Friday, December 18, 2015

China In Africa

Credits: South China Morning Post (Dec 18, 2015) - Enlarge
While the United States wastes billions on ill-advised foreign adventures and destabilizing wars of choice, China has slowly been accumulating a massive amount of resources around the world. Over the last decade, China has increasingly poured billions of dollars of foreign direct investment capital into Africa. China has now invested in 46 of 54 African countries, mainly with a focus on metals, energy, and infrastructure. So far, 2013 has been the peak of Chinese investment, with the equivalent of USD 44 billion spent. Investments in 2015 up until June have totaled USD 17.8 billion, and are on pace to reach USD 42 billion by the end of this year. 

In fact, just last week, South Africa hosted Chinese President Xi Jinping in Johannesburg for the Forum on China-Africa Cooperation (FOCAC). During the conference, the Chinese President announced the budget for African cooperation would be tripled to a USD 60 billion package. This includes USD 5 billion of aid and interest-free loans, USD 35 billion of preferential loans and export credit, and USD 20 billion of capital to be divided between three Africa-focused funds. China's overall trade with Africa topped USD 200 billion last year but has slowed over the past two years as the weakening Chinese economy demands fewer of the continent's oil, copper and other raw materials. Chinese-built roads, bridges and power installations are found across Africa, often paid for in resources or through loans from China. There are about a million Chinese living in Africa, mostly engaged in commercial work, according to the Chinese General Chamber of Commerce in Africa.