Today, the African Union celebrated the official opening of
its new building in Addis Ababa, Ethiopia. While a building’s grand opening may
not usually make world-wide news, its unique creation has raised some interest.
The 100 meter, $200 million, building was funded entirely by China – even most
of the furnishings and materials were paid for and imported by China. Functioning as the headquarters and
conference center for African heads of state, this has served as the most obvious
example of China’s increasing influence on the African continent; the center is
being called “a reflection of new Africa” by the AU chairman, Teodoro Obiang
Nguema. Chinese firms have also built
roads and outsourced car manufacturing
to Ethiopia.
The AU has been very positive about the investment and both
Chinese and Ethiopian citizens have benefited from the increased availability
of jobs through its construction. Overall, trade between Africa and China has
increased by more than six times in the last ten years - to $120bn in 2011.
This article reminded me of the discussion we had in class about
China’s role in the world economy. While China’s GDP growth may slow as it “catches
up” to the United States, I believe that this investment demonstrates the
potential of an economic alliance between China and African nations. It makes
sense as the demand for natural resources increases globally and it becomes
easier to outsource manufacturing. I expect to see this relationship develop
further in the coming years.
http://www.bbc.co.uk/news/world-africa-16770932
5 comments:
The article states how other nations give aid to Africa with certain conditions attached while China has kept its relationship with Africa strictly business. I think this will be quite advantageous for Africa as this business relationship will go a long way in building a sustainable economy which can generate its own income without having to rely on aid.
It's ironic that a non-liberal political system (communism) is funding the headquarters of an international organization that is built based on liberal ideals ( these ideals include democracies, transparency, open markets, free trade) influenced from the United States.
China's investment in Africa is certainly long term and quite risky. Benefits from this investment (and others) will only come if African nations become stable. Iqbal - the Chinese philosophy will only some African nations and leave the others hanging dry. But maybe this is needed to give hope to those who are impoverished and encourage migration.
I find it funny how in the article it mentions that the trade relations between Africa and China have been increasing steadily over the past decade. It could be because I'm ignorant and don't watch the news or pay attention to African relations, but I haven't heard of these relations ever. The article even said that the the building normally wouldn't be world news worthy, but because the relationship has been so positive, it now is. If I were one of those American skeptics I would say that China is slowly trying to colonize Africa by building these relations, but thankfully I'm not.
I do like how China is reaching out to Africa though, it shows that China is moving away from a communist method of government and actually improving relations with other countries. Most regions of Africa are in need of this kind of aid, it's good for China to be the ones to donate the building and amend for some of their murky past in terms of human rights violations.
I am very intrigued by China's and Africa's strictly business relationship; both countries are ruled by power and money. China may be planting a seed in the developing/struggling Africa. Gaining power over Africa’s natural resources and political figures can have very dramatic affects on global power. I'm sure China isn’t blind to this but also they may not be strictly motivated by it ether. I just think a close eye has to be kept on the relationship. There is nothing wrong with assisting lesser off countries, as long as it’s done with the right intentions.
I'll be intrigued to see how this business relationship continues to develop. I think that the African Union HQ funded by China is an impressive symbol reflecting their current relationship. Much of the funding received by African countries from the U.S. is considered Structural Adjustment Program funding or funding through SAPs. The funding is conditioned to follow certain policy tracks supported by the U.S. China has been much more free and flexible with the projects that their funding goes to. A significant factor in considering future investment partners in Africa.
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