those available on the market or by grace periods, or a combination of these. Concessional loans typically have long grace periods.” “Concessional Loans,” OECD, August 27, 2003, http://stats.oecd.org/glossary/detail.asp?ID=5901 The World Bank defines a “grant element” as the measure of a loan’s concessionality, or, “the difference between the loan’s nominal value (face value) and the sum of the discounted future debt-service payments to be made by the borrower (present value), expressed as a percentage of the loan’s face value. Whenever the interest rate charged for a loan is lower than the discount rate, the present value of the debt is smaller than its face value, with the difference reflecting the (positive) grant element of the loan.” Grant Element Calculations,” International Development Association, 2012, http://www.worldbank.org/ida/grant-element-calculations.html. “Official Development Assistance-definition and coverage,” OECD, http://www.oecd.org/dac/stats/officialdevelopmentassistancedefinitionandcoverage.htm 5 “Other Official Flows,” OECD, June 11, 2013, https://stats.oecd.org/glossary/detail.asp?ID=1954 6 All three of these forms of aid constitute China’s aid to Africa. See: : “Frequently Asked Questions,” AidData, http://china.aiddata.org/content/frequently_asked_questions#how_much_aid_does_china_give_what_is_the_differe nce_between_odaoof 7 AidData has tried to capture the flows; however, without membership in OECD’s Creditor Reporting System, China lacks accountability and transparency. Therefore all of China’s aid contributions to Africa must be categorized as ODA-like or OOF-like, since they resemble that type of aid but lack official classifications. Additionally, the significant amount of “unspecified” contributions speaks to the lack of transparency by the Chinese government. By withholding information regarding the nature of their contributions, China demonstrates a model of opacity for African governments and prompting questions from the international community. See: “Stat Extracts,” OECD, http://stats.oecd.org/Index.aspx?datasetcode=CRS1 11 Peaks in Chinese aid to and investment in Africa correspond with the years in which the Forum on Chinese-African Cooperation held a conference. See: "Forum on China-Africa Cooperation," Ministry of Foreign Affairs, the People's Republic of China, 2014, http://www.focac.org/eng/ 8 Xiaofang Shen, “Private Chinese Investment in Africa: Myths and Realities,” The World Bank, January 2013, http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-6311 9 Gordon G. Chang, “America Versus China in Africa,” World Affairs, July 3, 2013, http://www.worldaffairsjournal.org/blog/gordon-g-chang/america-versus-china-africa 10 “China’s Growing Role in Africa- Implications for U.S. Policy,” All Africa, November 1, 2011, ProQuest. http://search.proquest.com/pais/docview/901494515/14335602C53312D50F/19?accountid=15053 11 China’s Growing Role in Africa: Implications for U.S. Policy: Hearing Before the Committee on Foreign Relations Subcommittee on African Affairs, Senate, 112th Cong. (statement of David Shinn, adjunct professor, Elliott School of International Affairs, Washington D.C.). http://www.foreign.senate.gov/imo/media/doc/David_Shinn_Testimony.pdf 12 Rafael Marques de Morais, “The New Imperialism: China in Angola,” World Affairs, March 2011. http://www.worldaffairsjournal.org/article/new-imperialism-china-angola 13 Another U.S. security threat on the African continent includes piracy. While China participates in anti-piracy operations in Somalia, Chinese aid also allows for piracy to thrive throughout West Africa. Beijing gives $28.5 million to Somalia while piracy continues to plague the nation. Somali pirates have abducted and commandeered western ships that they contact while Western African pirates more strategically target oil barges. After eliminating the crew, the pirates sell the oil on the black market. Sigurd Neubauer points out that, “Piracy and terrorism can also be used as a means to exert economic warfare against the United States and the international community as maritime attacks offer terrorists an alternative means of causing mass economic destabilization.” While China has attempted to counter piracy in Somalia, it has yet to prove its intentions in Western African piracy. Therefore, China demonstrates its self-interest driven foreign policy by cooperating to fight security threats only when it meets their interests. See: Daniel Fineran, “U.S., Chinese navies in joint anti-piracy drills off Somalia,” Reuters, September 18, 2012. http://www.reuters.com/article/2012/09/18/us-china-usa-piracy-idUSBRE88H0PY20120918 “AidData,” last modified April 4, 2014. http://china.aiddata.org/map Sigurd Neubauer, “Somalia: Terrorist-Piracy Nexus?,” The World Post, May 22, 2013. http://www.huffingtonpost.com/sigurd-neubauer/somalia-piracy_b_3320406.html 14 Eight Steps to Counter the Drug Trade in West Africa: United States Senate Caucus on International Narcotics Control, 133th Cong. (2013). http://www.feinstein.senate.gov/public/index.cfm/files/serve/?File_id=0a8afe8f-f0864585-96cc-78c14bf1cbed 15 “Africa and the Middle East,” U.S. Department of State, 2006. http://www.state.gov/documents/organization/62390.pdf 16 Marc Humphries, Rare Earth Elements: The Global Supply Chain, CRS Report R41347 (Congressional Research Service: December 16, 2013). http://www.fas.org/sgp/crs/natsec/R41347.pdf 17 Marc Humphries, Rare Earth Elements: The Global Supply Chain, CRS Report R41347 (Congressional Research Service: December 16, 2013). http://www.fas.org/sgp/crs/natsec/R41347.pdf 18 Chuin Wei Yap, “China Moves to Tighten Rare-Earths Control, Pave Way for Consolidation,” The Wall Street Journal, January 3, 2014. http://online.wsj.com/news/articles/SB10001424052702303870704579298810741503846 Marc Humphries, Rare Earth Elements: The Global Supply Chain, CRS Report R41347 (Congressional Research Service: December 16, 2013). http://www.fas.org/sgp/crs/natsec/R41347.pdf 19 Nicholas Jepson, “A 21st Century Scramble: South Africa, China and the Rare Earth Metals Industry, Governance of Africa’s Resources Programme, March 2012. http://www.eisourcebook.org/cms/June%202013/South%20Africa,%20China%20and%20the%20Rare%20Earth%2 0Metals%20Industry.pdf 20 Jon Herskovitz, “Analysis: Rare earth hunt leads to frontier Africa,” Reuters, March 4, 2011. http://www.reuters.com/article/2011/03/04/us-africa-rareearths-idUSTRE72319620110304 21 Marc Humphries, Rare Earth Elements: The Global Supply Chain, CRS Report R41347 (Congressional Research Service: December 16, 2013). http://www.fas.org/sgp/crs/natsec/R41347.pdf 22 "Africa," Office of the United States Trade Representative. http://www.ustr.gov/countries-regions/africa 12 23 "More than Minerals," The Economist, March 23, 2013. http://www.economist.com/news/middle-east-andafrica/21574012-chinese-trade-africa-keeps-growing-fears-neocolonialism-are-overdone-more 24 “Members of the General Assembly Are Arranged in Current Regional Groups,” accessed March 7, 2014. http://www.un.int/wcm/webdav/site/gmun/shared/documents/GA_regionalgrps_Web.pdf 25 U.S. Congress, Senate, Subcommittee on African Affairs of the Committee on Foreign Relations, 110th Congress, 2nd Session, China in Africa: Implications for U.S. Policy, June 24, 2008, 4. http://www.gpo.gov/fdsys/pkg/CHRG110shrg45811/pdf/CHRG-110shrg45811.pdf 26 “Investing in Sub-Saharan Africa,” U.S. Department of State. http://www.state.gov/p/af/rt/investing/index.htm Laws like the African Growth and Opportunity Act solidify this economic partnership. See: “African Growth and Opportunity Act (AGOA),” Office of the United States Trade Representative. http://www.ustr.gov/tradetopics/trade-development/preference-programs/african-growth-and-opportunity-act-agoa 27 “President’s Young African Leaders Initiative,” U.S. Department of State. http://www.state.gov/p/af/rt/pyali/index.htm 28 “Office of Plans and Initiatives,” U.S. Department of State. http://www.state.gov/t/pm/ppa/index.htm 29 “Trade Africa,” USAID, February 28, 2014. http://www.usaid.gov/tradeafrica 30 “Public-Private Partnership,” U.S. Global Health Initiative, August 23, 2013. http://www.ghi.gov/about/howWeWork/publicPrivate/index.html#.UytUW9xN1uY Additionally, the State Department funds government organizations such as the President’s Malaria Initiative to effectively target health threats in Africa. See: “Health Issues,” U.S. Department of State. http://www.state.gov/p/af/rt/health/index.htm 31 “Africa,” USAID, April 1, 2014. http://www.usaid.gov/where-we-work/africa 32 David H. Shinn, “The Impact of China’s Growing Influence in Africa,” The European Financial Review, April 15, 2011. http://www.europeanfinancialreview.com/?p=2806 33 “China bolsters economic ties with Sudan,” Al Jazeera, June 29, 2011. http://www.aljazeera.com/news/asiapacific/2011/06/201162952034878959.html 34 The ICC mandates that any member state should arrest Bashir if he visits their state. See: “China bolsters economic ties with Sudan,” Al Jazeera, June 29, 2011. http://www.aljazeera.com/news/asiapacific/2011/06/201162952034878959.html 35 “China bolsters economic ties with Sudan,” Al Jazeera, June 29, 2011. http://www.aljazeera.com/news/asiapacific/2011/06/201162952034878959.html 36 Adam Nossiter, “China Finds Resistance to Oil Deals in Africa,” The New York Times, September 17, 2013. http://www.nytimes.com/2013/09/18/world/africa/china-finds-resistance-to-oil-deals-in-africa.html?_r=2& 37 “The Chinese in Africa: Trying to pull together,” The Economist, April 20, 2011. http://www.economist.com/node/18586448 38 Ed Cropley and Michael Martina, “Insight: In Africa’s warm heart, a cold welcome for Chinese,” Reuters, September 18, 2012. http://www.reuters.com/article/2012/09/18/us-africa-china-pushbackidUSBRE88H0CR20120918 39 Deborah Brautigam, “Feeling the Stones,” in The Dragon’s Gift (New York: Oxford University Press, 2011), 59. 40 Deborah Brautigam, “Feeling the Stones,” in The Dragon’s Gift (New York: Oxford University Press, 2011), 59. 41 Ed Cropley and Michael Martina, “Insight: In Africa’s warm heart, a cold welcome for Chinese,” Reuters, September 18, 2012. http://www.reuters.com/article/2012/09/18/us-africa-china-pushbackidUSBRE88H0CR20120918 42 Emmanuel Ma Mung, “Chinese Migration and China’s Foreign Policy in Africa,” Johns Hopkins University, 2008. http://muse.jhu.edu/journals/journal_of_chinese_overseas/v004/4.1.mung.html Daniel Flynn, “Africa Investment-China brings goods and roads, now Africa wants jobs,” Reuters, July 21, 2013. http://www.reuters.com/article/2013/07/21/africa-china-idUSL6N0FI3TE20130721 43 The United States also exports goods into Africa. However, the United States exports mainly high-tech goods while African manufacturers specialize in low-tech goods. By exporting low-tech goods into Africa, China directly undermines African economies. See: "US high-tech companies ramping up exports: Survey," The Economic Times, 13 October 1, 2012, http://articles.economictimes.indiatimes.com/2012-10-01/news/34198225_1_export-growthexport-target-free-trade Abderlrasaq Nal and Mammo Muchie, "Industrial Upgrading in Sub-Saharan Africa: The Competitive Impact of China on Supplier Linkage Development Potentials of Resident Asian Entrepreneurs," University of Oxford, http://www3.qeh.ox.ac.uk/pdf/ptmd/SLPTMD-WP-034.pdf 44 Rafael Marques Morais, “The New Imperialism: China in Angola,” World Affairs, April 2011. http://www.worldaffairsjournal.org/article/new-imperialism-china-angola 45 Rafael Marques Morais, “The New Imperialism: China in Angola,” World Affairs, April 2011. http://www.worldaffairsjournal.org/article/new-imperialism-china-angola 46 Gordon G. Chang, “America Versus China in Africa,” World Affairs, July 3, 2013. http://www.worldaffairsjournal.org/blog/gordon-g-chang/america-versus-china-africa 47 Ed Cropley and Michael Martina, “Insight: In Africa’s warm heart, a cold welcome for Chinese,” Reuters, September 18, 2012. http://www.reuters.com/article/2012/09/18/us-africa-china-pushbackidUSBRE88H0CR20120918 48 Ellanie Smit, “Union not caving in to Chinese company,” Namibian Sun, August 15, 2011. http://sun.com.na/content/general/union-not-caving-chinese-company 49 Ian T. Brown and Tao Wu, “China and the U.S.: Competing for Political Influence,” Gallup, May 22, 2009. http://www.gallup.com/poll/118591/China-Competing-Political-Influence.aspx 50 For example, In November 2011, South Africans burnt four Chinese alive in an arson attack on their homes. Additionally, Anti-Chinese protests in June 2012 forced the Malawi government to reinstate an old law that confines foreign retailers to large cities. See: Ed Cropley and Michael Martina, “Insight: In Africa’s warm heart, a cold welcome for Chinese,” Reuters, September 18, 2012. http://www.reuters.com/article/2012/09/18/us-africa-chinapushback-idUSBRE88H0CR20120918 In January 2012, “Twenty-nine Chinese workers were kidnapped from their construction site in Sudan on Saturday… Allegedly the road being built by the Chinese would have helped the army bring weapons and supplies closer to the rebels.”50 See: Simon Allison, “China in Africa: the blowback beings,” Daily Maverick, February 1, 2012. http://www.dailymaverick.co.za/article/2012-02-01-china-in-africa-the-blowback-begins#.UuvcvGSVluJ This violence has escalated to include murder. In August 2012, Zambian miners used a coal truck to crush a Chinese supervisor to death as a result of a dispute over pay.50 See: Ed Cropley and Michael Martina, “Insight: In Africa’s warm heart, a cold welcome for Chinese,” Reuters, September 18, 2012. http://www.reuters.com/article/2012/09/18/us-africa-china-pushback-idUSBRE88H0CR20120918 In the same month Bedouins kidnapped 25 Chinese workers for the release of four of their imprisoned tribesmen. See: Simon Allison, “China in Africa: the blowback beings,” Daily Maverick, February 1, 2012. http://www.dailymaverick.co.za/article/2012-02-01-china-in-africa-the-blowback-begins#.UuvcvGSVluJ 51 “Mozambican workers strike, claim abuse by Chinese employers,” Modern Ghana, January 8, 2014. http://www.modernghana.com/news/512703/1/mozambican-workers-strike-claim-abuse-by-chinese-e.html 52 Garry White, “China’s domestic over-capacity and stagnating global demand point to hard landing,” The Telegraph, January 2, 2012. http://www.telegraph.co.uk/finance/commodities/8987951/Chinas-domestic-overcapacity-and-stagnating-global-demand-point-to-hard-landing.html 53 Rob Schmitz, “China’s lopsided, slowing economy,” Los Angeles Times, October 22, 2013. http://articles.latimes.com/2013/oct/22/opinion/la-oe-schmitz-china-consumers-economy-20131022 54 Ambrose Evans-Pritchard, “China may not overtake America this century after all,” The Telegraph, May 8, 2013. http://www.telegraph.co.uk/finance/comment/10044456/China-may-not-overtake-America-this-century-afterall.html 55 "Reflating the dragon," The Economist, November 13, 2008. http://www.economist.com/node/12606998 56 In one project, Global Hand teaches Rwandan women basic business skills and allows them to sell homemade products on Internet retail websites in order to provide them with a stable income. “Global Hand,” last modified 2014, http://www.globalhand.org/en/organisations/34724 57 Centre for Democracy and Development,” last modified 2014, http://www.cddwestafrica.org/index.php/en/aboutcdd/cdd-core Finally, Green Africa creates community-based projects on the continent that teach the Africans practices intended to improve capacity and environmental sustainability. The United States would offer grants to this NGO to reveal 14 Chinese inadequacy in building African capacity and environmental sustainability. See: “Green Africa Foundation,” last modified 2014, http://www.greenafricafoundation.org 58 http://www.allgov.com/departments/department-of-state/bureau-of-international-informationprograms?agencyid=7188 59 David H. Shinn, “The Impact of China’s Growing Influence in Africa,” The European Financial Review, April 15, 2011. http://www.europeanfinancialreview.com/?p=2806 15
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