Forum Views ()
Forum Replies ()
Read more with google mobile :
China business in Africa breaking free of Beijing
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Singapore
Asia Pacific
World
China business in Africa breaking free of Beijing
AFP - Sunday, December 12
Send
IM Story
Print
China business in Africa breaking free of Beijing
Slideshow: Full Photo Coverage: Business & Economy
JOHANNESBURG (AFP) - – Chinese businesses are enjoying increased autonomy and economic freedom to invest in Africa, analysts say, challenging diplomatic perceptions that Beijing is playing puppet master on the continent.
With China's role in Africa the subject of considerable tension with the United States, the reality, according to financial experts, is that the sheer scale of Chinese interests makes overarching control impossible.
"To assume that everyone in Beijing is on the same page is incorrect," said Martyn Davies, chief executive of Frontier Advisory in Johannesburg, an investment firm specialising in emerging markets.
"That somehow there's this grand strategic plan and everyone is directed like pieces on a chessboard, as is often characterised, is not entirely the case."
Chinese capital has poured into countries including Nigeria, Angola, Zambia and South Africa at an intrepid pace over the past decade to capture the continent's natural resources and fuel its booming economy back home.
Bilateral trade rose to 106.8 billion dollars (80 billion euros) in 2008 from 10.6 billion dollars in 2000, at an annual growth rate of more than 30 percent. Beijing claims trade will again top 100 billion dollars in 2010.
"Chinese oil companies have especially significant freedom to operate -- indeed they can sell to the spot market," said Alex Vines, head of the Africa Programme for Chatham House.
"Chinese construction companies are different, but there are so many of them, the government has difficulty keeping track of them outside China."
China's thirst for commodities is matched by Africas need for electricity, roads and clean water.
According to the World Bank, Africa requires 93 billion dollars a year in infrastructure investment over the next 10 years to ensure its people have access to basic services, making Chinese efficiency attractive to governments.
The result has seen China dole out cheap money to state-owned companies to secure mining rights and infrastructure projects in Africa, outmanoeuvering Western states and local competition.
A diplomatic cable published by the whistleblowing website Wikileaks this week indicated that the United States in particular is irked by China's Africa policy.
The message quoted a senior US official in Nigeria describing China as "a very aggressive and pernicious economic competitor with no morals."
However, many analysts believe Beijing is playing an enabling rather than controlling role, enticing Chinese businesses into Africa through financial perks, without the need to maintain direct links on the ground.
Chinese and African banks have formed joint ventures and other arrangements to stimulate trade.
In 2007, the Industrial and Commercial Bank of China purchased a 20-percent stake in South Africa's Standard Bank for 5.6 billion dollars in cash, at that time the largest foreign direct investment in Africa.
"Chinese firms are not relying solely on Chinese finance to do the kind of business that they're involved in," said Chris Alden, an Africa expert at the London School of Economics.
"They're bidding for and increasingly getting tenders, World Bank tenders or other public tenders ... that are not linked with Chinese financial incentives or interests."
Beijing also arranges contracts where commodities such as oil and minerals are exchanged for infrastructure, something the United States and other Western states have not traditionally done.
Chinese Vice-President Xi Jinping, tipped as the next leader of the communist state, last month spent a week in South Africa, Angola and Botswana lining up such deals.
And as Chinese goods, such as textiles and electricals, perforate African retail markets and trade becomes less commodity-driven, uncovering a Beijing master plan grows increasingly tricky.
"I've got 15 people in the room there who are on the sharp end of Chinese sovereign wealth investment in Africa," said Davies, who broke from a recent bilateral business seminar to speak with AFP.
"They're not these sinister, human rights disregarding, environmentally destructive sort of investors like people make them out to be -- just quite the opposite."
Recommend
Send
IM Story
Print
Related Articles
BAY STREET-Potash juniors may fail to find their pots of gold Reuters - 31 minutes ago
MIDEAST STOCKS-Property, banks lift Egypt; Dubai falls again Reuters - 42 minutes ago
ACS says welcomes offer for talks with Hochtief Reuters - 45 minutes ago
US-BUSINESS Summary Reuters - 1 hour 5 minutes ago
Dubai ruler names Sheikh Ahmed Dubai World chairman Reuters - 1 hour 5 minutes ago
News Search
Top Stories
Gbagbo accuses foreign powers of wooing I.Coast army
UK rioters 'made contact' with duchess in fees protest
Three dead in Bangladesh garment wage protests
China's leaders pledge stable economic growth
US colleges set ice hockey attendance record
More Top Stories »
Related Full Coverage
Free TradeFree Trade
All Full Coverage »
ADVERTISEMENT
Most Popular
Most Viewed
Most Recommended
Russia's Putin sings Armstrong for Hollywood stars
Amanda Knox breaks down in Italy sex-murder trial
Madoff son found dead of apparent suicide
City near Premiership summit as Newcastle beat Liverpool
Madoff 'soul mate', others sued for 19 bln dollars
More Most Viewed »
NASA finds new form of life... on Earth
US, S.Korea plan war games after N.Korean attack
Defiant Obama defends tax cuts, eyes 2012
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo!
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Entertainment
Photos
Yahoo! News Network
Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Sunday, 12 December 2010 Leaks show strength of Egyptian positions
Two blasts kill one man in Swedish capital
|
WikiLeaks supporters' group abandons cyber attacks
OPEC 'comfortable' with oil price surge
Iraqi Kurd leader says Kirkuk belongs to Kurdistan
Bayern up to fifth, Schweinsteiger extends deal
Roadside bomb attack kills 15 in Afghanistan
Madoff son found dead of apparent suicide
Ten dead as H1N1 flu returns to Britain
|
Iraq Kurd leader seeks right to self-determination
Dutch arrest man for attack on prosecutor's website
|
Sudan vote opponents spread confusion
NATO: 25 Afghan insurgents killed in the east
Haiti presidential candidates reject vote recheck
|
Japan calls for end to Israeli settlements
Roadside bomb kills 15 civilians in Afghanistan
Australia FM: time running out on peace process
Car bomb near Afghan police HQ; 6 wounded
N.Korea sends minister to Russia amid tensions
Tonnes of debris fished from Chinese dam
Japan dominate judo Grand Slam first day
Scandal-hit Indian politician pledges cooperation
China inflation rises at fastest pace in two years
U.S. diplomat Richard Holbrooke in critical condition
King of Pop photos up for auction in Paris
Obama 'must talk to Afghan Taliban'
Turkmenistan holds summit for key TAPI pipeline
Germany, India push for huge increase in trade
Dutch arrest man for attack on prosecutor's website
|
Jailed Afghan drug lord was CIA informant: report
Twin 'terrorist' blasts in Stockholm kill one
Sweden calls Stockholm blasts terrorist attack
|
WikiLeaks backlash all bark, no bite: experts
Israeli troops kill two Gaza militants
US colleges set ice hockey attendance record
Global demos in support of jailed WikiLeaks chief
One dead in Sweden blasts
Drug shootout mars religious festival in Mexico
|
NATO: Troops kill Taliban operative in Afghanistan
Kuwait boosts stake in French nuclear giant Areva
OPEC leaves oil quotas unchanged, seeing economic 'risks'
Dutch police arrest second teenager for hacking
Nations set up global climate fund
South Korea to stage firing drills off coasts
|
US-TECH Summary
'I will survive', says Berlusconi, condemning 'lies'
Violence rises ahead of US review of Afghan war
Kosovo starts voting, some Serbs boycott election
|
City near Premiership summit as Newcastle beat Liverpool
Dutch arrest man for attack on prosecutor's website
Russian football fans run riot in Moscow protest
Bulgaria, Greece push for timeline for Balkans' EU bids
Amanda Knox breaks down in Italy sex-murder trial
U.S. intel hub to counter Islamism in Spain: cable
|
US envoy Holbrooke in 'critical' condition
U.S. diplomat Richard Holbrooke in critical condition
Malaysia's 14-year-old bride defends marriage
S.Korea to continue live-fire drill off all coasts
Venezuela opponents wary of Chavez decree powers
|
Global climate fund established at Cancun talks
World's best in horse racing set to go in Hong Kong
Climate talks end with modest steps, no Kyoto deal
|
Indonesians 'in need to diversify diets'
Japan's robot suit to bring hope to the disabled
Fickle weather worries French wine growers
US, N.Zealand secretly resume intelligence ties: report
Facebook, Twitter: new roadmap for high-end travel
Japan, Arab nations see expanding economic ties: League
Fireworks blast in east China kills 8, injures 6
Foreign-language films make inroads in India
Japan says gained understanding on climate
Apartheid icon Makeba honoured at MTV Africa awards
Asian champions Seongnam set-up Inter clash
Activists target Dutch website after boy arrested
|
Car bomb kills 13 and wounds dozens in Iraq's Ramadi
Authorities probe Swiss Post over Assange bank account
Prominent Iranian journalist 'jailed for 16 months'
U.S. pastor who threatened to burn Koran plans British visit
|
Russia kills three in N.Caucasus raid: official
Gbagbo accuses foreign powers of wooing I.Coast army
Three dead in Bangladesh garment wage protests
Attack kills six foreign troops in Afghanistan
|
Six police among 13 killed in Iraq suicide attacks
2010 -- the year tablet computers came of age
China's leaders pledge stable economic growth
Six soldiers die in Afghanistan attack: ISAF
Car bomb kills 13 and wounds dozens in Iraq's Ramadi
|
6 police among 8 killed in Iraq suicide attack
Venezuelan missile purchases worried U.S.: WikiLeaks
|
6 NATO troops killed in attack in Afghanistan
Bangladesh police break up workers protests: three dead
|
NATO: Troops kill Taliban operative in Afghanistan
Gbagbo ally accuses West of wooing Ivorian military
|
Egyptians protest parliamentary vote results
|
Weather Service warns of 8-state Midwest blizzard
Taiwan to OK three billion dlr China plant: report
Suu Kyi to 'persevere' for dialogue with junta
One small town's battle for tolerance
China business in Africa breaking free of Beijing
Bluefin tuna catches to be reduced in Pacific: reports
Police: Remains found believed to be missing girl
Black porn causes a stir in South Africa
Toyota yet to outrun recall crisis, say analysts
China's leaders pledge stable economic growth
Elizabeth Edwards remembered for her wit, resolve
India microlenders facing crisis, warns industry
Yongpyeong ready for ski festival
American lawmakers press China ahead of talks
Free red shirts face more poverty
Lawmakers, govt staff poised for pay hikes
Games powered by love
Korea-U.S. FTA may aid EU, Japanese firms
2010 -- the year tablet computers came of age
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights