Anshan_ChinaandAfrica
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collaboration by burnishing its credentials as a reliable player in the international commercial satellite market.53 Additionally, China has recently sent oil expert and engineer Wang Qiming of Daqin to Sudan to provide African engineers with new technology that assists with the best-use practices RI\ufffdVHHPLQJO\\ufffdH[KDXVWHG\ufffdRLO\ufffdÀHOGV\ufffd54 Summit Diplomacy China\u2019s core Africa policy principles have been elucidated by China\u2019s lead- ers.55\ufffd&KDLUPDQ\ufffd0DR\ufffd\ufffdZKLOH\ufffdPHHWLQJ\ufffdZLWK\ufffd$VLDQ\ufffdDQG\ufffd$IULFDQ\ufffdYLVLWRUV\ufffdIRU\ufffdWKH\ufffdÀUVW\ufffd China Security Vol. 3 No. 3 Summer 2007 Li Anshan China is bringing science and technology to Africa. 79 time in 1964, declared them close friends.56 Despite changes in leadership and a transformation of political outlooks, President Hu Jintao, in reinforcing China\u2019s position in 2006, stated that \u201cChina and Africa are good friends, good partners and good brothers.\u201d57 0DMRU\ufffdPHHWLQJV\ufffdRU\ufffd´VXPPLW\ufffdGLSORPDF\µ\ufffdEHWZHHQ\ufffd&KLQHVH\ufffdDQG\ufffd$IULFDQ\ufffdKHDGV\ufffd of state also clearly reveal China\u2019s core policy principles. Since the 1960s, these meetings have been a key way to establish direct communication at the highest OHYHOV\ufffd RI\ufffd JRYHUQPHQW\ufffd DQG\ufffd VHW\ufffd WKH\ufffd WRQH\ufffd RI\ufffd UHODWLRQV\ufffd DQG\ufffdELODWHUDO\ufffd SROLFLHV\ufffd\ufffd7KH\\ufffd have created mutual trust between heads of state and demonstrated mutual re- spect between China and African countries. As early as 1963-64, Premier Zhou\u2019s visits to Africa impacted the structure of international relations as China won the friendship of many African nations, expanding its diplomatic reach.58\ufffd7KURXJK- out China\u2019s policy shifts in Africa in the 1980s, the Chinese Premier initiated more visits to Africa, designed to reassure Africa of China\u2019s committed friendship despite China\u2019s burgeoning growth and new business partnerships with previ- ous ideological competitors. China stated publicly, \u201cwe will not forget old friends when making new friends, or forget poor friends when making rich friends.\u201d59 ,PSRUWDQWO\\ufffd\ufffdVXPPLW\ufffdGLSORPDF\\ufffdKDV\ufffdVRXJKW\ufffdWR\ufffdLQVWLOO\ufffdFRQÀGHQFH\ufffdLQ\ufffdWKH\ufffdFRQVLV- tent application of these principles to Sino-African relations. Reinforcing Sino- African cooperation on the basis of equality has become a tradition in Chinese diplomacy. While the West largely neglected Africa after the Cold War, China\u2019s IRUHLJQ\ufffdPLQLVWHU\ufffdPDGH\ufffdKLV\ufffdYLVLWV\ufffdWR\ufffd$IULFDQ\ufffdQDWLRQV\ufffdWKH\ufffdÀUVW\ufffdRIÀFLDO\ufffdVWRS\ufffdDEURDG\ufffd in every year from 1991 to 2007.60\ufffd7KHVH\ufffdYLVLWV\ufffdKDYH\ufffdEHHQ\ufffdERWK\ufffdV\PEROLF\ufffdDQG\ufffdUHDO\ufffd gestures of China\u2019s respect for Africa. Since the turn of the 21st century, two-way visits have dramatically increased.61\ufffd 7KH\ufffd )RUXP\ufffd RQ\ufffd &KLQD\ufffd$IULFD\ufffd &RRSHUDWLRQ\ufffd (FOCAC) has also been established, which in addition to its ambitious plans for Sino-African cooperation, provides a mechanism for routine meetings between Chinese and African heads of state. Challenges and Risks While Africa has been transformed by China\u2019s growing presence on the con- China Security Vol. 3 No. 3 Summer 2007 Policy and Challenges 80 WLQHQW\ufffd\ufffdFRQÁLFW\ufffdKDV\ufffdDOVR\ufffdVXUIDFHG\ufffdZLWK\ufffdH[SDQGLQJ\ufffdLQWHUDFWLRQ\ufffd\ufffdSDUWLFXODUO\\ufffdZLWK\ufffd labor practices and market strategies, competing commercial and national inter- ests, competition from Western players already established on the continent and striking a sustainable balance between industry and the environment China has recognized these challenges and is searching for the most tenable solutions. Labor Practices and Markets Strategies :LWK\ufffd&KLQHVH\ufffdEXVLQHVVHV\ufffdDQG\ufffdPDQXIDFWXUHG\ufffdJRRGV\ufffdÁRZLQJ\ufffdLQWR\ufffd$IULFD\ufffd\ufffdFRQÁLFW\ufffd over differing labor practices and market strategies has arisen between Chinese and African enterprises. Chinese entrepreneurs rarely employ local workers in Africa.62 Rather, they are accustomed to bringing laborers from China and most PDQDJHPHQW\ufffd SRVLWLRQV\ufffd DUH\ufffd ÀOOHG\ufffd E\\ufffd&KLQHVH\ufffd nationals. From an economic perspective, it is PRUH\ufffdHIÀFLHQW\ufffdDQG\ufffdFRQYHQLHQW\ufffdIRU\ufffd&KLQHVH\ufffdHQ- trepreneurs to recruit skilled workers in Chi- QD\ufffdWKDQ\ufffdWR\ufffdWUDLQ\ufffdORFDO\ufffdZRUNHUV\ufffd\ufffd7KH\ufffdIRUPHU\ufffdDUH\ufffd often more familiar with the technologies and face fewer language and cultural obstacles in communication with management. Chinese laborers abroad are also more compliant to the demanding labor practices Chinese managers insist upon, and are accustomed to working longer hours, working during local holidays and working overtime on weekends.63 Employing African workers entangles Chinese enterprises in local laws to a higher degree than employing Chinese nationals. 7KHUH\ufffdLV\ufffdQR\ufffdGRXEW\ufffdWKDW\ufffdWKHVH\ufffdIDFWRUV\ufffdKDYH\ufffdD\ufffdGUDPDWLF\ufffdHIIHFW\ufffdRQ\ufffdHIÀFLHQF\\ufffd\ufffd Chinese company practices also lead to discontent among the communities in which these enterprises operate, who perceive that Chinese companies are not contributing enough to local economies and employment.64 However, China\u2019s participation in African markets does help to improve the situation of African communities. Furthermore, as the role of Chinese enterprises shifts in Africa, the opportunity to contribute more to African society will emerge. In the past, Chi- QHVH\ufffdHQWHUSULVHV\ufffdZHUH\ufffdHQJDJHG\ufffdLQ\ufffdÀQLWH\ufffd\ufffdVKRUW\ufffdWHUP\ufffdLQIUDVWUXFWXUDO\ufffd´DLG\ufffdSURMHFWV\ufffdµ\ufffd +RZHYHU\ufffd\ufffdSURÀW\ufffdGULYHQ\ufffd&KLQHVH\ufffdEXVLQHVVHV\ufffdDUH\ufffd LQFUHDVLQJO\\ufffdHVWDEOLVKLQJ\ufffdWKHP- China Security Vol. 3 No. 3 Summer 2007 Li Anshan 81 Employing African workers entangles Chinese enterprises in local laws. selves in African countries, with longer-term prospects. While for the moment VXFK\ufffdHQWHUSULVHV\ufffdKLUH\ufffd&KLQHVH\ufffdZRUNHUV\ufffdGXH\ufffdWR\ufffdWKH\ufffdVKRUW\ufffdWHUP\ufffdEHQHÀWV\ufffdWKH\\ufffdSUR- vide, as Chinese business continue to expand in Africa, they will shift towards JUHDWHU\ufffdORFDOL]DWLRQ\ufffdRI\ufffdWKHLU\ufffdSUDFWLFHV\ufffd\ufffd7KLV\ufffdFKDQJH\ufffdKDV\ufffdWKH\ufffdSRWHQWLDO\ufffdWR\ufffdHYHQWXDOO\\ufffd lower production costs and build a virtuous cycle of increased investment by &KLQHVH\ufffdFRPSDQLHV\ufffdDQG\ufffdEHQHÀWV\ufffdWR\ufffdWKH\ufffdORFDO\ufffdFRPPXQLW\\ufffd65 $QRWKHU\ufffdVRXUFH\ufffdRI\ufffdFRQÁLFW\ufffdDULVHV\ufffd IURP\ufffdWKH\ufffdVXFFHVV\ufffdRI\ufffd&KLQHVH\ufffdJRRGV\ufffd LQ\ufffd$IUL- can markets, which are often better quality and cheaper than local products. While African consumers are happy, parallel domestic industries (especially WH[WLOH\ufffdLQGXVWULHV\ufffd\ufffdVXIIHU\ufffdDV\ufffdD\ufffdUHVXOW\ufffd\ufffd7KLV\ufffdFRQÁLFW\ufffdLV\ufffdHYLGHQFHG\ufffdWKURXJK\ufffdWZR\ufffdPDVV\ufffd demonstrations in Dakar, one in support of Chinese merchants, the other in op- position.66 Similar protests have occurred in South Africa. However tensions dissipated when Sino-South African government discussions over the issue led China to unilaterally impose quotas upon its textile exports in order to allow the South African producers time to make their products competitive. Solving these VLWXDWLRQV\ufffdKDV\ufffdEHHQ\ufffdGLIÀFXOW\ufffdEXW\ufffdLQFOXGHV\ufffd\ufffdLQ\ufffdWKH\ufffdÀUVW\ufffdSODFH\ufffd\ufffdFRQVXOWDWLRQ\ufffdEHWZHHQ\ufffd the governments of both sides.67 In this regard, routine multilateral talks between China and Africa have the potential to play an important role, as the two sides FDQ\ufffdUDSLGO\\ufffdIDFLOLWDWH\ufffdFRPPXQLFDWLRQ\ufffdEHWZHHQ\ufffdWKH\ufffdFRQÁLFWLQJ\ufffdSDUWLHV\ufffd\ufffdUHDFK\ufffdDQ\ufffd understanding and diffuse trade frictions before they escalate any further. In ad- dition, China\u2019s willingness to export technologies to Africa will also help local industries to gradually raise the quantity and quality of production. Chinese National vs. Corporate Interests 7KH\ufffdUHDOLW\\ufffdLV\ufffdWKDW\ufffdWKH\ufffdLQWHUHVWV\ufffdRI\ufffd&KLQHVH\ufffdFRUSRUDWLRQV\ufffdRSHUDWLQJ\ufffdLQ\ufffd$IULFD\ufffdOLH\ufffd in maximizing short-term economic gains, while Chinese national interests are more long term and focus on the overall relationship between China and Africa. 7DNH\ufffdWKH\ufffdRLO\ufffdLQGXVWU\\ufffdDV\ufffdDQ\ufffdH[DPSOH\ufffd\ufffd7KH\ufffdPDLQ\ufffdSXUSRVH\ufffdRI\ufffd&KLQHVH\ufffdWUDQVQDWLRQDO\ufffd RLO\ufffdHQWHUSULVHV\ufffdLQ\ufffd$IULFD\ufffdLV\ufffdWR\ufffdPDNH\ufffdSURÀWV\ufffd\ufffdZKLFK\ufffdLQ\ufffdWKLV\ufffdFDVH\ufffdPHDQV\ufffdRIWHQ\ufffdVHOO- ing processed oil back to the country of origin or another country wishing to SXUFKDVH\ufffd LW\ufffd\ufffd UDWKHU\ufffdWKDQ\ufffdEDFN\ufffdWR\ufffd&KLQD\ufffd\ufffd ,Q\ufffd\ufffd\ufffd\ufffd\ufffd\ufffd\ufffdWKH\ufffd6XGDQ\ufffdSURMHFW\ufffdXQGHUWDNHQ\ufffd by China National Petroleum Corporation (CNPC) began producing oil with China Security Vol. 3 No. 3 Summer 2007 Policy and Challenges 82 DQ\ufffdDQQXDO\ufffdFUXGH\ufffdSURGXFWLRQ\ufffdÀJXUH\ufffdRYHU\ufffd\ufffd\ufffdPLOOLRQ\ufffdWRQV\ufffd\ufffd+RZHYHU\ufffd\ufffdRQO\\ufffd\ufffd\ufffd\ufffd\ufffd\ufffd\ufffd\ufffd\ufffd tons were imported to China.68 Although CNPC is a state holding company, its SXUVXLW\ufffdRI\ufffdSURÀW\ufffd LV\ufffdQRW\ufffdQHFHVVDULO\\ufffdFRLQFLGHQW\ufffdZLWK\ufffd&KLQD·V\ufffdSXUVXLW\ufffdRI\ufffdQDWLRQDO\ufffd