China’s FDI in Africa

---Does It Create Development or Dependency for Africa?

Master Degree Candidate：Song Han

Supervisor：Peer Moeller Christensen

Aalborg University

S T A N D A R D F R O N T P A G ES T A N D A R D F R O N T P A G EF O RF O R

E X A M I N A T I O N P A P E R SE X A M I N A T I O N P A P E R S

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Abstract

The thesis is designed to figure out the influence of China’s FDI in Africa. As

China dramatically expands its investment in Africa, there emerge some voices

suspecting China of its motives and defining its presence in Africa as a new scramble

for Africa’s energy resources. Questions arise if China’s investment generates

economic development or dependency for Africa. The thesis will answer the question

based on two theories: dependency theory and soft power theory.

The thesis is made up of six chapters. In the first chapter, the background

knowledge is presented, briefly showing the history of Sino-African diplomatic

relations and the development of Sino-African trade after the establishment of New

China; the problem formulation is also given herein, explaining why the topic of

China’s FDI in Africa is chosen. Following the introduction part, the structure of the

whole thesis, as well as the methods applied to the thesis, is introduced in the

methodology part. Chapter three gives a brief introduction to the basic concepts that

run through the thesis---Foreign Direct Investment (FDI) and South-South

Cooperation. Chapter four introduces the approaches used in the thesis---development

approach and neo-liberal approach, after which the introduction and main

interpretations of dependency theory and soft power theory are elaborately given here.

The analysis chapter involves two parts. The first part is written in the light of

dependency theory which has four major explanations: development should be seen

from a historical perspective; the periphery exports primary goods to and imports

manufactured goods form the center, which results in an imbalance in the trade

relations; the center benefits the most from the international linkages, and the

periphery is not able to follow the development path of the center countries; the

domestic elite of the periphery is in an alliance with international capital. The

analysis, based on these four explanations, probes into the history of Sino-African

relations, China’s quest for energy resources, China and Africa’s motives and China’s

Alignment with African elites. This part will give us a clearer picture whether China’s

presence in Africa creates dependency for African countries or not.

The second part of the analysis is written in the light soft power theory. With

“indirect” and “non-coercive” as one of its defining features, soft power has three

elements---culture, political values, and foreign policies---as its promotion tools. The

following analysis focuses on how China promotes its trade relationship with Africa

through these three elements and what effect they have achieved. As for culture,

China has put a huge amount of money into transport, education, and cultural projects,

which is an important channel of conducting China’s cultural diplomacy. With regard

to political values, the Confucius Institute is introduced as an effort made by Chinese

government to disseminate and promote its political values. Besides, China’s growing

trade with African countries is a great endorsement of the China Model, which is

often seen as an alternative to the neo-liberal Washington Consensus. In the case of

foreign policies, China’s emphasis on non-intervention and win-win situation when

dealing with African countries is specifically analyzed here.

The last conclusion part summarizes the influence of China’ FDI on African

countries in economic, political and social fields, concludes whether China’s FDI in

Africa fits with the dependency theory and soft power theory or not, and answers the

question if China creates development of dependency for African countries.

Key Words: China’s FDI, Africa, dependency theory, soft power theory,

development

Table of Contents

Chapter One: Introduction..............................................................................................11.1 Background Knowledge......................................................................................................11.2 Problem Formulation..........................................................................................................2

Chapter Two: Methodology...........................................................................................32.1 Structure..............................................................................................................................32.2 Hermeneutics Method.........................................................................................................52.3 Qualitative Research Method..............................................................................................5

Chapter Three: Basic Concepts......................................................................................63.1 FDI-Foreign Direct Investment...........................................................................................73.2 South-South Cooperation....................................................................................................7

Chapter Four: Theory.....................................................................................................84.1 Approaches.........................................................................................................................8

4.1.1 Development Approach............................................................................................84.1.2 Neo-Liberal Approach..............................................................................................9

4.2 Theories..............................................................................................................................94.2.1 Dependency Theory:................................................................................................94.2.2 Soft Power Theory.................................................................................................14

Chapter Five: Analysis.................................................................................................185.1 The Analysis Based on Dependency Theory.....................................................................18

5.1.1 The History of Sino-African Relations..................................................................185.1.2 China’s Quest for Energy Resources......................................................................215.1.3 China and Africa’s Motives....................................................................................265.1.4 China’s Alignment with African Elites...................................................................28

5.2 The Analysis Based on Soft Power Theory.......................................................................295.2.1 The Reasons for Promoting Soft Power in Africa..................................................305.2.2 The Means to Promote Soft Power in Africa..........................................................32

5.2.2.1 Culture.........................................................................................................325.2.2.2 Political Values............................................................................................345.2.2.3 Foreign Polices............................................................................................39

Chapter Six: Conclusion..............................................................................................43Reference......................................................................................................................45

Chapter One: Introduction

1.1 Background Knowledge

The Sino-African diplomatic relations started when Egypt first established

diplomatic ties with China in the year 1956. In the following six decades, the Sino-

African relationship has gradually developed, with Chinese and African people

supporting each other through both good and bad times. In 1964, China formulated

the guidelines for its foreign aid programs---The Eight Principles for Economic Aid

and Technical Assistance to Other Countries---which was announced by Premier

Zhou Enlai during his visit to Africa. The Eight Principles features mutual benefit and

foreign aid with no strings attached. In 1971, China resumed its seat in the United

Nations (UN) with twenty six African countries voting in Being’s favor, which is a

major milestone in Sino-African relations. With the advent of the twenty first century,

new issues and new problems have emerged in Sino-African relationship. To face

these problems, the Forum on China-Africa Cooperation (FOCAC) was established in

2000 to provide a more strategic platform to further improve the Sino-Africa

communication and cooperation, which is a noticeable landmark in the progress of the

bilateral relations. And China declared the year of 2006 as the “Year of Africa” when

a Sino-African development fund was established to promote the bilateral trade.

The Sino-African trade also dates back to several decades ago, with most of

Chinese investments made in infrastructure sectors at the very beginning of Africa’s

post-colonial era. The past half a century has witnessed the dramatic growth of Sino-

African trade, and the trade volume between these two parties has increased from over

US$ 10 million at the initial stage after they established diplomatic relations to US$

220 billion in 2014.1 The trade volume between the two sides is expected to exceed

US$ 280 billion in 2015.

1 He Wenping.“‘People-Oriented” Public Diplomacy: the Key for China’s Soft Power Building in Africa”, thesis presentd at the international conference “China Africa Meida, Communications and Public Diplomacy”, Beijing, 2014.

1

1.2 Problem Formulation

China's dramatically increased involvement with Africa over the past few decades is

one of the most significant developments in the region. It appears to contradict the

idea of international marginalization of Africa and brings changes to its economic and

political situations with far-reaching influences. The Chinese government has been

constantly emphasizing its mutual-benefits-based foreign policy, and China is a very

attractive partner for many African countries since it does not impose political values

or ideologies on them in exchange for cooperation. However, there are still a lot of

voices that define China’s presence in Africa as a new scramble for Africa’s energy

resources. Questions arise if China is a friend or foe, a comrade or a colonizer of

African counties, if China’s investment in African generates economic development

or dependency for Africa, and if the bilateral economic cooperation has raised the

Africans’ living standard. This thesis is designed to answer these questions and the

analysis will be based on two theories: Dependency Theory and Soft Power Theory.

2

Chapter Two: Methodology

2.1 Structure

First, the methodology of the thesis will be introduced. In this thesis, a

qualitative method will be mainly used to collect related information and conduct the

analysis. Second, the basic concepts running through the thesis will be explained, and

two theories used in the analysis, namely, the dependency theory and the soft power

theory, will also be presented herein. Third comes the analysis part which is divided

into two parts base the two theories. Last, the conclusion part will provide an answer

to the problem statement.

The structure diagram of the thesis will be presented as follows.

3

Introduction

Background Knowledge

Problem Formulation: Is China a friend or foe, a comrade or a colonizer of African counties? Does China’s investment in African generate economic development or dependency for Africa? Has the bilateral economic cooperation raised the Africans’ living standard?

Methodology

Structure

Hermeneutics Method

Qualitative Research Method

Basic ConceptsForeign Direct Investment

South-South Cooperation

And this thesis is designed to deal with the effect of China’s FDI in Africa as a

whole. There is a tendency to take Africa as a single country or a single unit in the

academic study, which is an obvious problem the analysts and scholars are confronted

with. Despite the fact that he relationship between China and Africa is not a bilateral

relationship but a series of bilateral relations between China and more than 40

countries in Africa, and the nature of these relations varies from country to country,

there is a scope for the generalization of African countries, in that China’s

involvement with the continent provides opportunities and poses challenges equally to

all African countries and it could seen as a big push to propel Africa onto a path of

development or dependency. Therefore, Africa will be analyzed as a whole in this

thesis.2

2 Schoeman, Maxi. “China and Africa: Whose Challenge and Whose Opportunity?” African Spectrum, Vol. 43. No. 3 (2008), pp. 403-413.

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Theory

Approaches

Theories

Development Approach

Neo-liberal Approach

Dependency Theory

Soft Power Theory

Analysis

Dependency Theory: Based on the four major explanations of dependency theory, the analysis is made from four aspects---the history of Sino-African relations, China’s quest for energy resources, China and Africa’s motives, and China’s alignment with African elites.

Soft Power Theory: the analysis is based on the three major means to promote soft power---culture, political values, and foreign policies.

Conclusion

2.2 Hermeneutics Method

A general method used in the analysis section is hermeneutics, a method dealing

with the interpretation and understanding of the texts. Hermeneutics has been defined

in different ways. According to Friedrich Schleiermarcher, a reader needs to have

some prior knowledge about the historical context and the author’s life in order to

understand a text.3 And Hans–Georg Gadamer extends the idea, claiming that a pre-

comprehension is needed to understand a topic and subsequently the interpretation is

based upon the reader’s prejudices. However, the text is capable of removing the

prejudices of the reader.4

A pre-comprehension about the topic of China’s FDI in Africa has been gained

before the start of the thesis that China is taking up the position of the largest investor

in Africa and creating a stronger and stronger bond with Africa, which exerts a great

influence on Africa’s development, with both positive and negative effects taking

place at the same time. And throughout the process of data collecting and thesis

writing, some of the pre-understanding about the topic has been confirmed, while

some needs to be revised.

2.3 Qualitative Research Method

The qualitative method refers to the description of a phenomenon’s qualities, and

it is based on conceptual instead of numerical analysis. According to Michael Quinn

Patton and Michael Cochran: “Qualitative research is characterized by its aims, which

relate to understanding some aspect of social life, and its methods which (in general)

generate words, rather than numbers, as data for analysis.”5 Qualitative research

involves finding out what people think and how they feel, and it involves feelings and

impressions rather than numbers. The aim of the qualitative research is not to gain

accuracy but to obtain an in-depth understanding. There are many choices for

3 Friedrich, Schleiermacher. The Hermeneutics: Outline of the 1819 Lectures, New Literary History, Vol. 10, No. 1, Literary Hermeneutics (Autumn, 1978), 5;10.4 Ibid. 5 Michael, Quinn Patton and Michael Cochran. A Guide to Using Qualitative Research Methodology. Medecins

sans frontiers, 2002.

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qualitative researchers to conduct data collection, such as grounded theory,

narratology, state or government studies, case studies, participant observation,

qualitative review of statistics, etc.6 In this thesis, academic studies at home and

abroad, state or government studies qualitative review of statistics will be mainly used

for data collection.

6 Maggi, Savin-Baden and Claire Howell Major. Qualitative Research: The Essential Guide to Theory and Practice. London: Routledge, 2013, pp. 65.

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Chapter Three: Basic Concepts

3.1 FDI-Foreign Direct Investment

FDI is an investment made by the enterprises or entities based in one country

into the enterprises or entities based in another country. FDI is considered as a major

resource for the economic development and expected to fill the gap between the

desired investment and the domestically mobilized savings. Many scholars believe

that FDI could help to create more job opportunities, develop human capital and

acquire new technology, thus getting the host country out of the vicious circle of

underdevelopment.7

3.2 South-South Cooperation

South-South Cooperation, a term established by the United Nations in 1978 and

historically used by policymakers and academic scholars, refers to a process of the

exchanges of resources, technology, and knowledge between the countries of the

global South, namely, the developing countries. China has attached great importance

to the South-South cooperation in dealing with international issues and achieving

common development.8

Chapter Four: Theory

4.1 Approaches

4.1.1 Development Approach

It is not easy to define “development” in a simple and unified way or formulate

7 Foreign Direct Investment – “Definition of 'Foreign Direct Investment – FDI” http://www.investopedia.com/terms/f/fdi.asp Accessed on 25, Mar. 2015.8 United Nations Day for South-South Cooperation http://www.un.org/en/events/southcooperationday/. Accessed on 25, Mar. 2015.

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an all-embracing theory to tell whether a region suffers from underdevelopment or not

without knowing its past history.9 There are some measurement indicators, though,

which could give us a rough idea of development and underdevelopment. One of the

indicators is Gross National Product (GNP) per capita as well as the comparative

GNPs among countries. However, it also has some problems in that it does not take

into consideration the wealth parity generated along with high GNP and it ignores that

type of government presiding over the development. Another measurement is the level

of the social welfare system, and more specifically, health care, the access to

education, and other factors that improves the standard of living.10 Many African

counties, if judged by this measurement will be put into the category of

underdeveloped countries since they are deficient in offering these essentials. There

are also some other indicators to define development, such as mass production and

consumption, international trade and commerce, and technological development, etc.

It can be seen from these indicators that development should not be simply equated

with economic growth and there also other factors that are worthy of notice.

The major development schools include modernization theory, world system

theory, and dependency theory, and the dependency theory is applied in this thesis to

the analysis of Chinese FDI in Africa. The dependence is generated when the

economy of certain countries is influenced by the development of another economy

and the latter is subjected to former one. It argues that the underdeveloped situation of

the Third World countries results from the dependency imposed by the developed

ones.

4.1.2 Neo-Liberal Approach

The early study of liberalism emphasizes the significance of moral freedom, and

the duty to treat others and the right to be treated as ethical subjects.11 Labeled as

utopian idealism, it argues that human beings are endowed with rational thinking, and

9 Frank, Andre Gunder. The Development of Underdevelopment. New England Free Press, 1966, p. 18. 10 Ibid. 11 Doyle, Michael W. “Kant,Liberal Legacies, And Foreign Affairs”, Philosophy and Public Affaris, Vol. 12, No. 4, 1983, pp. 326.

8

only when they apply reason to the field of international relations, can they establish

systems and organizations in the interests of all; secret diplomacy should be removed

from dealing between states and the interstate affairs should be subjected to public

scrutiny. These propositions carrying Utopian spirits prevailed until a group of

international relations scholars started to shift their focus to trade and investment, and

related issues that gained popularity in the Western liberal democracies from the

1950s to the 1970s.12 These concerns laid a foundation for a new attempt by liberal

scholars to form an alternative to realist thoughts that would get rid of the excessive

utopian elements in early liberalism. This renewed approach is labeled as neo-

liberalism, which comprises four strands: sociological liberalism, interdependence

liberalism, institutional liberalism, and republican liberalism. The interdependence

theory, developed by Joseph Nye and Robert Keohane, depicts a situation in which

force and security does not count that much and countries are interconnected by

various social and political relationships. Joseph Nye carried this theory forward,

initiating the theory of “soft power” which will also be used in the analysis of this

thesis.

4.2 Theories

4.2.1 Dependency Theory:

4.2.1.1 Introduction

Dependency theory developed in the late 1950s under the guidance of the

scholars of the United Nations Economic Commission for Latin America (ECLA).13 It

emerged as an interpretation of the economic slump in Latin-American countries

whose problems resulted from the import substituted industrialization programs. And

this theory was developed out of the fact that the economic growth of the advanced

industrialized countries did not bring about the development in poorer countries.

These scholars had followed the Singer-Prebisch thesis that the terms of trade for

12 Ibid. 13 So, Alvin Y. Social Change and Development: Modernization, Dependency and World-System Theories. SAGE Publication, 1990, p. 91-94.

9

primary commodity exporters did have a tendency to decline, and the less developed

countries which were reliant on the exports of primary and raw products suffered a lot

from this decline.14 A common explanation for this phenomenon is the observation

that the income elasticity of demand for primary products is not as great as that for

manufactured goods. Therefore, as incomes rise, the demand for primary products

does not increase as much as that for manufactured goods. These scholars started a set

of theoretical approaches that was later known as dependency theory. The dependence

is generated when the economy of certain countries is influenced by the development

of another economy and the latter is subjected to former one. The interdependence

between two or more countries assumes the form of dependence when the dominant

can expand their economy with self-sustaining capabilities, while the dependent ones

can do this only as a reflection of that expansion.

The dependency theory has its roots in Marxist tradition (led by Andre Gunder

Frank, Samir Admin, etc.) and Structuralist tradition (led by Raul Presbisch, Celso

Furtado, Cardoso etc.). Andre Gunder Frank, a German-American economic historian

and sociologist, promoted the dependency theory after 1970. He emphasizes the

importance of historical analysis in comprehending the international system (the

colonial history); he argues that the global system is not a uniform marketplace which

the actors mutually benefit from; rather, it is comprised of the powerful center and the

relatively weak periphery with the former playing a positive part while the latter

negative.15 It is the mechanism of one dominating another that gives rise to the

worldwide uneven development. Samir Admin believes that the unequal international

specialization with the central areas producing finished products and the peripheral

areas providing raw material has brought economic retrogression to the periphery. In

the center, there are many demand and supply linkages connecting the production

process, while in the periphery, there are few such linkages between different sectors.

According to Cardoso, despite the fact that the internal development of the periphery

14 Brecher, R.A. and E.U. Choudri. “Immiserizing Investment from Abroad: The Singer-Prebisch Thesis Reconsidered." The Quarterly Journal of Economics,97 (1982), p.181.

15 Frank, Andre Gunder’ Biography. http://rrojasdatabank.info/agfrank/personal.html#short. Accessed on 25 April, 2015.

10

is compatible with the multinational corporations, the basic relationship between the

center and the periphery remains the same since their relationship is based the

extractive exploitation of the underdeveloped countries.16 What these scholars hold in

common, however, is that behind dependency relation between center and periphery

lies the disability of the periphery to initiate and develop a dynamic process of the

technological innovation.

4.2.1.2 Main Explanations:

Dependency theory has four major explanations.

First, development should be seen from a historical perspective. The importance

of the historical context especially the colonial history is emphasized in analyzing the

development of a region or a nation. The global political-economic system that

emerged along with European colonies across the world, largely explains the

differences in their developmental levels.17 It is important to take the historical

heritage into consideration when we talk about development or dependency.

Second, the dependency theory contends that a capitalist world economy takes its

form when different countries specialize in different fields in the production chain.

The fact that some countries specialize in the industrial production is made possible as

other countries provide them with necessary primary goods, mostly agricultural and

mineral goods. And a dichotomous global system is thus formed, with the European

colonizers emerging as the center of the system and the colonized Third World

playing the role of the periphery. This international division of labor, though

seemingly similar to the theory of comparative advantage, is actually different in that

it does not lead to a parallel development as comparative advantage does. Poorer

countries export primary commodities or raw materials to the rich countries which

manufacture products out of these commodities and then sell them back to the poorer

countries. The value added by manufacture to the primary commodities is much than

that to the primary products used to create those products. The unequal exchange

16 Cardoso, Fernando Henrique and Faletto Enzo. Dependency and Development in Latin America, University of California Press, 1979, p. 21.

17 Samuel, Valenzuela J. and Arturo Valenzuela. "Modernization and Dependency: Alternative Perspectives in the

Study of Latin American Underdevelopment." Comparative politics 10, no. 4 (1978), p. 540.

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gives rise to a process of dependency that subjects the periphery to the dominance of

the center. The colonial history and the inequitable division of labor, all together

hinders the development of the Third World states.18

Andre Gunder Frank has some extensional explanations about the second point.

To start with, he distinguishes metropolis (representing the center) from satellites

(representing the periphery) and emphasizes the limits imposed on the development of

the natural or other subordinate metropolis by the situation of the satellites. He also

argues that only when the peripheral areas keep economically isolated from the

metropolis, can they achieve the greatest development. He adds that the most

underdeveloped areas are those which have kept closest ties to the metropolis in the

colonial past. He concludes that the existence of the metropolis-satellite structure

allows the central areas to develop themselves by exploiting the economic surplus

from the peripheral areas; the colonial history and the foreign domination have

subjected many Third World countries to a backward development.19

Dos Santos further explains the second point based on Frank’s interpretations.

He states that there exist three key structural limitations to the industrial development

of the Third World countries. In the first place, the industrial development entails an

export sector, which brings in lots of foreign currency and creates dependence on the

foreign interests. Also, more foreign financing is needed to make up for the deficit

that results from the investments and promote further development. Moreover, the

great demand for advanced technology may subject the periphery to the technological

monopoly exercised by the dominant centers. Dos Santos suggests three ways in

which the productive structure limits the development of the internal market: first, by

offering a limited number of job positions to the local people with limited income

brought in; second, by subjecting the work force to the exploitative relations,

weakening its purchasing power, and limiting the development of the consumer

market; third, by remitting the economic surplus abroad and impeding the possible

18 So, Alvin Y. Social Change and Development: Modernization, Dependency and World-System Theories. SAGE Publication, 1990, p. 104. 19 Frank, Andre Gunder. The Development of Underdevelopment. New England Free Press, 1966, p. 23-25.

12

creation of the fundamental national industries.20

These discussions lead to the third explanation of dependency theory that the

center benefits the most from the international linkages and enjoys a dynamic

developmental momentum, while the periphery, constrained by its integration into the

global system, is reliant on what the center requires for its economic expansion. The

development of the center is responsive to its internal needs while the periphery has a

responsive or reflective type of development. Therefore, it is impossible for the

periphery to develop itself by following the developmental path of the center; instead,

the only way for its development is to cut down its dependence on the center countries

and adopt a self-reliant model by which the periphery is able to satisfy its own needs.

And the periphery is not able to follow the suit of the Western path since it is taking

part in the economic trades alongside the center and is thus tied to them by economic

relationships.21

Fourth, the dependency theories assume that the domestic elite is in an alliance

with international capital because they share the same interests, and the development

generated by the incorporation into the global system mainly benefits the dominant

elite groups rather than contribute to the whole society. The personal gains of the elite

groups do not lead to the collective gains or a balanced development. These elite

groups of the center, have got support from the ruling classes and gained profits by

exploiting local resources to maintain the dependency on the central areas. In some

bureaucratic-authoritarian states, in particular, the dominant groups repress the

popular sectors (labor unions, etc.) through closing channels of political access and

imposing corporatist controls. Therefore, there needs to be some form of social reform

to weaken the powers of the dominant groups and a new, revolutionary government to

maximize the collective benefits of the whole society. Only in this way can the

peripheral areas develop in an autonomous way.22

4. 2. 1. 3 Critique

20 Santos, Theotonio dos. “The Structure of Dependence”, American Economic Review, 60(2): 231-236. 21 So, Alvin Y. Social Change and Development: Modernization, Dependency and World-System Theories. SAGE Publication, 1990, p. 105-106.

22 So, Alvin Y. Social Change and Development: Modernization, Dependency and World-System Theories. SAGE Publication, 1990, p. 106.

13

A major criticism is targeted at the statement that it is scarcely possible for the

peripheral areas to make great strides with their development. And this statement

topples due to the statistic evidence that indicates a capitalist growth and

industrialization emerging in the Third World countries. The development of many

Asian economies which developed along capitalistic forces also serves as an empirical

contradiction to dependency theory. Cardodso, for instance, makes a critique to the

classical dependency school’s statement that dependency makes no room for

development. He suggests that dependency should be considered as an open-ended

process, as it can coexist with development and the internal prosperity of the

dependent countries is compatible with multinational corporations to some extent. 23Frank and other neo-Marxists, however, contend that these economic measurements

are not sufficient; social, political and other factors should also be taken into

consideration in measuring the degree of development, instead of merely looking at

the economic growth.

Some critics argue that the dependency theory has simplified the international

relation into the core-periphery model, incapable of providing adequate answers to

various situations prevalent in the international stage. It puts too much emphasis on

the material and economic factor and makes light of the endogenous factors when

talking about underdevelopment. For example, Cardoso states that Frank simplifies

the debate as he overlooks the specificity of different situations and his interpretations

only contain generalizations. He calls for an improvement in the historical-structural

analysis in order that the dependency process could be better analyzed based on

different historical and social contexts.24

4.2.2 Soft Power Theory

4.2 2.1 Introduction

In the global society where we live, there are power struggles between powerful

states which attempt to use their policies and strategies to impose more influences on

23 Ibid., p. 136-137. 24 Cardoso, Fernando Henrique. “The Consumption of Dependency Theory in the United States”. Latin American Research Review, 1977, Vol. 12, No. 3, p. 22.

14

other, maintain privileges in the international stage, and run the world based on their

own wills. With regard to a country's comprehensive national strength, we usually

divide it into tangible force and intangible power, namely hard power and soft power.

The concept of hard power should be first introduced to understand soft power.

In the past, the policies and strategies adopted by states to gain power over other

countries were mainly based on force and aggression, which we know as hard power.

Back to a century ago, the big powers used military force to compel the small

countries to accept unequal treaties. Both China and African countries were among

those that were forced to open their borders and got invaded. In modern times, few

countries are subjected to gun powder and great powers do not refer to aggressive

forces as the only means to promote their influence any more. More and more

countries get aware of the fact that they can not maintain a position of power merely

through political, economic and military coercion. Just as Joseph Nye has said, it was

imperative to be feared than to be loved by other, but it is imperative to be both.25

It is easy to give “hard power” a theoretical definition in a way, since it is clearly

related to the aggressive foreign policies and measures adopted by states. Soft power,

however, is more difficult to understand. It could refer to the cultural appeal of a

country (including religion, language, education, life style, diet, films, etc.), the

political and ideological values and the legitimacy of foreign policies. And the

development model of a country, the abilities to control the international mechanism,

and the international image could also be included in the concept of soft power.

To sum up, hard power refers to the tangible material force, while soft power

indicates the intangible strength, including political, cultural and diplomatic values.

Not only are these two powers closely linked with each other, but also they are

distinguished from each other; they are not simply an addition to or subtraction from

the other, but a complement to the other. Hard power is the material carrier of soft

power, while soft power is the invisible extension of hard power. It is obvious that

hard power is important, but more and more importance is being attached to soft

25 Nye, Jr. Joseph S. Soft Power: The Means to Success in World Politics. Chapter One, The Changing Nature of Power. Public Affairs, 2005, p.1.

15

power under the context of globalization, since it has can go beyond time and space

and exert a great impact on human life.

Different scholars have different interpretations of soft power. The American

scholar Klein put forward with the famous idea of “strength equation” in the 1970s,

arguing that “strategy” and “national spirit” should be considered as important

measures of national power. And the renowned British scholar Robert Cooper holds

the view that legitimacy is the core element of the soft power. The British historian

Niall Ferguson refers to soft power as non-traditional forces like cultural and

commercial goods.26 In this thesis, Joseph Nye’s interpretations will be used as a

major reference for the analysis.

Joseph Nye was an American political scientist who has worked as Dean of the

John F. Kennedy Faculty at the Harvard University and served for International

Security Affairs as an assistant secretary. He coined the word “soft power” to describe

the ongoing power struggles between states and defined the concept in his work

Bound to Lead which was published in 1990.27 This concept received a positive

response all across the world and attracted the attention when it was first put forward.

Globally spread ever since, it becomes an important idea to understand international

conflicts and helps different countries to make strategic plans. Established as a

complement to hard power, soft power is used to explain the phenomenon of countries

exerting influence and seeking power over others under the global context.

4.2.2.2 Main Explanations:

Joseph Nye has contributed a lot to the establishment of the basic international

knowledge with regard to the state power. He notes that power means the capabilities

to obtain the results and outcomes one wants by affecting other’s behaviors and

making things happen. And there are different ways to influence others: you can

coerce them with aggressive threats, induce them with considerable payments, or

attract and co-opt them to do what you want. To make it simple, the ways to improve

26  Carnes, Lord. “Public Diplomacy and Soft Power," in Waller, ed., Strategic Influence: Public Diplomacy, Counterpropaganda and Political Warfare (IWP Press, 2008.) pp. 59–71.

27 The Globalist. ”Author Biography”http://www.theglobalist.com/AuthorBiography.aspx?AuthorId=107 Accessed on 26 April, 2015.

16

the influence are coercion (sticks), payments (carrots), and attraction (soft power).

According to Joseph Nye, it is true that some countries can use military and economic

might, namely, threats and inducements to change their position, but sometimes you

can get the outcomes you want without using the tangible threats or payoffs.”28

Joseph Nye declares that there are three possible resources the soft power of a

country comes from: the culture (in places where it is appealing to others), the

political values (when they are acknowledged both at home and abroad), and the

foreign policies (when they are considered as legitimate with moral authority).29

It is worthy of notice that it is not easy to control soft power which might bring

about unpredictable consequences, and it has to be put under the control of the

government. As Joseph Nye has quoted, governments can make changes on foreign

policies, they can spend money on public diplomacy and exchange programs, and

they can also promote but not control popular culture.30 Therefore, one of the major

features of the soft power is that it is reliant on the government control.

Soft power is also characterized by its “indirect” strategies. According to Joseph

Nye, the essence of soft power is to shape and change the preferences of others and

get others to want the results you want. A country can achieve its goals by making

other countries admire its values, appreciate its development model, and follow its

example. Therefore, it is important to attract other countries through attraction and

seduction rather than threaten them with military force and economic sanctions and

force them to change.31

4.2 2.3 Critique

Soft power is considered as ineffective notion by some critics who think little of

the importance of soft power and put more emphasis on hard power. They argue that

soft power is merely a reflection and extension of hard power and it can only take

28 Nye, Jr. Joseph S. Soft Power: The Means to Success in World Politics. Chapter One, The Changing Nature of Power. Public Affairs, 2005, p.5.

29 Nye, Jr., Joseph S. “Think Again: Soft Power”. Foreign Policy, Feb. 23,2006.

30 Ibid., p. 3-4. 31 Nye, Jr. Joseph S. Soft Power: The Means to Success in World Politics. Chapter One, The Changing Nature of

Power. Public Affairs, 2005, p.5.

17

effect through the operation of hard power. Beside, the critics consider it difficult to

effectively quantify and measure the effect of soft power.

Chapter Five: Analysis

5.1 The Analysis Based on Dependency Theory

There are four major explanations of the Dependency Theory: development

should be seen from a historical perspective; the periphery exports primary goods to

and imports manufactured goods form the center, which results in an imbalance in the

trade relations; the center benefits the most from the international linkages, and the

periphery is not able to follow the development path of the center countries; the

domestic elite of the periphery is in an alliance with international capital. Based on

these four explanations, the following analysis will delve into how China, as a more

developed region, exerts its influence on African countries, and whether is has created

development for Africa or not.

5.1.1 The History of Sino-African Relations

The dependency theory argues that development should be seen from a historical

perspective, and the importance of the historical context especially the colonial

history should be taken into consideration in analyzing the development of a region or

a nation.

The over-500-years history of Africa being invaded, colonized and exploited

started with the establishment of the first colonial base by the Portuguese in Morocco

in 1415, subjecting Africans to the ruthless Trans-Atlantic slave trade and foreign

18

oppression. African countries were forcefully turned into a periphery, serving as the

raw material provider and sales market of the capitalist center. With all of its human

capital and material wealth threatened and attacked by the most massively cruel

system of exploitation, African countries were subjected to underdevelopment step by

step. In economic terms, “underdevelopment” can be defined as a situation where

resources are not used to their full socio-economic potential and development is

slower in most cases than it is supposed to be. Underdeveloped nations are

characterized by an unhealthy balance of trade and a lack of access to job

opportunities, basic necessities, and heath care, etc. The post-colonial Africa is still

living in the shadows of underdevelopment, with its social productivity stagnating or

even declining for a long time.

Looking back on the history of Sino-African relations, however, the two sides

have supported each other both politically and economically.

There are three phases of Sino-African relationship after the establishment of the

new China. The first phase lasts from the early 1950s to the late 1970s, when the trade

between the two sides strengthened their ties by politically supporting each other. The

birth of the new China in 1949 ushered in a new chapter of Sino-African relations.

The next two decades witnessed a surge of activities struggling for national

independence and liberation in Africa. Despite the fact that China was still a

developing country, China lent a helping hand to Africa by offering to it material and

financial aid, which provided an important external condition for the ultimate success

of African countries in gaining independence. Since 1956, China has successively

established diplomatic relations with a great many African countries, strengthened the

Sino-African friendship based on the Five Principles of Peaceful Coexistence, and

helped them with the infrastructure projects, such as the Tanzania-Zambia Railway,

which played an important role in raising the living standard of African people and

improving the economic development of Africa. African countries, in return,

supported China to resume its membership in UN. In 1964, China formulated the

guidelines for its foreign aid programs The Eight Principles for Economic Aid and

19

Technical Assistance to Other Countries. According the Eight Principle, China will

base the bilateral relations on mutual benefit; it will offer aids without strings attached

and give no-interest or low-interest loans to the recipient countries without generating

a debt burden; the Chinese experts and technicians working for the recipient countries

will be equally treated as the local ones, etc.32

The second phase lasts from the late 1970s to the early 1990s, when economic

and trade cooperation became the major theme in Sino-African relations. China

started to carry out the policy of reform and opening up in 1978, shifted the national

strategic focus to the development of productive forces and economic construction,

and stimulated the dynamics of the economic diplomacy. And Chinese economy

started to take off due to these policies. Most African countries, however, were

confronted with the economic plight after their independence from the colonial

control. With the addition of the fact that both China and African countries were faced

with the interference from the hegemonies and power politics, and the challenges and

crisis brought about by the globalization, the two sides were in an urgent need of

deepening their political and economic cooperation. With respect to the cooperative

guide lines, China proposed the Four Principles of “emphasizing equality and mutual

benefit, pursuing practical results, using various means and seeking common

development” in having economic cooperation with African countries; with regard to

the cooperative forms, not only did China intensify its bilateral cooperation with

African countries, but also it kept close contact with the regional organizations of

African countries.33

The third phase lasts from the early 1990s till now, when all-around cooperation

is carried out between China and African countries. In 1996, Chinese President Jiang

Zemin raised a five-point proposal for the development of a new 21-century-oriented

Sino-African relationship during his visit to Africa. The five-point proposal, featuring

mutual benefit, equal treatment and common development, aims to provide a broader

32 Zhao, Jinfu. “New Development in Sino-African Relations”. Contemporary International Relations. Dec., 2008, p. 2.

33 Zhao, Jinfu. “New Development in Sino-African Relations”. Contemporary International Relations. Dec., 2008, p. 2.

20

and brighter prospect for Sino-African cooperation.34 Besides, China has implemented

reforms in its foreign aid by offering preferential loans and setting up joint-ventures

in China-aided projects since 1995. The 21 century has seen more challenges to Sino-

African relations and words go around that China imposing neo-colonialism on Africa

by exploiting its resources and raw materials.35 To meet these challenges, the FOCAC

was established in 2000 to provide a more strategic platform to further improve the

Sino-Africa communication and cooperation, which is a noticeable landmark in the

progress of the bilateral relations. The forum provides an alternative model for

African developing countries to conduct collective dialogues under the situation

where discourse is still dominated by the West. Under the FOCAC framework, some

new characteristics of Chinese investment in Africa come forth: Chinese investment is

widely distributed to 49 African countries; it has a wide range of investment field,

covering mining, manufacturing, financing, construction, agriculture, tourism, etc.; it

is made by diverse investors, including large and medium-sized state-owned

enterprises, private enterprises and individuals. These new characteristics have made

Chinese investment in Africa more practical and mutually beneficial.36

It can be seen that the Sino-African relationship is driven by the age-old friendly

communication and mutual support that has evolved into South-South cooperation.

Historically, the two sides have had few disputes and shared similar positions on

major international issues. And their cooperation will be surely in the interests of the

Third World countries, helping to promote the establishment of a fair new

international order.

5.1.2 China’s Quest for Energy Resources

China is now Africa's largest trade partner, while Africa has become China's

major import source, second largest overseas construction project contract market and

fourth largest investment destination. Total China-Africa trade volume, China's export

34 Ibid., p.3. 35 Jiang Wenran. “Fuelling the Dragon: China’s Rise and Its Energy and Resources Extraction in

Africa. The China Quarterly, 199, Septermber, 2009, p. 585-609. 36 Foster, Vivien, et al. “Building Bridges: China’s Growing Roles as Infrastructure Financier for Sub-Saharan

Africa”. Trends and Policy Options. (5): Washington DC: The World Bank/ PPIAF, 2008, p.15.

21

volume to Africa and China's import volume from Africa all have reached new highs

in 2014. The official release of the data on China’s FDI inflows into Africa start from

2003, and the data shows an annual growth rate of 65% from 2003 to 2012.37 In 2014,

Chinese FDI to Africa reaches nearly US$ 246 billion, with Nigeria, Zambia, South

Africa, Zimbabwe, and the Democratic Republic of Congo being the five largest

recipients of Chinese investment and South Africa topping the list.38

Despite the large volume of the total investment, the spatial distribution of Chinese

FDI in Africa remains unbalanced. In 2003, for instance, 58.08% of Chinese FDI went

to the top five recipients mentioned above. The imbalance got barely relieved ever

since, with the five countries taking up 51.88% of the total share in 2012. While these

countries remain the largest recipients, others like Guinea, Ghana, Democratic

Republic of the Congo and Ethiopia have joined the list of important recipients in

recent years. The imbalance is also manifested in the investment sectors. The largest

recipient of Chinese FDI is the primary sector (about 45% of the total share) within

which the oil and gas industries take a lion share.39 This imbalance has triggered

worldwide debates about how China treats Africa as a raw material provider and

exploits the local resources, which are indicators of a “dependency” relationship. The

following analysis will mainly focus on two aspects: Sino-African export and import,

and the development of African energy resources by China.

The categories of African export to and import from China are noteworthy. Mineral

fuels, lubricants and related materials are the most exported product to China since

1999. And since 2003, the export of crude materials and manufactured goods tries to

catch up, but still lags far behind the mineral fuels. In terms of the import, there is a

shift in the import categories within the last two decades. In 1995, the most imported

items were cotton fabrics, footwear, electrical apparatus, etc. Nowadays, machinery

and transport equipment such as ships and boats, telecommunication equipment and

manufactured goods become the leading imported categories, which are mainly

37 Schoeman, Maxi. “China and Africa: Whose Challenge and Whose Opportunity?” African Spectrum, Vol. 43. No. 3 (2008), p. 403-413.

38 Schoeman, Maxi. “China and Africa: Whose Challenge and Whose Opportunity?” African Spectrum, Vol. 43. No. 3 (2008), p. 403-413.

39 Forum on China-Africa Cooperation. “China-Africa Trade and Economic Relationship Annual Report 2010”. http://www.focac.org/eng/zxxx/t832788.htm. Accessed on 1 May, 2015.

22

resource-based and labor intensive.40

From the perspective of African countries, the shift in the import categories

indicates a heavier reliance on manufactured products from China and a loss for the

local economies. The reasons for the loss are as follows. To start with, it gives rise to

a loss of potential gains that might be generated by added value of the primary

products. As the dependency theory notes, the value added by manufacture to the

primary commodities is much more than that to the primary products used to create

those products. Second, the manufactured goods from China are too competitive for

the local manufacturers to compete with. Chinese imports are relatively cheaper than

the commodities produced in Africa. New investors may find it unattractive to

compete with Chinese imports or feel it unnecessary since Chinese imports have taken

such a large market share that not much excess demand is left there for new entrants

to meet. The less developed local manufacturing industry also means fewer job

opportunities for local residents. The third reason, based on the second one, is that the

less competitive local products will inhibit the development of local intra-industry

trade and lesson the diversification of available products in the market, which goes

against the consumer’s welfare. Last, more dependence on the foreign manufactured

products will lead to more foreign-exchange-related loss.

As for the exploitation of the local resources, it is true that China’s investment in

Africa is mainly driven by its demand for raw materials and larger markets.

China has a stunning performance in its GDP growth over the past three decades

since it pursues a development paradigm of heavy industrialization, labor- and capital-

intensive manufacturing and export-led growth. Under this development

model，China has risen to the top ranks in worldwide energy demand and becomes

the second largest oil consumer right after the United States. However, China’s energy

growth rate is kept far behind its economic growth rate, leaving an increasingly

widening energy gap that needs to be filled. Take petroleum as an example. Until

40 Forum on China-Africa Cooperation. “China-Africa Trade and Economic Relationship Annual Report 2010”. http://www.focac.org/eng/zxxx/t832788.htm. Accessed on 1 May, 2015.

23

1990, China’s principal suppliers were Indonesia, the sultanate of Oman, and Iran.41 It

is of vital importance to extend the list of the suppliers due to the increasing domestic

consumption and the depletion of Indonesian oil reserves. In order to meet the energy

needs and diversity the supply sources, many Chinese large-sized enterprises follow

the “Going out” policy and take the initiative to open up new energy sources among

with Africa as the most important new frontier. Some major Chinese petroleum

exploring companies, such as China National Petroleum Corporation (CNPC) and

China National Offshore Oil Corporation (CNOOC) have increased their investment

in Africa in recent years. In 2013, the African supply of cruel oil has accounted for

23% of China’s total import, with 1.3 million barrels produced per day.42 The natural

resources sector, principally petroleum, has been the major focus for both Chinese

FDI to Africa and African exports to China.

China’s growing demands for energy and raw materials have made its presence

in Africa a resource extractor. Some critics argue that China’s energy and resources

activities have assimilated it with the former colonial powers who share the same

purpose---to extract resources to facilitate their own development instead of serving

the needs of the African countries. However, But the role of China should be analyzed

under the context of the increasingly intensified global energy competition, in which

US, India and China are scrambling for the energy resources in Africa and trying to

ensure energy security. China’s bold moves in Africa are more driven by its sense of

insecurity than its great appetite for resources. Most of the world’s oil reserves are

dominated either by the host country’s national oil companies or by Western

international oil companies. In Africa, Nigerian National Petroleum Corporation

(NNPC) ranks atop with respect to the accumulative oil reserves rights, with Shell,

Total, Exxon-Mobil, Chevron and others following closely and Chinese oil companies

41 Forum on China-Africa Cooperation. “China-Africa Trade and Economic Relationship Annual Report 2010”. http://www.focac.org/eng/zxxx/t832788.htm. Accessed on 1 May, 2015.

42 U.S. Energy Information Administration. http://www.eia.gov/countries/cab.cfm?fips=CH.Accessed on 40, Mar. 2015.

24

ruled out of the top ten.43 Chinese oil companies, shrouded by a sense of insecurity,

cannot but make more risky steps towards Africa’s “troubled zones” which are not yet

dominated by the Western oil companies, with bold actions and aid packages in

exchange for energy resources.

And the Chinese leadership is eager to gain resources from Africa to feed the

appetite for economic development, while trying to bring benefits to Africa through

foreign aid, infrastructure construction and cancellation of debt.

China’s increasing involvement with the Africa’s energy sector is accompanied

by a considerable growth of Chinese official economic assistance to Africa. The

Chinese assistance, or more precisely the foreign direct aid, will be included herein

regarding the case of Chinese FDI, since the state-owned enterprises still account for a

large proportion of Chinese FDI, and the line between non-state entities and state ones

is usually blurred. This investment mode with Chinese characteristics makes it hard to

distinguish the public investment flows from the private ones. Some critics argue that

China’s foreign aid is offered to Africa in constant quest for its energy resource, since

the amount of China’s aid remains secretive, with only a small part of the information

released to the public. This argument remains strong until a set of data of Chinese

development finance in Africa is released by “AidData” which provides access to

development finance activity records from most official aid donors. The data,

detailing 1700 projects in 50 countries between 2000 and 2011, shows that China has

invested not only in mining (44 projects) and energy (83), but also in transport (115),

education (161), health (192) and a lot other cultural projects with hundreds of

millions of US dollars put in.44 Chinese aid has become one of the biggest donations

to Africa.

One of the biggest problems that stand in the way of Africa’s development is its

shortage of infrastructure financing, and it has become increasingly hard over time

since the international investment tends to make quick money with high economic

43 Jiang Wenran. “Fuelling the Dragon: China’s Rise and Its Energy and Resources Extraction in Africa. The China Quarterly, 199, Septermber, 2009, p.596.

44 AidData, China Aid Data. http://china.aiddata.org/. Accessed on 10 April, 2015.

25

returns.45 The fact that China is increasingly involved with the infrastructure

construction, a sector it has undeniable expertise and competitive ability, has made

China an important contributor to African development. A total of 35 African

countries have enjoyed the benefit of such infrastructure finance deals, with Nigeria,

Angola, Susan and Ethiopia as the largest recipients. And China’s efforts could

mainly be seen in the fields of hydropower generation and transport (especially

railway).46

In addition to the foreign aid and infrastructure construction, cancellation of debt

is a major measure taken by Chinese government to promote Sino-African relations.

China has canceled its debt owed by some least developed countries and heavily

indebted countries that have established diplomatic relations with China with a total

worth of more than 10 billion Yuan since the first FOCAC in 2000. And it is fulfilling

its promise of canceling another 10-billion-Yuan debt owed by African countries.47 It

is clear to see that China has set its mind on achieving mutual benefits and common

development with Africa. And China and African countries promised, at the FOCAC

Beijing Summit in 2006, to establish a “new type of Sino-African Strategic

Partnership” based on “political equality, mutual trust, economic cooperation, win-

win, and cultural exchanges”. Under the framework of FOCAC, China’s aid to

African continues to expand, and it has been making more efforts to provide loans on

favorable terms and reduce debts from African countries.

In general, Chinese FDI in Africa does create dependency for Africa to some

extent, concerning the Sino-African export and import categories. There are also some

other problems existing during the process of China investing in Africa. For instance,

Chinese enterprises are criticized for not having created enough job positions since

they tend to use their own Chinese labor force for the industrial process; they are also

blamed for a lack of corporate responsibility and transparency. And it cannot be

denied that China’s entry into Africa has ravaged the textile manufacturing industry in

45 Schoeman, Maxi. “China and Africa: whose challenge and whose opportunity?”. African Spectrum, Vol. 43. No. 3 (2008), p. 407-408.46 Schoeman, Maxi. “China and Africa: Whose Challenge and Whose Opportunity?” African Spectrum, Vol. 43.

No. 3 (2008), p. 408. 47 Amadi, Luke. “Africa: Beyond the ‘New’ Dependency: A Political Economy”. African Journal of Political Science and International Relations, Vol. 6(8). p. 191-203, Dec. 2012.

26

many African countries. Besides, China has maintained a trade surplus in its economic

exchanges with African countries and the trade imbalance got even widened in the

1980s and 1990s. For instance, in 2010, Chinese exports took up 87.3% of the total

bilateral trade with Nigeria. In Kenya, the situation got worse, with Chinese exports

accounting for virtually 98% of the bilateral trade.48

These problems, however, can not deny the contributions Chinese FDI has made

to Africa. The flourishing Sino-African trade, along with the increased aid, the debt

cancellation, and China’s strategic focus on oil and other resources, has proven

mutually favorable to both China and African countries.

5.1.3 China and Africa’s Motives

China’s presence in Africa is often seen as harmful when it comes to China’s

scramble for the natural resources and the damage it might cause to the efforts of

African countries to improve governance. However, it is, more often than not, defined

as virtuous when it is seen as a contributor to Africa’s long-term economic

development through providing foreign aids and financing the infrastructure projects.

The perception of China as a resource looter is too simple and arbitrary to take other

key roles of China into consideration. A question emerges herein, who is the real

beneficiary of the Sino-African trade, China or Africa. The motives of the two sides

are thus worthy of further analysis.

China has four major motives in its trade with Africa. Economically, China is in

great need of Africa’s natural resources to feed its industrial process and a larger

market for its manufactured goods. Politically, China attempts to gain support from

Africa for its “One China” policy and other foreign policies in international

organizations such as the United Nations. From the perspective of natural security,

China’s presence in Africa is used as a means to secure China’s positions in the

energy race with the Western powers and other emerging powers with export

orientation and increasing demand for primary products. The last motive is to promote

the “Chinese model” in Africa, as the success of this model in some African countries 48 Schoeman, Maxi. “China and Africa: Whose Challenge and Whose Opportunity?” African Spectrum, Vol. 43.

No. 3 (2008), p. 409.

27

has provided an indirect support for China’s ideology and values. Some believers in

China’s development mode insist that China’s reform experiences over the past few

decades can serve as an exemplary model for the developing African countries on

how to wipe out poverty and make great strides forward. They think of China’s

presence in Africa as a pushing force for Africa after its decades-long economic

stagnation in the post-independent era, and believe that China can take the place of

the former Western colonial powers and provide an alternative development path.

Some African leadership, such as Festus Mogae, former president of Botswana, also

embraced China’s investment in Africa in a positive way.49 And many Africans,

inspired by China’s successful process, modernization and industrialization, hope that

they can apply the Chinese mode to their own land and duplicate its success. But these

successful lessons can only be utilized when they are adjusted to the local conditions

and properly applied.

Africa also has its own motives to attract more investment from China.

Economically, the African countries are inclined to offer oil blocs to the Chinese

government in exchange for a commitment of more financing in the infrastructure

construction which they are deficient in. Politically, the African countries welcome

Chinese foreign policy of offering aid without strings attached, which allows them to

deal with their own political issues without intervention. Socially, they enjoy the

benefits from the educational projects established by China to help develop their weak

disciplines such as science, medicine, health, and media, etc. They also benefit from

training programs designed to develop the skills of the local workers, which will help

the local people to be more competent in getting job opportunities. After the first

Ministerial Conference of FOCAC in 2000, the Chinese government established the

African Human Resources Development Fund to train talented Africans. During the

FOCAC Beijing Summit in 2006, China put forward a program of training 15,000

Africans in three years.50

49 Schoeman, Maxi. “China and Africa: Whose Challenge and Whose Opportunity?” African Spectrum, Vol. 43. No. 3 (2008), p. 409.

50 Forum on China-Africa Cooperation. “China-Africa Trade and Economic Relationship Annual Report 2010”. http://www.focac.org/eng/zxxx/t832788.htm. Accessed on 1 May, 2015.

28

A close examination shows that both China and Africa are beneficiaries of the

bilateral trade, with both sides embracing various motives to further develop their

relations. And the Chinese development model could only work for the African

countries when adjusted to the local conditions.

5.1.4 China’s Alignment with African Elites

China's interest in Africa is part of a recently more active international strategy

based on multi-polarity and non-intervention. But this non-intervention policy has

given rise to some criticism, blaming China for its alliance with the local elites.

The Chinese government pursues the policy of offering aid without strings

attached, and the only requirement for the African countries to receive aid is to

identify with the “One China policy”, which enables them to stick to their own

political system and deal with their own internal affairs with no interference. By

offering aid without precondition, China has presented an appealing alternative to the

conditional Western aid, since it gives local autonomy without imposing certain

values as the Western-dominated financial institutions have done. The policy also

gains considerable diplomatic support for China to defend its international interests.

However, this no-strings-attached investment with indifference towards authoritarian

regimes might create corruption in the future by helping the elite class to maintain

power and result in the abuse of power by government officials for private gains.51

China is now competing with India, Brazil, Russian and other countries which are on

the threshold of industrialization process with export orientation and increasing

demand for primary products to feed the industrial production. Therefore, China has

to compete with these countries for establishing favorable relations with African

countries, which in itself does not contradict with the collective interests of African

people. But the Chinese policy of non-intervention is attractive for the autocratic

leaders who are benefiting from the existing unequal structures and hoping to benefit

more. They tend to put their own interests behind the public interests, and create

investment at the cost of the majority’s interests. As the dependency theory assumes, 51 Egger, Peter, and Winner, Hannes. "Evidence on corruption as an incentive for foreign direct investment." European Journal of Political Economy. p.950.

29

the local elite is in an alliance with the international capital because they share the

same interests, and the development generated by the incorporation into the global

system mainly benefits the dominant elite groups rather than contribute to the whole

society.

For instance, some critics feel that China’s image as a responsible stakeholder is

damaged by supporting Sudan government or some political leader such as Mugabe in

exchange for the energy resources. And high-level graft scandals occurring in African

countries in 2005 and 2006 ever led to the World Bank and IMF delaying loans to

them, hoping that the governments would take actions to suppress the growth of

corruption.52 The support of the African authoritarian governments at the cost of

human rights to some extent, makes Chinese involvement in Africa economically

threatening and politically deleterious to African countries. And the Chinese policy of

non-interference in others’ domestic affairs is being tested by progressive voices of

humanitarian intervention, human rights and democracy.

5.2 The Analysis Based on Soft Power Theory

As mentioned in the theory section, the essence of soft power is to shape and

change the preferences of others and get others to want the results you want. And

With “indirect” and “non-coercive” as one of its defining features, soft power has

three elements---culture, political values, and foreign policies---as its currency. When

these elements are recognized by others as legitimate, they will gain the abilities to

shape other’s preferences and stimulate their actions. The following analysis will

focus on how China promotes its trade relationship with Africa through these three

elements and what effect they have achieved.

5.2.1 The Reasons for Promoting Soft Power in Africa

As China’s economy grows at an alarming rate, China’s economic presence in

Africa has enormously expanded over the past few decades, which carries China’s

52 Central Interlligence Agency. The World Factbook. Africa: Kenya. https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html. Accessed on 15 April, 2015.

30

state development forward. It is China’s appetite for natural resources and viable

export markets that leads China to increase its engagement with Africa, which has

sparked many debates in both African countries and the Western world. In African

countries, the local people are immersed in a mixture of different feelings, with both

hope that China will bring them more development opportunities and anxiety that its

scramble for energy resources will cause harm to the relatively weaker local

economies. In Western countries, many scholars believe in the “China Threat

Theory”, arguing that China poses a severe challenge to the United States as the

global leader superpower.

In response to these negative comments, China has attempted to attach the label

of “peaceful development” to itself, in an effort to set up a non-threatening and

responsible national image and assure others that its newly-gained strength is benign.

The development path of peaceful rise, an idea raised under Chinese former

leadership of Hu Jintao, aims to increase China’s influence in the developing world by

emphasizing and enhancing soft power. And China has been trying to attach more

importance to the soft power polices in African countries, since the first summit of

FOCAC was held in 2000; the term “soft power” became an entry of Chinese official

language when the concept “national soft power” was raised by Chinese former

president Hu Jintao on the seventh national session of Chinese Writer’s Association

(CWA) in 2006.53

There are some favorable conditions for China to promote soft power in Africa

under the new strategic Sino-African partnership. First, similar historical experience

brings China and African countries together. Both sides have been subjected to the

oppression and exploitation of colonialism and imperialism, and supported each other

in the battle striving for national liberation and independence. The friendship

established ever since is a firm foundation for China to promote soft power in Africa.

Second, China’s has a consistent process of promoting its soft power in Africa. Since

53 Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition andCooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. p. 37-39.

31

the 1950s, China has been giving financial assistance to African countries for no

return and helping with their national independence and liberation, which sets up

China’s national image as a supporter of Africa. Third, China and Africa share a

similar identity. China is the largest developing countries in the world, while Africa

has the highest concentration of developing countries.54 Both sides, as developing

economies, are faced with the issues of how to survive and develop in the age of

globalization and how to improve people’s living standard, etc. The similar identity

makes it easier for the two sides to find a common ground in the national interests and

take a cooperative and supportive position in dealing with international affairs. For

instance, both sides have the intentions to establish a fair and rational international

political and economic order.

The tools of China’s soft power could be sorted into five categories: investment,

humanitarian aid, exchange programs, diplomacy, and participation in multilateral

institutions, among which China’s investment strength is arguably the most

considerable and effective soft-power tool.55 China’s investment is particularly

appealing to many African countries for the reasons that: it does not impose on them

good governance requirements, human rights conditions, or environmental quality

regulation; it is largely concentrated on infrastructure construction like roads and

bridges, which the African countries are in dire need of. Therefore, despite the fact

that Chinese investment is heavily driven by its appetite for a stable and sustainable

supply of natural resources and raw materials, it still appeals to African countries.

As mentioned in the previous section dependency-theory-based analysis, the line

between non-state entities and state ones is usually blurred and Chinese investment

and aid are arguably hard to be distinguished from each other, since the Chinese

party-state own a partial stake in China’s foreign investment. And this makes Chinese

investment more effective to operate than that subject to private stakeholders. Both

54 Yumei, Liu. “China’s Soft Power and the Development of China-Africa Relations. China International Studies, 2007. 55 Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition andCooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. p. 37-39.

32

Chinese foreign investment and foreign aid will be included in the following analysis.

To sum up the reasons for promoting soft power in Africa, China’s initiatives are

taken in many African countries to ensure the access to natural resources, and soft

power has played a critical role in solidifying and strengthening China’s energy

relationship with Africa.

5.2.2 The Means to Promote Soft Power in Africa

5.2.2.1 Culture

If a country wants to gain recognition and respect from other countries, one of

the most important criteria will be the possession of an appealing, friendly and

creative cultural mode. If a country possesses a cultural mode that is capable of

meeting people’s spiritual needs, influencing other countries in a positive way and

contributing to the development of other countries, its culture would be a very

effective tool to improve its soft power and strengthen its ties with other countries.

As mentioned in the dependency theory section, the argument that China’s

foreign aid is offered to Africa in constant quest for its resource remains strong until a

set of data of is released by “AidData” which provides access to Chinese development

finance activity records from most official aid donors. The data clearly shows that

apart from investing in mining and energy, China has also put a huge amount of

money into transport, education, and cultural projects, etc. For instance, China is

promoting its Hope Project in African and getting involved in the construction of

primary schools in some impoverished regions. The Chinese aid to Africa is not only

an important channel of conducting China’s cultural diplomacy, but also a major

component of its soft-power construction.

For one thing, the educational and cultural projects have provided a great

channel for Africans to know more about China. China, with the five-thousand-years

history, boasts its profound and extensive culture, attracting more and more foreigners

with its traditional philosophical thoughts like The Four Books and The Five Classics

and various kinds of arts like calligraphy and painting. To cater to the fervent

33

“Mandarin fever”, Chinese government is putting more investment to the

establishment of cultural projects in such as classes to teach Africans Chinese

language and culture.56 Also, there are some large-scale and short-term training

programs for African university professors as well as middle and high-level civil

servants. The several-weeks-or-months training can be a real opener for them who

have known a minimal part of China except those Chinese construction projects.

During the training programs, these African elites (in terms of their education level)

get a chance to learn some of the best China could offer, whether in railways, roads or

rural development, as well as the challenges China has encountered and the measures

it has taken to overcome them.57 And these elites will serve as propagators of Chinese

culture, strengths, and values to other Africans.

For another, the idea of Chinese assistance to Africa has its roots in the profound

and extensive Chinese traditional culture. China’s current aid policy could be traced

back to The Eight Principles featuring mutual benefit which was released in 1964, the

Four Principles of “emphasizing equality and mutual benefit, pursuing practical

results, using various means and seeking common development” issued in 1980s, and

the general goals to achieve “sincerity, friendship and equality; mutual benefit,

reciprocity and common prosperity raised in China’s African Policy Thesis in 2006,

which are all based on the ideas of “equality, cooperation, reciprocity, respect and

sincerity”, the essence of Chinese culture.58 The pursuit of harmonious relations with

Africa is deeply rooted in the traditional Chinese ethics of “valuing common interests

rather than individual material gains” and “not doing to others what you do not have

others to do to you”, etc. The assistance itself could be seen as a reflection of

traditional Chinese culture and a reinforcement of China’s cultural influence in Africa.

Besides, with direct aid and reasonable contract, China has been helping African

countries in the construction of many infrastructure projects, from roads, bridges,

airports to schools, hospitals, stadiums and legislative buildings. Some of these

56 He Wenping.“‘People-Oriented” Public Diplomacy: the Key for China’s Soft Power Building in Africa”, thesis presentd at the international conference “China Africa Meida, Communications and Public Diplomacy”, Beijing, 2014.

57 King, Kenneth, ed. “China’s Soft Power in Africa: Past, Presnet&Future” in The Case of Education and Training, Boydell & Brewer. 58 魏雪梅：《中国援助非洲与提升中国软实力》。国际关系学院学报 2011年第 1期。第 2页。

34

projects have become the landmarks in Africa and get widely accepted by African

people. Not only have these improvements in infrastructure stimulated the economic

development in Africa and raised the living standard of African people, but also they

have functioned as a silent but firm display of Chinese culture and enhanced China’s

cultural strength in a subtle but steady way.59 For instance, the construction of the new

presidential offices in Maputo, capital of Mozambique, is a recent example of the

established-by-China projects. And a report from the officially supported newsthesis

Domingo says that this building would contribute to the self-esteem of Mozambicans,

and it is a fruit of the Sino-Mozambican cooperation.

5.2.2.2 Political Values

According to Joseph Nye, the political values could become sources of soft

power when they are acknowledged both at home and abroad. The past two decades

has witness a heated discussion in China, rising from the search for a unified ideology

or a dominating value system to take the place of the defunct Maoism-Marxism and

provide with an alternative to the prevalent Western values. Though no agreement has

been reached, a proposal is widely received that China should revitalize the once

depreciated traditional school of thoughts, with Confucianism, Taoism and Buddhism

as the major pillars. Accompanying this discussion is the belief that China should put

more emphasis on the construction of spiritual civilization (soft power) apart from

material civilization (hard power).60 Getting aware of the importance to improve soft

power and satisfy the spiritual demands of Chinese people, the Chinese government

has stepped up its investment in the establishment of many educational organizations

in Africa, among which the Confucius Institutes have exerted the most extensive

influence.

The Confucius Institute is a non-profit educational organization affiliated with

59魏雪梅：《中国援助非洲与提升中国软实力》。国际关系学院学报 2011年第 1期。第 2页。

60 Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition And Cooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. pp.37-39.

35

the China’s Ministry of Education and under the guidance of the Office of Chinese

Language Council International.61 Based on the Constitution and By-laws of the

Confucius Institutes, the function of Confucius Institutes is to offer Chinese learning

programs to people from all walks of life, to provide information and consultation

services about Chinese culture and education, and to develop research programs about

modern China.62 For African people, the Confucius Institute is also an effective means

to facilitate their business activities with Chinese. The first Confucius Institute in

Africa was established in Nairobi, Kenya’s capital, in 2005, and a total of 38

Confucius Institutes and 10 Confucius Classrooms have been set up in Africa so far,

making Confucius Institute a leading force of conducting exchanges and cooperation.

The last decade has witnessed a considerable development of Confucius Institutes

which have provided a large scope for people all across the African continent to know

about Chinese language and traditional Chinese culture. The Confucius Institute

initiative, along with its parallel of the Confucius Classrooms in secondary schools, is

arguably the largest language and culture promotion that world has ever seen.63 It can

be regarded at one level as an attempt to enhance the understanding of Chinese

language and culture among foreigners and develop friendly relations between China

and other countries, and at another level as a part of a broader soft power prospect in

which China attempts to win more hearts and minds with political intentions.

The establishment of Chinese Constitutes is often seen as an effort made by

Chinese government to disseminate and promote its political values. As remarked by

The Economist, China has been very careful not to present these language training

centers to act as “overt purveyors of the party’s political viewpoint”, and little evident

could be found to suggest they are doing so. But Chinese officials do say that these

centers have a major goal that they will give other countries in the world a “correct’”

understanding of China. For instance, the teaching materials of Confucius Institutes

and Classroom only include the simplified Chinese characters which are in the

61 Hanban Website. http:// english.hanban.edu.cn/kzxy.php.Accessed on 25 April, 2015.

62 Ibid. 63 King, Kenneth, ed. “China’s Soft Power in Africa: Past, Presnet&Future” in The Case of Education and Training, Boydell & Brewer.

36

mainland of China, rather than the traditional Chinese characters that are prevalently

used in Hong Kong and Taiwan. The Globe and Mail, a nationally distributed

Canadian newsthesis, commented that this would help Beijing to further the goal of

marginalizing Taiwan in the struggle for global influence.64 And the development of

the Confucius Institutes is coming right at a time when China’s rise is posing a threat

to many countries and the threat largely comes from the buildup of Chinese hard

power in economic and military sphere. As a timely response to the “threat” theory,

the growing investment in the educational organizations such as Confucius Institutes

fits in well with the notion of China’s “peaceful rise”. And it is considered by many

scholars as an effective way to popularize Chinese language and publicize Chinese

values, bringing about an improvement in China’s national image, a promotion of

China’s goodwill agenda, and a rise in soft power.

The reactions of Africans to the Confucius Institutes, however, are not all

positive. As China expands its influence in Africa, there are more and more Africans

showing their suspicions of China’s motives. And this could be, in a way, attributed to

different understanding of China from the students of different levels at the Confucius

Institutes. There are roughly three phases of the students studying Chinese language

and culture at Confucius Institutes. First, the students at the initial phase tend to

appreciate the developmental mode of China and believe that studying Chinese will

help them to get more job opportunities. Second, the students who have studied for

two to five years start to get suspicious of China’s motives and ambitions in Africa

and show distrust in China’s policies and strategies. Third, the students who have

studied for five years of longer period get a more balanced understanding of China.

They note that China has become a major participant in global issues and an

irresistible force to influence the whole world; the diplomatic ties between China and

African countries could and should not be severed, and the students themselves have

to make every effort to ensure these ties being positive and mutual beneficial.

64 Geoffrey York (2005), "Beijing uses Confucius to lead charm offensive” The Globe and Mail, 9 September 2005.

37

65Unfortunately, most students never get to the last phase, and they get stuck in the

first or second one without a full understanding of China. Therefore, if China were to

keep more students till the last phase, the Confucius Institutes would take effect in a

more positive way.

In addition to the efforts made by Confucius Institute, the enormous

accomplishment China has acquired over the past few decades since its reform and

opening up, has made “Beijing Consensus” more appealing to African countries. The

Beijing Consensus, also known as “China Model”, refers to the political and

especially economic values and policies of China initiated after China carried out the

“opening up” policy and gained eightfold growth in GNP.66 More specifically, Beijing

Consensus is described as the pragmatic use of innovation in order to obtain

“equitable, peaceful high-quality growth” and “defense of national borders and

interests”.67 It is often seen as an alternative to the neo-liberal Washington Consensus.

The Western companies began investing in Africa much earlier than China, and their

cumulative investments far exceed China’s FDI in Africa. With their investment

flowing into Africa, they also tried to implement the Western-style multi-parties

democracy in Africa. The Western democratization and liberalization, however, were

later proved to be not effective in bringing stabilization and prosperity to African

countries and caused many problems such as social unrests and election riots, since

the African countries have different conditions of multi-races, multi-ethnic groups and

low productivity.68 And the African countries have started to shift their focus from the

Western countries to East Asia, especially China whose economic miracle greatly

inspired African countries.

Instead of overemphasizing democratization and liberalization, the Beijing

Consensus puts more focus on social stability and avoids using “shock therapy” to

65 罗拉：《中国在非洲软实力倡议的教育战略：孔子学院的影响。》南京大学硕士论文。 2012年 6月，第 42-43页。

66 Zhang, Weiwei. “The Alure of the Chinese Model”. Interntional Herald Tribune, 2 Nov. 2006.67 He Wenping.“‘People-Oriented” Public Diplomacy: the Key for China’s Soft Power Building in Africa”, thesis

presentd at the international conference “China Africa Meida, Communications and Public Diplomacy”, Beijing, 2014.

68 He Wenping.“‘People-Oriented” Public Diplomacy: the Key for China’s Soft Power Building in Africa”, thesis presentd at the international conference “China Africa Meida, Communications and Public Diplomacy”, Beijing, 2014.

38

stimulate economic development. And China and African countries share a lot in

common concerning the human right and sovereignty issues. The Sino-African

consensus on these issues contains a few aspects. First, the right to development, as

the basic human right, should be listed on the top of the world agenda. And in contrast

to Western countries which label development with political connotations, China and

African countries attach more importance to economic development and the right to

alleviate poverty and raise living conditions. Second, mutual respect should be the

prerequisite for the human rights protection, and different national conditions should

be taken into consideration when talking about human rights, such as different history,

different traditions and customs, different geographic environments, different

ethnicity, etc. The fact that some Western countries attempt to impose the Western

style on African countries with no concern with the local conditions has made many

African countries draw away from Western countries. Third, respect should be paid to

national sovereignty and no interference with other’s internal affairs should be

emphasized in the international cooperation on human rights protection.69 These

consensus in political values makes African countries more inclined to strengthen

their trade ties with China.

While African countries are turning their attention to China and some Western

companies, including those in the United States, are drawing back from Africa, China

has started to increase significantly its investment in Africa. China takes advantage of

opportunities and fills a void left by the West to some extent. China’s growing trade

with African countries is a greater endorsement of the China Model.

5.2.2.3 Foreign Polices

If we take a look at the history of China’s foreign polices towards India, we will

find that China’s public diplomacy has put much emphasis on the idea of solidarity

and South-South Cooperation. Back to the fifteenth century, when the Chinese

explorer and diplomat Zheng He commanded expeditionary voyages to the East

69 Ibid.

39

African coast and exchanged goods along the way, China never tried to colonize or

enslave African countries. And during its era of war and revolution in the 1950s and

1960s, China promoted its anti-colonialism and anti-hegemonism polices and

supported Africa in its liberation movements and sought to establish an equitable

global economy together with African countries. The past half a century has witnessed

a great transformation of China’s approach to the foreign policies, changing from the

era of the war and revolution to a period of peace and development. The “going

global” strategy, initiated by Deng Xiaoping during the economic reforms after 1978,

is an incentive-driven policy that drives Chinese enterprises to make bold moves and

pursue rigorous investments overseas. And since the year of 1991 when Chinese

former foreign minister Qian Qichen paid a visit to African countries, it has become a

diplomatic tradition that Chinese foreign minister visits African countries every year,

which deepens the state-to-state friendship, promotes mutual trust and cooperation,

and boost the bilateral trade.

In recent years, China has noticeably improved its abilities to influence African

countries after the rapid development of more than three decades, and it has become

much more “charming” than before, which should be partially attributed to the

growing soft power. During its increasing economic dealings with Africa, China has

remained steadfast in its commitment to respect Africa’s state sovereignty and stick to

the non-interference policy. This commitment, together with its promises of more

economic opportunities, serves as great attractions to African countries. The appeal of

Chinese foreign policies could be reflected in the following points.

First, China’s long-standing opposition against the use of force and economic

sanctions, its preservation of sovereignty and territorial integrity, its non-intervention

in other countries’ internal affairs, and its latest idea of establishing a harmonious

world are well received by African countries since they are in line with African

countries’ interests. These diplomatic principles have the roots in traditional Chinese

moralities that emphasize winning respect through virtues, pursuing benevolent

governance and seeking peace and harmony, etc. As remarked by Joseph Nye,

40

Chinese assistance to Africa is “not limited by institutional or human rights concerns

that constrain Western aid”.70 Chinese investment and aid has a competitive advantage

over the Western ones, since there are less conditionality and thus more attraction.

Chinese leaders have repeatedly emphasized the importance of respecting

African’s countries’ rights to choose their development path and their own social

system. For instance, at the first FOCAC Forum in 2000, Minister Shi Guangsheng

expressed his heart-felt thanks to African countries for their support for China’s entry

into World Trade Organization (WTO) which would be beneficial for the economic

trade and cooperation between China and African countries; he also made a

commitment that China would unswervingly side with African countries to protect

their legitimate interests and promote the establishment of an equitable new

international order.71 Take Darfur issue as another example. Some Western powers

have criticized Chinese government for siding with Sudanese government in exchange

for Sudan’s oil resources and ignoring the crisis in Darfur. However, the Chinese

government has been stressing the importance of more diplomatic efforts to

strengthen dialogue and consultation with all sides, stabilize the regional situation and

improve humanitarian conditions instead of putting emphasis on military sanctions

and punitive measures, which resonates with many African leaders and African Union

(AU) delegates.

Second, China attaches much importance to the win-win situation of its

economic presence in Africa. China’s approach to relations with and assistance to the

African countries is remarkably characterized by the central role of the term “mutual”:

equality and mutual benefit, mutual respect for sovereignty and territorial integrity,

mutual non-aggression, have all been emphasized in China’s foreign polices towards

African countries. These “mutual” principles derive from China’s own experience of

depending on other’s countries and receiving aid which makes China more willing to

closely connect with other developing countries. The Chinese government declares

70 King, Kenneth, ed. “China’s Soft Power in Africa: Past, Presnet&Future” in The Case of Education and Training, Boydell & Brewer. 71 Guangsheng,Shi, 2000 minister of foreign trade and economic cooperation of China, “To Intensify China-

Africa Cooperation for a Brilliant Future” (Speech at FOCAC, October 11, 2000).

41

that the purpose of the Chinese investment and assistance is “not to make the

recipients dependent on China but to help them embark step by step on the road of

self-reliance”.72 It gains favors from African countries for several reasons. To start

with, China presents itself as a business partner rather than a philanthropist to offer

charity or a missionary to impose ideological values on others. Its pragmatism of

seeking for practical profits is appreciated by many African countries. Second, it is

believed that the focus on economic mutual benefit is more likely to ensure a

sustained growth of local economies than merely humanitarian motive.73

The speech made by the former Chinese Prime Minster Wen Jiabao at the third Annual

Meeting of the New Champions of the World Economic Forum could be an appropriate

interpretation of Chinese foreign policies in Africa. According to him, there are four dimensions

observable in China’s foreign policy initiatives. First, Chinese foreign policies present good will

to other countries, with China’s generosity and unselfishness emphasized. Second, China’s soft

power is area-specific, with developing countries as the prioritized targets of China’s good

intentions. Third, the policies have an ideological consideration, putting more emphasis on the

South-South Cooperation and anti-hegemonic collaboration. Fourth, China tries to fill the

economic gap left by the traditional actors in Africa by offering both investment and aid to African

countries.74

72 King, Kenneth, ed. “China’s Soft Power in Africa: Past, Presnet&Future” in The Case of Education and Training, Boydell & Brewer. 73 Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition and Cooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. P37-39.74 Rønning, Helge. “How Much ‘Soft Power’ Does China Have in Africa?”, presetd at the international conference “China and Africa Media, Communications and Public Diplomacy”, Beijing, 2014.

42

Chapter Six: Conclusion

China has been considerably increased its engagement with Africa after its

opening up, with both state-owned and private Chinese companies as major investors

in Africa over the past few decades. China’s presence seems to contradict the idea of

international marginalization of Africa and brings changes to its economic and

political situations. However, there are still a lot of voices suggesting that the Sino-

African relationship is a generally asymmetrical relationship bearing some likeness to

the previous Western-African pattern. This thesis has applied dependency theory and

soft power theory in analyzing the influence China’s FDI has on African countries and

answering the questions if China’s investment in African generates economic

development or dependency for Africa.

The analysis shows that China has exerted a comprehensive and powerful

43

influence on African countries in economic, political and social fields. Economically,

it can not be denied that China’s investment in Africa is mainly driven by its quest for

energy resources and larger markets and African countries have a heavier reliance on

the manufactured products from China. However, instead of being merely a resource

extractor, China has actually greatly contributed to a more sustainable and continuous

economic growth to African countries through infrastructure construction, foreign aid,

infrastructure construction and cancellation of debt. Politically, China’s FDI in Africa

has a two-sided influence. On the one hand, it strengthens Africa’s position in the

international community, and the African countries welcome Chinese foreign policy

of offering aid without strings attached which allows them to deal with their own

political issues without intervention. On the other hand, this no-strings-attached

investment with indifference towards authoritarian regimes might create corruption in

the future by helping the elite class to maintain power and result in the abuse of power

by government officials for private gains. Socially, China’s investment has raised the

living standard of African people: they enjoy the benefits from the educational and

cultural projects established by China to help develop their weak disciplines, and they

also benefit from training programs designed to develop the skills of the local

workers, which will help the local people to be more competent in getting job

opportunities. However, Chinese investment also has some negative effects in the

social field, such as the improper ideological influence.

Based on the analysis, it can be seen that China’s presence in Africa does not quite

fit with the dependency theory. The core-periphery structure between China and

Africa is not as considerable as that between the Western countries and Africa.

Though China has great demands for Africa’s resources, it also provides many

opportunities of economic growth for Africa. And China has always been emphasizing

the bilateral relationship based on mutual benefit and South-South Cooperation,

leading to a win-win situation for both sides. In terms of soft power theory, China has

been seeking its national interests through its exercise of soft power all across the

African continent. The measurable benefits of the soft power initiatives in Africa have

44

yet to be realized, since many of China’s programs are future-oriented and take time

to work effectively. However, it can be perceived that China has promoted its soft

power in Africa by investing in cultural projects, publicizing Chinese values, and

emphasizing its foreign polices of mutual benefits and non-intervention. These will

create larger markets for Chinese goods and services and improve the Sino-African

relations in the long run.

To sum up, China has created a lot of development opportunities for African

countries and facilitates their economic and social progress. Despite some setbacks in

the process of the bilateral trade, Chinese investment still presents a positive initiative

for Africa and the two sides should further strengthen their ties under the context of

globalization.

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