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Sarah Raine - Chinas African Challenges

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Chinas relations with African nations have changed dramatically over the past decade. African oil now accounts for more than 30% of Chinas oil imports, and China is Africas second-largest single-country trading partner, as well as a leading lender and infrastructure investor on the continent.

Yet these developments are bringing challenges, not only for Africa and the West, but for China as well. This book examines these challenges, considering Africa as a testing ground, both for Chinese companies going global and for a Chinese government that is increasingly having to deal with issues beyond its shores and immediate control. What does China need to do to protect and develop its African engagements, against a backdrop of mounting African expectations, concerns from Western actors in Africa, and the rival presence of other emerging actors? How sustainable is the momentum that China has established in its African ventures?

Chinas adaptations to the challenges it is facing in Africa are examined and assessed, as are the implications of these changes for China, Africa and the West. Chinas African engagements are certainly changing Africa, but could they also be changing China?

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Chinas African Challenges
Sarah Raine
The International Institute for Strategic Studies Arundel House 1315 Arundel - photo 1
The International Institute for Strategic Studies
Arundel House | 1315 Arundel Street | Temple Place | London | WC2R 3DX | UK
First published May 2009 by Routledge
4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
for The International Institute for Strategic Studies
Arundel House, 1315 Arundel Street, Temple Place, London, WC2R 3DX, UK
www.iiss.org
Simultaneously published in the USA and Canada by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of Taylor & Francis, an Informa Business
2009 The International Institute for Strategic Studies
DIRECTOR-GENERAL AND CHIEF EXECUTIVE John Chipman
EDITOR Tim Huxley
MANAGER FOR EDITORIAL SERVICES Ayse Abdullah
ASSISTANT EDITOR Katharine Fletcher
COVER/PRODUCTION John Buck
COVER ILLUSTRATION Steve Dell
The International Institute for Strategic Studies is an independent centre for research, information and debate on the problems of conflict, however caused, that have, or potentially have, an important military content. The Council and Staff of the Institute are international and its membership is drawn from almost 100 countries. The Institute is independent and it alone decides what activities to conduct. It owes no allegiance to any government, any group of governments or any political or other organisation. The IIS S stresses rigorous research with a forward-looking policy orientation and places particular emphasis on bringing new perspectives to the strategic debate.
The Institutes publications are designed to meet the needs of a wider audience than its own membership and are available on subscription, by mail order and in good bookshops. Further details at www.iiss.org.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
ISBN 978-0-415-55693-4
ISSN 0567-932X
eISBN 978-1-134-55078-4
ADELPHI 404405
The author gratefully acknowledges the support of John McLaren, chairman of the Barchester Group, in the conduct of research for this book. She would also like to thank all those experts, officials and colleagues who gave so generously of their time, help and hospitality, and who offered thought-provoking discussions.
APEC
Asia-Pacific Economic Cooperation forum
AFRICOM
Africa Command (US)
AGOA
ASEAN
AU
African Growth and Opportunity Act
Association of Southeast Asian Nations
African Union
CABC
ChinaAfrica Business Council
CADF
ChinaAfrica Development Fund
CAITEC
Chinese Academy of International Trade and Economic Cooperation
CASS
Chinese Academy of Social Sciences
CCP
Chinese Communist Party
CDB
China Development Bank
CIC
China Investment Corporation
CMEC
China National Machinery and Equipment Import and Export Corporation
CNOOC
China National Offshore Oil Corporation
CNPC
China National Petroleum Corporation
CPA
NorthSouth Comprehensive Peace Agreement (Sudan)
CPCC
China Petroleum and Chemical Corporation
CSR
corporate social responsibility
DRC
Democratic Republic of the Congo
EBA
Everything but Arms
ECOWAS
Economic Community of West African States
ECZ
Trade and Economic Cooperation Zone
EITI
Extractive Industries Transparency Initiative
ExIm
ExportImport (bank)
FOCAC
Forum on ChinaAfrica Cooperation
ICBC
Industrial and Commercial Bank of China
IFC
International Finance Corporation
IMF
International Monetary Fund
KMT
Kuomintang
KOAFEC
KoreaAfrica Economic Cooperation Conference
MEND
Movement for the Emancipation of the Niger Delta
MONUC
UN Mission in the DRC
NDRC
National Development and Reform Commission
NEPAD
New Partnership for Africas Development
NGO
non-governmental organisation
NOC
national oil company
OAU
Organisation of African Unity
OECD
Organisation for Economic Cooperation and Development
PEPFAR
Presidential Emergency Plan for AIDS Relief
PLA
Peoples Liberation Army
PRC
Peoples Republic of China
P5
Permanent 5 (members of the UN Security Council)
RMB
renminbi (currency of China)
SADC
Southern African Development Community
SAFE
State Administration of Foreign Exchange
SASAC
State-owned Assets Supervision and Administration Commission
SME
small or medium-sized enterprise
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