Africa and China working towards a common gold

Fatal Transactions introduction

What then is the issue of the Chinese in Africa?

What to think?

Fatal Transactions introduction
As Fatal Transactions has been focusing on the role of natural resources in conflict and post conflict in African states, new emerging economies have entered the scene. One of them, and probably the most (in)famous, is China. The public as well as the political debate about breaking the link between natural resource exploitation and conflict, is innately connected to the question how to approach the “new” Chinese investors at the African continent.

If we want to address the matter of the Chinese presence at the African continent we need to inform ourselves on the rationale and motives behind the Chinese African policy. Moreover, we need to seriously involve African society and governments into the discussion when setting the standards for investment.

Fatal Transactions is committing itself to finding answers and investigating the Chinese involvement in the natural resources and conflict debate. To start, FT has drafted a web dossier with some facts, figures and background. This dossier will be updated frequently, and new papers and research will be added regularly.

What then is the issue of the Chinese in Africa?
Take for example the Democratic Republic of Congo. In the DR Congo alone, China has promised a five billion USD loan to build roads, railways, hospitals and universities. In exchange, the Chinese get free access to minerals like copper and cobalt, which they use in their production of rechargeable batteries for mobile telephones, MP3-players and laptops.
Just recently the Belgium Minister of Foreign Affairs, Karel de Gucht, visited the DRC. During his visit president Joseph Kabila openly confronted him with the Chinese investors in the DRC and, according to the president, competition the Belgians were facing. Kabila was portraying the situation as if Congo has a new choice: Either doing business with the Belgians and constantly be monitored and controlled on good governance and transparency. Or trade with the Chinese, who do not ask any questions but follow up on their promises in building infrastructure and lend money for developing the natural resource sector.
At least, that is the leading image of the Chinese among African leaders.

What to think?
This image does not only exist on the African continent. The general idea in Europe is comparable. But it’s complemented with the idea that China is feeding its’ great need for natural resources in Africa without any moral inhibitions and violating human rights along the way. But is that true? What are the actual Chinese motives? Are they really insensitive towards human rights and potential conflict? And are the Chinese acting essentially different from the western companies and investors? Is there a real difference between a Chinese and a European entrepreneur?
The challenge ahead is how to react to this new powerful actor on the African continent. Is it, like Kabila suggested a new choice that African leaders have? And if so, on what grounds are these choices to be made? Or are there other possibilities towards a common policy? A policy, drafted mainly by African governments in cooperation with their civil society, to safeguard the revenues Africans are entitled to. A policy that goes for all interested investors and companies. In the end it is the Africans who are holding the resource card.
This web dossier is a first attempt to present some basic facts on China in Africa and give some suggestions for further reading.