China Unequivocally Supports Ethiopia’s National Reconstruction, Industrialization, and Modernization of Agriculture
July 24, 2023
These statments from China’s leading diplomat, Wang Yi’, in his meeting with Ethiopia’s Prime Minister, Abiy Ahmed, and Deputy PM, Demeke Mekonnen, make abundantly clear, China’s commitment to assist in the economic development of Ethiopia. This is essential to bring peace and stabilty to the Horn of Africa.
On July 21, 2023, Wang Yi, member of the Political Bureau of the Central Committee and director of the Central Foreign Affairs Office, visited Ethiopia on his way to South Africa to attend the meeting of the BRICS High Representatives on Security Affairs, and Ethiopian Prime Minister Abiy met with Wang Yi in Addis Ababa.
Mr. Abiy spoke highly of the great achievements of socialism with Chinese characteristics and appreciated China’s determination to follow the development path in line with its own national conditions and its rapid economic and social development, which has set an example for developing countries. Ethiopia will never forget the strong support given by China when it faced difficulties and regards China as a great and reliable friend. Ethiopia is willing to learn from China’s development concepts and experience, and strive to realize self-sufficiency in agriculture and rapid economic growth, and promote green and sustainable development. Ethiopia abides by the one-China principle, supports China’s position in international affairs, actively participates in the construction of the “Belt and Road”, and is willing to work closely with China on mutually beneficial cooperation in various fields to promote greater development of relations between the two countries.
Wang Yi said that Ethiopia is a major African country with significant influence. China and Ethiopia are comprehensive strategic partners with each other, the two countries have common goals and common pursuits, and have carried out fruitful cooperation under the framework of building the “Belt and Road” and the Forum on China-Africa Cooperation (FOCAC), which is at the forefront of China-Africa cooperation. China values its traditional friendship with Ethiopia, firmly supports its domestic reconstruction and economic recovery, and is willing to further explore the potential of cooperation with Ethiopia to help it accelerate industrialization, modernize agriculture and explore green and low-carbon development. China encourages strong and reputable enterprises to invest in Ethiopia, and is willing to play an active role in alleviating the debt pressure on Ethiopia. We hope that Ethiopia will actively create a favorable business environment.
Wang Yi said that China’s cooperation with Africa is an important part of South-South cooperation and mutual support and assistance among friends. China has never interfered in the internal affairs of other countries, never attached political conditions and never sought geopolitical self-interest in its cooperation with Africa. China is willing to work with African countries, including Ethiopia, to strengthen cooperation in trade and investment, green development, digital economy, health and sanitation, and continuously create a new situation for China-Africa cooperation.
On July 21, 2023, Director of the Central Foreign Affairs Office (CFA) Wang Yi met with Ethiopian Deputy Prime Minister and Foreign Minister Demeke in Addis Ababa.
Wang Yi said that China and Ethiopia are good brothers who care for each other’s guts, good friends who watch out for each other, and good partners in common development. China has stood with the people of Ethiopia at the critical moment of safeguarding national peace and stability, and will continue to stand with the people of Ethiopia as it enters a new phase of peace restoration and national reconstruction. China firmly supports Ethiopia in safeguarding national sovereignty and territorial integrity, supporting Ethiopia’s commitment to national unity and stability, and supporting Ethiopia to play a greater role in regional and international affairs, and is willing to continue to strengthen strategic collaboration with Ethiopia, deepen practical cooperation in various fields, and work together to safeguard the fundamental interests of the two countries and the common interests of developing countries, and to maintain the basic norms of international relations.
Wang Yi said that China has great potential for cooperation with Ethiopia. China is willing to strengthen high-level exchanges with Ethiopia and exchanges at all levels in all sectors, support strong and reputable enterprises to invest in Ethiopia, accelerate the implementation of key cooperation projects, expand the scale of bilateral trade, and help Ethiopia to promote industrialization and modernization of agriculture and improve its capacity for independent development. It is hoped that Ethiopia will take practical and effective measures to ensure the safety of Chinese organizations and personnel. China is willing to work with Ethiopia to promote the implementation of the “Horn of Africa Peaceful Development Concept” and support Africans to solve African problems in an African way.
Demeke said Ethiopia has a long history of relations with China and is firmly committed to strengthening cooperation with China at bilateral, regional and multilateral levels. Ethiopia is grateful to China for its help in maintaining national security and stability, and looks forward to China’s support for the consolidation of peace, reconstruction and economic revitalization of Ethiopia, as well as the global development initiative, global security initiative and global civilization initiative put forward by China, and is willing to strengthen all-round exchanges among the government, political parties and enterprises with China, and deepen the mutually-beneficial cooperation in the field of trade and economic cooperation. Ethiopia firmly opposes the use of human rights as a tool to interfere in the internal affairs of developing countries, actively supports participation in collective cooperation among developing countries, and is willing to work with China to implement the “Horn of Africa Peaceful Development Concept” to promote regional peace and prosperity.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
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China Fully Engaged in Africa for 2023-The Future is Trade Not Debt
Ethiopian Prime Minister, Dr Abiy Ahmed with Chinese Foreign Minister, Qin Gang, in Addis Ababa (Courtesy of VOA)
January 23, 2023
For the thirty-third consecutive year, the first foreign trip by China’s Foreign Minister was to Africa. China’s new Foreign Minister, Qin Gang, the former Ambassador to the United States, traveled to Ethiopia, Gabon, Angola, Benin, and Egypt, from January 9 to 16, 2023. In addition to visiting these five African nations he was also invited to meet with African leaders at the African Union and the League of Arab States Headquarters. The stated purpose of the trip was: To deepen the China-Africa comprehensive strategic and cooperative partnership and boost friendly cooperation between China and Africa.
Friendship Remains Strong
Starting in the year 2000, China organized the Forum on China-Africa Cooperation (FOCAC), which meets every three years, alternating between China and Africa. These conferences provide a unique opportunity for African leaders and Chinese President, Xi Jinping, to discuss future economic, cultural, and political collaboration. Contrary to continued efforts by the U.S. to malign Africa-China cooperation, China and Africa have remained steadfast in their shared common interest; the development of their people
One of the highlights of Foreign Minister Qin Gang’s visit to Ethiopia, was to inaugurate the new Headquarters of the Africa Center for Disease Control and Prevention (Africa CDC). The new Africa CDC, located outside of Addis Ababa, the capital of Ethiopia, was built by China and given as a gift to Africa.
This is a critically important contribution to Africa, a continent of one and a half billion people, which was given a very low priority for vaccinating against COVID 19, and continuously suffers from a weak healthcare system.
Foreign Minister Qin met with Ethiopia’s Prime Minister, Dr. Abiy Ahmed, and Deputy Prime Minister and Foreign Minister Demeke Mekonnen. He was the first foreign government official to visit Ethiopia following the signing of the peace agreement of November 2, 2022, that ended a two year long war in northern Ethiopia. He expressed China’s support for “Africans in solving African problems in African ways.” This attitude differs dramatically from the U.S. and Europe, who undermined the government of Ethiopia during the war. Foreign Minister Qin pledged to assist Ethiopia in its reconstruction efforts, which are formidable following the terrible damage that the country suffered in fighting to maintain its sovereignty. Additionally, he announced that China will forgive thirty million dollars in Ethiopian debt.
In December 2022, the U.S. convened its first U.S.-Africa Summit in eight years. The unspoken “secret topic” and motivation for the three-day conference was, how to counter China’s growing influence on the African continent.
There are yet to be any “deliverables” from the U.S.-Africa Summit. While the Biden administration seems to be more focused on exporting the “infrastructure of democracy,” China is building and financing more hard infrastructure projects in Africa than the rest of Western nations combined. These projects impact the daily material needs of the African people, which is essential to eliminate poverty on the continent.
China-Africa Trade Not Debt
China’s trade with Africa during 2022 expanded to its largest single year total of $282 billion. China exported $164.5 billion to Africa and imported $117.5 billion over that twelve-month time, which represented an increase of 11% over 2021. From January to November of 2022, U.S. exports to Africa, were $28.5 billion and imports of $38.9 billion for a total trade of $67.3 billion, almost no increase over 2021. Thus, U.S. trade with Africa was approximately one-fourth that of China for 2022. If the U.S. intends to counter or challenge China in Africa, it will have to do a lot more than “exporting democracy.”
As you can see from the chart below the myth spun by Western officials and the media that China is primarily responsible for Africa’s debt, is simply not ture. This intentionally false allegation has been refuted again and again, but Western governments continue to propagandize Africa nations that China is using a ‘debt-trap’ diplomacy to seize their resources. Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa,
The total outstanding debt for sub-Saharan African nations to foreign entities totals: 454.4 billion USD. China is not even close to being the largest debt holder. China owns 79 billion USD of sub-Saharan Africa’s debt, less than one firth-17%. The debt held by bondholders, the World Bank, and the IMF, equals 286.9 billion USD,-63% of the total foreign debt of sub-Saharan Africa,
Courtesy of Reuters Graphics
Investing in Manufacturing
Contrary to Western propaganda, which accuses China of stealing Africa’s resources, China is actually expanding Africa’s manufacturing sector. This is a vital contribution since African nations suffer from an anemic production capability to add value their natural resources. A good example is the investment by Dinson Iron and Steel Company (DISCO), a Chinese steel manufacturer, who intends to invest in building a lithium battery manufacturing plant in Zimbabwe. Chinese firm to manufacture lithium batteries in zim. The Zimbabwean government has wisely banned the export of raw lithium. Having its own manufacturing plant, will create jobs and improve the standard of living of Zimbabweans, since mining and export of valuable minerals does not lead to economic growth for the population.
This kind of investment in local manufacturing along with China’s Belt and Road strategy of building infrastructure throughout Africa, is exactly what is needed to assist African nations in creating strong sovereign economies.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
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Exciting News for Africa! Djibouti Will Build Africa’s First Spaceport
The spaceport, expected to include seven satellite launch pads and three rocket testing pads, will be the first orbital spaceport on the continent.
Africa is entering a very exciting period in which it is asserting its scientific and engineering capabilities. Humankind’s exploration of space is the highest form of human discovery of the universe, and introduces into society new advanced technologies. With the completion of Ethiopia’s Grand Renaissance Dam in 2025, a scientific-engineering marvel, and the creation of Djibouti’s spaceport in five years, Africa is demonstrating its leadership for the 21st century, and creating the scientific foundation for economic growth. This is true sceintific-economic progress for the nations of Africa, whcih should make all poeple, of all nations happy.
Janary 23, 2023, Quartz Africa Weekly
Excerpts follow:
Africa could soon get a new spaceport after Djibouti signed a partnership deal with Hong Kong Aerospace Technology to build a facility to launch satellites and rockets in the northern Obock region.
According to the preliminary deal, the Djibouti government will “provide the necessary land (minimum 10 sq km and with a term of not less than 35 years) and all the necessary assistance to build and operate the Djiboutian Spaceport.”
The $1 billion spaceport project will also involve the construction of a port facility, a power grid and a highway to ensure the reliable transportation of aerospace materials.
The deal’s signing was presided over by the president of Djibouti, Ismail Omar Guelleh, and the project is set to be completed in the next five years.
The spaceport is a massive milestone for Africa, making it the first orbital spaceport on African soil.
The Djibouti spaceport project
According to Victor Mwongera, Head of the Department of Mechanical Engineering at Kenyatta University, the projection will avail a launch base that will serve all Africans.
“It will push eastern Africa off the sleeping state as far as active development of space-based innovations are concerned,” he explained.
Trial and small-scale launches have been executed in Africa in the past, including the Italian-operated Broglio Space Centre (San Marco) in Malindi, Kenya and Algeria’s Reggane.
Mwongera sees the expansion of Africa’s space industry—with a number of African countries already building and operating their own microsatellites—as a growing trend.
“It has taken time but we needed time as a continent to be ready for this age. Now that we are ready, you are seeing the number is increasing and it is bound to increase further,” he said.
Africa’s space industry is a billion dollar sector
According to the 2022 annual sector report of research firm Space in Africa, the value of the African space and satellite industry has risen to more than $19.6 billion.
The charge is fuelled by 14 countries that have launched 52 satellites into space.
South Africa, Egypt, Algeria, and Nigeria have the highest number of satellites in space as of 2022, each having launched more than five satellites.
Mwongera explained that east African countries are well positioned to harbor more spaceports, due to their proximity to the equator.
“At the equator… there is minimal energy required,” he said.
The original version of this article was published by bird-Africa no filter.
Read entire article: Africa Will Get A New $1 Billion Spaceport in Djibouti
Read my ealier posts below:
GERD: Utilizing the Blue Nile to Create Energy for Development in Ethiopia & The Horn of Africa
Science and Space Exploration Essential For Africa’s Economic Growth
Science and Technology Will Transform Africa: Ethiopia to Launch New Satellite in 2019
China & the US Can End Poverty by Exploring Space: Africa Gains
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
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African Youth Favor China’s Development Policy Over the U.S.
June 29, 2022
According to a recent survey by Ichikowitz Family Foundation, African youth favor China’s involvement on the continent over that of the United States.
In an article from the VOA-Voice of America, China wins battle of perception among young Africans, they report:
“Seventy-seven percent of young Africans said China was the ‘foreign actor’ with the greatest impact on the continent, while giving the U.S. an influence rating of just 67%. In a follow-up question on whether that influence was positive or negative, 76% said China’s was positive, while 72% said the same of the U.S.
“By contrast, U.S. influence has dropped by 12% since 2020, according to the survey of more than 4,500 Africans 18 to 24 years old and living in 15 countries across Africa.”
One of the primary reasons for their choices is: “Beijing’s investments in infrastructure development on the continent and China’s creation of job opportunities in African countries.” (Emphasis added)
Ivor Ichikowitz said:
“Young Africans are telling us that they are seeing tangible, visible and very impactful signs of the role that China has played in the development of Africa.”
“Albeit that there is significant criticism of Chinese investment in Africa, it’s very difficult for African governments not to value China because China is providing capital, providing expertise, providing markets at a time when Europe and the United States are not.”
China Embraces Economic Transformation of Africa
The Journal of International Development published in May of this year, Economic Transformation in Africa: What is the role of Chinese firms? This research paper explains why China has surpassed the U.S. in favorability among African youth.
The abstract of this paper bluntly states exactly what Western geopolitical ideologies still refuse to accept:
“Africa–China trade leads to mixed results, while Chinese investment and infrastructure construction are found to contribute positively to transformation. Chinese firms are also found to support capacity building, spillovers, and innovation in African countries.”
The authors have identified a central concept. African nations need Economic Transformation (ET), which is not equal to simplistic and false notions of economic growth measured by Gross Domestic Product (GDP).
They correctly explain the difference in their introduction:
“The process of economic transformation (ET), indicating the changes affecting the structure of an economy, is at the core of development. While GDP growth is often used as a metric for development, it simply points to an expansion of a country’s economic size, but it does not guarantee that the economy has become more diversified, resilient to shocks or inclusive. Conversely, ET, indicating a transition from an economy based on traditional agriculture to one where modern sectors take the central place, can deliver job creation, diversification, and inclusive development.
“Today, African countries face an ET gap. While many African economies have grown over the last few decades, their structure has not transformed. In contrast with other regions of the world, where the majority of people are employed in the secondary and tertiary sectors, a large share of Africa’s labor force works in agriculture and related activities, where average productivity is lower.
“When Chinese economic engagement with Africa started intensifying at the turn of the century, it raised hopes for ET. China’s extraordinary growth and poverty reduction performance could be a model for African countries; and with China as a trade, investment and development partner, African economies could hope to follow a similar path. African engagement with China was deemed particularly promising for industrialization on the continent. (Emphasis added)
Regrettably, both for the U.S., and Africa, and the rest of the developing sector, the West no longer believes in economic transformation. The U.S. in particular, is no longer devoted to fostering economic development for itself or other nations, contrary to many outstanding periods of its history. Whatever shortcomings exist in China’s relationship to Africa, China is committed to promoting real economic development i.e., economic transformation on the African continent. Yet Western governments continually attack China and its Belt and Road Initiative for assisting African nations in addressing the most critical deficiency in their economies; the lack of infrastructure and a manufacturing sector.
Many people, including so called economic experts fail to understand that money is not the basis of economic growth. The addition of all the monetary values of an economy’s goods and services measured in GDP, does not determine economic growth. The only proper, scientific measure of economy is not monetary values, but the ability of each particular mode of economic production to provide an increased standard of living to an expanding population. A physical economist like myself understands, that it is those physical inputs that lead to an increase in the performance-output of the productive powers of labor that determines real economic growth. Infrastructure and manufacturing capacity are crucial physical inputs required for economic transformation.
That is what the Chinese are providing for Africa, unlike the West. Could that be why young Africans think more approvingly of China’s policies in Africa than the U.S.?
Read the entire paper: Economic Transformation in Africa: What is the role of Chinese firms?
Read my earlier post: Africa Needs Real Economic Growth, Not IMF Accountants; For the Development of Africa: Know and Apply Franklin Roosevelt’s Credit Policy
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a writer, researcher, and consultant, and the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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Time to End Clap-Trap About ‘Debt-Trap Diplomacy’ in Africa!
June 14, 2022
Africa’s Bigger Worry Is Western Bondholders-Study Finds, an article in the South China Morning Post (see below), is yet another refutation of the baseless ‘debt-trap diplomacy.’ Western propaganda accuses China of deliberately driving African nations into debt, in order to seize their assets upon default on their loans. These charges have been disproved again, and again, including by the China-Africa Research Institute-CARI, Johns Hopkins University Washington DC. Not to overlooked: not one African asset or project involving China has been seized!
“Contrary to the debt-trap narrative, if a wave of African defaults materializes in the near future, as IFI officials have been fearing since at least 2015, it will be catalyzed more by private-sector maneuvering and intransigence than by Chinese scheming,” the study said
These false allegations against China and its Belt and Road Initiative, have been repeated without a scintilla of evidence, by leaders of Western governments including several U.S. Presidents, members of Congress, and State Department officials. The motivation for the mindless repetition of what is a blatant falsehood, is the perverted geopolitical doctrine. The followers of this geopolitical mindset insist that for the U.S. led West, to maintain their supremacy in the world, they must suppress and weaken other superpowers, to prevent them from challenging the U.S.-West hegemonic status. Sadly, from the ideology of western geopolitics, the African continent is seen as a mere chess board with African nations as mere chess pieces to counter China’s emergence. To China’s credit they have collaborated with African nations to build vitally necessary infrastructure, while for the last fifty years, the West has refused to make these long term investments.
As I have documented on this website for years, Africa’s infrastructure is so huge, that the demand for capital investment cannot be satisfied by one nation alone.
There is a harmony of interest for the U.S. and China to cooperate with African nations to eliminate poverty and hunger, which I know can be done within one generation. Let us jettison the relic of geopolitics and adopt a mission that is in the shared-common interest of humankind.
Africa’s Bigger Worry Is Western Bondholders-Study Finds
Chinese debt traps in Africa? The bigger worry is bondholders, study finds
•China is the continent’s biggest bilateral creditor but most of the debt is due to private Western holders of African debt, according to a new report
•Private-sector manoeuvring rather than Chinese scheming more likely to induce a wave of defaults, researchers say
Jevans Nyabiage, June 6, 2022
The rise in African debt due to Chinese lending pales in comparison with the debt burden created by private creditors in the last decade, according to a new report taking aim at accusations that Beijing engages in “debt-trap diplomacy” on the continent.
The study – by Harry Verhoeven from the Centre on Global Energy Policy at Columbia University, and Nicolas Lippolis from the department of politics and international relations at the University of Oxford – says the debt-trap narrative is a function of China-US strategic and ideological rivalry rather than a reflection of African realities or perspectives.
“What keeps African leaders awake at night is not Chinese debt traps. It is the whims of the bond market,” the report says.
Debt-trap diplomacy involves extending loans to countries and taking control of key assets if the debtor defaults on repayments.
While China is the continent’s biggest bilateral creditor, most of the debt is due to private Western holders of African debt, according to the researchers. Capital, in the form of debt repayments, thus continued to flow from Africa to Europe and North America, the study said.
Verhoeven said the percentage of African debt owed to China was less compared to that borrowed from private creditors.
“[Chinese debt] is not the most rapidly growing segment of debt. Other credit lines have grown a lot more in recent years, especially those towards commercial creditors,” said Verhoeven, co-author of the report “Politics by Default: China and the Global Governance of African Debt”.
“These are bondholders, people from London, Frankfurt and New York who are buying African debt. That segment in the last couple of years has grown much faster than any liabilities that African states owe other creditors.”
The report cited confidential estimates of international financial institutions (IFIs) that showed sub-Saharan Africa’s government debts to Chinese entities at the end of 2019 totaled around US$78 billion. This was about 8 per cent of the region’s total debt of US$954 billion and 18 per cent of Africa’s external debt.
Continue reading the entire article: Africa’s Bigger Worry Is Western Bondholders-Study Finds
Read my earlier posts:
Africa’s ‘poverty trap’ more dangerous than so-called debt trap
Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the 0blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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U.S. Geopolitics Exposes Itself in CFR report on China’s Belt and Road-Will Africa benefit?
China’s Belt and Road Initiative- BRI (Courtesy of dailysabah.com)
February12, 2022
Lawrence Freeman
The Council on Foreign Relations (CFR) March 2021 report: China’s Belt and Road: Implications for the United States, would be humorous, if it was not so pitiful. In the course of almost 200 pages, the CFR, the premiere think tank of the U.S. Establishment, maligns China’s Belt and Road Initiative (BRI), but admits that the success of the BRI is the result of a failure of U.S. policy. The entire analysis is inherently flawed from the beginning because it proceeds from the axioms of the diseased doctrine of geo-politics, which views the world as a zero-sum game. Rather than understanding that the world is composed of human beings and sovereign nations who share a common interest, Anglo-American devotees of geopolitics only see two sides. In this case, China, and the U.S., where “an advantage to one side is a loss to the other.”
The CFR report is replete with a compilation of:
- Contradictions
- Speculation that BRI nations debt to China “might” or “could” lead to economic distress
- China is not playing by the international rules imposed by Western international financial institutions
- Recommendations that do not address the reasons for the success of the BRI, but instead propose new forms of political-economic warfare to undermine China.
The report’s Executive Summary bluntly states:
“U.S. inaction as much as Chinese assertiveness is responsible for the economic and strategic predicament in which the United States finds itself. U.S. withdrawal helped create the vacuum that China filled with BRI…it [the U.S.] has not met the inherent needs of the region.” (emphasis added)
US Infrastructure Investment?
US stopped loaning money to Africa for infrastructure for several decades
It is well known that beginning in the 1970s, the U.S. moved away from investing in hard infrastructure. Hard infrastructure is essential to the growth of the physical economy. It is irreplaceable in providing a platform that is the foundation of a healthy economy. The U.S. abandoned the needs of the majority of the nations of the world and foolishly sabotaged the U.S. economy as well.
According to estimates by the World Bank sited in this report:
“…$97 trillion needs to be spent on infrastructure globally by 2040 in order to maintain economic growth and to meet the UN Sustainable Development Goals, but an $18 trillion gap exists.”
The report acknowledges that Western financial institutions and governments do not fund hard infrastructure.
Should BRI nations be punished for trying to improve the lives of their population by accepting China’s financing help? The African continent, which has the largest infrastructure deficit in the world, encounters a gap upwards of $100 billion a year for essential infrastructure investment.
The report itself admits the global benefits of the BRI:
“Since BRI’s launch in 2013, Chinese banks and companies have financed and built everything from power plants, railways, highways, and ports to telecommunications infrastructure, fiber-optic cables, and smart cities around the world…BRI has the potential to meet long-standing developing country needs and spur global economic growth.” (emphasis added)
Geopolitics Governs Western Thinking
If the CFR were genuinely concerned about addressing the huge lack of hard infrastructure that is keeping nations underdeveloped and forcing billions of people around the world to live in poverty, they would propose the U.S. collaborate with the BRI. However, they are more concerned in trying to maintain U.S. unipolar dominance.
For those of you who do not know, the Council on Foreign Relations is a 100 year old arm of the Anglo-American establishment. Founded in 1921 as the American branch of the British Royal Institute for International Affairs, otherwise known as Chatham House, which was createdtwo years earlier. Chatham House was created by Lord Alfred Milner, then acting as Secretary of State for the British Empire’s colonies, through a vast trust funded by the estate of race-patriot Cecil Rhodes.
(Courtesy of slideshare.net)
The CFR report makes clear their fear of China usurping the U.S. as the one and only world superpower when they write that the BRI will “enable China to lock countries into Chinese ecosystems…“The report attacks China for the crime of violating the so called free-trade system by subsidizing “state-owned and non–market oriented Chinese companies” and that the BRI is “undermining world macroeconomic stability.”
Nevertheless, the report states: “The United States, even if not formally part of BRI, would likely benefit in some ways if BRI builds infrastructure that accelerates global economic growth.” (emphasis added)
The actual threat for the Western financial system, overburdened with quadrillions of dollars of derivatives and unpayable debts, is that it will be outperformed by China, dislodging the U.S. from its perch as the sole economic superpower.
No Debt Trap, Debt Crisis Instead
The CFR report is forced to admit there is no Chinese debt-trap, and no asset seizure.
“Although not setting explicit debt traps, China’s lending practices contribute to debt crisis along BRI.” However, “there has yet to be a case in which China has taken control of other countries’ infrastructure.”
Revealing their real concern, the report speculates, “the risk is clear that countries unable to repay their debts to China could become clients of China, deferring to it on political or strategic issues.”
The CFR report, while explicitly acknowledging multiple times that there is no debt-trap, argues that Chinese BRI loans are driving the “emerging debt crisis,” threatening todisruptthe global financial system. They write: “When these emerging debt crises in BRI countries materialize, they will undermine global economic growth and macroeconomic stability…”
They also allege that: “BRI participants [will be forced] to choose between meeting debt-service requirements to China or funding local economic recovery and critical medical services at a moment of historic crisis.” Isn’t that precisely what the World Bank and International Monetary Fund have been demanding of developing nations for the last several decades?
China dwarfs the West in infrastructure investment
Gyude More, the former Minister of Infrastructure in Liberia, has on multiple occasions pointed out the fallacies of claiming that China is causing debt distress in African nations. He estimates that Africa’s debt to China is between 20-23%, with a handful of African nations responsible for the majority of the debt. Approximately 80% of the continent’s debt is owed to multilateral Western financial institutions, the private sector, and hedge funds.
Moore cogently points out that prior to China’s involvement in the continent, African nations were forced to pay debt service and arrears on unpayable Western loans. Africans also received no benefit from multi-billion dollar Western extractive mining interests that looted Africa’s resources, contributing little or nothing to improving the conditions of life for Africans. With China there is a new “win-win” model. Moore explains that natural resources are instead used to secure loans from China to actually build vitally needed infrastructure that benefits the lives of Africans. Why should African nations reject this arrangement, which also comes with no demands for political of financial reform of the host nation? The West “doth protest too much, methinks.”
CFR Proposals: Impotent or Geopolitical?
The recommendations of the CFR report are a combination of impotency and geopolitical idiocy, arrogantly displaying no respect for the sovereignty of BRI nations. However, the report itself affirms that China’s BRI is a reality across the globe, and it is here to stay. All of the recommendations in this report avoid addressing what the BRI is providing; government subsidized credit for the construction of hard infrastructure. Instead, they recommend for the U.S. to menacingly wage geopolitical propaganda war against China and the BRI. Their suggestions include for the U.S. to; raise awareness of BRI risks, fund investigative journalism in BRI countries, champion anticorruption, work with IMF and World Bank to assess debt sustainability for BRI nations, and prepare for a conflict with BRI countries.
Notice the glaring absence of a positive development policy that promotes real economic growth around the world, demonstrating the bankruptcy of U.S. foreign policy, as well as the CFR.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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Africa’s ‘poverty trap’ more dangerous than-called debt trap
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Kenyan President Uhuru Kenyatta (L) and Chinese Foreign Minister Wang Yi attend the completion ceremony of the Chinese-built oil terminal at the port of Mombasa in Mombasa, Kenya, January 6, 2022. /Xinhua
Lawrence Freeman
CGTN, January 24, 2022
Editor’s note: Lawrence Freeman is a Political-Economic Analyst on Africa, who has been involved in economic development policies for Africa for over 30 years. The article reflects the author’s opinions and not necessarily the views of CGTN.
In his visit to Kenya on January 6, 2022, China’s Foreign Minister, Wang Yi, emphasized China’s support for economic progress in Africa, and in particular, the Horn of Africa.
Wang was continuing China’s 32-year-old tradition of having their foreign minister begin each year with an overseas trip to Africa. In the first week of January, Wang met with officials in Eritrea, Kenya and Comoros. Both Eritrea and Kenya are located in East Africa, a region where Ethiopia, the second most populated nation in Africa, is engaged in a 14-month war to defeat an armed insurrection led by the Tigray People’s Liberation Front. Kenya, an important ally of China, is a key nation in China’s Belt and Road Initiative (BRI) and Maritime Silk Road.
Eliminating poverty
Wang, in his press conference, focused on the number one challenge facing Africa: poverty and the extremely low standard of living affecting the majority of its 1.4 billion people.
He polemically stated,” If there is any trap in Africa, it is the trap of poverty and the trap of backwardness,” which he counterposed to the so-called debt trap that he referred to as a “speech trap” created by the West. China speaks with authority, which has accomplished a modern day miracle in lifting over 750 million of its people out of extreme poverty and has pledged to help Africa do the same.
A woman fills up her water jerrycan in Nairobi, capital of Kenya, January 1, 2022. /VCG
China’s approach to the current challenges in the Horn of Africa is in stark contrast to that of the U.S. Instead of punishing Eastern African nations with sanctions and economic warfare, China is promoting peace and economic development. According to Wang, China will appoint a special envoy for the region, with the goal:
“To support the Horn of Africa in realizing lasting stability, peace and prosperity, China is willing to put forward the ‘Initiative of Peaceful Development in the Horn of Africa’ and support regional countries in addressing the triple challenges of security, development and governance.”
Emphasizing China’s infrastructure-led economic approach, Wang encouraged nations of the region to “accelerate regional revitalization to overcome development challenges,” adding that “the two principal axes, the Mombasa-Nairobi Railway, and the Addis Ababa-Djibouti Railway, should be enlarged and enhanced with the aim of expanding to neighboring countries at an opportune moment.”
Wang announced that China would provide an additional 10 million doses of coronavirus vaccine to Kenya which follows President Xi Jinping’s November pledge at the Forum on China Africa Cooperation conference in Dakar, to make 1 billion doses available to Africa.
China’s policy guided by development
The dominant feature of China’s relation to Africa is development, contrary to the Western geopolitical propaganda against China. The infrastructure-driven BRI has made physical improvements in African economies through the construction of railways, roads, power generation capacity, ports and airports. There is not a single Western nation that even remotely compares to China’s level of investment in Africa.
As every African leader knows well, if China were to cease offering loans for infrastructure, there would be no Western nation to address the continent’s huge deficit in the field, and African nations would suffer terribly.
The U.S. has failed to modernize its own rail network and is incapable of building advanced transportation corridors in other countries, while China had constructed around 40,000 kilometers of high-speed rail by the end of 2021.
Unlike U.S. officials who travel to African nations, Chinese representatives do not attach political conditionalities or arrogantly dictate what domestic policies must be adopted by their host countries. Instead, China is thoughtful by responding to the most critical and urgent needs of African nations. That is the elimination of poverty, which necessitates massive investments in hard and soft infrastructure.
Africa-s-poverty-trap-more-dangerous-than-so-called-debt-trap
Read my earlier posts:
Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa
China-Africa Debt Trap Refuted Again. Belt and Road Building Infrastructure-Developing Africa
A Brief Response: Marshall Plan for Africa or “Debt Trap?”
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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China’s Belt & Road is Helping Empower African Nations to Realize Their Economic Potential
https://lawrencefreemanafricaandtheworld.com/wp-content/uploads/2021/11/Prof_Freeman.mp4 November 15, 2021Please watch my 45 minute presentation to the Special Session on Africa, at the ICG 16 in Qingdao, China, on October 25, 2021, entitled: “How China Is Empowering Africa’s Self Development.”I discuss as a physical economist the critical importance of infrastructure in developing a progressive pro-growth economy. Expansion of vital categories of infrastructure, such as railroads and electricity is the most essential task for African nations today. I present in detail how China’s Belt and Road Initiative (BRI) is assisting African nations in developing their economies. The West, dominated by the disease known as “geo-politics” is spreading false propaganda against China’s investment in Africa. I expose their their anti-China propaganda regarding so called “debt-trap” diplomacy. Viewing my presentation will prove valuable to those familiar and those unfamiliar with China’s cooperative relationship wit African nations.Please watch: Africa-China: Belt and RoadLawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.________________________________________________________
The Truth: It is good that China Is Investing in Africa’s Energy and Transportation Infrastructure
The Truth: It is good that China Is Investing in Africa’s Energy and Transportation Infrastructure
Lawrence Freeman April 8, 2021 Below are two articles examining China’s investment policy in Africa that should be read to learn the truth about China’s lending to the continent. One, is a briefing paper from China Africa Research Initiative (CARI) entitled, Twenty Years of Data on China’s Africa Lending. The second is entitled, “Why Substantial Chinese FDI is Flowing into Africa, by Shirly Yu. Combined, both papers provide a thorough analysis of the positive contribution of Chinese investment in Africa, surpassing the United States in all categories. As many African leaders know, without China’s contribution to Africa’s development, especially in infrastructure, Africa would be worse off. There is absolutely no indication that the U.S. and the West would fill that void. It is undeniable that China has invested heavily in the development of Africa over the last two decades. Ignore the claptrap allegations of a deliberate Chinese debt-trap policy to seize control over Africa’s resources. It is nonsense and has not happened; not once, not in a single African nation. According to CARI’s data base, from 2000-2019, China has made $157 billion in loans to Africa. Of these 1,077 loans, 85% have been in categories of infrastructure, of which 65% have been in energy and transportation. According to CARI, only 13% of Africa’s debt is owed to China. The largest portion of Africa’s debt is owed to multilateral institutions at 32%, followed by loans from private bond holders. Outside of Angola, only 8% of Chinese lending was for resource backed loans. 90% of the contractors in Africa from China are private Chinese companies, not state owned enterprises (SOEs). Also, 90 % of Foreign Direct Investment (FDI) is from private Chinese companies, although SOEs are the largest investors in Africa in total value. President Biden has recently suggested that the U.S. and Europe should lead a western version of China’s Belt and Road (BRI). If it were to be as productive as China[‘s (BRI), African nations would benefit greatly, especially in this challenging economic period. Excerpts from Shirly Yu: “Make no mistake, Chinese state-owned enterprises (SOEs) are still the largest investors in Africa by value and continue to dominate the energy, transportation and resources sectors due to the strategic nature and long-haul return of these investments. For instance, one third of Africa’s power grid and energy infrastructure has been financed and constructed by state-owned Chinese companies since 2010. China is the most significant foreign contributor through SOEs and state-owned banks to Africa’s energy development. “By 2034, Africa’s labour force is forecast to surpass that of China and India combined. By 2050, the African population is expected to be 2.5 billion, while China’s population will decline to below 1 billion. With these figures in mind, Africa’s young labour force is exactly what China’s labour-intensive manufacturers seek today.”___________________________________________________________________________________________
Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa
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China’s Friendship and Economic Partnership With Africa in 2021
HISTORIC NEWS FOR DR CONGO !
China and DRC sign MoU on Belt and Road cooperation
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Belt and Road Infrastructure Contributes to Africa’s Development: No ‘Debt-trap’
Belt and Road Infrastructure Contributes to Africa’s Development: No ‘Debt-trap’
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China Brings Good News for Humankind: Eliminating Poverty and Discovering Abundant Energy for the Future
“Modern science has revealed that most of the energy we use today originated from sunlight—coal and oil are basically storage of ancient sunlight. Scientists and engineers have been trying to build a smaller sun on Earth for decades. And helium-3 is a great fuel to do that. “100 tons of helium-3 can generate the energy needed by all humans for a year. And there may be a million tons of helium-3 on the Moon—which can help humans survive another 10,000 years. Building the artificial sun requires many strict conditions, some of which can be easily met on the Moon since the sphere has much less gravity than the Earth. “Imagine if we don’t need oil anymore. Lots of wars will become pointless and we may enjoy one of the most peaceful ages ever. Isn’t that great? And that’s why we should continue the effort of lunar exploration. China’s international Moon lab could be a good start.”This is not the first time that CGTN has highlighted the helium-3 issue, but has been a steady companion to most of its coverage of the Chang’e-5 mission since it began. It has also been underlined by many of the researchers involved in the Chang’e-5 project in their briefings on the project.
China Commissioned a Tokamak Fusion Reactor Today!
People’s Daily reports that China began the commissioning of its HL-2M Tokamak nuclear fusion reactor in Chengdu, Sichuan province today, after its installation work was completed. This is the step required for testing operations and verifying functioning of all reactor systems and components before full operation can begin. PhysOrg reports that this tokamak is China’s largest and most advanced, which Chinese scientists plan to use in collaboration with scientists working on the International Thermonuclear Experimental Reactor (ITER), which is also a tokamak. People’s Daily wrote that this “breakthrough has laid a solid foundation for China’s independent design and construction of nuclear fusion reactors… The development of nuclear fusion energy is not only a way to solve China’s strategic energy needs, but also has great significance for the future sustainable development of China’s energy and national economy.” And of the world development, we might add. (China Nuclear Powered Artificial Sun) China Lifts Last Nine Counties Out of Absolute Poverty, Achieves Historic End to Poverty in 2020 On Nov. 23, authorities in southwest China’s Guizhou Province announced that they had lifted the last remaining nine counties in their province out of absolute poverty. “This means that all 832 registered poor counties in China have shaken off poverty,” Xinhua reported. At the end of 2019, there were still 52 counties across China on the poverty list. “Earlier this month, all poor counties in Xinjiang Uygur Autonomous Region, Guangxi Zhuang Autonomous Region, Ningxia Hui Autonomous Region, as well as the provinces of Yunnan, Sichuan and Gansu were lifted out of poverty,” Xinhua reported. With Guizhou now reporting the same, the national goal has been met. A Global Times op-ed by Yu Shaoxiang Nov. 24 celebrated and explained China’s historic achievement:“First, China is able to concentrate its efforts on major tasks with strict enforcement of orders and prohibitions. This is what many other countries cannot do…. “Second, based on local conditions, we helped people move out of places such as remote mountains that are not suitable to live in. This was a complex project requiring a great amount of capital and manpower. It also demanded coordination between governments between their origins and place of settlement. The relocation efforts solved the survival problem of many people…. “Third, China has reduced poverty with industrial development. This has been one of the most direct and effective measures to offer long-term solutions for impoverished places. Nowadays, many places around the world are still troubled by poverty. Even in developed capitalist countries there are large numbers of people living under crippling circumstances. Capitalism’s nature of profits at all costs determines that many countries don’t take poverty relief as one of their top priorities…. “Against this backdrop, we can contribute Chinese wisdom to the governance of global poverty. China not only emphasizes poverty reduction, but also avoids situations where people can fall into poverty again…. The elimination of extreme poverty does not mean that the problem of poverty will no longer exist. After all, ‘poverty’ is a relative concept. Therefore, as extreme poverty is now deemed to be officially eliminated, China’s definition of poverty will gradually expand. The goal will be to upgrade from meeting the needs of basic subsistence to living a decent life. These include providing clean drinking water, better health care and education.”China Daily also weighed in editorially:
“Feeding, clothing and sheltering 1.4 billion people is no easy job. But somehow China has managed to do it. And, in so doing, it has become the first developing country to accomplish the poverty reduction target of the UN 2030 Agenda for Sustainable Development—and done it 10 years ahead of schedule…. The country has therefore fulfilled its decades-long goal of eliminating absolute poverty. As President Xi Jinping proudly shared with other G20 leaders via video link the other day, lifting more than 700 million people out of poverty in a matter of four decades has been no mean feat…. “The good news from Guizhou came despite the country having to contend with the twin pressures from the economic downturn and the novel coronavirus outbreak.” Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
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China Eliminated Poverty With Science and Infrastructure. It Can Be Done in Africa Too!
China Employs Hamilton’s Principles of Credit for Railroads
(EIRNS) —China’s exciting announcement of its plan to increase the pace of development of maglev and its high-speed rail network, is based on its assurance that it knows how to implement that, and to finance it on top-down principles of the type proposed by Alexander Hamilton. China announced its plans to build a system of 600 kph (373 mph) maglev vehicles, after it successfully conducted its maiden test run of a maglev vehicle at a test track at Tonji University in Shanghai on June 21. Though the train-set did not run at top speed of 600 kph, but at a lower speed, various important features were tested. Prototype vehicles are approved for construction in 2021, and up to nine new maglev lines, totalling over 1,000 km (600 miles), are planned for the future. Equally impressive, China’s plan to double its existing 35,000 km of high-speed rail already in operation, to 70,000 km by 2035, shows how a Confucian/Hamiltonian economy actually works. Based on estimates by the Lange Steel Information Research Center in Beijing, reported by the Wall Street Journal, China would have spent $180 billion for 35 approved railway projects in 2019, most of them high-speed rail, launching the next phase of HSR development. In the first half of 2020, according to the Aug. 13 *China Daily), China invested $207 billion in combined railway, highway, waterway and civil aviation infrastructure, of which $46.9 billion was in railways. China’s transportation infrastructure investment alone, is 5-10 times that of every country on Earth. Featured in China’s railway investment is a new, 1700 km high-speed rail system between Chengdu, Sichuan and Lhasa, Tibet; high-speed rail in landlocked Shaanxi Province, etc. China finances the rail and other critical infrastructure, through two methods of directed credit: China’s four largest state-owned commercial banks—the Industrial & Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the China Construction Bank—make ample loans directly to the China Railway company, the China Railway Rolling Stock Corporation (CRRC), which builds the rail equipment, etc. This is overseen by China’s three “policy banks.” Second, the national government and local governments purchase bonds issued by China Railway Corporation, CRRC, and so forth. China has announced its new rail construction program. The government plans to build 200,000 km of rail by 2035, about 70,000 of which will be high-speed rail. All cities with a population of 200,000 or more will be connected by rail, and all cities with 500,000 people or more will be connected by high-speed rail. China is also working on the next generation maglev train that could travel at speeds of 600 kph. Pause for a moment from your daily activity. Let your imagination look into the future, and ponder what the nations of Africa would look like if, all cities with 200,000 people or more were connected by railroads. The topology of the continent would be different. China has proved it can be done. It is not a matter of Africa following the China model. Rather, it is comprehending the scientific principles of Alexander Hamilton’s economic system. Read my earlier posts: Alexander Hamilton’s Credit System Is Necessary for Africa’s Development and Nations Must Study Alexander Hamilton’s Principles of Political Economy In his article below, William Jones provide an insightful analysis of the forces behind the anti-China mantra, rampant in the Trump administration. As the ‘Five Eyes’ gear up to confront China, can anyone say that the British Empire is a thing of the past? “A recent article published in the China Economic Diplomacy Watch pointed to the “Five Eyes” – the U.S., UK, Australia, Canada and New Zealand – as the key rallying group for Pompeo’s call for a containment policy toward China. The article has indicated a crucial element in the danger the world is facing. The unifying factor in this grouping is, firstly, that the “Five Eyes” are all English-speaking countries, and secondly, that they all at one time or the other belonged to the British Empire.” Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com________________________________________________________________________________________
No More Lies, No More Anti-China Propaganda: There is No China-Africa ‘Debt-trap’
June 20, 2020 China-Africa Research Initiative-(CARI) presented an interesting and useful webinar entitled : Debt Relief with Chinese Characteristics, using research presented from a Working Paper #39 and Policy Brief #46. View: CARI: Debt Relief With Chinese Characteristics In response to China’s growing economic and political influence in the world, especially on the African continent, various propaganda outlets located in the West have launched a new assault on China. Their line of attack is to malign China and African leaders with the false narrative that China is intentionally luring African nations into a ‘debt-trap’ in order to seize control of their natural resources. This cynical view of China’s alliance with African nations flows from the age old doctrine of “geo-politics” that only perceives nations as either winners or losers in a fixed zero-sum view of the world. In this evil world view, stronger powers, hegemons believe they can only maintain their supremacy by having their foot on the neck of weaker nations. The “geo-political” doctrine rejects the notion that all nations share a common interest. Misinformation or Disinformation As Deborah Brautigam, director of CARI has stated before, there is no evidence, none, not one single case of China using debt to seize control of an African nation’s assets. “We found no “asset seizures” and despite contract clauses requiring arbitration, no evidence of the use of courts to enforce payments, or application of penalty interest rates.” Despite no substantiation of China using debt as a weapon against African nations, the ‘debt-trap’ mantra is repeated by either misinformed individuals, including Africans, or by those who are deliberately disseminating disinformation with malice. The CARI working paper reports the following: “The rating agency Moody’s warned that countries ‘rich in natural resources, like Angola, Zambia, and Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors.’ These assumptions of a malign China were repeated in publications like The New York Times, which contended that Chinese loans “frequently use national assets as collateral” and require refinancing ‘every couple years’ (our Africa data supports neither of these statements).” (emphasis added) If there is any honesty or integrity left in our duplicitous culture, all claptrap about China’ alleged ‘debt-trap’ as a nefarious attempt to gain control of Africa’s wealth should cease immediately! If one examines the long history of China’s relationship with Africa and the more recent twenty year period, it is clear that China desires to resolve issues with African nations through consultation. China may choose other means of responding to payment difficulties, but there is no evidence that they want to take over African holdings, contrary to prevalent popular opinion. Read: Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa Debt Cancellation As COVID-19 spreads in Africa, nations are struggling to survive economically and simultaneously defeat the deadly virus. Debt service is onerous and must be suspended indefinitely or cancelled, as leaders of many Africans nation have rightly insisted. According to Dr. Brautigam, from 2000-2018, China has made loan commitments of $152 billion, and of Africa’ total external debt, China holds 17%, while the World Bank hold 18%, and private lenders 31%. Thus, China will and has already engaged in debt relief, but will do it differently than western institutions like the Paris Club and World Bank. “Our [CARI] study found that between 2000 and 2019, China has cancelled at least US$ 3.4 billion of debt in Africa. There is no “China, Inc.”: for interest-bearing loans, treatment for inter-governmental debt and Chinese company loans are negotiated separately, and often loan-by-loan rather than for the entire portfolio. While rescheduling by increasing the repayment period is common, changes in interest rates, reductions in principal (“haircuts”), or refinancing are not. We found that China has restructured or refinanced approximately US$ 15 billion of debt in Africa between 2000 and 20190…Chinese lenders prefer to address restructuring quietly, on a bilateral basis, tailoring programs to each situation.” China, up this point has only cancelled zero interest loans, which represent only 5% of loans from China, and are issued from China’s Ministry of Commerce. It is unlikely that there will be unilateral debt suspension. Thus, we can expect that China will negotiate debt relief bilaterally with each nation, and each loan reviewed separately. Even if debt cancellation is continued into 2021, which has not yet been agreed to, it will be insufficient. The level of investment required to meet Africa’s’ minimal infrastructure needs is in the trillions of dollars, which belies the “geo-political” nonsense of zero-sum assumptions. Debt relief must be accompanied by issuance of credit for infrastructure and related sectors of production, otherwise Africa and the world will suffer from the spread of COVID-19 and future zoonotic diseases. Poverty is a co-factor for all diseases. Lack of electricity is a co-factor for the spread of disease and hunger, as is the lack of clean water, and inadequate transportation. China’s Belt and Road Initiative over recent years has begun to address Africa’s infrastructure deficit, but much, much more is required. Collaboration between the U.S. and China on the development of Africa would be consequential for the continent. I have addressed this issue in earlier posts: World Needs New Economic Platform to Fight COVID-19, New Economic Order Required to Combat COVID-19 in AfricaView: CARI: Debt Relief With Chinese Characteristics
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com________________________________________________________________________
China’s Belt & Road Needed to Revitalize World Economy: CGTN
May 18, 2020 Below are excerpts from my article on the strategic role of China’s Belt and Road in today’s world economy, published by CGTN The global economic breakdown ignited by the COVID-19 pandemic entails China and its Belt and Road Initiative (BRI) playing an important role in restoring health to the world economy. While Western nations are still struggling with COVID-19, and are months away from beginning to refurbish their economies, China has already started its recovery, following its earlier success in combating the coronavirus. The collapse of nations to conditions resembling the Great Depression and the inability to contain the deadly virus have belied the alleged success of globalization. The underlying flaws of the deregulated post Bretton Woods financial system, which has become an international gambling casino to make fast money, are now nakedly revealed. Given the breakdown of the present global financial system, it is urgent that leading nations issue a call to convene a conference to initiate a New Bretton Woods system, which values human life over making money. For civilization to progress, a new economic architecture dedicated to ending poverty, and promoting productive economic growth is compulsory. Without question, the United States and China will have to perform outsized roles in establishing a new paradigm of political-economic relationships among nations, notwithstanding current tensions. Read the entire article: Belt and Road Needed to Revitalize World Economy________________________________________________________________________
End Racism Against China: CORONAVIRUS is a Human Disease
I concur with the statement below by Mrs LaRouche from the German based Schiller Institute. China is making an heroic effort to contain the Coronavirus, and I might add without international support. While President Trump supports President Xi Jinping, the US has given no assistance. Building a new hospital from scratch in 9 days is nothing short of stupendous! Racism against China, by many of US elected officials, fellow citizens, and some of my African friends, must end. China has emerged as a global power. A more thoughtful policy would be for the United States to collaborate with China and Russia to find solutions to various strategic crises endangering peace and security in the world.
CHINA DESERVES PRAISE AND COOPERATION IN THE FIGHT AGAINST THE CORONA VIRUS
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China Has Embraced Africa’s Development; The US Has Not
China Has Embraced Africa’s Development; The US Has Not.
By Lawrence Freeman It is as clear as day and night, the difference between China’s approach to Africa and that of the United States. There is no equivalence. Historically, China has viewed African nations as part of the developing sector from which China emerged. This has contributed to China’s distinct attitude to partnering with African nations in promoting economic growth. Over the last two decades especially, the ties between China and Africa have grown stronger, with Africa’s East Coast materializing as an integral part of China’s Belt and Road Initiative. The US has not always dismissed the importance of contributing to Africa’s growth. President John Kennedy, following in the footsteps of President Franklin Roosevelt, was a strong opponent of colonial subjugation of Africa. President Kennedy, as US Senator advocated Africa’s liberation movement, and as US President supported President Kwame Nkrumah’s plans to construct the hydro-electric dam and bauxite smelting complex on Ghana’s Volta River. By the end of the 1960s the US had lost its optimism and vision for the world, adopting in its place, a British inspired cynical “geo-political” doctrine. Geo-politics divides the world into two categories; winners and losers in a zero sum game. Today’s unfounded attacks against China’s involvement in Africa, alleging that China is deliberately entrapping nations into debt and stealing their natural resources flows from this perverted world view. Chinese President, Xi Jinping promotes a different philosophy; it’s called “win-win.” Building, Not Extracting Unlike British Imperialist Cecil Rhodes, and degenerates like King Leopold II, China is not raping Africa for its resources. Since Royal Dutch Shell discovered oil in southern Nigeria in 1956, the West has focused its investment chiefly in oil and gas-i.e. hydrocarbon extractive industries. China in recent decades has become the leading nation in financing and building infrastructure in Africa. It is well known that investment in extractive industries do not expand the economy nor provide a large amount of jobs. However, it does yield large streams of revenue. China has chosen a different business mode; one more beneficial to the African people. According to McKinsey consulting company’s publication, Dance of the lions and the dragons, released in June 2017, China in 2015 financed $21 billion worth of infrastructure projects in Africa. That is three times the combined total of France, Japan, Germany, and India. US financing of infrastructure in Africa was too minimal to even mention. Detailed in the same document, China’s export and import trade with Africa is quantified as $188 billion in 2015, compared to the US at $53 billion. Deloitte’s 2017 Africa Construction Trends, further documents China’s role in expanding Africa’s infrastructure. As of June 2017, China was only second to African governments in funding large infrastructure projects, 15.5% and 27.1% respectively. The US was listed at 3%, the UK and France at 2%. When it comes to who actually builds these projects the figures are more shocking; China constructed over one quarter or 28.1% of these projects, the US 3.3%, and the UK 2.3%.
Infrastructure Is Essential Infrastructure is critical for every economy to expand, grow and develop. Africa’s deplorable lack of infrastructure is literally killing its people. There is no more crucial single element of economy that must be addressed for African nations to develop. Infrastructure adds value to the entire economy by augmenting the productive capability of every farmer and worker. More capital intense economies will be affected by technologically advanced infrastructure platforms. The history of humankind demonstrates that progress of civilizations emanates from the realization of scientific discoveries transmitted through more efficacious technologies. Infrastructure reflecting more advanced machinery is a primary means of transferring technology (science) to the economic production process. There is nothing wrong with African nations using their resources for collateral or payment of loans for infrastructure. Wealth is not the monetary value of natural resources extracted from the earth. Economic wealth is understood to be that which contributes to the increase of the power of society to provide the material wellbeing of its citizens and their posterity. Infrastructure performs that function. China’s contribution to building new railroads in Africa, replacing century old British and French antiquated rail lines, and constructing new hydro-electric dams, and ports, is precisely what African nations need to develop. China is providing indispensable assistance; the US and Europe are not. An experienced former US ambassador to Africa told me bluntly; the US stopped investing in infrastructure in Africa in the early 1970s. Sadly, today, the US continues to repeatedly proclaim, “we don’t build infrastructure.” Debt-Trap or Claptrap? In her latest paper, A critical look at Chinese ‘debt-trap’ diplomacy: the rise of a meme, Deborah Brautigam, China-Africa scholar and Director of the China-Africa Research Initiative-(CARI) at SAIS*, puts a nail in the coffin regarding false accusations of China deliberately entrapping African nations through debt. She writes: “…for over a decade Western politicians and pundits have warned that China is a rogue donor with regard to its finance, is a new colonialist, and a predatory and pernicious lender that snares vulnerable states in a debt trap leveraging its loans in order to have its way with weak victims.” Brautigam responds to these allegations by asking: “However, does evidence exist for this kind of debt leverage?” Then she answers: “It [SAIS database] has information on about more than 1000 loans and, so far, in Africa, we have not seen any examples where we would say the Chinese deliberatively entangled another country in debt, and then used that debt to extract unfair or strategic advantages of some kind in Africa, including ‘asset seizures’.” (emphasis added) With the population of 55 African nations projected to reach 2.4 billion in the next three decades, the continent needs trillions of dollars in new infrastructure. Presently, the US is more concerned in countering China in Africa, than developing Africa. Many African leaders are hopeful the US will establish a more robust economic relationship with their nations. As has been the case with previous administrations, the lack of vision, and adherence to “geo-politics” is preventing the US from engaging with Africa in a win-win relationship. This can and should change. *Johns Hopkins School of Advanced International Studies Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
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Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa
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Fruitful Cooperation: Ethiopia and China’s Belt and Road
China-Ethiopia dialogue highlights sustainable investment under BRI
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Yes, Chinese engagement is helping Africa’s industrialization
Chinese engagement helps Africa’s industrialization: ITC executive director
Speaking to Xinhua on Wednesday, November 20, Arancha Gonzalez, Executive Director of the International Trade Center-(ITC), empathized China’s growing engagement and interest in Africa’s existing and emerging potential was driving the continent’s industrialization. “China has focused a lot of attention to the industrialization of the African continent,” the ITC Executive Director told Xinhua on the sidelines of the Africa Industrialization Day commemoration event, which was marked on Wednesday at the headquarters of the African Union (AU) Commission in the Ethiopian capital Addis Ababa. “It (China) has focused a lot in manufacturing,” Gonzalez said, as she emphasized other emerging potential areas in the industry sector that are benefiting from and attracting Chinese engagement across Africa. “First, I think now there is interesting opportunity that is coming in two other sectors, one is agro-processing, so helping Africa transform a lot of the raw materials, agricultural commodities that this continent produces into processed products.Continue Reading: Chinese engagement helps Africa’s industrialization
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It Cannot Be Denied: China Helping Africa Realize Its Dream
China to help Africa realize “African dream” early: Chinese state councilor
Xinhua|-November 23, 2019
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China’s Successful Economic Model Eliminates Poverty
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Africa and China Cooperate on Development and Eliminating Poverty
November 8, 2019
Cabinet applauds Chinese investment push for attracting R116bn
The South African government on Thursday applauded the growing trade and economic relations with the People’s Republic of China, which has led to at least 88 Chinese companies investing massively in the country’s economy.
Addressing media in Cape Town on the outcomes of a Cabinet meeting held on Wednesday, Minister in the Presidency Jackson Mthembu said the growing two-way trade between Beijing and Pretoria has led to Chinese companies investing a capital expenditure of R116-billion from 2003… Read: South Africa Cabinet Applauds Chinese Investment_______________________________________________________________________________
China’s capacity building support wins acclaim in Ethiopia
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President Xi Jinping Addressing China International Import Expo: The Common Good of Humanity and Eliminating Poverty
Speaking at the opening ceremony of the Second China International Import Expo, President Xi Jinping discussed the continuing process of “reform and opening up,” but focused his remarks on an appeal for the world to come together for the common good. “Of the problems confronting the world economy, none can be resolved by a single country alone. We must all put the common good of humanity first rather than place one’s own interest above the common interest of all. We must have a more open mindset and take more open steps, and work together to make the pie of the global market even bigger…. “All problems could be settled in the spirit of equality, mutual understanding and accommodation. We need to promote development through opening-up and deepen exchanges and cooperation among us. We need to join hands with each other instead of letting go of each others hands. We need to tear down walls, not to erect walls.” “China’s development, viewed through the lens of history, is an integral part of the lofty cause of human progress. China will reach out its arms and offer countries in the world more opportunities of market, investment and growth. Together, we can achieve development for all. The Chinese civilization has always valued peace under heaven and harmony among nations. Let us all work in that spirit and contribute to an open global economy and to a community with a shared future for mankind.” President Xi Jinping delivered his keynote address “in front of a countdown screen for winning the country’s battle against poverty,” Xinhua reported. China has so far lifted some 850million people out of poverty, and intends to do the same with the remaining 20 million by the end of 2020. Xinhua went on to report that “Xi said China is ready to share its poverty relief experience with other countries and jointly build a community with a shared future for humanity featuring common development and the elimination of poverty.” Read my recent post: CGTN: China Reaches New Stage of Development With CIIE_________________________________________________________________________________________
CGTN, China’s media giant published my article on the second China International Import Expo-CIIE, on the opening day of the conference in Shanghai.CGTN
China reaches new stage of development with CIIE
by Lawrence Freeman
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China & Russia-Africa Leads to Economic Growth; Not Debt Trap
November 2, 2019 Below you will read about the success of the second segment of Kenya’s Standard Gauge Railroad, and President President Cyril Ramaphosa’s firm refutation of allegations that a number of countries in Africa are being led into a debt trap by China and Russia
The Mombasa-Nairobi line was initiated in 2009 discussion between the China Road and Bridge Corporation and the Kenyan government, as reported by P.D. Lawson in the April 27, 2018 EIR. China’s Exim Bank extended credit for 90% of the project. By May 2016, initial track laying was completed in just over 1 year. Passenger service was opened May 31, 2017, eighteen months ahead of schedule. Freight services commenced in January 2018. Plans are now underway to electrify the segment from Mombasa to Nairobi, which will greatly lower operating costs.
Benefits of the new, faster technology now extend far beyond mere transport, where the railway has taken hundreds of trucks (and buses) off the notoriously congested highways, making them safer and more useable for the population.
With the increased capacity and speed of freight transport, Kenya’s exports to the East African Community (including neighboring states Uganda, Tanzania and South Sudan) have hit a three-year high in the first eight months of 2019. Not only have government earnings from domestically produced goods increased 6% compared to 2018, but Kenya’s domestic consumption of electricity—certainly not a nation known for its over consumption of this resource—has increased 3.2% in the first 8 months of 2019.
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Russia-Africa Summit: African countries not being led into debt trap —South Africa’s Ramaphosa
President Cyril Ramaphosa on Monday refuted allegations that a number of countries in Africa are being led into a debt trap as they take up loans to fund a number of projects. Ramaphosa said this during his weekly address from the Desk of the President in Cape Town, after returning from the Russia-Africa Summit held in Sochi last week. “One need only look at initiatives such as the Forum on China-Africa Cooperation, which was last held in Beijing in 2018, to see that the focus is now on partnership for mutual benefit, on development, trade and investment cooperation and integration,” Ramaphosa said. He lambasted remarks which label initiatives like the recent Russia-Africa Summit as an attempt by world powers to expand their geopolitical influence. African countries had taken part in the summit to discuss ways of how to increase trade and cooperation between Russia and Africa. He said the summit was a sign of the growing economic importance of Africa on the world stage. “What we are witnessing is a dramatic re-balancing of the relationship between the world’s advanced economies and the African continent,” he said. African countries have consistently affirmed that Africa no longer wants to be passive recipients of foreign aid, said Ramaphosa. The president said African countries are developing and their economies are increasingly in need of foreign direct investment. “We are ever mindful of our colonial history, where the economies of Europe were able to industrialize and develop by extracting resources from Africa, all the while leaving the colonies underdeveloped,” said Ramaphosa. Even now, African countries are still trying to stop the extraction of its resources, this time in the form of illicit financial flows through commercial transactions, tax evasion, transfer pricing and illegal activities that cost the continent more than 50 billion dollars a year, according to Ramaphosa. The age where “development” was imposed from outside without taking into account the material conditions and respective requirements of our countries is now past, the president said. “China, Russia, Organisation for Economic Cooperation and Development countries and other large economies are eager to forge greater economic ties with African countries. “This is because they want to harness the current climate of reform, the deepening of good governance, macro-economic stability and the opening up of economies across the continent for mutual benefit,” the president s______________________________________________________________________________________
Russia Assists Uganda With Nuclear Energy. China Land Grabbing Is A Myth
Russia to help Uganda develop nuclear energy
September 18, 2019
French Agronomist Proves that China’s “Land Grab” in Africa Is a Myth
PARIS, Sept. 16, 2019 – After the nomination of Chinese biologist, Vice Minister of Agriculture and Rural Affairs of China Qu Dongyu, as Director-General of the UN Food and Agriculture Organization (FAO) on June 23, rumors went wild against the alleged Chinese plot to “take over” African food production. French agronomist Jean-Jacques Gabas, a scientist, who traveled over Africa to investigate the situation, offered some clarity to {Le Monde} on September 13. In effect, China became the head of the Organization for Industrial Development, the International Union for Tele-communications, the International Organization of Civil Aviation and, between 2016 and 2018, of Interpol. “As a matter of fact, OECD financing of agriculture has been very poor over the last 30 years. It fell increasingly and led to the 2008 food crisis…. When you discuss the Chinese strategy with African agriculture ministers, they tell you: ‘Stop giving advice and creating fear. What did you finance over the last 30 years? Very little, given the need.’ And they aren’t mistaken,” he pointed out. Asked if China wants to develop its imports of African agriculture products, Gabas, debunking what so many people fear. “No. Since the end of the 2000, Beijing certainly is the first trading partner of Sub-Saharan Africa, but the share of agriculture in African exports to China represents only 2-3% of trade volume, almost nothing. China’s investments in African rice and sugar production go to regional African markets. Of course, Africa has 1.4 billion people to feed, which makes it very dependent on food imports. However, China knows that in world economic crises, notably in case of a food crisis in Africa, prices will be shaky and products will become scarce, impacting China’s domestic cereal production. China also wants to stabilize the African continent’s food production. What it imports from Africa are rubber, manioc for food packaging, and, depending on the years, peanuts, cotton, and wood. South African vineyards are also bought for export purposes. All of this implies very low volumes, far less than African food exports to Europe or those of mining products and fossil fuels to Africa…. Chinese companies are present and profit from market and investment opportunities, but without a marked strategy to ‘feed China.'” Asked about the allegation of Chinese “land grabbing,” Gabas answers: “Respecting Chinese land acquisitions, viable statistics tell us that China is not number 1 and comes in only as 8th or 9th. Be it land for farming, mining, forestry, or rubber production, the largest investors remain OECD countries (U.S.A., U.K., and France), national companies or Gulf States such as Saudi Arabia. One observes that whenever the Chinese buy land and a conflict arises about the land or with part of the population, they retreat or change the nature of the utilization. … Chinese land grabbing is a myth.” _______________________________________________________Italian economist Antonino Galloni discusses principles of economic growth for developing nations.
Speaking from Xi’an, China on Sept. 12 “Africa and countries with an higher rate of demographic growth and lower GDP growth should promote a higher domestic growth,” Galloni said, by “improving their domestic industries, substitute imports, upgrading infrastructure, building efficient connections with Europe and the rest of the world.” Those countries should “export less raw materials and semi-finished products, create a productive capacity to fulfill the domestic demand and cut down low-wage exports.” Galloni recalled that the first economist who understood this was the Italian Antonio Serra, at the end of 16th century, who demonstrated to the Spanish Viceroy in Naples that national wealth was not achieved through gold or silver, through taxation or selling raw materials, but “by improving the industriousness of citizens, mainly by education.” Galloni also pushed the Transaqua project to bring water to Sub- Saharan Africa. “Recently industrialized countries, like China, have correctly chosen to increase domestic demand instead of exports.” Investments in infrastructure, higher wages and employment are compatible with the increase of profits, but not with the “increase of the rate of profit,” which is typical of stock markets and financial investments.___________________________________________________________
China-Africa Debt Trap Refuted Again. Belt and Road Building Infrastructure-Developing
July 12, 2019
China Announces $1 Billion Belt and Road Africa Fund Led by South African
Announced July 3 on the sidelines of the Summer Davos Meeting World Economic Forum in Dalian, China, this $1 billion investment fund also achieves another first–in that it will be not be run by the state government–thus being China’s first “NGO.” It will also notably be led, not by a Chinese, but by a South African. Intended to be up and running by September, this fund–to be capitalized by wealthy Chinese businessmen and their families–will be headed by Dr. Iqbal Survé, “born and educated in Cape Town” (according to his website). Survé had started his own, Sekunjalo investment fund in 1997, leaving his medical career at the call of Nelson Mandela, who was seeking local investors to lead the development of the economy. Dr. Survé had become “affectionately known as the ‘Struggle Doctor’ because of his provision of medical care towards victims of apartheid brutality,” says his “about” page. Since then Survé came to serve as chair of the BRICS Business Council for South Africa, and most recently as a member of the Business Council Chairman for the five BRICS countries. A hedge fund operator he definitely is not. Commenting from China, Dr. Survé said, “The discussions that we’ve had with Chinese business people, state-owned enterprises and family offices, have resulted in the establishment of this fund. Africa is ready to grow and is heading towards a $5 trillion economy. The [Africans] have seen how China was able to grow from 1980, when China made up only 2% of the global GDP when compared to today, where China makes up 19% of the global GDP. This fund is a great boost for the development of Africa.” The fund will be overseen by a Belt and Road Business Council, eventually to grow to 1,000 Chinese and African members._____________________________________________________________
June 20, 2019China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?
Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations.{Independent}: Belt and Road Contributing to Prosperity in Africa
A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo. Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.German Mittelstand Supports New Silk Road
China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17. “The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms. Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated. “The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.” Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded. “The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a forum later this year in Germany on the BRI for partners to establish project-related contacts.____________________________________________________________
In Africa, the Belt and Road Is Generally Spurring Socio-Economic Development_
May 12, 2019
Belt-Road Initiative and Belt-Road Forum: A New Model of Global Development
May 9, 2019Belt-Road Initiative is Now Second Largest Trade Bloc
{Global Times} reports today that the BRI has become the second-largest trade bloc in the world, surpassing NAFTA, now second only to the EU. The BRI countries account for 13.4% of world trade, while the EU is about 20%. In terms of investment, {Global Times} reports, the BRI countries have become the most important destinations for foreign capital inflows in the world, accounting for 31.6 percent of the total in 2017, exceeding the 23-percent share of NAFTA and the 21.2-percent share of the EU.
Vladimir Yakunin: BRI is “A Future Model of Global Development-in-Solidarity”
Vladimir Yakunin, the former president of Russian Railways and the initiator of the Dialogue of Civilizations (DOC — the Rhodes Conference), has posted an article on the DOC Research Institute website titled: “The Belt and Road Initiative as a new model for global inclusive development and solidarity.” Yakunin writes that the Second Belt and Road Forum “should be seen to represent significant global development amidst uncertain times.” He reviews the decay of the world economy that led to the 2008 financial crisis, where investments in infrastructure were drastically curtailed, while “the world economy became `financialized;’ i.e., the financial sector increasingly dominated the real sector. This uncontrolled imbalance eventually led to the financial crisis and later to the global systemic crisis.” The DOC, founded in 2012, took on an effort to develop “a new approach to under-standing the role of infrastructure projects in global development,” which was published as: “Trans-Eurasian Belt Development: RAZVITIE project,” and presented at a specially organized conference in Milan in November 2012. The developments at the Second Belt and Road Conference this past week, Yakunin writes, “showed an increasingly widespread unders-tanding that economic egotism and arrogance is giving way to rational collectivism and an orientation towards a new type of globalization, based on principles of equality, sovereignty, and mutual development.” Yakunin notes that some Western officials are worried that the BRI, together with the new financial institutions like the AIIB, the BRICS’s NDB, and the Silk Road Fund, are challenging their “long-time dominant positions,” but notes that “the traditional international development institutions did not provide the necessary weight for developing countries to participate in the global financial system.” He reviews the huge growth in the BRI, such as the 73% increase in China-Europe freight trains in 2018 over 2017, with 6,363 trips in 2018, connecting 59 Chinese cities and 49 cities in 15 European countries.” His conclusion: “[T]he key idea of the Belt and Road initiative — equal and mutually beneficial cooperation without imposing any political conditions — clearly contradicts the currently dominant thesis in contemporary world politics. The new approaches could change the very essence of geopolitics and geo-economics by altering the outdated Cold War mentality of the past. Geopolitical theory has always been articulated through a lens of conflict, dividing the world into `us’ and `them’…. “The Belt and Road Initiative could be the source of a future model of global development-in- solidarity. The key here is the inability to return to the concept of a uni-polar or bipolar world, which can be seen today in global trends towards development of a truly multilateral world.” Excerpts below:“SEARCHING FOR A NEW PARADIGM OF SOCIO-ECONOMIC DEVELOPMENT”
“Numerous studies conducted after the crisis demonstrated a positive correlation between investment in infrastructure and economic growth. Importantly, it was also shown that infrastructure projects play a positive role in short-term outcomes as well, due to their creation of new jobs and their development of local enterprises, which increase long-term regional development levels.[1] Another conclusion voiced by many prominent economists over the last ten years has been the necessity of developing a new economic model to replace the existing neo-liberal system because neo-liberalism no longer meets requirements. Such statements were difficult to imagine before the crisis, but now seem obvious”“CHALLENGES ON THE PATH TO IMPLEMENTATION”
“Taking into account the scale of the Belt and Road Initiative and the amount of investment China put into it through the newly founded multilateral financial institutions like the Asian Infrastructure Investment Bank, the New Development Bank, and the Silk Road Fund, it is not surprising that major powers including the European Union and the US are expressing significant concerns.” Read entire article__________________________________________________________
Second Belt & Road Forum: Infrastructure is the Bedrock of Development
April 30, 2019
Xi Jinping’s Keynote to Belt and Road Forum Emphasized Goals of the BRI
Chinese President Xi Jinping’s speech to the opening ceremony of the Second Belt and Road Forum on April 26, “Working Together To Deliver a Brighter Future For Belt and Road Cooperation,” broadly laid out the BRF approach and prospects for the future. “Together, we will create an even brighter future for Beltand Road cooperation…. The joint pursuit of the BRI aims to enhance connectivity and practical cooperation. It is about jointly meeting various challenges and risks confronting mankind and delivering win-win outcomes and common development…. A large number of cooperation projects have been launched, and the decisions of the first BRF have been smoothly implemented. More than 150 countries and international organizations have signed agreements on Belt and Road cooperation with China…. “Infrastructure is the bedrock of connectivity, while the lack of infrastructure has held up the development of many countries. High-quality, sustainable, resilient, affordable, inclusive and accessible infrastructure projects can help countries fully leverage their resource endowment, better integrate into the global supply, industrial and value chains, and realize inter-connected development. To this end, China will continue to work with other parties to build a connectivity network centering on economic corridors such as the New Eurasian Land Bridge…. “Innovation boosts productivity; it makes companies competitive and countries strong…. China will continue to carry out the Belt and Road Science, Technology and Innovation Cooperation Action Plan and Technology Transfer.” President Xi also used his speech to present a list of a half-dozen major policy steps China has undertaken as part of its Opening Up strategy: “First, we will expand market access for foreign investment in more areas…. “Second, we will intensify efforts to enhance international cooperation in intellectual property protection…. “Third, we will increase the import of goods and services on an even larger scale. China has a vast potential for increasing consumption…. “Fourth, we will more effectively engage in international macro-economic policy coordination. A globalized economy calls for global governance. China will strengthen macro policy coordination with other major economies and keep the RMB exchange rate basically stable…. “Fifth, we will work harder to ensure the implementation of opening-up related policies.”President Xi Jinping Chairs Roundtable at 2nd BRI Forum– ‘Boosting Connectivity for New Sources of Growth’
The concluding day of the 2nd Belt and Road Forum for International Cooperation in Beijing, President Xi Jinping chaired the Roundtable discussion among the 39 guests–37 heads of state plus the leaders of the IMF and United Nations. A joint communiqué has been issued (see separate slug,) and the Chinese Foreign Ministry has also posted a summary of the “Deliverables” from the Forum. After a day of presentations, as well as sideline bilateral meetings, Xi and his wife Peng Liyuan hosted a welcome banquet for the national leaders. The cordial, but high-level tone of the deliberations April 25-27, was set in Xi’s keynote opening yesterday, when he happily welcomed everyone, “Good morning! As a line of a classical Chinese poem goes, ‘Spring and autumn are lovely seasons in which friends together to climb up mountains and write poems.’ On this beautiful spring day, it gives me great pleasure to have you with us here at the Second Belt and Road Forum for International Cooperation (BRF).” Read President Xi’s Key Note addressSecond Belt & Road Forum Joint Communiqué States Development Commitments; Lists 35 Specific Economic Corridors–Including “The New Eurasian Land-Bridge”
The 37 national leaders were listed in the very first point of the Communiqué, and the following points identified the role of the “ancient Silk Road” to “the strengthening of the connectivity and the expansion of the world economy in the spirit of promoting peace and cooperation, openness, inclusiveness, equality, mutual learning and mutual benefit” and the role for today’s “Belt and Road cooperation” to do the same thing for the future. The remaining points were grouped under these headings: “Strengthening Development Policy Synergy”; and “Boosting Infrastructure Connectivity”; and “Promoting Sustainable Development”; and “Strengthening Practical Cooperation”; and “Advancing People-to-People Exchanges”; concluding with, “Way Forward,” which stated, “We envisage the Belt and Road Forum on regular basis with possible follow-up events…[looking forward] to the 3rd Forum.” Here is the full list of “Economic corridors” identified in the Communiqué: (1) Addis Ababa-Djibouti economic corridor, including the development of industrial parks along the economic corridor (2) Agua Negra Pass International Tunnel (3) Baku-Tbilisi-Kars new railway line and Alyat free economic zone in Baku (4) Brunei-Guangxi economic corridor (5) China-Central Asia-West Asia economic corridor (6) China-Europe Land-Sea Express Line (7) China-Indochina Peninsula economic corridor, including Laos-China economic corridor (8) China-Kyrgyzstan-Uzbekistan International Highway (9) China-Laos-Thailand Railway Cooperation (10) China-Malaysia Qinzhou Industrial Park (11) China-Mongolia-Russia economic corridor (12) China-Myanmar economic corridor (13) China-Pakistan economic corridor (14) Eastern Economic Corridor in Thailand (15) Economic corridor in Greater Mekong Subregion (16) the EU Trans-European Transport Networks (17) Europe-Caucasus-Asia International Transport corridor and Trans-Caspian International Transport Route (18) the Industrial Park “Great Stone” (19) International North-South Transport Corridor (INSTC) (20) the Lake Victoria-Mediterranean Sea Navigation Line-Linkage Project (VICMED) (21) the Lamu Port-South Sudan-Ethiopia Transport corridor (22) Malaysia-China Kuantan Industrial Park (23) the Nepal-China Trans-Himalayan Multi-dimensional Connectivity Network, including Nepal-China cross-border railway (24) New Eurasian Land Bridge (25) the New International Land-Sea Trade Corridor of the China- Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (26) Northern Corridor Trade Route in Africa linking the maritime port of Mombasa to countries of the Great Lakes region of Africa and Trans-Africa Highway (27) North-South Passage Cairo-Capetown Pass-way (28) the Port of Piraeus (29) Port Sudan-Ethiopia Railway Connectivity (30) Regional Comprehensive economic corridors in Indonesia (31) the Suez Canal Economic Zone (32) Transcontinental shipment of cargo using the capacities of the Northern Sea Route (33) Transoceanic fiber optic cable (34) “Two Corridors and One Belt” Framework (35) Uzbekistan-Tajikistan-China International Highway Read entire communique of Belt-Road ForumBelt and Road Is Unstoppable: `Critics’ Are Strong Supporters
The extraordinary attendance of governments, heads of state and government, and thousands of businesses at the Second Belt and Road Forum, comparing with the largest international meetings in history, was already proof that the Belt and Road Initiative (BRI) has expanded greatly since the first BRF in 2017 and is now an unstoppable new paradigm of economy. After the Second BRF, certain myths of “backfire” and “criticism” in Asia also fell away. Malaysian Prime Minister Mahathir Mohamed gave interviews in which he expressed full confidence in the BRI and surprise at its scope. Speaking to Bernama News Agency April 28, he said: “We feel that the [One Belt, One Road] OBOR initiative is not a domination plan by China, which would end up being controlled by China. Instead, it is a policy developed by all the countries, and not only focused on China. Previously … including the Trans-Pacific Partnership, developed countries made the proposals and asked us to accept them. This is not like that; the forum attendees are from small countries and they are sitting with China…They sit together at the same level, and talk about how to develop infrastructure projects.” In an interview with China’s TV network CGTN, Dr. Mahathir said he had thought the Belt and Road was an infrastructure project for Asia. “Now it is quite clear that it is, practially, a worldwide project …to improve connectivity and infrastructure development all over the world…I’m very glad I’m here, because now I understand better the character of the project. China has a lot of new technologies, and we need these new technologies.” He forecast large-scale Chinese investment and exports into Malaysia. Indonesia’s investment minister, Harvard graduate Tom Lembong, who had been critical of China’s rail investments, told {South China Morning Post} that Indonesia has “found China’s openness to its feedback on improving the Belt and Road Initiative highly encouraging…. I believe in the next 5 to 10 years, BRI will stimulate additional investment in probably tens of billions of dollars [in Indonesia],” Lembong said. In Europe, Italy and Austria are joining Portugal in planning issuance of “Panda Bonds” — infrastructure bonds issued by other countries in yuan, to be issued into China’s bond market. Even Germany Economics Minister Peter Altmaier found the Beijing forum “better than expected,” and is headed back with a Mittelstand delegation.__________________________________________________________________
China’s Belt and Road Aids Africa’s Growth in New Globalization
Editor’s note: Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policy of Africa for 30 years. The article reflects the author’s opinion, and not necessarily the views of CGTN.
On the eve of the second Belt and Road Forum (BRF), it is irrefutable that the world has been transformed in the five years since Chinese President Xi Jinping announced the Belt and Road Initiative (BRI).China’s archetype for global development is based on the more elevated concept of each country contributing to the “common destiny of all nations” and mankind’s “shared future.”
By focusing on “global connectivity” through massive investments in infrastructure, linking China to the rest of the world through its land and maritime new Silk Roads, China has presented the world with a new paradigm for development – in effect, redefining globalization.
According to the World Economic Forum (September 2018), “the BRI will encompass 70 percent of the world’s population (4.4 billion) and 63 percent of the world’s GDP (21 trillion U.S. dollars),” primarily from construction of rail lines, highways, ports, airports, hydro-energy plants and pipelines.
The first BRF held in May 2017 included 29 foreign heads of state, 11 heads of international organizations and over two dozen attendees on the ministerial level. Because of the expansion of the BRI over the last two years, already 40 world leaders have confirmed their attendance for this year’s conference.
Awakening the Sleeping Giant, Africa
Nowhere, outside of China itself, are the positive effects of China’s BRI more evident than on the African continent. At the 2017 BRF, the only African heads of States who attended were Ethiopia and Kenya, and ministers from Egypt and Tunisia. With Nigeria, the most populated nation in Africa, officially joining the BRI in 2019, and increased collaboration with China throughout all geographical sections of Africa, participation at this year’s BRF from Africa will undoubtedly be higher.
Prior to the announcement of the BRI, China had already forged a close working relationship with Africa by convening China-Africa Summits (Forum on China-Africa Cooperation) every three years beginning in 2000, rotating the venues between China and Africa. At the seventh summit held last year in Beijing, all but one of the 54 African nations attended.
Unfortunately, the West lost its vision of development for Africa after the death of President John F. Kennedy, instead adopting a no-infrastructure policy. What Africa has needed most since the 1960s “Winds of Change” liberation from colonialism is infrastructure, water, energy, rail and roads. China has a different view on this.
Ambassador David Shinn, a respected scholar on Africa, wrote last month: “China has been indisputably the single most important builder of infrastructure in Africa since the beginning of the 21st century.”
Take, for example, Djibouti, which is a BRI hub. China is building the Doraleh Multi-Purpose Port and international free trade zone in this northeast African nation, strategically located right off the Indian Ocean and on the Gulf of Eden. It is estimated that one-third of global shipping passes by this port.
In 2016, the first electrically driven train in sub-Saharan Africa, connecting Addis Ababa, the capital of landlocked Ethiopia, to the port city of Djibouti was inaugurated. This rail line built by Chinese companies utilizing and training African laborers and engineers is key to the develop-ment of the Horn of Africa, providing Ethiopia a port to export the products of its nascent manufacturing sector.
Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua that “projects involving cooperation with China are helping Djibouti promote trade in Africa as well as distribution across the East African region… which couldn’t be achieved without developing proper infrastructure, such as seaports and railway connections.”
Hadi called the “debt-trap” propaganda against the BRI, “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”
African nations are attempting to industrialize their economies with growth in their manufacturing sectors. China is assisting by creating special economic zones, industrial parks, and industrial zones in Nigeria, Djibouti, Ethiopia, Egypt, Morocco, and Rwanda. Industry and infrastructure generate jobs, raise skill levels and transfer technology.
Will the West Join the BRI?
Africa’s requirement for infrastructure is enormous, allowing Western nations the opportunity to join with China to industrialize this vast undeveloped continent, which is projected to have 2.5 billion people by 2050. President Xi, at the first BRF, said: “We should foster a new type of international relations featuring win-win cooperation” and “development holds the master key to solving all problems.” Regrettably, western nations have been hostile to joining the BRI. However, last month’s ground-breaking signing of a memorandum of understanding (MOU) by Italy – the first G-7 nation to join China’s BRI – portends a potential change towards a new constructive dynamic.
China, Belt & Road: Eliminate Poverty, Not “Debt-Trap”
April 21, 2019President Xi Jinping Hands-on Drive to Eliminate Poverty
As part of his government’s plan to entirely eliminate poverty from China by the end of 2020, President Xi Jinping carried out “an inspection tour to southwest China’s Chongqing Municipality” earlier this week, Xinhua reported, in which he pledged to address the issue like “a hammer driving a nail.” Xi first flew to Chongqing, China’s fourth largest city, and then spent another three hours, first by train and then by road, to reach Huaxi Village, where 302 people living in 85 households are registered as living below the poverty line. Xinhua added: “Huaxi Village is a typical case of China’s impoverished regions. The basic needs for food and clothing have been met, but more efforts are needed for compulsory education, basic medical care and safe housing.” It is to be noted that China’s criteria for poverty reduction are not strictly monetary, but include key physical-economic parameters such as education, health, and housing. As of 2018 there were still 16.6 million rural residents living in poverty in China. The government plans to lift about 10 million of those out of poverty during 2019. Xinhua then quoted Xi during his tour: “The battle against poverty has entered a decisive and critical stage. We must press ahead with our full strength and strongest resolve and never stop until we secure a complete victory. After visiting the village, I feel reassured. We may have about 6 million impoverished people and 60 impoverished counties left at the beginning of 2020. If we make sure this year’s work is well-implemented and push ahead next year, we will eliminate poverty. We are confident about accomplishing the mission. “Less than two years are left before fulfilling the objective of poverty alleviation. This year is particularly crucial,” Xi said at a symposium held Tuesday afternoon in Chongqing. “The most important thing at this stage is to prevent laxity and backsliding.” Xinhua’s account emphasized the top-down involvement of government officials in achieving this national goal. “Throughout the years, more than three million officials from governments above the county level, state-owned enterprises and public institutions have stayed in impoverished villages to offer assistance. _______________________________________________________________
“2018 FOCAC: Africa in the New Reality of Reduced Chinese Lending”
August 31, 2018Debt Trap or Much-Needed Investment?
The debt trap diplomacy case, however, has never been convincingly argued and its application in Africa is, at best, tenuous. The reality of Africa’s debt to China is not particularly remarkable when taken against the sources of continent’s external debt stock (see figure below). A number of African countries’ (Djibouti, Kenya, and Angola) debt obligations to China are alarming—as they would be regardless of creditor. China’s $115 billion credit to Africa between 2000 and 2016 is still less than 2 percent of the total $6.9 trillion of low and middle income countries’ debt stock. Recent studies have shown that China is not a driver of debt distress in Africa—yet. The language of debt trap diplomacy resonates more in Western countries, especially the United States, and is rooted in anxiety about China’s rise as a global power rather than in the reality of Africa.
Continue reading entire article _____________________________________________________________China’s Belt And Road Forum to Gather 37 World Leaders, and Representatives from Five Continents
There will be no less than 37 heads of state and government attending China’s Second Belt and Road forum in Beijing next week, Chinese Foreign Minister Wang Yi said on Friday. In addition there will be 360 attendees at ministerial level, 100 leaders of international organizations and 5,000 participants. 4,000 reporters will also be attending the Forum, whose theme is “Belt and Road Cooperation, Shaping a Brighter Shared Future.” “The second Belt and Road Forum will be held in Beijing on April 25-27. It will become China’s largest international event this year. Thirty-seven leaders of state and government will participate in the forum,” Wang told a press conference. This will include the leaders of Austria, Egypt, Hungary, Italy, Russia, the United Arab Emirates and others. “Senior representatives” of France, Germany, Britain, Spain, Japan, the Republic of Korea and the European Union will also participate; other diplomatic representatives of the United States and North Korea will also be there. International Monetary Fund Managing Director, Christine Lagarde, and Antonio Guterres, the UN secretary- general, are also expected to participate, according to Wang. This is the highest level event for cooperation on the Belt and Road Initiative, Minister Wang said. He said this year’s event will be characterized by a clear direction, a solid foundation, a warm response from participants, a program of practical cooperation and clearly defined results. A Leaders’ Round-Table Summit will issue a Joint Communique to show the political consensus of the leaders in building the Belt and Road. The long-term effects of the Initiative will be to strengthen multilateralism, to enrich the principles of cooperation, to build a network of partnership and to build a strong support system for continued development. Wang Yi also underlined the connection between the BRI and China’s new phase of “opening up.” The new phase of China’s “reform and opening up” will “bring more opportunities for promoting the ‘Belt and Road Initiative’ and the common development of all countries,” he said. “I believe that the forum will inject stronger impetus into the world economy, open even broader horizon for the development of the countries, and contribute to the building of a community with a shared future for humanity,” Wang continued._________________________________________________________________
China’s Belt & Road New Paradigm for Development: United States Should Join
April 18, 2019Belt and Road Creates New Asian Paradigm for Global Economic Integration and Inclusiveness
That is the headline on an April 15 {Global Times} op-ed by Toumert Al, the director of Education, International Bachelor Program at the International School under the China Foreign Affairs University. The article provides a tour d’horizon of BRI achievements to date in infrastructure projects on various continents. “In South Asia, the Belt and Road Initiative is seen as a main driver for infrastructure construction in a region that must bridge the ever-growing gap between its economic potential and the realities of its insufficient infrastructure. According to the World Bank, South Asia requires about 2 trillion dollars of investment in infrastructure construction from 2011 to 2020 if the region wants to be part of the new economic order shaping the future.” The article then discusses a couple of key projects, such as the Padma bridge in Bangladesh and Gwadar port in Pakistan.
The Belt and Road Initiative Keeps Growing
China is now engaged in heavy organizing in the countdown to the April 26-27 Second Belt and Road Forum in Beijing, which will bring together representatives of over 100 countries and 29 international organizations. Just how powerful a draw the BRI is to nations across the planet, was shown earlier this week when the tiny Caribbean nation of Jamaica announced that they had signed an MOU with China on the BRI –notwithstanding the withering pressure that Washington and London have brought to bear. A similar, if strategically weightier example of this process was Italy’s signing an MOU with visiting Chinese President Xi Jinping last month. Foreign Ministry spokesman Lu Kang yesterday discussed China’s approach to the upcoming Forum: “While the BRI was proposed by China, it has grown into an international public good. The success of the first BRF together with the bumper practical outcomes speaks volumes. The fact that more countries and international organizations are taking an active part in the second forum is further proof to its success.” Asked about media accounts that India would not be sending a delegation–as they hadn’t to the First Belt and Road Forum–because they view the BRI’s China Pakistan Economic Corridor (CPEC) as infringing on Indian sovereignty, Lu responded: “I would like to reiterate that the BRI is an open and inclusive initiative for economic cooperation. It never concerns territorial disputes. In pursuing BRI cooperation, China and partner countries are committed to equality, openness and transparency, to business operations centered around enterprises and to market rules and international norms. For those with inaccurate judgment on the BRI based on misunderstandings due to lack of knowledge of the real situation, I would like to reassure them that China is sincerely and resolutely committed to the principle of consultation and cooperation for shared benefit, equality and mutual benefit. Since its initiation, the Belt and Road cooperation has been inclusive and open to all countries that are interested in joining and working for win-win cooperation. It excludes no one. If the relevant country would like to take some time to see, we can wait.” Meanwhile, Xinhua interviewed Cambodia’s Information Minister Khieu Kanharith who said that “the BRI forum will also further promote cooperation between China and ASEAN and between China and Cambodia…. For Cambodia, with Chinese assistance, we can build mega-infrastructure projects, and those projects are crucial to boosting economic growth and making communication easier and faster…. Our first priority is to boost economic growth and to make everybody have a fair share of the economic growth, The BRI can help us through sup-porting infrastructure projects and human resources development.” He continued: “China has assisted us on equal footing, meaning that although China is a big country and Cambodia is a small country, China always treats us equally. With Chinese support, Cambodia has gained confidence in ourselves and our people are proud and confident in rebuilding the country.”Chinese Insist the U.S. Should Join the Belt and Road
Asian Infrastructure Investment Bank President Jin Liqun told last weekend’s Harvard China Forum that the “infrastructure bottlenecks are the sewage problems of development. I would say that that’s also a problem for the United States”–a statement Americans can agree with. He presented the Belt and Road Initiative as “a platform for all participating countries to work together, including on connectivity,” which he called a matter not only of regional development, but also of “world peace and prosperity.” When a discussion arose on how China had gone from being a debtor nation dependent on foreign development assistance, to one of the largest contributors to the World Bank’s International Development Assistance facility today, Jin pointedly commented that how much money a country has is not the issue. “Accumulated wealth cannot buy you respect unless you help do good things for the rest of the world. So China has been trying to invest and help other countries through its own experience,” Jin stated. At a Center for China and Globalization conference in Beijing over the same weekend, Jin Xin, director of the China Center for Contemporary World Studies of the Communist Party’s International Liaison Department, took on the arguments of former U.S. Ambassador Terry Miller (from the G.W. Bush days), who asserted the U.S. had no interest in participating in the Belt and Road Initiative, which is viewed as “a Chinese show” that “doesn’t have much to do with us.” Jin Xin countered that the U.S. should work with China in third-country markets under the BRI. If it decides not to do so, the U.S. will again find itself “excluded,” just as it excluded itself from the AIIB, in which more than 90 countries are now members, Jin said._______________________________________________________________________
China’s Belt & Road Redefining Globalization & International Relations for Belt-Road Forum
April 10, 2019Preparations for the Second Belt and Road Forum
On March 29, Yang Jiechi, member of the Political Bureau of the Central Committee of the Communist Party of China and director of the Office of the Central Commission for Foreign Affairs, spoke at length with the media about preparations for the late April Second Belt and Road Forum for International Cooperation in Beijing.
Italy, China, and Africa Busting Apart Old Geo-Political Regime
March 23, 2019Italy and China Sign Groundbreaking MOU on Belt and Road Initiative
Italy and China have signed the famous Memorandum of Understanding on Belt and Road cooperation today, together with 10 economic agreements and 18 institutional agreements (19 with the BRI MOU). The MOU is a milestone and is said to already be being studied by other countries that want to follow Italy. The MOU says at the outset that “The Parties will work together within the Belt and Road Initiative (BRI) to translate mutual complementary strengths into advantages for practical cooperation and sustainable growth, supporting synergies between the Belt and Road Initiative and priorities identified in the Investment Plan for Europe and the Trans-European Networks, bearing in mind discussions in the EU China Connectivity Platform.” With the MOU, Italy is the first large industrial economy to join the Belt and Road, as Chinese media proudly stress. The signature of the MOU occurred in spite of trans-Atlantic pressures and open hostility by Italy’s “partners” in the EU. Italian Minister for Economic Development Luigi Di Maio, who signed the MOU together with his counterpart He Lifeng, chairman of the National Development and Reform Commission, stated that “today is for us a very important day, in which the Made in Italy is winning, Italian firms are winning. We made a step to help our economy to grow. Italy came first with China.” The economic agreements include: a strategic partnership between the Italian Cassa Depositi e Prestiti and the Bank of China to finance Italian firms in China; a MOU between the Italian oil company ENI and the Bank of China for explorations in China; Ansaldo Energia signed two agreements, one to develop gas turbines with UGTC and another one for the supply of a turbine to Shanghai Electric and Benxi Steel; the Port Authorities of Trieste and Genoa signed an agreement with the construction giant CCCC. Cassa Depositi and the natural gas utility Snam signed a deal with the Silk Road Fund for investments along the Silk Road; the Institute for Foreign Trade signed a deal with Suning to create a platform to promote Italian lifestyle in China; and the Danieli group signed a contract with China Camc Engineering for the construction of a steel plant in Azerbaijan. The institutional agreements, besides the MOU on the BRI cooperation, include cooperation on innovative startups and electronic trade, as well as cooperation between the two space agencies, agriculture and culture, health and media. Read article
Italian Finance Minister Tria on Italy-China-Africa Cooperation
In an op-ed in {China Daily}, entitled “As Belt and Road Opens New Doors Across Globe, Italy To Play A Key Role,” Italian Finance minister Giovanni Tria emphasized Sino-Italian cooperation to develop Africa. After praising the BRI as a way to relaunch global economic integration, Tria recalled that “In September, the Italian government signed a memorandum of understanding with China’s National Development and Reform Commission for joint cooperation in third countries. This way, Italy and China are committed to collaborating in important geographical areas such as Africa, which in the near future will be a top actor for demographic reasons and due to its prospects for economic growth. “Playing a role in building and restoring large infrastructure is an invaluable opportunity for Italian companies. There is an astonishing variety of areas of expertise where Italy can provide a competitive, paramount contribution. Beyond those more strictly linked to the physical construction of infrastructure (machiner), logistics and plant construction), Italy has strong capabilities in the provision of high-quality technical services such as consulting, feasibility studies, design, engineering services, security, finance and insurance. “Italy believes in the prospective cooperative development of the BRI. This process will help to identify the paths of action and the main projects. Italy also enjoys a strategic geographical position along the current and future frames of commercial relations between the East, the West and Africa. Located on the Mediterranean Sea, Italy is the second-largest manufacturing country in Europe, leading in technological innovation and equipped with high-quality ports and road and rail networks. These features make Italy the ideal southern gateway to continental Europe and for the trade routes between Europe and China. “By opening new connections and intensifying trade relations, the BRI will help improve the competitiveness of Italian and Chinese companies operating in each other’s markets and together toward third markets, leaving the respective governments with the task of providing adequate support to foster a business-friendly climate that can enhance their expertise, strengths and innovative approaches. “I believe that developing physical connections, while enlarging and strengthening cooperation networks and partnerships, represents a valuable opportunity to face the challenge of sustainable growth and to avoid backtracking toward protectionism and nationalism. Commercial synergies and relationships of trust represent the path we want to take to counter international tensions and to favor wider and more widespread global well-being.”____________________________________________________________________________
China and Italy Challenging Old Geo-Political World Order
March 21, 2019 This signed article by Xi Jinping, President of the People’s Republic of China, was published March 20, in Corriere della Sera, a leading Italian newspaper on the eve of his state visit to Italy. It is a beautiful expression of the potential alliance of “East and West.” The old geo-political order manipulated this so called division to maintain political domination. Hopefully, we are now embarking on a new era with the old-order is coming to an end.
East Meets West — A New Chapter of Sino-Italian Friendship
It is a great pleasure for me to pay a state visit to the Italian Republic at the invitation of President Sergio Mattarella in this blossoming season of spring. In 2011, I visited Rome on celebrations of the 150th anniversary of Italian unification and, in 2016, I had a stopover on Sardinia. I was deeply impressed by the way of life and industrial outlook of Italy that blend together the ancient and the modern, the classic and the novel. Now that I am about to set foot again on this beautiful country, it feels like I am to be among old friends, and get immersed in their wonderful hospitality. China and Italy are both stellar examples of Eastern and Western civilizations, and both have written splendid chapters in the history of human progress. Being the birthplace of ancient Roman civilization and the cradle of the Renaissance, Italy is known to the Chinese people for its imposing relic sites and masterpieces of great names in art and literature. Friendly ties between our two great civilizations go back a long way. As early as over 2,000 years ago, China and ancient Rome, though thousands of miles apart, were already connected by the Silk Road. During the Eastern Han Dynasty (AD 25-220), Chinese emissary Gan Ying was sent to search for “Da Qin”, the Chinese name of the Roman Empire at the time. Roman poet Virgil and geographer Pomponius Mela made many references to Seres, the land of silk. The famous explorer Marco Polo’s Travels roused the first wave of “China fever” among European countries. That pioneer of cultural exchanges between East and West was followed by a long list of personages in search of friendship over the centuries. In our own era, China-Italy relations, tracing the footsteps of our ancestors, are brimming with dynamism. The People’s Republic of China and the Italian Republic established diplomatic relations in 1970. In 2020, the two countries will celebrate the 50th anniversary of our relations. Through the past decades, our two countries have enjoyed mutual trust and close cooperation regardless of changes in the international landscape. Together, we have set a fine example of mutually beneficial relations between two countries that have different social systems, cultural backgrounds and stages of development. The traditional friendship between us, stronger than ever, has become a strong pillar supporting the rapid and steady growth of our bilateral ties. Sino-Italian friendship is rooted in our long history of exchanges. In the course of over two millennia, our two countries have embraced the principles of mutual respect, mutual learning, mutual trust and mutual understanding in our interactions, principles that underpin our long-lasting, ever-strong friendship. Confronted by the transformations and challenges of today’s world and informed by our deep appreciation of history, China and Italy both envision a new type of international relations that are built on mutual respect, fairness, justice and win-win cooperation, and a community with a shared future for all mankind. Sino-Italian friendship is embedded in our deep strategic trust. Both countries’ leaderships approach our relations from a strategic and long-term perspective. Since the establishment of a comprehensive strategic partnership in 2004, our two countries, guided and driven by high-level exchanges, have given each other understanding and firm support on issues concerning our respective core interests and major concerns. Our strategic trust provides a firm underpinning for the long-term and steady growth of China-Italy relations. Sino-Italian friendship is reflected in our multi-faceted cooperation. As key trading and investment partners for each other, China and Italy have deeply entwined interests. Two-way trade exceeded 50 billion U.S. dollars in 2018 and investment surpassed 20 billion dollars in accumulative terms. “Made in Italy” is a guarantee of quality, Italian fashion and furniture are immensely popular with Chinese consumers, and pizza and tiramisu are the love of many young Chinese. Every now and then, we hear stories about the success of Sino-Italian cooperation in satellite R&D and manned space exploration. Initiatives such as the China-Italy Science, Technology and Innovation Week, joint police patrols and football training, to name just a few, are applauded by people in both countries. Sino-Italian friendship is carried forward through our intensive cultural exchanges. Chinese and Italians have a deep interest in each other’s cultures. A Chinese professor in his 70s spent 18 years translating Dante’s Divine Comedy, and after revising several drafts, completed this mammoth task before his final days. From Martino Martini, author of the first Chinese grammar book in Europe, to Giuliano Bertuccioli and Federico Masini who wrote Italy and China, many Italian Sinologists have built bridges between Europe and China and contributed to a long-running boom of China studies on the Apennine Peninsula. The well-known Italian writer Alberto Moravia once wrote, “Friendships are not chosen by chance, but according to the passions that dominate us.” In a world that faces profound changes of a kind unseen in a century, the onus is on us to bring China-Italy relations to a higher level and to jointly safeguard world peace, stability, development and prosperity. Through my upcoming visit, I hope to work with Italian leaders to map out the future of our relationship and move it into a new era. China hopes to work with Italy to strengthen our comprehensive strategic partnership. Our two countries may plan more high-level exchanges and cooperation between our governments, parliaments, political parties and sub-national entities, strengthen policy communica-tion, enhance strategic trust and synergy, and continue to give understanding and support to each other on issues of core interests and major concerns, so as to consolidate the political foundation of our relations. China hopes to work with Italy to advance Belt and Road cooperation. Our two countries may harness our historical and cultural bonds forged through the ancient Silk Road as well as our geographical locations to align connectivity cooperation under the Belt and Road Initiative with Italy’s plan to develop its northern ports and the Invest-Italia program, and jointly build the Belt and Road of the new era on sea, on land, in the air, in space and in the cultural domain. China hopes to work with Italy to expand cooperation into new areas. China will open up further to the rest of the world, and share its market opportunities with Italy and other countries through the annual China International Import Expo and other avenues. Our two countries may fully tap our cooperation potential in ports, logistics, ship-building, transportation, energy, telecommunications, medicine and other fields, and encourage our companies to partner with each other in third markets for win-win cooperation. China hopes to work with Italy to promote closer people-to-people ties. As countries with the largest number of UNESCO world heritage sites, China and Italy have plenty of cultural and tourism resources. We may encourage our world heritage sites to forge twinning relationships and our cultural institutions and individuals to organize premium relic and art exhibitions. We may also encourage joint production of films and TV programs, the teaching of each other’s languages, as well as more mutual travel and visits. Through these exchanges, we will make new contributions to the diversity of civilizations and mutual learning between different cultures. China hopes to strengthen coordination with Italy in international affairs and multilateral organizations. China is ready to enhance communication and collaboration with Italy in the United Nations (UN), the G20, Asia-Europe Meeting and the World Trade Organization (WTO) on global governance, climate change, UN reform, WTO reform and other major issues. Working together, we will promote our shared interests, uphold multilateralism and free trade, and safeguard world peace, stability, development and prosperity. Looking back at the last five decades, China-Italy relations have struck deep roots and borne rich fruits. Looking ahead, China-Italy cooperation will continue to flourish and prosper. The Chinese people look forward to working hand in hand with our friends in Italy to carry forward our blossoming relationship and imbue our friendship with more vitality and dynamism.______________________________________________________________________________
China’s Experience: Helping Transform An African Desert Into a Garden
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Editor’s note: William Jones is the Washington Bureau Chief for Executive Intelligence Review and a non-resident fellow of the Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author’s opinion, and not necessarily the views of CGTN.
With the upcoming visit of Chinese President Xi Jinping to Italy, there will no doubt be some discussion of cooperation between the two nations on the African continent. For Italy, helping to resolve the dire economic situation in Africa is both a humanitarian and an economic concern. The devastated economy in many African countries is bringing more and more refugees to Italy’s shore, and the burden is taking its toll on the Italian economy. For China, Africa has always been a particular concern having shared in the condition of underdevelopment for so many years. Even when both were clearly developing countries, China offered its assistance to its African brothers.
One of the most significant projects in that regard is the Transaqua project. This project would take some of the water from the Congo River, a river with the greatest flow of water in the world, and through a series of canals to the Chari River which flows into Lake Chad, a lake whose surface has been dramatically reduced from 25,000 km2 in 1960 to 1,500 km2 today.
The water transfer project would help revive the lake, and with the construction of dams and power plants along the canal, would help to bring development to the region, directly affecting the Democratic Republic of Congo, Central Africa and Nigeria, through which it would pass. In addition, it would also bring economic benefits to Niger, Cameron, Chad and Congo Brazzaville as well.
Representatives from both Bonifica and PowerChina were invited in 2018 as speakers at the International Conference on Lake Chad, in Abuja, sponsored by the Government of Nigeria. The final declaration of the conference stated that Lake Chad needs to be saved and that its current situation demands immediate action. The Italian government at the time pledged 1.5 million Euros (1.7 million U.S. dollars) to start the Transaqua feasibility study.
The expansion of the BRI to Africa has kindled new hope in a continent that had virtually been abandoned by the West in terms of large development projects. The Mombasa-Nairobi railway, the Nigerian coastal railway, the Chad-Sudan railway, the Port Sudan-Khartoum railway have already provided the template for industrializing the entire African continent.
While some Western nations are trying to depict the BRI as a geopolitical “ploy” by China, anyone looking at the effect of the project on the recipient countries will see the falsehood of these claims. As Abraham Lincoln famously said, “You can’t fool all the people all the time.” And to the extent that countries overcome their fears and begin to work with the BRI and contribute their strength to developing other countries, they will better understand the importance of the project and its more profound implications for global development.
China has made great gains in reversing the effects of desertification by means of their water diversion projects, their reforestation efforts and their irrigation projects. If some of this know-how were to be applied in Africa, it would help turn the devastated Sahel region into a veritable garden, which it once was. And the lessons learned can be used on a broader scale to change the nature of life on this planet – for all its people.
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Italy Wisely Becomes First G-7 Nation to Join China’s Belt and Road: Financial Predators Upset
March 7, 2019
City of London’s {Financial Times} Beside Itself over Italy’s Joining Belt and Road
The City of London mouthpiece {Financial Times} criticizes Italy for becoming, as they write, “the first G-7 country to formally endorse China’s controversial Belt and Road global investment drive, in a move that has drawn a sharp response from the White House and is likely to cause alarm in Brussels.” {FT} has suddenly discovered that Italy is going to sign a memorandum of understanding during President Xi Jinping’s Rome visit scheduled for March 22-23. The daily quotes Undersecretary for Economic Development Michele Geraci, who says that “the negotiation is not over yet, but it is possible that it will be concluded in time for [Xi’s] visit. We want to make sure that ‘Made in Italy’ products can have more success in terms of export volume to China, which is the fastest-growing market in the world.” {FT} then quotes U.S. National Security Council spokesman Garrett Marquis, who makes a not-so-veiled threat: “We view BRI [Belt & Road Initiative] as a ‘made by China, for China. We are skeptical that the Italian government’s endorsement will bring any sustained economic benefits to the Italian people, and it may end up harming Italy’s global reputation in the long run.” Marquis further said that U.S. officials had raised concerns about what he called the negative effects of “China’s infrastructure diplomacy,” and urged “all allies and partners, including Italy, to press China to bring its global investment efforts into line with accepted international standards and best practices.” Marquis was brought into the National Security Council by John Bolton, for whom he had earlier worked as a spokesman at the Foundation for American Security and Freedom. The {FT} goes on to allege that “Italy’s support for China’s BRI initiative would undercut U.S. pressure on China over trade and would under-mine Brussels’ efforts to overcome divisions within the EU over the best approach to deal with Chinese investments. Italy is a founding member of the EU.” President Xi will visit Italy on March 22 and meet Sergio Mattarella, the Italian president, as well as Prime Minister Giuseppe Conte, and attend a military ceremony before traveling to Sicily. The article concludes quoting National People’s Congress spokesman Zhang Yesui as saying this week that 67 countries had signed up to the BRI in the past year or so, bringing the total number of countries or international organizations that have formal endorsements to 152. China takes the issue of debt very seriously and within a project the Chinese side never imposes things, nor, least of all, creates debt traps,” {FT} quotes Zhang. “Of course, like any international co-operation, some problems and challenges may crop up. With experience it will improve.”
Italy’s Geraci Rejects {Financial Times} Criticism of Italy Joining the Belt and Road Initiative
In an interview with the Italian financial daily {Il Sole 24 Ore}, Italian Undersecretary to the Economic Development Ministry rejects criticism raised by the City of London’s {Financial Times} and defends Italy’s sovereign choice to join the Belt and Road. “Sincerely, I am a bit surprised. I do not understand what it is, that is controversial,” Geraci said. “I confirm what I said in an interview with this newspaper last Feb. 21st. I said the same thing to the {Financial Times}: We work every day down to the last detail. “It will be a framework agreement: Just the indication of some strategic sectors in which joint investments are promoted and orders by Italian firms are accelerated. We work on infrastructure, transport and highways, trade, industry, green economy. It will be up to private companies to choose whether to participate or not. If they do it, they will have guarantees in terms of protection from disputes and questions about rules.” As for the U.S. position, Geraci stated: “I wonder where such a big concern comes from. We will protect our know-how thanks to a ‘golden power’ rule we have in Italy, which is among the strictest in Europe. And we just fulfill demands from our companies to create for them more room in the most promising markets, such as China. Anyway, we have supplied the United States, as per normal exchanges we have with our main diplomatic partners, all insurances on the issue.” On the concern about Italy being the first G-7 country to sign a New Silk Road protocol, Geraci replied to the criticisms: “So what? Poland, Hungary, Portugal, Greece have done it and I do not consider them second-class countries in Europe. Those who think differently do not have a real European view. And the G-7 club may be a somewhat outdated concept: It no longer represents the real world economic powers, since it does not include either China or India.” Italy is not “selling out” its ports, as some have claimed, he countered: “We do not sell, at most we give concessions to create greenfield investments, which means starting from zero. You cannot sell out things that were not there in the first place.”
China Responds to U.S. Attack on Italy Joining the Belt and Road
The Chinese Foreign Ministry today responded to the attack on Italy’s plan to join the Belt and Road by Garrett Marquis, a long-time ally of National Security Adviser John Bolton (who brought him onto the National Security Council). An unsigned editorial in {Global Times,} titled: “White House’s Criticism of Italy’s Plan To Join BRI Ridiculous,” reports that Lu Kang, spokes-person of China’s Ministry of Foreign Affairs, at a routine press conference today, said: “Italy, as a major country and economy in the world, is clear about its interests. It could make its own policies and decisions.” {Global Times} added: “The BRI is an important inter-national public good that China contributes to global cooperation for common development. China and more than 150 countries and international organizations have signed BRI cooperation agreements, which witnessed more than $6 trillion in cumulative trade between China and participating countries, Yang Jiechi, a member of the Political Bureau of the Communist Party of China Central Committee, said at the 55th Munich Security Conference in February, the Xinhua News Agency reported.”
Greek Foreign Minister in Beijing To Discuss Intensifying Belt and Road Cooperation
Greek Foreign Minister Giorgos Katrougalos began a five-day official visit to Beijing on March 5, in which he co-chaired the 13 Joint Inter-ministerial Committee with China’s Foreign Minister and State Councillor Wang Yi and with Commerce Minister Zhong Shan. On the margins of the meeting, Katrougalos met Foreign Minister Wang Yi, Commerce Minister Zhong Shan, Vice Chairman of the National Development and Reform Commission Ning Jizh, and chief of the Development Commission He Lifeng, according to a statement by the Greek Foreign Ministry.The Greek delegation included Christos Lambridis, Secretary General of Ports, Port Policy, and Maritime Investment, and officials from the Hellenic Ministry of Agricultural Development. “From all these contacts, both with my counterpart, the Minister of Foreign Affairs, as well as with the head of Foreign Relations of the Communist Party of China, and the economy ministers, the Minister of Commerce, the head of the crucially important Planning Commission of China, the conclusion drawn is dual in nature: First of all that Greece and China are seriously investing in their bilateral strategic partnership. This is not occasional, it has as its guide the ‘One Belt One Road’ initiative which the Chinese government is promoting at the moment, but there is a significant alignment of interests, precisely because we too endeavor that our country becomes a bridge between Europe, Asia, and Africa. The second thing that was affirmed is the observation that Greece has exited the economic crisis and offers significant opportunities for investment to the Chinese side. Katrougalos also participated in the formal commencement of proceedings of the annual plenary of the National People’s Congress, ahead of which he said, “As you know, China has achieved a lot. It is on its way to becoming the world’s largest economy. It helped 700 million of its citizens out of complete poverty.” Chinese Foreign Minister Wang Yi congratulated Katrougalos on assuming his new post as foreign minister, and expressed satisfaction that “Mr. Foreign Minister chose China as the first country to visit after taking office, which demonstrated with concrete actions his friendship with China and the importance he attached to China-Greece relations and that both countries are good friends and good partners.” He further stated that “as the birthplace of Mediterranean civilizations, Greece possesses profound cultural heritage and enormous development potential. The Chinese side feels happy that Greece has overcome the influence brought by financial crisis and regained economic and social vitality, and is willing to, together with the Greek side, strengthen high-level exchanges, increase understanding and mutual trust, expand bilateral cooperation fields under the framework of the Belt and Road Initiative….”
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China Friend or Foe? Published in AU’s “Invest in Africa” magazine
Below is my article on China: Friend or Foe?-January 2019, that was published (abridged) in the African Union magazine: “Invest in Africa“-2019 vol 1. You can find it on page 65 (85 on the link to the magazine). There are many worth while articles to read in this volume of the AU magazine
https://issuu.com/amipnews/docs/invest_in_africa_2019_vol_1 By Lawrence Freeman
January 1, 2019
The short answer is a China is friend and contributor to Africa’s progress. Ignore all the propaganda, ignorance and outright lies claiming that China is the new colonizer of Africa. There is absolutely no truth in the contorted comparison between China’s involvement in Africa today, and 500 years of slavery and colonialism by Western nations.
Following the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, we have witnessed an escalated disinformation campaign alleging that China is attempting to snare African nations in a new “debt-trap.” New vicious rumors have emerged that China is taking over ownership of key infrastructure projects in Africa. Every African Head of State who has spoken out, has refuted these allegations and praised their cooperative relationship with China.
According to a report by the British based Jubilee Debt Campaign, “Africa’s growing debt crisis: Who is the debt owed to?” China is owed a minority of external debt. Their figures compiled from the World Bank and the China Africa Research Institute show that 20% of African government external debt is owed to China in contrast 32% to private lenders, and 35% to multilateral institutions such as the World Bank.
Of these 14 countries that have they examined: 11 owe less than 18% of their debt to China (Burundi, Cape Verde, Central African Republic, Chad, Gambia, Ghana, Mauritania, Mozambique, Sao Tome and Principe, South Sudan, Sudan and Zimbabwe); and three owe more than 24% -Djibouti (68%), Zambia (30%) and Cameroon (29%).
The proponents of the “debt-trap” accusation conspicuously, egregiously omit from their chronicle the history of the financial imprisonment of the then newly independent African nations by the IMF, World Bank, Paris Club, and their kith and kin in the City of London and Wall Street. Through manipulation of terms of trade, controlling prices, and forcing currency deviations, African nations found themselves shackled in several hundred billion dollars of new debt to the West shortly after African nations achieved liberation from imperialist colonial masters. Western debt replaced slavery and colonialism as the new method of looting Africa of its wealth, reinforced by the ill-fated Structural Adjustment Programs-SAPs, otherwise known as the “Washington Consensus.”
So, who is kidding whom about a “debt-trap?”
Debt for Infrastructure is Necessary
Credits issued for hard infrastructure; energy, railroads, ports, roads, bridges, and soft infrastructure in well equipped; schools, libraries, universities, and hospitals will always result in an increase in productivity i.e. the economic power of the society. By employing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output.
All nations that have experienced real economic growth and raised the living standard of their citizens have created credit i.e. public-sector debt or borrowed debt at non-usurious interest rates for targeted physical economic growth.
China is the single largest nation contributing to financing and constructing of infrastructure projects in Africa according, to Deloitte’s 2017 edition of Africa Constructive Trends. The report examines 303 infrastructure projects begun in the first half of 2017 that costs over $50 million. Appropriately, energy& power, and transport comprise 167 of these projects-over 55% of the total. While African governments fund 27.1 % of the funding, China accounts for 15.5% of the funding and 28.1% of the construction for these projects. The US accounts for 3% and 3.3% respectively. Both Italy and France are larger than the US percentage in building infrastructure in Africa.
African Development Bank President, Akinwumi Adesina, speaking on November 28, 2016 accurately linked the deadly migrant crisis to deficiencies in Africa’s economic development and infrastructure.
“I believe that Africa development deserves significant support, even in the midst of these challenges. We must not forget that the reason several thousands of Africans have been (illegally) migrating to Europe, is because of the lack of jobs and shrinking economic opportunities at home. Our result must not be to reduce support, but to increase support to help build greater resilience, boost its economies, address its structural challenge, such as closing its huge infrastructure gap, strengthening intra-related trade, and creating jobs for its teeming youths.”
A study done by the AidData Research Lab at William and Mary College in Virginia that analyzed China’s investments in the developing sector between 2000 and 2014, concluded:
“We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.”
China has come to know, what the US has forgotten, that infrastructure is the sine qua non to drive economic growth.
Africa’s huge infrastructure deficit is the causal factor for widespread poverty, and insecurity across the continent, precisely that which China has begun to address over the last decade. The Western financial system that dominated Africa from 1960-2000 contributed almost nothing to help African nations industrialize and failed to help create vibrant agro-manufacturing sectors. China with its Belt and Road Initiative has presented the world with a new paradigm to guide political-economic relations among nations; Africa is the beneficiary.
Lawrence Freeman is a Political-Economic Analyst for Africa, and Vice Chairman of the International Scientific Advisory Committee to the Lake Chad Basin Commission
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China, Africa, and exploring the Universe for Mankind
Displaying China’s commitment and friendship to Africa, the first foreign trip of the new year by China’s Foreign Minister began in Ethiopia, and included a meeting African Union Chairman, Moussa Faki Mahamat. Landing on the dark side of the Moon for the first time history with China’s new rover is a step forward for Mankind.
Wang Yi Opens New Year with Visit to Africa
Jan. 4, 2019 As has become the tradition of Chinese Foreign Ministers, Wang Yi’s first foreign trip of 2019 is to Africa. It began yesterday with meetings with Ethiopia’s highest officials, followed by his meeting today with the head of the African Union, headquartered in Ethiopia. Wang will then travel to Burkina Faso, Gambia, and Senegal. China reported that Wang hopes through this trip to strengthen coordination with Africa for the implementation of the decisions taken in last September’s historic summit in Beijing of the Forum on China-Africa Cooperation (FOCAC). Wang met with both Ethiopia’s Prime Minister Abiy Ahmed and Foreign Minister Workneh Gebeyehu. The statement posted by the Prime Minister after his meeting with Wang praised China’s “immense contribution to Ethiopia,” reported that Abiy had “highlighted” that for Ethiopia, “the new frontier of a strengthened relationship [with China] needs to capitalize on introducing new forms of technology,” and to continue the support in infrastructure development. Neighboring Kenya’s {Daily Nation} covered Wang’s meetings in Ethiopia with a blast at the “China debt trap” lies. Citing statistics from the “conservative” American Enterprise Institute), the paper emphasized that from 2005 to 2018, China’s total on investment and construction in Sub-Saharan Africa was $298 billion. Making China “the single largest bilateral financier of infrastructure in Africa, exceeding the combined total of the African Development Bank, the European Union, International Finance Corporation, the World Bank and the Group of Eight countries.” Wang had “initially sidestepped concerns, often made by Western nations, about whether the debt payments were sustainable,” the {Daily Nation} reported, but he then he answered: “Generally, debt in Africa has been a protracted issue left from history. It didn’t come up today, still less is it caused by China,” Wang said. He added that China is well-aware that some African nations have encountered financing difficulties, and “we’re always ready to extend a good hand when African countries need it.” According to Anadolu Agency, Wang discussed plans to start a dialogue on security with Africa, when he met with African Union Chairperson Moussa Faki Mahamat today, arguing that “peace in the African continent is very important for stability in the whole world.” Faki, for his part, praised China’s help in capacity building in Africa, being the biggest partner of Africa in building roads, ports and energy facilities.
Chang’e-4: “Exploring the Unknown Is Human Nature”
There is extensive coverage in the Chinese media, both TV and print, of the astonishing Chang’e-4 achievement, and the ongoing activities of the lander, the rover, and the relay satellite. Comments by a number of China’s top scientists involved in the project are also reported: “Exploring the unknown is human nature. The Moon is a mysterious world to us. We have a responsibility to explore and to understand it. Exploration of the Moon will also deepen our understanding of Earth and ourselves,” said Wu Weiren, chief of China’s lunar program. On CGTN’s “China 24” program this morning Wu said that although China started late in its lunar program, unlike the U.S. program it is not a race, but scientific, and started from a higher ground. He said China’s lunar program welcomes contributions, even in subsystems and system integration. “It is a perfect display of human intelligence,” said Jia Yang, deputy chief designer of the Chang’e-4 probe, from the China Academy of Space Technology CAST). “Solving those problems might help lay the foundation for future space exploration. High-precision landing is a necessity for further exploring the Moon and asteroids. We hope to be able to reach the whole Moon and even the whole solar system,” said Sun Zezhou, chief designer of Change-4 probe, from CAST. “Exploring the far side of the Moon is one contribution China is making to the world. Although we still don’t know what we might find, this exploration might influence several generations,” said Shen Zhenrong, a designer of the lunar rover.
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Despite Claims From the West: Report Reveals That China’s Africa Infrastructure Projects are Reducing Economic Inequalities
Chinese Investments in Developing Sector Decrease Inequality
December 12, 2018 A study done by the AidData institute at William and Mary College in Virginia showed that China’s investments in the developing sector between 2000 and 2014, unlike many western investments, reduce economic inequality in the targeted countries. Financed by the UN, the Singapore Ministry of Education, the German Research Foundation, USAID, and several other foundations, the study collected data on Chinese projects in 138 countries, concluding: “We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.” “Beijing has demonstrated that it is both willing and able to address the unmet infrastructure financing needs of developing countries. These development projects—in particular, investments in highways, railways, roads, bridges, tunnels, and ports—could strengthen economic ties between rural and urban areas and thereby help to spread the benefits of economic growth to more remote and traditionally disadvantaged areas.” “The findings from the study are encouraging: Chinese development projects—in particular, “connective infrastructure” projects like roads and bridges—are found to create a more equal distribution of economic activity within the provinces and districts where they were located.”Read the article with a link to the report
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Don’t Listen to Propaganda & Gossip. Follow the Facts: China is not Creating a ‘debt-trap’ for Africa
November 3, 2018 A useful report, “Africa’s growing debt crisis: Who is the debt owed to?” by the British based Jubilee Debt Campaign, again belies the propaganda and gossip that China is manipulating African nations into a ‘debt-trap.’ This report excerpted below, using figures from the World Bank, and the China Africa Research Institute-(CARI) at Johns Hopkins SAIS in Washington DC, shows the percentage of debt owed to China by African nations is not the cause of a debt crisis. In fact, in many cases the debt owed to China is less than the total owed to Western nations and financial institutions. It is clear that for strictly geo-political reasons many Western think tanks and various media have gone into overdrive demonizing China with false claims of a new ‘debt-trap.’ This has also led to increased attacks on African leaders, portraying them as weak and not acting in the interest of their citizens. They have been accused of succumbing to China, which has been dubbed, the new imperial power. Sadly, many Africans have been duped, or simply out of frustration and anger, joined this western orchestrated chorus. Of course, the truth of the matter is quite different. From the early 1980s on Western financial intuitions such as the IMF, World Bank, and Paris Club, loaded up African nations with so much debt that they were unable to service the debt, forcing them into unpayable arrears. The vicious irony, is that several hundred billion dollars of debt lent by the West was never meant to actual develop African economies. It was in fact, intended to create a real ‘debt-trap’ for Africa. It has only been in the last ten years that Africa’s huge deficit in infrastructure is being addressed in collaboration with China’s non-western model of development. As I have written over many years, debt is not the problem when it is used as credit to improve the productive powers of a society to increase its physical wealth. Technologically advanced infrastructure is an excellent, if not the premiere method to drive an economy forward. This is exactly what China is accomplishing through its Belt and Road Initiative, and is at the heart of the Forum on China-Africa Cooperation-(FOCAC). Unfortunately, the dominance of the “geo-political” ideology since the death of Franklin Roosevelt has thoroughly contaminated the thinking of Westerners and Africans alike. Creating a culture (with few exceptions) of people unable to think strategically, and who cynically reject the idea that a powerful nation would extend itself to actually assist other nations. China, according to all accounts, has lifted 700 million of its people out of poverty. President Xi Xinping has pledged to help eliminate poverty in Africa, the continent with highest rate of poverty in the world. Yet, many Africans reject this offer as insincere, suggesting a sinister motive lurking behind China’s offer. This attitude, is in part, the result of today’s political culture, which has failed to understand one of the most profound universal principles: all mankind shares a common interest in the development of the creative potential of each and every human being. Let us all agree, now, that we will all act on the this principle of the common good, and affirm as did the Treaty of Westphalia, that the interest of the other is also the interest of thy self.
“Africa’s growing debt crisis: Who is the debt owed to?”
October 2018 (excerpts follow) Summary • African government external debt payments have doubled in two years, from an average of 5.9% of government revenue in 2015 to 11.8% in 2017 • 20% of African government external debt is owed to China • 17% of African government external interest payments are made to China • In contrast, 32% of African government external debt is owed to private lenders, and 35% to multilateral institutions such as the World Bank • 55% of external interest payments are to private creditors Minimum amount of African government external debt owed to China as percentage of total debt is 18% Creditor grouping, total debt owed, percentage of external debt owed, are as follows: China $72 billion 18% Paris Club $40 billion 10% Other governments $18 billion 4% World Bank $66 billion 16% IMF $18 billion 4% Other multilateral institutions $61 billion 15% Private sector $132 billion 32% Total $407 billion Maximum amount of African government external debt owed to China as percentage of total debt is 24% Creditor grouping’Total debt owed, percentage of external debt owed, are as follows: China $100 billion 24% Paris Club $40 billion 10% World Bank $66 billion 16% IMF $18 billion 4% Other multilateral institutions $61 billion 15% Private sector (excl. Chinese private sector) $132 billion 32% Total $417 billion Checking these figures through country cases Another way of identifying how much African government debt is owed to China is to look bottom-up at the individual data available by each government. Of these 16 countries, 14 have figures on how much debt is owed to China (for the full analysis see Appendix 1.). Of these 14: • 11 owe less than 18% of their debt to China (Burundi, Cabo Verde, Central African Republic, Chad, Gambia, Ghana, Mauritania, Mozambique, Sao Tome and Principe, South Sudan, Sudan and Zimbabwe). • Three owe more than 24% -Djibouti (68%), Zambia (30%) and Cameroon (29%). • The mean average amount owed to China is 15% of a government’s external debt, and the median average is 8%Read Complete Report: Who Is Africa Debt’s Owed To?
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“The Debate on China’s Role in Africa a Different Point of View”
CASADE: COUNCIL ON AFRICAN SECURITY AND DEVELOPMENT
The Debate On China’s Role In Africa; A Different Point Of View
A Brief Response: Marshall Plan for Africa or “Debt Trap?”
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The New Silk Can Create A New Global Paradigm
October 17, 2018 Excerpts from a presentation by Schiller Institute founder and President Helga Zepp-LaRouche in Washington, D.C. on Oct. 17. It was titled, “The New Silk Road and the End of Colonialism: A New Shared Future for Humanity,” …Now, ever since Xi Jinping announced the New Silk Road in Kazakhstan in 2013, about 100 countries have joined this effort. There have been investments in all of these countries, 12 times the size of the Marshall Plan, and all based on “win-win” cooperation. An enormous amount of infrastructure corridors, industrial parks, power plants; various agricultural projects have been built. And in the recent time, you have the building of a completely new system of international relations based on the respect for the sovereignty, and respect for non-interference in the affairs of the other country, respect for the perspective of a different social system, and this has created a different dynamic in the world. This has, for example, recently led to the integration of the Shanghai Cooperation organization(SCO) with the Belt and Road Initiative. There is a new formation of South-South relations which became very apparent at the recent annual BRICS meeting in Johannesburg, where you had the formation of Global South, which was practically all the organizations from the developing sector, the G77, the Organization of Islamic Countries, Mercosur, the African Union, many regional organizations. And then, subsequently, you had the very big Africa-China summit, FOCAC [Forum on China Africa Cooperation] in Beijing at the beginning of September, where you had about 48 presidents and 5 heads of state of governments participating from Africa, announcing a new age in the friendship and historic relationship between China and the African continent Now, Putin at the BRICS summit, had already promised that Russia would light up Africa in providing electricity, not from oil and gas, but through helping African nations to build nuclear power. And Xi Jinping at the same meeting, had said that Africa, of all the places in the world, has the biggest development potential in the world. The New Silk Road Spirit, which has captured this dynamic is transforming geopolitical conflicts in many parts of the world. For example, the very successful developments around North and South Korea, who are now fully on the way to possibly announce a peace treaty before the end of the year, going in the direction of unification. This is definitely one of the great successes of President Trump, who at the Singapore summit where he met with Kim Jong-un, is promising to help the make North Korea a prosperous country if denuclearization continues to proceed. And China has promised to integrate the Koreas into the Belt and Road Initiative. Russia has promised to help the economic prosperity in North Korea. This is a model, where you can see how this new spirit is helping to transform previous crisis situations into real miracles. A similar thing is happening in the Horn of Africa, where as a result of the construction of the fast railway between Djibouti and Addis Ababa, you have now Somalia, Djibouti, Eritrea and Ethiopia developing new diplomatic relations and cooperation which was unthinkable a very short period before. Now, the biggest breakthrough in this development was the signing of a MOU-Memorandum of Understanding between the Italian government and the Lake Chad Basin Commission on the realization of the Transaqua project. Transaqua is a project which the LaRouche organization has been fighting for, for over 30 years, and the fact that it is now agreed upon between China, Italy and six African nations to build is a game-changer for the entire African continent. Transaqua is the idea that you refill Lake Chad, which is now down to about 10% of its previous volume, bringing 3-4% of the water from the tributaries of Congo River, from about 500 meters high, through a system of canals into Lake Chad. And this will provide an inland waterway for participating countries: It will provide hydro-power, it will provide huge amounts of water for irrigation, it will fill up Lake Chad, and it will still provide for a large areas in the Sahel zone to be irrigated: And that way you can really improve the life about 40 million people who are living there. This is a tremendous breakthrough, and I think this is really the kind of project which can happen around the world everywhere. Now, in the context of the New Silk Road, there have been also an enormous amount of strategic realignment of countries which previously, for historical reasons and past wars, were at complete odds. For example, now there is a new cooperation between Japan and China, where both of them said that there is the possibility of joint projects in Africa. Prime Minister Shinzo Abe, just two days ago, said that Japan and China can cooperate in third countries and the pivot of it could be Thailand. And as we have been fighting for another great project, also for more than 30 years, the Kra Canal, there has been recently a conference putting that back on the agenda: And that would be a game-changer for the entire transport route in Southeast Asia. A wonderful example of cooperation with the New Silk Road is Austria, where Chancellor Sebastian Kurz will conduct a big forum, a Europe-Africa Forum, before the end of the year, because Austria has the presidency of the European Union for this present half-year; and many institutions in Austria and Vienna are completely enthusiastic. For example, the head of the Vienna Chamber of Commerce [WKW] is pushing for the complete integration of Austria into the New Silk Road. And he said the New Silk Road is very easily explained: It is our economic future. The Mayor of the city of Linz called the connection of Austria to China the “Trade Route of Creativity.” Also the Italian government, the new government, which is being attacked by the mainstream media practically every day, is practically going for a full strategic alliance with China. Various cabinet ministers, Michele Geraci and Giovanni Tria were just on trips to China making huge deals, inviting China to rebuild the Italian infrastructure. And the substitute commerce minister, Paolo Savona, who made a wonderful speech in the Italian Chamber of Deputies, calling for the new economic plan of Italy is Franklin D. Roosevelt’s New Deal, and he advocated the cooperation of China and Italy in Africa. And in the Transaqua memorandum of understanding, there was previously memorandum of understanding between China and Italy to engage in this great project: So this can be a model of any Western country…. There is a new concept of great power relations, developed by China, and proposed to the United States. The {Global Times}, a government-related newspaper recently, in light of the tensions between China and the United States, asked the question: What should the relations be between China and the United States in 30, 40, 50 years from now, or even towards the end of the century?… And I would like to remind you of what Friedrich Schiller, [a great German poet] said, in “Why We Would Study Universal History,”- and I’m saying it now in my own words: We should look at the long chain of generations before us, who gave us the tremendous heritage. And should it not be our proud and passionate desire to connect our ephemeral life to that long chain of human generations, and contribute with our own life, that soon that generation will be living a better life as a result of what we have done?…________________________________________________________________________________________
Marshall Plan for Africa or “Debt Trap?”
Lawrence Freeman September 20, 2018 The world is witnessing an increase in attacks on Africa’s relationships with China in various articles, as well as low-level, unthoughtful, messages on Twitter, Facebook, and YouTube. Not only does that content intend to demonize China as the new colonial empire of Africa, but it also includes vulgar demeaning caricatures of African Heads of State. Could the reason for the uptick of these kinds of diatribes be related to the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, attended by leaders from almost every African nation? China has reached out to Arica and formed a special relationship which is being embraced by African Heads of State. It should be clear to any intelligent historian, that China is not acting as an Imperialist manner towards Africa. However, what has been conspicuously, egregiously omitted from this unsubstantiated vilification of China, is the history of Western nations and institutions, which have acted as an Imperialist power towards Africa. The latest accusation is that China is deliberately entrapping African nations into unpayable debt. However, this is precisely what the IMF, World Bank, Paris Club, along with their allies in the City of London and Wall Street did to Africa immediately following the “Winds of Change.” The motivation for this propaganda barrage is that China via FOCAC and the Belt & Road Initiative is offering African nations a pathway toward growth uncontrolled by the financial predators in the City of London and Wall Street. Contrary to the myth that China is stealing African resources; which the Western powers did first under slavery, then under colonialism, and have continued under neo-colonialism, China is actually providing credit for physical infrastructure; the sin qua non to spur economic growth. Debt and Credit for What? A pervasive and quite serious problem affecting well-intentioned individuals from all corners of the globe is the lack of understanding of what actually creates economic growth. Neither money, nor financial transactions, nor derivatives, nor speculation, nor rising stock markets, nor the market place are the cause of growth or synonymous with real economic growth. Credits issued for infrastructure; water, energy, rail, roads, healthcare, and education, identifying the most vital categories, if properly organized, leads to an increase in the productivity i.e. the economic power of the society. This is measured by the ability of society to increase its physical output from one production cycle to the next. By utilizing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output. Shortly after the death of President Kennedy, the US ceased its commitment to assist Africa nations in expanding their infrastructure. China is committed to lending, issuing credit-yes creating a debt to fund long-term investment in infrastructure. Credit directed in this way is good debt. With non-usurious interest rates over 15-20 years, the loan can be retired from the profit it generates to society. This form of debt is not equivalent to the hundreds of billions of dollars African nations were forced to pay to the financial capitals of the world for loans to cover rigged terms of trade, and currency devaluations. If you study the American System of Political Economy with its cornerstone; Alexander Hamilton’s national credit policy, you will realize that China is emulating the best of America’s past. For example, President Franklin Roosevelt, who successfully applied Hamilton’s principle to rebuild the Depression riddled US with state issued credits, would have little trouble understanding the principles of President Xi Jinping’s Belt & Road. Economics and the Common Good There is a deeper level to comprehending economic growth. Every human being is united by a universal principle often expressed as the “common good of mankind.” Yes, all human beings regardless of religion, color, ethnicity, or place of birth, share a “common interest.” We are all created with the power of creativity. Not logic, not deduction, not induction, but the power to hypothesis new ideas. The power of discovery, to discern new principles of the universe that we previously did not know but were there waiting to be revealed to the human mind. These scientific discoveries spawn new technologies which are the primary source of economic growth. Thus, it is the responsibility, nay the obligation of every society to nurture and develop that creative potential innate in all its citizens from birth to death. For all citizens to realize their potential, live productive lives, and raise their families without fear of hunger and security, a nation must have the economic means to expand the total physical wealth of society over succeeding generations. An advanced industrialized nation requires a healthy manufacturing sector, which is also an essential component of a productive agriculture sector. The absence of robust agro-manufacturing economies in Africa is crime along with its huge deficit in infrastructure. Sadly, the West does not have the vision to assist African nations in overcoming these deficiencies. China in all, but name has launched the equivalent of a Marshall Plan for Africa. Among the eight major initiatives that President Xi laid out at the Africa-China Summit, China will:China has come to understand that it is the common interest of its own country, and in the fact all nations, is to help Africa develop productive industrialized societies not dependent on revenue from one resource or one crop. Under these improved conditions, hunger and poverty, the underlying causes for conflict, can be eliminated. Great progress can be accomplished in Africa and the world, if the US and Europe acquire the wisdom to join China’s Spirit of the Belt & Road1.Promote industrialization; 2. Support agricultural assistance programs; 3. Work with the African Union (Agenda 2063) to formulate a China-Africa infrastructure cooperation program; 4. Increase its imports from Africa, in particular non-resources products; 5. Train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.
Below are three articles with excerpts that provide useful background to understanding Africa’s productive relationship with China.
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West Uses “Debt Trap” to Thwart Alliance of China & Africa for Economic Development
African Development Bank President, Adesina, Denies Debt Crisis in Africa
Speaking to the reporters on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Beijing Summit on Sept 5, and addressing the western propaganda that China is drowning Africa with debt, President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, said: “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure.” “The population is rising, urbanization is there, and fiscal space is very small,” the AfDB president added. “They are taking on a lot more debt, but in the right way,” Adesina said, Xinhua reported on Sept 5. Scoffing at the international campaign that the China imposed debt has begun to cripple Africa, Adesina pointed out that Africa’s overall debt-to-GDP went up from 22 percent in 2010 to 37 per cent last year. He stressed that the ratio is markedly lower than the 100 per cent or 150 per cent of many higher-income countries, and over 50 per cent among emerging economies. Meanwhile, in an interview with the Nikkei of Japan, the foreign minister of Djibouti, Mahmoud Ali Youssouf, said his country intends to help promote China’s Belt and Road Initiative, but is also cautious about over reliance on China in light of Djibouti’s growing debts linked to Chinese investment. “If [the initiative] brings wealth, progress, development, we welcome it,” he said in that interview, Nikkei reported todayNigerian President Buhari Debunks the “Debt Trap” Hoax
Muhammadu Buhari, the President of Afria’s most populous nation, Nigeria, has emerged from the hugely successful Forum on China-African Cooperation (FOCAC) with a refutation of what he called “insinuations about a so-called Chinese debt trap.” “Let me use this opportunity to address and dispel insinuations about a so-called Chinese debt trap,” he told the press today. “These vital infrastructure projects being funded are perfectly in line with Nigeria’s Economic Recovery & Growth Plan. Some of the debts, it must be noted, are self-liquidating. Nigeria is fully able to repay all the loans as and when due, in keeping with our policy of fiscal prudence and sound housekeeping.” He said: “I am happy to note that Nigeria’s partnership with China through FOCAC has resulted in the execution of critical infrastructure projects valued at more than $5 billion, over the last three years. We have completed West Africa’s first urban rail system, valued at $500 million, in Abuja. Before then was the 180km rail line that connects Abuja and Kaduna, completed and commissioned in 2016, and running efficiently since then,” the President declared. He said that Nigeria is currently leveraging Chinese funding to execute $3.4 billion worth of projects at various stages of completion. Among these are: upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project, and fibre cables for our internet infrastructure. Nigeria signed an agreement for an additional $1 billion loan from China. The money is for additional rolling stock for the newly constructed rail lines, as well as road rehabilitation and water supply projects.“Debt Trap” Hoax Exposed by Chinese Spokesperson
At a September 4 press conference on the morning of the second day of the FOCAC Summit, Xu Jinghu, the Special Representative of the Chinese Government on African Affairs, was asked by Reuters about whether the $60 billion financing that President Xi Jinping promised in aid for Africa in his keynote address, would create debt problems for Africa. Xu Jinghu went through the importance of the eight areas outlined by President Xi in order to raise the level of production and productivity of the African economy. She also made clear that all of the projects are done in close consultation with the African countries in order to meet what they see as their real needs for further industrialization. She added that Africa is in “the ascending phase” of its development and “faces a gap in the funding for all of their endeavors…”They need capital development and the African and Chinese economy, which is more developed, are therefore complementary.” Xu commented, “You have to take into consideration the international situation. The costs of financing for development on the international market has become very expensive and most of the African countries are still dependent on exporting their raw materials. And the price of these have fallen,which has increased the debt of African countries a great deal. And if you look at the African countries, you will see that China is not the creditor of those African countries with the biggest debt burden.China Africa Research Initiative Refutes “Death Trap” Propaganda
The China Africa Research Initiative-(CARI) at the Johns Hopkins School of International Studies, Washington DC refuted the “death-trap” narrative that China is subverting African nations by forcing them into debt. Their The Path Ahead: The 7th Forum on China Africa Cooperation-(Briefing Paper #1, 2018), reports: “Finally, in just three African countries, Chinese loans are currently the most significant contributor to high risk of/actual debt distress” They are; Djibouti, Republic of Congo, and Zambia. Read complete CARI briefing paper______________________________________________________________________________________________
FOCAC Summit: President Xi “China and Africa will walk together towards prosperity.”
{I have been telling my friends for years that China-Africa cooperation will change the African continent. With investments in vital categories of infrastructure, African nations can industrialize and develop advanced agro-manufacturing sectors. Economic sovereignty is now possible for African nations after 500 years of slavery and colonialism. This recent FOCAC summit has placed Africa-China relations on center stage in front of the whole world. As Faki Mahamat, Chair of the African Union Commission said at the conference; China-Africa cooperation is a solid foundation for a new international order.(Watch the video of his remarks below) I will be writing more on the significance of the new era of China-Africa cooperation, but for now, we can and should rejoice. The world has changed for the better, even though there are dangerous pitfalls ahead. }China To Invest $60 Billion in Africa over the Next Three Years; Xi Says: ‘Explore a New Path of International Relations’
Sept. 3, 2018 Chinese President Xi Jinping in his keynote of the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), announced that China would be investing $60 billion in Africa over the next three years, which would include $15 billion of interest-free and concessional loans, $20 billion of credit lines, a $10 billion special fund for development financing, a $5 billion special fund for financing imports from Africa, and encouraging investment by Chinese companies to the tune of $10 billion in Africa. In his speech, President Xi said that China-Africa cooperation was based on the following principles; The Five “No’s”: No interference in African countries and pursuit of development paths that fit their national conditions; No interference in African countries’ internal affairs; No imposition of China’s will on African countries; No attachment of political strings to assistance to Africa; No seeking of selfish political gains in investment and financing cooperation with Africa. “We welcome Africa to the fast train of Chinese development,” Xi said. Central to the cooperation has been the Belt and Road Initiative, which in Africa is in synergy with the African Union’s “Agenda 2063,” which marks the centennial of the official end of colonialism in Africa in 1963. President Xi laid out the eight major initiatives that China would implement in collaboration with Africa in the coming three years: 1. In industrial promotion, China will set up a China-Africa trade expo in China in order to encourage Chinese investment in Africa. 2. It will also carry out 50 agricultural assistance programs, provide $147 million in food aid to African countries affected by natural disasters and send 500 agricultural experts to Africa. 3. With regard to infrastructure, China together with the African Union will formulate a China-Africa infrastructure cooperation program. 4. With regard to trade, China will increase its imports from Africa, in particular non-resources products. 5. On green development, China will undertake 50 projects focusing on climate change, ocean, desertification prevention and control, and wildlife protection. 6. On capacity building, China will set up 10 workshops in Africa to offer vocational training for young Africans. It will also train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges. 7. In health care, China will upgrade 50 medical and health aid programs for Africa. On people-to-people exchanges, China will set up an institute of African studies and enhance exchanges with Africa on civilization. 8. And on peace and security, China will set up a China-Africa peace and security fund and continue providing free military aid to the African Union and will support countries in the Sahel region, and those bordering the Gulf of Aden and the Gulf of Guinea, in upholding security and combating terrorism in their regions.African Union’s Moussa Faki Mahamat, Addresses FOCAC Conference
Please review this excellent speech by Faki Mahamat, Chair of the African Union Commission, at the Forum on China-Africa Cooperation. In his remarks the AU Chair called for “the urgent reform of the international financial institutions…That China-Africa cooperation is a solid foundation for a new international order…Our partnership [with China] can reshape the world’s geo-political landscape”He went onto say that the AU welcomes the Belt and Road Initiative and its synergy with AU’s “Agenda 2063.”Presidents Ramaphosa and Kegame: Africa Supports the Belt and Road Initiative
In his speech to the FOCAC Summit, South African President Cyril Ramaphosa said, the Belt and Road Initiative was in the interests of the African nations. China-Africa cooperation, he said, was in the interests of the African nations. “In the values that it promotes, in the manner that it operates, and in the impact that it has on African countries. FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe...It is premised on the African Union’s Agenda 2063, a vision that has been crafted in Africa, by Africans. It is a vision of an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the international arena.” “Why do we support the Belt and Road Initiative?” Ramaphosa asked. “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China. It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.” Ramaphosa was followed by Rwandan President Paul Kagame, the current rotating chairman of the African Union. “Africa wishes to be a full and integral part of the Belt and Road Initiative. The gains will be enjoyed by everyone.” Kagame praised in particular the personal commitment of President Xi to this initiative. “He has visited every region of our continent, including my country Rwanda. China has proven to be a win-win partner and dear friend,” Kagame said. UN Secretary General Antonio Guterres gave support to the message expressed by the African leaders, who said that “it is vital that current and future development cooperation contributes to peace, security and to building a ‘community of shared future for mankind,'” reiterating a concept that lies at the basis of President Xi’s conception of a new form of international relations. Guterres also expressed support for the importance of the strengthening South-South cooperation._____________________________________________________________________________________
Big Plus for Africa: Belt & Road, BRICS, and Africa-China Summit, Converging for Development
{Heading into the 7th Forum On China-Africa Cooperation-(FOCAC) we are already witnessing significant changes in the physical infrastructure of Africa as a result of China’s One Belt and Road Initiative, the BRICS and previous FOCAC summits. Next week’s China-Africa Summit portends greater cooperation for investment in infrastructure and manufacturing, leading to the long over due industrialization of the continent. Thus finally liberating Africa from the effects of 500 years of slavery and colonialism. In addition to China, many nations are investing in Africa in constructive ways, but unfortunately not the United States, which is retreating from Africa. President Trump can and should reverse this trend by joining China’s Belt and Road development of this great continent, which in less than two generations will be the population center of world. Please review the articles below.}Chinese Envoy to FOCAC: `Twin-Engines’ of BRI and FOCAC Will Transform Africa
Aug. 29, 2018 –Zhou Yuxiao, Chinese Ambassador to the Forum for China-Africa Cooperation (FOCAC), spoke of the historic impact of the Sept. 3-4 FOCAC summit, in an interview with Xinhua yesterday. His observations come as many African heads of state are already arriving in Beijing, even before the Sept. 3-4 formal sessions of the Forum take place. Founded in 2000, FOCAC has had two previous heads-of-state meetings, one in 2006 and one in 2015. Zhou said that the China-Africa collaboration had proceeded in small steps, but successfully over the years. All the while, China’s ability to “walk the walk,” and Africa’s success in collaborating, made things work, to the point of widespread trust and effectiveness. At the 2015 FOCAC meeting in South Africa, China pledged financing in the range of $60 billion for implementing ten cooperation plans announced at the time. Now financing is also coming from the Silk Road Fund, the BRICS New Development Bank, and private Chinese firms. Xinhua summarized, “A key aspect to watch, Zhou said, will be how China and Africa link the Belt and Road Initiative (BRI) with the UN 2030 Agenda for Sustainable Development, the African Union’s Agenda 2063, and African countries’ development plans.” This year, diplomatic relations were established between the African Union Commission (currently headed by Rwanda) and FOCAC. Zhou referred to the the BRI and FOCAC being “twin engines” for driving cooperation further in Africa. Many African leaders and experts are forecasting what lies ahead. Lesotho’s Prime Minister Thomas Motsoahae Thabane, said in an Aug. 22 Xinhua interview, that the upcoming summit, “is a landmark in the world aiming to improve itself for the survival of the human race, which faces multiple challenges today … the commitment is not only to specific countries in Africa, but to Africa in general.” China is a “true friend” of Lesotho, not “by word of mouth … but through actions, actions that push us to go from the situation of being underdeveloped to a situation of being developed. What more can you wish for from a friend than to stretch a hand of friendship in order to raise you up when you were flat on your stomach?” Thabane further pointed out that relations with China are “mutually beneficial.” In the past, for Western countries, the benefit was “always for what they call `the Mother country.’ Now, China is not like that, that is why we feel like we have a true and loyal friend in China.” Hisham AbuBakr Metwally, an Egyptian researcher with the Ministry of Foreign Trade and Industry, wrote an Aug. 21 opinion article for CGTN, reviewing accomplishments in rail, agriculture, energy, education, and other areas in Africa, thanks to work with China to date. {“FOCAC — Unprecedented Successful Mechanism, Reshaped Africa”} But he forecast more and bigger projects and a bright future. “After the completion of all mega infrastructure projects and industrial zones, the continent will change completely.” Note that CGTN has prepared a five-episode documentary entitled “A New Era of China-Africa Cooperation,” to show the development of African countries and to present the achievements of China-Africa cooperation. __________________________________________________________________________________ China-Africa Research Initiative-(CARI) at Johns Hopkins in Washington DC, provides a useful report on the progress of China-Africa collaboration. It also dispels the myth that Chinese loans are bankrupting all Africa nations. Many decades before China started investing in Africa, the continent had been suffocated by hundreds of billions of dollars of parasitic debt from Western institutions. Excerpt from its conclusion highlight: “Belt and Road. The language of the 2018 FOCAC will likely include more mentions of the Belt and Road Initiative, given that it is a priority of President Xi Jinping. Chinese contractors are keen to win Chinese finance for infrastructure projects desired by African governments, many of whom have been inspired by China’s industrialization and infrastructure capacity. Chinese-financed infrastructure projects in Africa such as the standard gauge railway transport projects in Kenya and Ethiopia, and new trade and industrial zones in Djibouti, Egypt, and Morocco, have been marketed as part of the Belt and Road Initiative.” Read the complete report: The Path Ahead: The 7th Forum on China-Africa Cooperation _________________________________________________________________________________ This article discusses the “deepening relations” with Africa by the rest of world, and appropriately asks: “Where does this Leave the United States?” Read: The World is Coming to Sub-Saharan Africa. Where is the United States?_______________________________________________________________________________________
President of Togo: “The Path to Growth Has No End”
{Togo First}–Ahead of the upcoming China-Africa Cooperation Summit-(FOCAC) in Beijing, Togo’s President, Faure Essozimna Gnassingbé, gave an interview to Chinese TV CGTN on August 23. During the interview, the leader praised relations between his country and China over the past 40 years. He declared also that the coming summit will further improve these relations. Faure Essozimna Gnassingbe, optimistically proclaimed, “The path to growth has no end.” President Gnassingbe’s interview, and the collaboration between Togo and China in the One Belt-One Road Initiative, encapsulates in one African country, the optimism that is radiating through each and all 54 countries in Africa, in the realization that the age of colonialism is ending and the era of development is underway. As reported by {Togofirst.com}, CGTN asked, “Which types of China companies do you wish to attract to Togo?”. President Gnassingbe responded, “[Chinese] investments have helped Togo grow and advance in its development. However, you know that the path to growth has no end. There is no limitation to our progress, so far. We have achieved some progress, but more can be done…. Regarding our preferred sectors for new investments, I would obviously say agricutlure, since it is the most important for our economy. Our agricultural sector needs to be modernized and industrialized, transformed into an agro-industry. I would say we need Chinese firms to invest in that sector.” Later in the interview, the Togolese President added, “While some economic powers try to do things on their own, the foundation of the relationship between China and Africa lies in dialogue, focusing on a win-win cooperation. Both sides win…. In regards to economy, I believe we will have the opportunity to discuss a major project, which I praise, the ‘One Belt, One Road’ project. We will discuss how Africa can contribute to this ambitious, generous and revolutionary project….[I]t is quite rare to see a country, even a huge one such as China which is currently the world’s second leading economic power, launch such a major project that would involve almost every continent.” He added that he recently read President Xi Jinping’s book on ways to fight poverty. President Faure Gnassingbe has a stuffed schedule in China from Sept. 2 through 10. He will attend the FOCAC forum from Sept. 3-4. He will attend Sept. 5 hearings with Chinese financial and state institutions, including China Merchant Group, the Eximbank of China (which is very active in Togo), the China Development Bank, as well as the managing director of the BRICS bank. He will meet with Xi Jinping the following day, to be followed by a trip to Zhiejiand, China’s fourth largest economic province, where discussions will be held on implementation of Togo’s National Development Plan.Foreign Minister Wang Yi Previews Upcoming FOCAC Summit–‘A New Phase of China-Africa Development’
Chinese Foreign Minister Wang Yi outlined the format and the program for the upcoming Forum on China-Africa Cooperation Summit in Beijing, which will be held on September 3-4. The Summit, which Wang Yi characterized as a “reunion of the China-Africa family” will have four major foci: 1) it will renew the call for a shared future for China and Africa bound by their common interests; 2) it will initiate a new phase of China-Africa development, enhancing the African countries’ participation in the Belt and Road Initiative, and focusing on upgrading cooperation on trade and infrastructure and people-to-people relations; 3) it will introduce pathways to a higher level of cooperation over the coming three years, and there will be the signing of a number of cooperation agreements with some of the countries, focusing on areas critical for Africa; 4) it will enhance the story of China-African cooperation historically with new measures to be introduced, which are people-centered. Wang Yi also said that there would be a great focus on young people in order to carry the relationship further down the road. The morning of the first day will consist of an opening dialogue between participants, focusing on issues of practical cooperation, increasing synergy and improving trade ties. President Xi and the other African leaders will participate in this discussion, as well as business leaders and other delegates. In the afternoon, there will be the opening ceremony where President Xi will give a keynote speech. This will be followed by more formal discussion will take place, focusing on industrial cooperation, the development of trade, health issues, peace and security issues. The discussion will be tailored to the needs of the African countries. The co-chairs of this meeting will be President Xi, and Cyril Ramaphosa, South African President and the chairman of the African National Congress. In the evening there will be a grand banquet and entertainment program for the delegates. On September 4 there will a round-table discussion, with the morning session chaired by President Ramaphosa and the afternoon by President Xi. They will discuss the three-year plan moving toward the year 2021. On the sidelines, there will be bilateral meetings with President Xi and the African leaders. Xi’s wife, Peng Liyuan, will also be chairing a forum on AIDS.China at Center of Zimbabwe’s Electricity and Total Development
Zimbabwe will require 11,000 megawatts of electricity to achieve its vision of becoming a middle-income country according to its 2030 Plan, stated Ministry of Energy Director of Policy and Planning Benson Munyaradzi. Munyaradzi stated, in Xinhua’s paraphrase Aug. 25, that “the huge demand for power presents vast opportunities for China to further invest in Zimbabwe’s energy sector.” He spoke at a two-day international conference on China’s Belt and Road Initiative organized by the University of Zimbabwe in conjunction with the Confucius Institute. The ideas and plans worked out at the conference will, undoubtedly, flow into the Sept. 3-4 Forum on China-Africa Cooperation conference to be held in Beijing, at which most of Africa’s 54 countries will participate, as well as the head of the African Union Commission. Zimbabwe, a landlocked country of 16 million people in southern Africa currently has 2,000 MW of installed generating capacity. So to get to the 11,000 MW target, would require building 9,000 MW of capacity, which is a tall order, but which China, in collaboration with Zimbabwe, has shown it can meet. In March, Sinohydro, the Chinese state-owned hydro-power engineering and construction company completed the 300 MW Kariba South Hydro Power expansion project, and in June, Sinohyrdo began the expansion by a further 670 MW of the coal-fired Hwange Power station. But as in many African countries, the power-generation is one aspect of the capital goods transfer and infrastructure building that China is engaged in to help Zimbabwe to leap forward. China has pledged to set up a “cutting-edge” urological-surgical center in Zimbabwe, and in an agreement signed in July 2017, Beijing pledged to send medical experts, supply medical equipment, and train Zimbabwean doctors in China. China also built a supercomputer center at the University of Zimbabwe, making it the fifth African country to host a supercomputer. China will also create the 1,700 km Trans-Zambezi Railway, connecting Zimbabwe, Zambia and Mozambique on the Zambezi River, from Binga, Zimbabwe to Nampula near the Mozambique coast. The first phase of this project consists of a 400 km railway between Shamva, Zimbabwe and Moatize, Mozambique. At the Aug. 24-25 conference at the University of Zimbabwe, University Dean Charity Manyeruke underscored that the BRI offers an exciting opportunity for Africa “to leapfrog its economic development. Zimbabwe is under sanctions from the West, and China stands as a very important strategic partner.” ____________________________________________________________________________________________________China’s Belt & Road Initiative Truly is Helping Africa Develop
Below are edited excerpts from a new report by the China-Africa Research Initiative-at Johns Hopkins in Washington DC (Brief #23, 2018). It provides a useful analysis that refutes the misinformation that China is “stealing” Africa’s resources.“Silk Road to the Sahel: African ambitions in China’s Belt and Road Initiative”
Yunnan Chen Where Does Africa Fit? THE BRI SIGNIFIES A SHIFT IN CHINA’S economic engagement with Africa, away from the resource trade characterized by the boom of the 2000s, towards a greater emphasis on infrastructure, industrial cooperation, and connectivity. From single bilateral infrastructure projects, there has been a new term ‘corridorization’ of infrastructure: creating economic corridors and networks at a regional scale to promote cross-border trade and integration. East and North Africa have been the focus of the BRI in Africa, though countries in West and Southern Africa have also signed cooperation agreements under the framework of the BRI. As part of the ‘maritime silk road’, Chinese actors have been linked to several major port and transport projects. Chinese firms have invested heavily in Egypt’s Suez Canal corridor, with plans to expand to a second canal as well as new terminals at the port of Alexandria.
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BRICS Summit: Part of a New Paradigm for the World
Below is an interesting analysis on the role that the BRICS are playing in creating a new paradigm of international relations independent from British “geopolitical” control. This is especially important for Africa, which will soon be the most populated continent on the planet. (excerpts below)“BRICS Countries at the Center of a New, Just World Economic Order!”
by Helga Zepp-LaRouch July 28, 2018 “While the West is trying in vain to uphold the old paradigm of the neo-liberal economic system, more and more nations are working with the BRICS, the Shanghai Cooperation Organization (SCO), and other regional organizations under the rubric of the Belt and Road Initiative, on the basis of win-win cooperation, and demonstrating that the world can be organized in a much more human fashion than that which we have seen from the European Union with its barbaric refugee policy.
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Russia will light up Africa – Putin
Modi Emphasizes India’s Commitment to Africa’s Development at the BRICS
July 27, 2018 Addressing a BRICS Outreach Dialogue Session today in presence of a large number African heads of state, Indian Premier Narendra Modi said: “The coming together of so many African leaders during this program is a wonderful thing. India’s ties with Africa are time-tested. The Government of India has deepened engagement with Africa. Economic and development cooperation between India and Africa have touched new heights,” India’s WION TV news reported from Johannesburg. Among the African heads of state were: Paul Kagame (Rwanda), Yoweri Museveni (Uganda), Edgar Lungu (Zambia), Hage Geingob (Namibia), João Lourenço (Angola), Emmerson Mnangagwa (Zimbabwe), Ali Bongo Ondimba (Gabon), Mokgweetsi Masisi (Botswana) and Peter Mutharika (Malawi). The African leaders were invited by the host nation, South Africa, to discuss ways of pursuing inclusive growth on the continent with the BRICS heads of state, reported China CGTN television network. South Africa’s BRICS website points out that since it last hosted the summit in 2013, all BRICS hosts have included an out reach format: “In 2013, South Africa took the initiative to activate the provision for a BRICS Dialogue with partners from the Global South, as per the Sanya Declaration that stated: ‘We are open to increasing engagement and cooperation with non-BRICS countries, in particular emerging and developing countries, and relevant international and regional organisations.'” In his address, Modi, highlighting the ongoing cooperation between India and the African nations and welcoming the effort for regional economic integration by the African countries, he said “in the last four years, we have had more than 100 visits and meetings at the levels of heads of state and various government levels and these have taken our economic relations and development cooperation to a new high. India has offered 180 lines of credit worth $11 billion in more than 40 countries in Africa.” In addition, he said that “every year 8,000 African students get scholarships to study in India” and pointed out that his country now has an e-network in 48 African countries for telemedicine.____________________________________________________________________________
President Xi Jinping to BRICS Business Forum in South Africa:
“Keeping Abreast of the Trend of the Times to Achieve Common Development”
“Home to more developing countries than any other continent, Africa has more development potential than any other region in the world.”
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BRICS Summit Portends New Era of Cooperation and Development for Africa and the World
July 27, 2018Lavrov Welcomes South Africa’s Initiative for Africa at BRICS Summit
July 26, 2018–In an article in the South African magazine {Ubuntu}, published by the Department of International Relations and Cooperation (DIRCO), Russian Foreign Minister Sergey Lavrov said “we support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness…. Sub-Saharan Africa is the most dynamically developing region of the planet, which plays a key role in world mineral and hydrocarbon markets, a broad and rapid-growing consumer market, and one of the most attractive investment areas,” Lavrov said, according to Moscow Foreign Ministry website. Pointing out that BRICS-Africa Partnership that was launched during South Africa’s 2013 BRICS chairmanship is steadily developing, Lavrov said “we welcome special attention paid by Pretoria to Africa-related issues in the work of BRICS. This area of work is becoming increasingly important for Russian foreign policy as well. Russia has significantly contributed to decolonization processes and the rise of new independent states on the continent.”Sergey Lavrov: BRICS a Stabilizing Factor in Global Affairs; Focus on Africa is Key
July 25, 2018-An article published in South Africa’s {Ubuntu} magazine, prior to the BRICS summit, Russian Foreign Minister Sergey Lavrov noted the symbolism of the BRICS returning to Africa in 2018, the 100th anniversary of the birth of Nelson Mandela,– “a prominent political and public figure on a global scale.” Mandela contributed personally to establishing friendly relations between South Africa and Russia, he recalled, making possible today’s “high-level of a comprehensive strategic partnership.” Lavrov particularly praised South Africa’s leadership in the BRICS, -“special attention paid by Pretoria to Africa-related issues,” that has become especially important for Russia’s foreign policy. “We support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness.” Of special importance, Lavrov added, is that BRICS countries will foster cooperation with other associations and consolidate positions in international organizations to present a “united front.” The invitation to Argentina, Indonesia and Turkey, plus other African nations, to attend the July 25-27 summit reflects the BRICS-Plus initiative, he explained. “Thus we will expand the global reach of the Group and establish an outer circle of like-minded countries. In this regard, BRICs has good potential to become a unique platform for linking various integration processes in a flexible way.” Coordination between BRICS and other major international organizations is crucial, Lavrov underscored, since consolidation of efforts “is a key to ensuring world stability and a way to settle serious conflicts.” He particularly referenced how the BRICS-Africa Partnership has advanced since 2013. At the current summit, “a special outreach session will be held with the participation of the heads of State presiding over regional organizations of the continent in order to focus on its most relevant issues,” he said.Why India Is Keen To Invest in Africa with China: An Overview
July 26, 2018–Ahead of the 10th BRICS Summit, China’s President Xi Jinping and India’s Prime Minister Narendra Modi had embarked on tours through some African countries. Xi, arriving in South Africa on July 24, pledged $14.7 billion of investment in the country. During a less-than-24 hour visit on July 24, Modi pledged $205 million to Uganda. The sum is intended to help the East African country to develop its dominant agricultural sector and electricity distribution infrastructure. Both Xi and Modi were in Rwanda earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones, CNBC reported. In recent years, both China and India, which have been widely labeled in the West as rivals, have brought to African nations their focus on all-round development, investing to improve their infrastructure, agriculture, education, and technological skills, among other areas. The reasons why they chose to cooperate and collaborate in Africa’s development are many. For instance, the African nations are most receptive to all actual developmental efforts, large or small. Because of the needs of the African nations, which had all along been looked at only as sources for natural resources consumed by developed nations, every bit of investment made in these nations has a positive effect and is welcomed. China and India consider that providing Africa the ability to develop will bring about a sea-change in the direction and magnitude of global trade. India is keen to expand its economic relations mostly with Southeast Asia and Africa. For China and India, Africa does not pose any geopolitical threat. Moreover, the better understanding developed between Xi and Modi since their Wuhan meeting last April, enables both of them to work in tandem to improve the living conditions in Africa.Putin BRICS Remarks Imply Need for New Monetary System
July 26, 2018–Very brief remarks delivered by Russia’s President Putin at the Johannesburg BRICS Summit today (apparently after a leadership meeting), implicitly point to the need for a new monetary system, and the basis which has been created for such a system in the cooperative banks, funds and institutions created by the BRICS, the Belt and Road and China, and the Shanghai Cooperation Organization. Putin’s statement dealt with this. He said: “We view positively the activities of the [BRICS] Council to implement joint multilateral projects. It is necessary to conduct these activities in close cooperation with the [BRICS] New Development Bank. It is important that the business community should help enhance the Bank’s loan portfolio. “The New Development Bank has considerably expanded its operations as of late. Members of the Board of Directors have approved 21 projects worth over $1 billion, including five that will be implemented in Russia. “We support the idea of opening regional offices of the Bank. Talks are underway with Brazil on this issue. Hopefully, the possibility of opening the Russian office will be discussed after the talks. “The establishment of the BRICS Contingent Reserve Arrangement [to support countries under balance-of-payments pressure] deserves praise, and this has become an important mechanism for the prompt financing of our countries’ banking sector… “In 2017, we met in Xiamen [China] and decided to establish the BRICS Local Currency Bond Fund. This is very important for the development of the financial systems of our states. Therefore, the Fund’s timely initial operations, due to commence in 2019, serve the interests of BRICS.”BRICS Could be an Alternative Model of Development to Western Dominance
July 25, 2018–In a July 25 article published on the website of the Valdai Discussion Club, entitled “Brics and the World Order,” Georgy Toloraya suggests that the current BRICS grouping, plus other nations that form part of the “BRICS-Plus” structure (not official members) could offer the world “an alternative model of socio-economic development, differing from the West” that is based on “mechanisms of a liberal market or profit gaining…that assumes the dominance of the West.” Toloraya is the Executive Director of the Russian National Committee for BRICS Research. He debunks arguments that the BRICS is just a “China-centered structure,” intended only to promote China’s interests or its Belt and Road Initiative. These accusations, he notes, “are very sly statements. The Chinese factor is only one of the BRICS development facets.” In today’s “turbulent global situation,” Toloraya adds, it is especially important that the BRICS “common denominator” grows. Why? In contrast to the G7, BRICS expresses a “touching unanimity, which is not faked. This is not a mutiny on the ship we see with the G7, when the captain led to one direction while the crew wants to go to another one.” By the time Russia takes over the chairmanship of the group in 2020, he notes, BRICS “could become a united center of the multipolar world…Now BRICS creates its own structure of global governance, and it must develop in that direction. I do not know, whether that could be accomplished in the context of growing counteraction from the West, but we have to keep working.” Because the BRICS is a global organization, Toloraya concludes, “these five leading ascendant powers could create a world order that will be more just and balanced than what we see now.” It may not expand yet, but “what we see in the BRICS+ format, which is involving the largest countries that are not the group’s members, but show interest in it, is a significant step towards increasing the BRICS value and making this union a representative of the greater part of humanity.” On the eve of the Johannesburg summit, he concludes, BRICS is not {against}, but {for}: for just economic development conditions, for sustainable development concept centered on human beings.”_____________________________________________________________________________________________
Rwanda and South Africa Sign Deals With China and India Before BRICS Summit
Xi Jinping Arrives in Johannesburg, South Africa for BRICS Summit
July 24, 2018 China’s President Xi Jinping arrived in South Africa today for a bilateral meeting President Cyril Ramaphosa, to be followed by the July 25-27 Tenth BRICS Summit. As is his custom, Xi wrote an op-ed in the local press before his arrival, titled “For a New Era of China-South Africa Friendship.” In it, Xi began by emphasizing that “Our peoples forged a deep friendship during our common struggle against imperialism, colonialism and racism.” He then wrote: “Over the past six years, our two countries have worked closely as co-chairs of the Forum on China-Africa Cooperation (FOCAC) to advance the comprehensive strategic and cooperative partnership between China and Africa. Our bilateral ties have thus served as a model for China-Africa relations, for South-South cooperation, and for unity and cooperation among emerging market countries, and offered valuable experience for building an even stronger community with a shared future between China and Africa and a new type of international relations featuring mutual respect, fairness and justice, and win-win cooperation…. “We must strive for new outcomes in our practical cooperation. We need to promote complementarity between our development strategies, and make full use of bilateral mechanisms, FOCAC-(Forum on China-Africa Cooperation), the Belt and Road Initiative, BRICS cooperation, and other platforms to deepen cooperation in key areas such as industries, production capacity, resources and energy, infrastructure, finance, tourism, and digital economy and deliver more benefits to our peoples.” On the bilateral front, South African President Ramaphosa announced that the two countries signed “several agreements and memorandums of understanding that are intended to further deepen our relations, including investment commitments that have been struck to the value of $14.7 billion.”Xi Jinping and Rwanda’s Kagame Sign Multiple Agreements Strengthening Belt and Road Cooperation
Chinese President Xi Jinping met on July 23 with Rwandan President Paul Kagame on the third leg of his tour of Africa and the Middle East, which so far has taken him to the U.A.E. and Senegal. Xi travelled to South Africa today (for the July 25-27 BRICS summit), and he will then stop in the Indian Ocean island-nation of Mauritius on the way back to China. Xinhua reported that “after their talks, the two heads of state witnessed the signing of multiple agreements on bilateral cooperation in the Belt and Road Initiative and other areas.” In the meeting with Kagame, Xi stated, according to Xinhua, that “Beijing is willing to work with Kigali to translate their traditional friendship into concrete benefits for the two countries and the two peoples, and open a new chapter in their friendly cooperative relations.” As he has done on his other stops, Xi called on the two countries to “strengthen the link between their respective development strategies, give full play to their complementary advantages, and …cooperation in more areas and at deeper levels.” Xi told Kagame, Xinhua wrote, that “China welcomes Rwanda’s participation in the international cooperation within the framework of the Belt and Road Initiative, and encourages more Chinese investment in Rwanda to help advance its industrialization and modernization.” Xi also talked about broader China-Africa relations, which “have always been defined by sincere friendship, unity and cooperation. The two sides have become a community with a shared future going through thick and thin together as well as a community with shared interests dedicated to win-win cooperation.” Kagame, for his part, called China “a reliable friend who shares weal and woe with Africa. Kegame said it is of great importance for Rwanda and Africa to develop friendly ties with China. He spoke highly of China’s valuable assistance for Rwanda in such areas as infrastructure construction, agriculture and education, adding that China’s helping hand has made positive contributions to his country’s reconstruction and livelihood improvement.” Xinhua further said that Kagame emphasized that “Rwanda is willing to enhance cooperation with China within the framework of the Belt and Road Initiative, which offers a significant opportunity for both Rwanda and Africa. As the [African Union] AU’s rotating chairman, Kagame stressed that China’s long-standing firm support is of great value to Africa’s development. The African side, he said, looks forward to attending the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) in September, and stands ready to jointly push forward the development of FOCAC, so as to generate more benefits for the people of both sides.”Modi in Rwanda Witnesses Signing of Economic and Defense Agreements
On his way to attend the 10th anniversary BRICS Summit over July 25-27 in Johannesburg, South Africa, the Indian Premier, Narendra Modi, stopped in Rwanda and, along with Rwandan President Paul Kagame, witnessed the signing of seven bilateral pacts at Village Urugwiro, the President’s office in Kigali, by Indian and Rwandan officials, reported Rwanda’s {New Times}. Prime Minister Modi is the first Indian head of government to visit the East African nation, which is considered an important gateway for India to eastern Africa. Modi is on a three-nation tour, beginning with Rwanda and Uganda, and thence to Johannesburg for the BRICS summit. He arrived in Rwanda just as Chinese President Xi Jinpig was leaving that country. Agreements in the area of trade, defense, dairy cooperation, agriculture, culture, leather and allied sectors and two lines of credit worth $200 million for expansion of the special economic zone and irrigation scheme were signed, IANS reported.“During the talks, both leaders reviewed the entire gamut of bilateral cooperation and expressed satisfaction at the excellent relations between Rwanda and India in the overall context of Strategic Partnership,” India’s Foreign Ministry stated. Ties between India and Rwanda were elevated to the level of Strategic Partnership in January last year, IANS reported.
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It’s Time for Africa |
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Alignment with China’s development vision heralds a new era of opportunity on the continent
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As agreed by both China and Africa, China will host the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) this September. Wang Yi, Chinese State Councilor and Foreign Minister, made the announcement on the sidelines of the Meeting of BRICS Ministers of Foreign Affairs in South Africa on June 4.
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At present, the trade volume between China and Africa has exceeded more than 200 billion U.S. dollars
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“The closest look yet at Chinese economic engagement in Africa”
Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.
In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies. Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.Africa’s largest economic partner
In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years. We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.
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“When China Eliminates Poverty in 2020, Beijing Will Have Proved That the Developing World Doesn’t Need US Aid”
African Countries Meet On Using Yuan as Reserve Currency
May 30, 2018–A meeting of seventeen central bank and government officials from 14 countries in eastern and southern Africa met in Harare, Zimbabwe on May 29-30 to discuss the possibility of using the yuan as a reserve currency, Xinhua reported on May 29. The meeting was sponsored by the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI). They quote Gladys Siwela-Jadagu, spokesperson for MEFMI, saying that most MEFMI countries have received loans or grants from China and it would “make economic sense” to repay them in yuan. She said that the yuan has become a ‘common currency’ in trade with Africa. Xinhua notes that China’s trade with South Africa surged by 14.7 percent on a yearly basis in the first four months this yearUN Official Lauds Belt and Road as `Grand Design for the Future’
May 29, 2018 — UN Under-Secretary Shamshad Akhtar, speaking to {China Daily} May 28, praised the Belt and Road Initiative of infrastructure great projects as “an initiative on a more integrated frame, [and] of a scale, that no one has talked about before.” Akhtar is executive secretary of the UN’s Economic and Social Commission for Asia and the Pacific. “China leads the regional cooperation and the integration of Asia, with its Belt and Road Initiative strengthening intra-and intercontinental ties,” she told {China Daily}, on the sidelines of the Shanghai Forum at Fudan University. “It’s a grand design. Moving the Belt and Road Initiative forward not only connects Asia internally, but bridges it closer to Europe and Africa.” She said, “Over the years, China’s shift from quietly forging bilateral relationships, to building multilateral and broad.”-based diplomatic structure has underscored its commitment to deepening its footprint in regional cooperation and integration._______________________________________________________________________________________
Chinese Engagement, Investment, and Trade With Africa
China’s New Silk Road–Belt and Road Imitative is providing indispensable investment and construction of infrastructure in Africa. Infrastructure development in energy, railways, roads, airports, and water management are critical for African nations to develop their agricultural and manufacturing sectors. Below are excerpts from the report: “The Belt and Road” in Africa Read entire report “China’s close engagement with Africa continued through the succeeding decade and accelerated toward the end of the 1990s and into the 2000s. By 2008, China’s Export-Import Bank was funding more than 300 projects in 36 countries across Africa. The value of bilateral trade increased from US$6.5 billion in 1999 to US$73.3 billion in 2007 (Figure 1). According to the China-Africa Research Institute at Johns Hopkins University, by 2008 it exceeded US$100 billion, and it peaked at more than US$200 million in 2014, before slipping back in 2015 and 2016 in response to poorer global economic conditions. In 2009, China overtook the United States as Africa’s major trading partner. The largest African exporter to China from Africa in 2015 was South Africa, followed by Angola and Sudan. In the same year, South Africa was the largest African market for Chinese goods, followed by Nigeria and then Egypt.”
“In 2015, China investments into African infrastructure projects were three times the sum of those of France, Japan, Germany and India combined (Figure 7). The bulk of Chinese funding has been in the form of government-to-government loans, used then by the borrowing African governments either to develop the project itself, or to leverage it with private capital through a public-private partnership (PPP). As of the date of writing (late 2017), at least 76 PPP projects appear to be in the pipeline in African countries associated with BRI. Not all have values ascribed, but the 14 that do imply a cumulative investment of nearly US$6 billion for them alone. Sixty percent of these projects are in the transport sector.”
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“Ethiopia takes inspiration from China’s success for own development”
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“China committed to strengthen relations with Ethiopia”
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“Zimbabwe embraces ample cooperation opportunities following Mnangagwa’s trip to China” |
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Zimbabwe Opposition Campaigns with Anti-China Line
Zimbabwean opposition leader Nelson Chamisa is campaigning for the upcoming elections on an anti-Chinese line. This is not surprising, since on May 8 he will be the featured guest at Her Majesty’s Chatham House/Royal Institute of International Affairs in London. Chamisa tried to say that the Queen personally had invited him to London, which was immediately denied by the British Embassy in Harare. Chamisa, leader of the opposition Movement for Democratic Change, is quoted in the {Zimbabwe Mail} as saying: “We have seen the deals by Ngwenya [President Emmerson Mnangagwa] and with the Chinese and others. They are busy asset stripping and looting our resources, so I said, beginning September when I get into office, I will ask the Chinese to come in a queue, and interrogate their deals. We will send away all those with bad deals for Zimbabwe. We want genuine investment which will bring benefit for the people, not for the leadership only.” The {Mail}, however, also quoted China-Africa analyst Cobus van Staden of the South African Institute of international Affairs telling Voice of America: “We’ve seen that kind of populist, anti-Chinese agitation in other African countries, too. The most famous one was in Zambia a few years ago, when [the] late President Michael Sata was campaigning under a similar kind of nationalist, anti-Chinese kind of message. But then, interestingly, after he came to power, that changed very quickly. Because I think once one is power and one faces the reality of the investment environment and the relative influence of China in the whole world, then it becomes very difficult. That’s kind of campaign talk, I think, more than governing talk.”_______________________________________________________________________________
Africa Collaboration With China’s Silk Road is Good for the Continent
March 30, 2018Nigeria And China Are In Dialogue On The Belt And Road Initiative
–The Round Table Dialogue held recently in Abuja, organized by the Center for China Studies and chaired by Nigeria’s former Foreign Minister and former ambassador to the People’s Republic of China, Alhaji Aminu Wali, discussed the strategy of connectivity across countries, and within countries. The Belt and Road Initiative will spawn an elaborate network of land, rail and maritime transport arteries and industrial clusters along its now-inclusive global routes, Charles Onunaiju wrote in his article, Nigeria and China’s Belt and Road Initiative, published in “The Sun” on March 28. “The dialogue recognized that the core feature of the Belt and Road, which is essentially connectivity, is at the heart of the contemporary challenge of Africa, and therefore urged Africa in general, and Nigeria in particular, to play decisive roles in the mechanism of the Belt and Road by appropriate policy engagement.” The Deputy Ambassador of the People’s Republic of China to Nigeria, Li Jing, speaking on that occasion, said “the continent’s development agendas are therefore in synergy with the Belt and Road initiative, and there is no doubt that Africa and Nigeria, through appropriate policy facilitation, could align to the central features of the Belt and Road to advance her modernization and industrialization.”Belt and Road Initiative and the African Continental Free Trade Area Provide Opportunities in Africa, Says a World Bank Officer
–In an article in the “Daily Nation” of Kenya, Peter Warutere, a communications officer for the World Bank based in Nairobi, said the condition created by the new African Continental Free Trade Area (AfCFTA) and China’s Belt and Road Initiative (BRI) “presents a window of opportunity for African countries to transform their economies, achieve rapid growth, and create jobs for their burgeoning youth population.” He also wrote that “Kenya is well positioned to greatly benefit from the AfCFTA and the development of the Indian Ocean maritime route connecting China with the East African coastline. The gateway to eastern Africa, Kenya should invest heavily in upgrading its infrastructure and industrial capacity. The window of opportunity for it is to become a vibrant industrial and logistics hub for Sino-African trade, investment and exchange.” Kenya’s Secretary of National Treasury, Henry Rotich, said his government hopes China will help to make Kenya’s Big Four economic agenda a success. The Big Four agenda consists of food security, affordable housing, manufacturing, and affordable health care, Prensa Latina reports. “We want the Chinese private sector to participate in projects related with this agenda,” the Secretary said.‘Nuclear Could Turn Zambia into a Regional Food Basket’
–That is the plan, by the Zambia Agriculture Research Institute and the Agriculture Ministry, with help from Russia’s Rosatom nuclear agency. An article under that headline yesterday by the African News Agency describes how for Zambia, and most of Africa, nuclear technology can dramatically improve food availability and nutrition on the continent. An agreement has been signed with Rosatom for the establishment of a Center for Nuclear Science and Technology in Lusaka, which will help prepare Zambia for nuclear power in the future. Zambia suffers power rationing between 8 and 14 hours per day when water is low at its hydroelectric dams. But immediately, the application of nuclear science and technology will be in agriculture. Crops that are resistant to disease, able to withstand environmental stresses, such as drought, and produce higher yields are developed by using nuclear radiation to change the genetic makeup of plants. Zambia is developing new crop varieties with these characteristics, which will not only improve the nutrition of the population, but also the lives of the farmers. Nuclear radiation will also be used for preserving food, using radioactive isotopes. This will immediately increase the food supply. A large percentage of the food produced, especially in developing countries, never reaches the dinner table. For example, 40% of the fish produced globally rots before it can be eaten. Zambia will be able to join the 60 nations in the world that currently preserve food through irradiation. Other applications of nuclear technology in agriculture will be for pest and disease control, inspection of the quality and quantity of water resources, and soil conservation. The Zambia Agriculture Ministry is running multiple research projects in various fields to up-shift agriculture. With the Center for Nuclear Science and Technology, they will have new toolsBenin President Wants China To Build Rail Project
–President Patrice Talon of the West African nation of Benin has asked the French giant Bolloré and a local firm to “withdraw” from a rail infrastructure project so that China could take over the project, according to an interview Talon gave to the French business magazine {Challenges}, published yesterday. Benin and neighboring Niger have been attempting to link the Benin port of Cotonou with Niger’s capital, Niamey, since 2008. Talon described the Bolloré offer as “lower-end,” saying that “a private investor cannot finance the railway we want alone.” Talon also said that “China has the necessary financial means” to support the project, expected to cost around $4 billion and pointed out that “China has demonstrated its technical know-how” for building infrastructure in Africa.Joint Projects Are a Testament to Cameroon’s Trust in China, Says President, Visiting Beijing
–Cameroon President Paul Biya is on a three-day state visit to China, and, as President Xi Jinping pointed out, he is the first head of state to come to China since President Xi’s reelection. The two presidents met yesterday. President Biya stated that relations between the two countries has stood the test of time, and that China has become one of Cameroon’s strategic development partners. Without listing all of their specific joint projects, President Biya said that they are a testament to the trust that Cameroon has in China. This afternoon, Biya met with China’s top legislator, Li Zhanshu, of the Standing Committee of yhe National People’s Congress, during which they discussed further bilateral relations in the future. Li said China is willing to have more friendly exchanges with Cameroon’s parliament, and expressed hope that both countries would support each other on political issues. More people-to-people exchanges were also discussed. In turn, Biya “spoke highly of China’s foreign policy,” Xinhua reports, and said he appreciated China’s long-term support for Cameroon.Africa Should Learn From China, Advises South African Scientist
–Africa should learn from China’s rapid advances in education, science, and technology to solve socio-economic challenges, said South African scientist Neil Turok. He is the founder of the African Institute for Mathematical Sciences, and director of the Perimeter Institute for Theoretical Physics in Canada. Turok made his remarks yesterday at the opening of the Next Einstein Forum, being held in Rwanda. There are about 1,600 participants at the conference, which takes place March 26-28, and at least half are under the age of 42, {xinhua} reports. “China has invested heavily in education, science, and technology,” the scientist said, “and the results are amazing. China is emerging as a new global science and technology powerhouse.” He called upon all African countries to focus, prioritize, and promote science and technology for solving economic challenges._______________________________________________________________________
“Why the West Should Stop Complaining and Start Engaging China in Africa”
This article makes the essential point that I have made for many years. If the US would collaborate with China and join the One Belt-One Road, great advances would be accomplished in the economic development of Africa. (see emphasis at end of article)China is here to stay, and Western and African countries alike should make the most of it.
Pippa Morgn, The Diplomat March 20, 2018 Ethiopia is one of the world’s poorest states, with an annual per capita GDP of just $707. Yet Addis Ababa is awash with billboards for Chinese construction firms, and China’s presence is palpable all over the country. Is “neo-colonial” China “out for oil” yet again? In Ethiopia, that explanation just doesn’t add up: the country has virtually no oil, gas, or other precious minerals. Fortunately, while the media and politicians seem stuck on uninformed accusations of neo-colonialism, some Western investors are starting to make the most of China’s growing presence. In Ethiopia’s Hawassa Industrial Park, the crown jewel of its industrial policy, the largest jobs provider is PVH – the U.S. owner of major global brands such as Calvin Klein, Tommy Hilfiger, and Speedo. Eco-friendly Hawassa was built by a Chinese company, the state-owned China Civil Engineering Corporation (CCECC), in just nine months. And, of course, PVH and other global investors could not run their businesses –and create thousands of coveted manufacturing jobs – without the railways, roads, and power stations that China is constructing all over Ethiopia. There are also encouraging signs at the local level that, instead of pointing fingers at each other, China and the West can work together to deliver development aid. While the majority of Chinese funds go to hard infrastructure, traditional Western donors prefer social “soft” sectors. This makes them complements, not rivals. Ethiopia is eager for roads and railways, but it also needs a better-trained, healthier workforce. Take Ethiopia’s new railway academy, designed to educate a fresh, local generation of engineers and workers: China is funding and building the school’s physical infrastructure, while the World Bank and European institutions are helping with curriculum development and business planning.Turning “Made in China” to “Made in “Ethiopia”
History shows that (without massive oil reserves) industrialization – working up from cheap, lightly manufactured products to technically sophisticated products – is the only way to develop quickly. Factories offer an escape from unproductive and grueling subsistence farming into modern jobs with regular wages. Japan, South Korea, and later China all owe their economic success to this model, and Ethiopia’s government hopes to turn “made in China” to “made in Ethiopia.” But industrialization needs more than cheap labor (which Ethiopia has in abundance) and the good governance that Western donors strive to instill. Investors desperately need roads, electricity, water, and the internet. With traditional Western partners either unwilling or unable to fund these at scale, and low tax revenues due to the country’s poverty, how else can the Ethiopian government build the basic infrastructure that we take for granted in the developed world? Without Chinese help, Western money for training and other “soft” sectors is sinking money into a black hole, and Ethiopia risks being “too poor to develop” –condemned to survive on subsistence agriculture and international handouts. Ethiopian officials stress that they take the lead in dealing with China. They lament that Western aid (although well intentioned) is frankly “not enough.” Ethiopia, which has ambitious plans to escape poverty and become a middle-income country by 2025, does not have time to waste.What’s in it for Beijing?
But is China a trustworthy partner? Beijing claims its aims are “win-win” rather than “neocolonial,” but what is China’s “win”? Like the United States after World War II, China seems to realize that providing global public goods is in its own interests. In Ethiopia, an important African hub for the Belt and Road Initiative (BRI), China secures important diplomatic gains and lucrative business opportunities… Chinese business interests are also at play. Official loans are tied to the use of Chinese contractors, creating lucrative revenue streams. Fresh from “building China” over the past 40 years, Chinese state-owned enterprises (SOEs) are experts in cheap, fast infrastructure. They’re also eager for new opportunities as domestic growth slows. For example, the multi-billion dollar Addis-Djibouti railway was built by the state-owned China Railway Group and China Civil Engineering Construction Corporation, who later won a multiyear contract to operate the new line.Why Engagement Not Estrangement is the Key
So is this really “win-win” for everyone? On the one hand, the commercial rates of many Chinese loans make debt sustainability a huge concern. To pay back what it owes, and eventually stand on its own feet, Ethiopia is in serious need of more tax revenue. So, if it fails to grow as quickly as hoped, Western warnings of a mountain of unsustainable debt may prove right. Ethiopia could end up like 1980s Latin America, where countries spiraled into crisis when they could no longer pay their foreign debts. But, while there’s some dispute over the numbers (IMF estimates are slightly lower than the official figures), Ethiopia’s economy is widely agreed to have been growing at around 10 percent for the past decade – a phenomenal achievement. Given the extraordinarily low starting base, it’s unlikely to slow down soon. Businesses in Ethiopia’s industrial zones cite the continually improving infrastructure as one of the country’s main draws, and both Chinese and international firms plan to expand in future. For Ethiopia’s booming young population, this means yet more coveted industrial jobs… How much more might be achieved if Beijing and the West proactively worked together across the whole African continent? Much of the media and political discourse seems unable to accept that China’s role is equaling – or even surpassing – that of the West… Read entire article in The Diplomat_____________________________________________________________________
“China’s Inroads into Africa Trigger Envy and Allegations”
By Mark Kapchanga Globaltimes.cn 2018/2/20 Allegations of spying and surveillance pop up every day on the global political stage. They are, however, not always true but driven by malice. A database compiled by the Union of Concerned Scientists shows that as of August 2015, there were 1,419 active satellites in orbit around the earth mainly used for the collection of intelligence. From time immemorial, revelations of spying always provoke outrage. In his famous treatise The Art of War, Chinese general Sun Tzu says: “Enlightened rulers and good generals who can obtain intelligent agents as spies are sure to make great achievements.” As recent as 2016, new documents made public by Wikileaks revealed that the US spied on German Chancellor Angela Merkel’s private conversations with world leaders. The secret files showed that the National Security Agency listened in as Merkel had private conversations with other European heads of government and with former UN secretary-general Ban Ki-moon. But even before the dust settled on this accusation, in late 2017 Berlin claimed Beijing was using LinkedIn to infiltrate political and business circles in Germany. The assertion followed claims from a German intelligence service that 10,000 of its citizens were targeted by Chinese spies, an allegation that China refuted. In most cases, allegations of spying and surveillance cause strains between countries, and at times, even sever diplomatic ties. Informed that such claims can create a rift between regions, a French paper Le Monde carried a story on allegations that China has been spying on African Union headquarters in Addis Ababa for six years. In what appears to have been a manufactured story, Le Monde spoke to a number of anonymous sources, who said the alleged transfer of data was taking place at night. The story went further to say the alleged data transfer had been taking place since 2012, when the building was opened. Trade between China and Africa has been rising thanks to policy benefits from a cooperative plan laid down by Chinese and African leaders in South Africa in 2015. At the summit, President Xi Jinping announced plans to invest $60 billion into African development projects, saying it would boost agriculture, build roads, ports and railways and write off some debt. As an example of strong relations between Africa and China, trade between them rose by 16.8 percent to $38.8 billion in the first quarter of 2017. On the other hand, China’s non-financial direct investment in Africa expanded by 64 percent in the first quarter of 2017 as countries such as Djibouti, Senegal and South Africa all saw a more than 100 percent rise in the quarter. The negative reportage about Sino-African relations by Western media has also been fueled by envy due to strengthening ties. The ambitious global trading strategy, known as the Belt and Road initiative, which appeared to be gaining traction recently, particularly in parts of East Africa where major infrastructure and defense projects are being built, is also likely to buoy China’s growing investments in Africa. The spying allegations are not the first media story being published by Western media with the aim of creating a gulf between Africa and China. While free media is desired in any economy, there needs to be a sense of responsibility and professionalism in the practice. China’s presence in Africa has had its challenges no doubt. But Western media cannot spend acres of editorial space criticizing China for “increased corruption in Africa, for exploiting Africa’s natural resources, for environmental degradation, poor wages for employees, among others.” In particular, the media has become obsessed with the claim that Chinese firms are winning mega tenders in African countries by paying bribes. This is absolutely not true. Chinese firms have not only shown that they qualify to execute these major infrastructural projects but they have also shown their unrivaled muscles in completing them in record time at a relatively low cost. Perhaps it is now time that the Western countries upped their games in investing and trading with Africa if they are to compete favorably with China in Africa. Claims that Chinese firms bribe locals to win tenders are utterly false. Crucially, media should engage in constructive reporting for posterity. The author is a researcher and expert on China-Africa cooperation based in Nairobi, Kenya. Follow him on Twitter:@kapchanga. opinion@globaltimes.com.cn_____________________________________________________________________
Africa Is Natural Partner of China in Maritime Silk Road
Jan. 29, 2018–“The African continent was part of the ancient maritime Silk Road and now is in a good position to be China’s natural partner,” said He Wenping, Director of Africa Studies at the Chinese Academy of Social Sciences, portraying the Belt and Road (BRI) activities in Africa, on the sidelines of the just-concluded African Union Summit. In South Africa alone, there are more than 300 Chinese enterprises, half of which are major and medium-sized businesses, investing $13 billion in electronics, automobiles, financial information network infrastructure, and construction engineering, said a report compiled by the South Africa-China Economic and Trade Association in 2016. Despite fears, frustrations, and challenges from unexpected hardships, misunderstandings, and cultural conflicts, China is accelerating the advancement of its all-around cooperation with Africa, He Wenping continued. It is expected to set a good example of deepening regional cooperation for the so-far reluctant Western countries. “BRI deserves to be a platform for the overall exchange and intensified cooperation between China and the world,” she urged.Germans Invited To Invest in Zambian Infrastructure
Jan. 29, 2018–During an encounter with Stefan Liebing, the chairman of the German Africa Association, in Berlin on Jan. 17, Zambia’s Ambassador Anthony Mukwita presented a document titled “Zambia’s Investment Project,” which had been prepared by the embassy. “This document contains areas that are ripe for investment in Zambia which you must share with your membership in Germany,” said Mukwita to Liebing. The areas of possible investment he presented include: construction, agriculture, energy, transport, and tourism, to mention but a few. The Zambian diplomat urged German business to take full advantage of Zambia’s invitation: “Our President H.E. Edgar Lungu is keen to see a reduction in poverty and rise in GDP via foreign direct investment; our peace, stability and predictability, including ease of doing business, continues being a great ingredient of attracting business.” Liebing expressed confidence of stepping up business with Zambia. German-Zambian contacts were continued at a meeting with leading officials of the Canadian Bombardier rail-tech firm on Jan. 27. Bombardier Head of Rail for Africa Christian Bengtsson told Mukwita that a functioning railway grid is required for transportation of goods and services in order to enhance economic growth in Zambia. A memorandum of understanding was already signed in 2016, but not much has happened since, because no financing has been made available by the German government or private banks. The Zambian project would be crucial for Bombardier, which, for lack of new contracts in Germany, has been considering reducing its workforce in Germany from 8,000 to 6,000, also by selling the railcar-producing unit in Görlitz. Bombardier, whose transportation headquarters is in Germany, has carried out feasibility studies on Zambia Railway’s 900-km network, half of which needs to be refurbished. Once the railway is replaced and railcars are purchased, the company is expected to create 5,000 jobs and increase its cargo transportation (mostly iron ore and other minerals) from the current 700,000 tons to about 5 million tons annually, and eventually 8 million tons.China’s Belt Road at Davos World Economic Forum
Jan. 28, 2018–Under the above headline, the {New York Times} journalist Keith Bradsher bemoans the fact that, like it or not, it was China’s New Silk Road that dominated the Davos World Economic Forum, not the efforts by many to demean the Belt and Road Initiative as merely China’s effort to “spread its influence” and to “bury the recipients in debt and cause considerable environmental damage.” Under a picture of a smiling Liu He, Xi Jinping’s top economic advisor who gave China’s keynote speech at the Forum, Bradsher acknowledges that that Liu He’s presentation was “one of the best-attended speeches,” and that throughout the Forum, the Belt and Road was the leading subject of discussion. “At one end of town, President Michel Temer of Brazil welcomed an unexpected offer from Beijing for Latin American nations to work closely with a Chinese initiative,” writes Bradsher. “At the other end of town…, Pakistan’s Prime Minister Shahid Khaqan Abbasi used his talk to praise the rapidly expanding Chinese investments in his country, including to build power stations and a large port…. National leaders seemed to vie with one another in Davos in calling for closer cooperation with China.” “The China One Belt, One Road is going to be the new WTO — like it or not,” Joe Kaeser, the chief executive of Siemens, told the {Times}. But China’s actions were not limited to Davos, Bradsher notes. “On Friday, the Chinese government used a policy document issued in Beijing to call for a Polar Silk Road that would link China to Europe and the Atlantic via a shipping route past the melting Arctic ice cap…. At a summit meeting for Latin American and Caribbean foreign ministers in Santiago, Chile, Foreign Minister Wang Yi of China called for close cooperation and participation by the regions countries.”Belt and Road ‘Heatedly Discussed’ in Davos; ‘China Is Committed to Providing Solutions to World Problems’
Jan. 27, 2018– As reported in the Chinese Foreign Ministry website, a journalist asked spokeswoman Hua Chunying about China’s role in building a common future for the world which they characterized as s “heatedly discussed” in Davos. “Considering that the theme of this annual meeting is ‘Creating a shared Future in a Fractured World,’ what do you think of China’s role in promoting common development and building a common future for the world as the second largest economy?” Hua Chunying answered by recalling that “the international community still remembers President Xi Jinping’s keynote speech at the WEF annual meeting last year. President Xi evaluated the world economy and came up with his prescription, gave an in-depth analysis of global pressing problems and put forward major proposals to promote the re-balancing of economic globalization, which still has broad and far-reaching influence in the international community. “China’s contribution to the development of the world is embodied in many aspects. China’s economic growth has injected a strong impetus into the world economy. In 2017 alone, China’s foreign investment reached $120 billion and it imported goods worth 12.46 trillion yuan, which provided a vast market and ample investment and development opportunities for all countries. It is safe to say that China is the stabilizer and engine of the world economic growth. “China provides popular public goods for international cooperation. China’s Belt and Road Initiative is one of the most popular international public goods for today’s world, pointing out new directions for improving global governance and providing a new model for international cooperation. The first Belt and Road Forum for International Cooperation hosted by China last year [in May 2017] has produced more than 270 fruitful outcomes. “China is committed to providing solutions to the world’s problems. We have been attaching great importance to implementing the 2030 Agenda for Sustainable Development, actively responding to the challenge of climate change and making remarkable progress in pollution prevention and treatment. Last year, 10 million people in China were lifted out of poverty. By taking these concrete actions, China has made tangible contributions to meeting global challenges and realizing common development. “At present, China’s economy has shifted from a phase of rapid growth to a period of high-quality development. We believe this will surely provide more and more positive energy to the common development of the world and the building of a common future,” she saidChina Is Working on “the post-high-speed rail age;” Has In-Depth Development Program for Maglev Trains
Jan. 27, 2018–An entire generation of medium- to low speed maglev trains that can run at a maximum speed of 160 kmh, is being developed in China, with plans to operate 5 to 12 magnetic levitation rail lines in cities including Chengdu, Wuhan and Guangzhou by 2020. Altogether 12 Chinese cities, including Tianjin, Hangzhou and Shenzhen, are planning to launch maglev services by 2020, especially between their city center and airports, the city and suburban areas, and the city and surrounding counties. Sun Bangcheng, deputy director of CRRC Industrial Research Institute, explained that this project is one of 18 national key research and development plans set by the Ministry of Science and Technology in 2016, researching both high-speed passenger and freight trains. The project will be completed by 2021 at a total investment of over 9 billion yuan ($580 million). The project includes six types of trains — three for freight, one high-speed passenger train, and two types of maglev trains. Freight trains with speeds of 250 kmh can transport seafood from Haikou in South China’s Hainan Province to Beijing in north China in one day, according to a project officer at CRRC. Research into maglev includes a train that can reach 600 kmh and another that travels at 200 kmh. Research is to prepare for “the post-high-speed rail age” in technology, said Sun. The cost of a 600 kmh maglev train is almost the same as a 400 kmh version. The first Chinese-made high-speed maglev train will roll off the operation line in 2018, the report said. Design and construction will begin immediately. A sample carriage will be built in 2018, and a complete train will be ready for a 5-km test run in 2020, said Ding Sansan, deputy chief engineer of CRRC Qingdao Sifang Co.Chinese Economic Policy Came Out of Study of Great Depression, 2008 Crisis
Jan. 27, 2018– Chinese economist, Liu He, in 2013, in his position as Deputy Director of the Development Research Center of the State Council conducted a comparative study of the 1930s Great Depression and the 2008 crisis. In a report on their conclusions he wrote: “After the outbreak of the crisis, we have been pondering over the possible period of the crisis, its possible international influence and our countermeasures. Since the Industrial Revolution, the crisis of the capitalist world has been frequent. In the 20th century, The Great Depression and the current international financial crisis were the two most widespread and devastating ones. Starting in 2010, we started to carry out a comparative study of the Great Depression of the 1930s and this international financial crisis. Except for Central Government In addition to co-workers, researchers from People’s Bank of China, China Banking Regulatory Commission, the Chinese Academy of Social Sciences, National Research Center and Peking University were also invited to participate.” The following three conclusions were listed as the principle results of the report. First, grasp the major changes in the connotation of the period of strategic opportunities in our country and seek the maximum intersection of China’s interests and global interests. The conclusions of the comparative study can tell us that the connotation of the strategic period in which we are located has undergone significant changes. In the economic sense, before the crisis, China’s strategic opportunities mainly represented the expansion of overseas markets and the inflow of international capital. China seized the opportunity to become a global manufacturing center in one fell swoop. After the crisis, the world has entered a long process of insufficient aggregate demand and de-leveraging. Our strategic opportunities are mainly manifested in the tremendous stimulating effect of the domestic market on the global economic recovery and the opportunities and foundations of technology mergers and acquisitions in developed countries, their facilities and investment opportunities. We should firmly grasp these substantive changes, conscientiously analyze the enormous intersection of interests that have emerged with the new historical conditions in our country and the major economies, and clearly propose a solution to the global dilemma of growth. We will steadily implement the plan when the external conditions are clear. Second, we should avoid moving to an over-indebted economy and attach importance to regulating and controlling financial fluctuations. We must uphold the essential requirements of financial services for the real economy. The departure of the U.S. financial industry from its core service function has become the perpetrator of the global financial crisis. This is related to the abandonment of the traditional value of the industry by the U.S. financial industry and excessive pursuit of wealth and innovation. The good performance of the German economy in this crisis is closely related to Germany’s conservative financial tradition and the fact that the financial industry can operate soundly. Various effective measures should be taken to both improve the business environment of the real economy, consolidate the foundation for the development of the real economy, and to curb capital from empty money-making-money schemes so as to prevent excess self-circulation and inflation in the fictitious economy. Thirdly, in the process of establishing a new global economic governance structure, the active participants should become leading policy shapers. Against the backdrop of accelerating changes in global power and the drastic changes in the global economic governance structure and in finding a new equilibrium, China should play a similar role to the United States in taking the initiative in shaping an international new system as a “creditor country” after World War II, China’s overall national strength and rising international competitiveness are favorable conditions for accurately judging the reality and trend of the international situation, clearly defining the interests of our country, breaking through existing institutional frameworks set by Western countries to reflect and convey the interests of our country Unanimously and with the Chinese characteristics on the global economic and financial governance and major international issues of the core ideas and propositions, set the “China agenda”, the introduction of “China program” to strengthen international personnel training and accelerate the institutionalization of China’s international rights and eventually secure the future.___________________________________________________________
China Remains Committed to Africa’s Development
In its Third Year, AIIB Will Expand Lending to African and South American Nations
As the Asian Infrastructure Investment Bank (AIIB) enters its third year of operations, its President Jin Liqun explained in an interview with the {South China Morning Post} that in the coming year, it intends to expand lending and operations to South American and African nations, as well as further into the Middle East as soon as that is possible. Jin noted that with “quite a number” of South American nations joining the Bank, it will be a good idea to finance some middle-income projects in South America to “bring South America and Asia together,” and reduce transaction and shipping costs. But, he stated, “I would also pay attention to supporting African member countries. Asia is developing quickly, but it cannot sustain itself well without collaborating closely with African countries.” Jin emphasized that the geographical scope of the Bank’s activities makes clear its role “in pushing broader-based social and economic development in the member countries in which we invest.” Responding to the claims from some quarters that the Bank is merely an instrument of China, Jin said quite the contrary is true. China “is committed to building the Bank into a multilateral development institution with 21st Century governance.” The AIIB is separate from the Belt and Road Initiative (BRI), he said, but that it is inescapable that some projects in which the AIIB is involved would be connected to the BRI, simply because of the scale of this global development project, which covers 60 countries across multiple land and maritime corridors. Jin Liqun was emphatic that China strictly adheres to the Bank’s principle of multilateralism and internationalism. “There has never been any interference by the Chinese government in the decision-making process.”_________________________________________________________________
China Shares Its Development with Africa & the World
The Industrialization of Africa
“Let’s quickly go to the One Belt, One Road: This is just what I call—this is not official, it’s what I call it—I think this is a 1.0 version of One Belt, One Road, because all those things you see, the Maritime one and the Silk Road continental one, go through 64 countries. In this 1.0 version, only Egypt is from Africa, among these 64 countries. But now, I think One Belt, One Road is entering 2.0 version—that is, now facing all the countries in the world. As President Xi Jinping mentioned to the Latin American countries, “you are all welcome to join the Belt and Road.” In the Chinese “40 Minutes,” Xi said, all the African continent is now on the map of the One Belt, One Road, the whole African continent, especially after the May Belt and Road Summit in Beijing had taken place. “So now, its face is open to all the countries in the world, now it’s inclusive. Any country that would like to join, I would like to say. You see, these are two leaders in the world: People are saying “America First” is the idea. You see from abroad, Trump in the White House saying, “America First.” If anything is not too good for America, it’s not good at all. But, for President Xi Jinping, the One Belt, One Road is to make the world better. It’s not, “make China better,” because with all this Belt and Road, the Chinese foreign exchange reserves, we’re now enjoying the number-one highest foreign exchange reserves in the world. “So, we’re going to use those foreign exchange reserves to build all those roads—connectivity! Connect China and other countries to join together, to build trade. And there are three connectivities we are talking about: First is the policy connectivity, China’s One Belt, One Road initiative is relevant to countries, their own development strategy. For example, Ethiopia. Ethiopia has now been named as the “next China” on the African continent. It’s not my invention, these words—many scholars have been published talking about which country in Africa is going to be the China in Africa, which means, developing faster! Faster and leading other countries forward. Most of them refer to Ethiopia. ” Ethiopia has now reached an GDP growth rate, last year, as high as 8%, but the whole rest of the continent, especially the oil rich countries, are suffering from lower oil prices. So they have developed an industrialization strategy; their strategy and the China strategy should be connected. One is called the policy connectivity._______________________________________________________________________
China Moves Quickly To Support Zimbabwe Ally: Sends Special Envoy
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Will Pres. Trump Lead the US Into Cooperation With China’s Silk Road?
Despite the controversies surrounding President Trump, if he leads the United States into closer cooperation with China’s New Silk Road, a keystone policy of President Xi, then the potential for global economic development will be advanced. It appears from the meetings between Presidents Trump and Xi last week in China that there was progress in this direction.
{Global Times} Op-Ed Proclaims, ‘U.S. Participation in Belt and Road Inevitable’
November 14, 2017– This is the headline of an op-ed yesterday by Wang Yiwei, director of the Institute of International Affairs at China’s Renmin University, writing in {Global Times}. He says that the trade deals from President Trump’s official visit to China “will enable the U.S. to better grasp the potential and prospects for economic cooperation. Against this background, it is time for the U.S. to reconsider joining the Belt and Road Initiative, which offers wider space for cooperation.” “Sino-U.S. cooperation on the Belt and Road Initiative will not only benefit economic and trade ties, but also shape the trajectory of a new mode of major-country relationship and the world in the next 50 years,” he writes. “Although the U.S. has not announced it will take part in the Belt and Road, it already has connections with it,” he continues. This is the case in part because standards, rules, capital, technology, and personnel in projects are global, and also because U.S. companies are already involved. He recommends that the two countries could work together on infrastructure, perhaps first in developed countries, such as regional cooperation in in the U.S. Midwest, and also on military resources; a challenging proposal. Defense Secretary Mattis has said that 19% of U.S. military facilities are idle, Wang reports. These facilities could be developed by Chinese enterprises, he suggests. Cooperation could also be strengthened in the Maritime Silk Road context, regarding navigation, logistics, and maritime industry. The U.S. and China could establish a “global infrastructure investment bank,” alongside global interconnection and global development programs. He concludes that such initiatives “will serve the two nations’ interests and benefit the world. What’s more, functional participation and constructional cooperation has always been what Trump aims for.”
Progress Report on the Chinese Economy: High-Tech Manufacturing Is Growing at 13.4% Per Year
Xinhua reported Nov. 13 on third quarter 2017 results for the Chinese economy, as presented by Zhang Liqun, researcher with the State Council’s Development Research Center. Although the reported growth rates are for GDP measured in monetary terms, in the case of China these numbers undoubtedly track closely with actual physical economic processes–which is emphatically {not} the case in the trans-Atlantic sector, where GDP includes every form of speculative insanity, drugs, and whatnot. The year-on-year overall growth rate in China for the first three quarters of 2017 was 6.9%, which was higher than expected. Most interesting is that “the high-tech and equipment manufacturing sectors posted stellar growth in the first three quarters, with output up 13.4% and 11.6% respectively,” Xinhua reported. Investment in high-tech manufacturing rose even more dramatically, by 18.4%, up from 11.7% for the same period in 2016. Job creation is correspondingly strong: China created almost 11 million jobs in the first three quarters of 2017–300,000 more than the same period last year. Official unemployment in Chinese cities stands at 3.95%, the lowest level since 2008. The Xinhua article also quoted the chief economist at the Bank of China, Cao Yuanzheng, who said that it is of vital importance to contain financial risks, including “countering debt, shadow banking and asset bubbles.” Even Moody’s had to admit, in a recent research note, that “a stronger policy focus on financial sector regulation should continue to restrain the growth of shadow banking activities, help mitigate asset risks for the banks, and address some key imbalances in the financial system.” On poverty reduction, which is the central concern of President Xi Jinping and the entire national leadership, Vice Premier Wang Yang presided over a meeting of the State Council’s group on poverty reduction on Nov. 13. Wang emphasized that they had to be focused on “enhancing a sense of mission and crisis awareness, and targeting problems to fulfill the Party’s promise to the Chinese people and the international community,” Xinhua wrote. (The fact that Wang presented this policy as a commitment to {the international community} is especially notable.) Wang added that to meet these goals it was necessary to train local authorities, “stressing the importance of carrying out research and investigation, and averting formalism.”
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Party Congress Highlights China’s Emergence on the World Stage
William Jones October 21, 2017
Xi’s goals for China
President Xi divided the period ahead into two stages. The first stage will be the period between 2020 and 2035, when China will achieve its full modernization. Then, from 2035 to 2050, China will be transformed into a great modern socialist country that is “prosperous, strong, democratic, culturally advanced, harmonious and beautiful.” “In this state we will reach new heights,” Xi said. “China’s capacity for governance will be achieved. There will be prosperity for all and the Chinese people will be happier and safer. By that time, we will also have become an active member of the community of nations.”
Achievements under Xi
In opening the Congress, President Xi outlined the advances made in the last five years, his first term as President. In this period, China capped the achievement of bringing 700 million people out of poverty since about 1980, “with the middle income group expanding.” “Arts and culture are thriving,” Xi said. “China’s soft power and international influence have increased considerably, and there have been advances in the central and western regions. Making development people centered has paid off. We have been more purposeful in developing green technology, and we have revitalized the armed forces.” Xi underlined the efforts China had made in developing major-country diplomacy, pointing as examples of this, to the development of the Belt and Road Initiative (BRI), the creation of the Asia Infrastructure Investment Bank (AIIB), the G-20 Hangzhou meeting and the Asia Pacific Cooperation Forum (APEC) Leaders meeting. “We have made major contributions to global peace and development. The changes have been fundamental and profound. We have solved problems that had never been tackled, and these changes will have far-reaching effects. Continue reading
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BRICS not a talking shop but a task-force that gets things done: President Xi Jinping September 3, 2017
In an address at the opening session of the BRICS Business Forum on Sunday, Chinese President Xi Jinping said the global economy is “still not healthy enough” and that economic globalisation is facing many uncertainties. 1200 industry representatives from the BRICS nations and other countries were in attendance at the Xiamen business forum. Brazilian President Michel Temer and South African President Jacob Zuma also attended the meeting. Responding to critics of BRICS, Xi said, although the five economies “have encountered headwinds of varying intensity but the growth potential and growth trends of these countries remain unchanged”. “In the past 10 years, BRICS combined GDP has grown by 179%, trade by 94% & urban population by 28%,” Xi said on Sunday underlining the growing clout of the bloc. BRICS, Xi said, are not a talking shop but a task force that gets things done. “The New Development Bank and the contingency reserve arrangement have provided financing support for infrastructure building and sustainable development of the BRICS contributing to enhanced global economic governance and building an international financial safety net,” Xi noted. The $100 billion BRICS Contingent Reserve Arrangement (CRA) became fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara in 2015. Aside from the BRICS Bank and the BRICS monetary fund, the bloc will also discuss a joint energy platform, according to Russian President Vladimir Putin. On Sunday, Xi reminded the audience that BRICS seek a multipolar world. “Our world today is becoming increasingly multipolar. The law of the jungle where the strong preyed on the weak and the zero sum game have been rejected,” Xi said. “BRICS cooperation is a natural choice made by our five countries. In the past decade, we, the BRICS countries, have surged ahead and become the bright spot in the global economy…BRICS future cooperation must be based on “treating each other as equals”, Xi said.
BRICS Summit 2017 Key takeaways from Chinese President Xi Jinping’s Speeech
# “I am convinced that as long as we take a holistic approach to fighting terrorism in all its forms, and address both its symptoms and root causes, terrorists will have no place to hide.” # “Construction of a tall building starts with a foundation. We have laid the foundation and put in place the framework for BRICS cooperation.” # “In terms of BRICS cooperation, decisions are made through consultation, not by one country. We respect each other’s model of development, accommodate each other’s concern and work to enhance strategic communication and mutual trust.” #”Given the difference in national conditions, history and cultures, it is only natural we may have some differences in pursuing our cooperation. However, with a strong faith in cooperation and enhancing collaboration the BRICS countries can achieve steady progress in our cooperation.” # “Leveraging our respective strengths and converging interests, we have put in place a leaders-driven cooperation framework that covers wide-ranging areas and multiple levels.” # “BRICS countries should improve macroeconomic policy coordination, synergize development strategies, leverage strengths in industrial structure and resources endowment, and create value chains and a big market for shared interests to achieve interconnected development.” # “We should blaze a new path which may also help other emerging market and developing countries to seize opportunities and meet challenges.” # “The long road to global peace and development will not be a smooth one. More than 700 million people are still living in hunger, tens of millions of people have been displaced and become refugees, while many people, including innocent children, have been killed in conflicts.” # “Global economy has resumed growth, with emerging markets and developing countries delivering a strong performance. A new round of technological and industrial revolution is in the making, and reform and innovation are gaining momentum. # “We have enough reason to believe that our world will be a better place.” # “We should push for an open world economy, promote trade liberalisation and facilitation, jointly create a new global value chain, and realise a global economic rebalancing.” # Xi said he still had “full confidence” in BRICS countries’ development despite claims that the bloc’s relevance had faded due to slower growth. # “The development of emerging market and developing countries won’t touch anyone’s cheese, but instead will diligently grow the world economic pie.” Xi closed his 45-minute speech by saying that Beijing encouraged Chinese companies to continue going abroad, and “warmly welcomed” other countries’ firms to invest in the world’s second-largest economy.
5 banks of BRICS nations sign pact for credit lines:
BEIJING: Five banks of the BRICS Bank Cooperation Mechanism have agreed to establish credit lines in the national currencies and cooperate on credit ratings. The agreement was signed ahead of the BRICS (Brazil, Russia, India, China and South Africa) summit in China’s Xiamen city tomorrow in which leaders of the five countries, including Prime Minister Narendra Modi are scheduled to take part. “Brazilian Development Bank (BNDES), Vnesheconombank, Export-Import Bank of India, China Development Bank and Development Bank of South Africa (DBSA) have signed an agreement to establish credit lines in the national currencies, as well as a memorandum of cooperation on credit ratings,” Russian news agency TASS Reported. The Chinese official said “the decision was taken in order to bolster further cooperation.” The agreement on credit ratings reportedly enables them to share information about internal credit ratings and rating assessment.
Zuma highlights SA’s plans for development at BRICS Summit
Sunday 3 September 2017: Tshepo Phagane: President Jacob Zuma has appealed for increased intra-BRICS trade to counter the negative impact of the global economic slowdown. The President was delivering a speech at the 9th Brazil, Russia, India, China, South Africa (BRICS) business forum in the Chinese coastal city of Xiamen. China and India remain the two fastest growing largest economies in the BRICS grouping. In recent years the other three member-countries Brazil, Russia and South Africa have been experiencing slow growth largely driven by external factors such as weak global trade, decline in commodity prices, and tightening global financial conditions. President Zuma has made an impassioned plea for more foreign direct investment flows towards struggling economies like South Africa. “In as much as South Africa is endowed with natural resources, it is critical that we have in place beneficiation programmes that support our industrialization policy. It is in this regard, that we call upon our BRICS partners to collaborate with us in a few areas. This includes investing in supply and development programmes in Africa, skills development and technology transfer. “We also wish to remind our Brics partners that given the history of institutionalised racism in South Africa, we continue to work hard to reverse the impact on the economy.” According to Zuma, South Africa has also set a plan to tackle the injustice and marginalisation of black people in the country.
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Analysis of China and the Belt and Road Initiative, and US
Patrick Lawrence Aug. 17, 2017–The same Patrick Lawrence who researched the VIPS analysis of the fake Russian hacking of the DNC, and broke the story wide open by publishing it in {The Nation,} also wrote a detailed analysis of China’s role in the creation of the new paradigm, just days after the historic Belt and Road Forum in Beijing in May. Called “How China Is Building the Post-Western World — Beijing’s Belt and Road project may be the largest single infrastructure program in human history,” it was also published in {The Nation}, on May 16. Lawrence begins by saying that he has often written about what he calls “parity between West and non-West,” calling it “the single most pressing necessity of our century if we are to make an orderly world out of the deranged, dysfunctional botch those responsible for it still get away with calling the postwar order, the liberal order, the global order — all of which are polite ways of saying the Western-designed, Western-imposed order.” He described the Belt and Road Forum as China and Xi Jinping “constructing — on the ground as well as in the history books — something like a new world order.” He says a “post-Western world” is coming into being, adding: “It is what Vladimir Putin, who seems to have an excellent grasp of history, is talking about — the first, second, and third reasons we are supposed to detest and fear him. It is what formations such as the BRICs… are all about.” He identifies four western responses: “They ignore it, dismiss it as unlikely to work, or mark it down to cynical self-interest or a plot to accumulate power.” The first was characterized by Obama refusing to join the AIIB–“a more stupidly arrogant call one cannot imagine.” He describes the Silk Road Project as “almost certainly the largest single infrastructure program in human history,” and notes that Trump sent a serious representative to the Forum, and is considering joining the AIIB. But, he adds, the vast majority of western responses to the Belt and Road are absurd, claiming it is a power grab or a frantic effort to deal with a decline of their own economy, noting that the leaders in the West “have no clue as to the larger import of what we now witness, or simply cannot face it.” Getting to the point, he says: “When was the last time the United States built Laotians a railway on any terms, never mind China’s (low-interest loans, extended terms)? Think about what a century of fraternal ties to the United States has given the Philippines: You have to start with poverty, prostitution, dope, crime, desperation — all rampant. Don’t wonder why President Duterte now likes to spend his time in Beijing (as do the Malaysians, the Thais, the Vietnamese)…. China also sees advantage in the prosperity of others, and this thought overarches the others by many magnitudes. This has to be squared with all the reductionist accounts of the Chinese as merely selfish.” He reflects: “The criticism of Xi Jinping’s Belt and Road plans now emanating from the West is best understood as a mirror. The imposition of an ideology, the Chinese model, a be-like-us imperative? The projection of power upon other peoples? Loans and development projects structured to the dominant nation’s advantage? Conditionality in the manner of the Western multilaterals? The cultivation of corruption to gain influence? The threat of intervention? Turn it all around and you have a picture of Western policy, America the most accomplished practitioner, since 1945.” Historically, he notes: “Recall the Five Principles Zhou Enlai advanced (along with Nehru) at the Bandung Conference back in 1955, noninterference the animating thought in four of them. Xi practically recited them this week in Beijing.” He concludes by quoting a friend who said: the “Chinese understand themselves as a non-Western people. Depending on whom one is talking to, they are perfectly clear that their intent is to claim, for themselves and others, the fullness of human existence heretofore available only to the Westerner. This is a thumbnail definition of parity, maybe. “A lot of people, too far inside Western ideology and its attendant assumptions, may be uncomfortable with the thought that nations such as China are bringing centuries of Atlantic hegemony to a close. The task is to grasp that there are alternative perspectives, appealing to one’s sensibilities or otherwise — other ideas of democracy, other ideas of the place of the state, the place of the individual, the worth of public goods, the limits of the market, and so on. Development as freedom, Amartya Sen argued in a book of that title at the turn of this century. Westerners are unaccustomed to thinking in such terms. Most of the world still must.”
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‘Belt & Road’ May Catalyze China-US Cooperation in Africa
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May 15 , 2017 Senior Fellow, Charhar Institute
The US government, under President Donald Trump, wants to reduce its aid to Africa and to upgrade its domestic infrastructure facilities under the doctrine of “America First”. African development is one of the priorities in China’s international cooperation plans, and the United States cares more about its domestic infrastructure upgrading. But both China and the US stress infrastructure construction, and this could offer an opportunity for the two to cooperate in Africa under the Belt and Road Initiative. China-African cooperation is advancing steadily through infrastructure connectivity and industrial cooperation. First, to promote Africa’s industrialization through investments in infrastructure projects under the Belt and Road Initiative, Three planned transport networks — railway, highway and aviation — will be constructed on the African continent, designed to linking the capital cities of all African countries, and industrialization and economic integration in Africa will also be greatly promoted. This is not only the responsibility of China as a big country and as Africa’s true friend, but also the requirement to transform and upgrade China-African economic cooperation and trade. Of the 10 major cooperation plans put forward at the Johannesburg summit of the Forum on China-Africa Cooperation in December 2015, the plans for industrialization and infrastructure cooperation were the most prominent aspects, and were also the “dual engines” driving Africa’s economic growth. To implement the plans, the China-Africa Fund for Industrial Cooperation was set up, with initial capital of $10 billion from China, and China also arranged an additional $5 billion for the China-Africa Development Fund and an additional $5 billion in special loans for the development of small and medium-sized African enterprises. China planned to construct or upgrade a batch of industrial parks in African countries, and set up regional vocational training and education centers and several capacity-building colleges to train 200,000 technical workers for Africa. China also planned to provide training opportunities in China for 40,000 Africans. At present, the China-Africa industrial cooperation has already started bearing fruit. The Addis Ababa-Djibouti railway was completed and put into operation as scheduled in October 2016, and the Mombasa-Nairobi railway is progressing smoothly and is slated for completion this year. The construction of industrial parks and industrial belts along the two railways is also making good progress. According to incomplete statistics, since the Johannesburg summit of the Forum on China-Africa Cooperation in December 2015, China and African nations have signed 245 agreements, involving investments totaling $50.755 billion. Of the amount, Chinese government aid to Africa accounted for a mere 1.07%, preferential loans took up only 6.24%, and direct investments by Chinese enterprises and commercial loans took the lion’s share — $46.553 billion or 91.73% of the total. This indicated that China-Africa cooperation has shifted from government aid to corporate investments and financing cooperation; from general merchandise trade to production capacity cooperation and processing trade; and from contract engineering to investments and financial cooperation. These trends are still gaining momentum. Not long ago, US President Trump said that his infrastructure plan has been “largely completed”, and the infrastructure package could cost $1 trillion in investment in 10 years. It has been learned that the plan covers more than transportation infrastructure such as highways and bridges, it will also include the construction of facilities such as energy, water and potentially broadband and veterans hospitals. The latest news suggests that the Trump administration wants to strengthen cooperation with China in the field of infrastructure construction, and Chinese companies, which have abundant cash and technological advantages, are also eager to play their role in the American market of infrastructure construction. When people begin to visualize cooperation between Chinese and US companies in American infrastructure construction, we could also envision the bright prospects of Chinese-US cooperation in infrastructure construction in Africa under the Belt and Road Initiative. The African continent is short as much as $100 billion of funds for infrastructure construction on a yearly basis. In terms of financing, China and the US could, first of all, explore ways to jointly invest in African infrastructure projects through cooperation between the China-initiated Asian Infrastructure Investment Bank, the BRICS Development Bank (now New Development Bank) and the China-invested Silk Road Fund with financial institutions such as the US-dominated World Bank and the Asian Development Bank. Second, along with China-Africa cooperation shifting from government aid towards corporate investment and financing, Chinese companies (both State-owned enterprises and a growing number of private firms) may jointly invest in, undertake to construct and even operate infrastructure projects in Africa together with American companies, and such scenarios are no longer something out of reach. To accelerate the process of industrialization and infrastructure construction, African nations and the African Union have already formulated important strategies for development, including the New Partnership for Africa’s Development (issued in 2001), the Action Plan for Accelerated Industrial Development of Africa (published in 2008), the Program for Infrastructure Development in Africa (issued in 2013) and Agenda 2063 (issued in 2013). Africa pins high hopes on its integration with the Belt and Road Initiative to promote African industrialization and infrastructure construction, and to turn the 21st century into an era of African development. During this process, the US and China, the two largest economies in the world, could and should play historic role__________________________________________________________________________________
BRICS, China, and Ethiopia Promote Industrialization
BRICS ministers adopt new industrial action plan
The industry ministers from Brazil, Russia, India, China and South Africa (BRICS) adopted a new action plan to deepen industrial cooperation among the five nations, Trade and Industry Minister Rob Davies said in a statement on Sunday. Davies and his counterparts from the BRICS grouping attended a meeting in Hangzhou, China where industrial and manufacturing matters were discussed and which culminated in the adoption of a seven-point action plan. “The action plan states that the world economy is still in a period of profound adjustment after the international financial crisis,” Davies said. “Industrial sectors, the manufacturing sector and the service sectors related to it in particular, have become key factors in sustaining mid- and long-term economic development.” At the meeting, the ministers acknowledged that the new industrial revolution of digitisation among other things will change traditional production flows and business models that will give rise to new industrial forms. The following seven points have been identified as key in the action plan: strengthen industrial capacity cooperation strengthen the coordination and match-making in the field of industrial policies promote the cooperation in the development of new industrial infrastructure expand cooperation in technological development and innovation deepen cooperation in the field of small and medium enterprises (SMMEs) strengthen cooperation in standard area facilitate all-round cooperation with the United Nations Industrial Development Organization (UNIDO) He emphasized that industrial development strategies and investment cooperation have to grapple with the potential threats in particular in the context of high unemployment. Davies said the industrial development cooperation between the Brics countries can be used as a springboard to foster growth and development and create work opportunities. BRICS countries will focus on using their respective rich natural and human resources and broad domestic markets to broaden industrial capacity and policies, while working together in developing new industrial infrastructure and technology.
Chinese investment leads way as Ethiopia opens to outside
As Ethiopia, the most populous nation in East Africa, is spreading its economic relations across the globe, investment from the world’s most populous nation China is playing a prominent role. Ethiopia, with a population of some 100 million, is a country on the move with rail, air and road infrastructure projects and an ambitious industrialization plan. Ethiopia keenly needs investment from industrial giants like China to give its burgeoning population, which is estimated to grow by 2 million annually, ample employment opportunities. According to the Ethiopian Investment Commission (EIC), there have been 279 Chinese companies with more than 571-million-U.S.-dollars worth of investment, creating more than 28,300 jobs in Ethiopia between January 2012 and January 2017. Huajian Industrial Holding Company Limited, a Chinese company that has a long-term investment plan in Ethiopia, is operating two plants in the country. Yin Xinjun, Vice General Manager at Ethiopia Division of Huajian Industrial Holding Company Limited, says Huajian’s decision to have its first plant in Ethiopia stems from the country’s firm desire for industrialization. In fact, a personal call for more investment by late Ethiopian Prime Minister Meles Zenawi during an August 2011 visit to China is what motivated initially Huajian to invest in Ethiopia, says Yin. According to Yin, Huajian’s investment in its first African plant had overcome several challenges, including logistical ones. Huajian initially had to transport its goods through an overcrowded highway from the plant in landlocked Ethiopia to Djibouti port. The problem has been partially solved with the construction of the 85-km Addis Ababa-Adama Expressway funded partly by the Export-Import Bank of China (China EXIM bank) and built by China Communications Construction Company (CCCC). The 500-million-dollar expressway was inaugurated in May, 2014. Huajian also had to face intermittent power and water outages. The Ethiopian government later solved this problem through a special water and power line for the Eastern Industry Zone where Huajian’s first plant is located. Overcoming these challenges, Huajian currently employs more than 4,000 Ethiopians with a plan to increase employment to 50,000 people by 2022. Having established a plant in the Dukem industrial zone, 37 km south of Addis Ababa, Huajian is currently building a massive 138-hectare international light industry city in Addis Ababa. With the completion of the light industry city, Huajian foresees increasing its export revenue from 30 million dollars in 2016 to 4 billion dollars by 2022 However Western critics warn Ethiopia of being trapped in a neo-colonial relationship and some Ethiopians wonder if the Ethiopia-China relationship comes at the expense of other countries. Gedion Jalata, Program Manager of Africa China Dialogue Platform at Oxfam International, says both views miss the mutual beneficial and sovereignty respecting aspect of the bilateral relations. Jalata points out that Ethiopia is one of the beneficiaries of the China-proposed Belt and Road Initiative. While Ethiopia is attracting massive Chinese investment in infrastructure projects, the Ethiopian government has set its sight in particular on Chinese involvement in industry parks. Ahmed Shide, Ethiopia’s Minister of Transport, says the country plans to utilize Chinese built infrastructure to boost its industrial exports. Shide is especially keen on the 4.2-billion-dollar Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line to boost its industrial exports.
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The New Name for Peace is Economic Development
Helga Zepp LaRouche July 7, 2017 I think that we are all aware that we are involved in the historically important process of trying to improve the relationship between the United States and China, in the context of the Belt and Road Initiative. It is especially important in the area of agriculture and food production, because this is an extremely urgent question. While at the G-20 meeting in Hangzhou last year, China and all the other participating nations devoted themselves to eradicate poverty by the year 2020, we have not yet reached that goal. Because of what China has been doing in Africa for the first time; building up huge industrial complexes. Africans have a new sense of self-confidence, and they are telling the Europeans that: “We don’t want your sermons on good governance, we want to have investments in infrastructure, in manufacturing, in agriculture, as equal business partners.” {There is no substitute for Africans having their own manufacturing sector to help expand their agricultural output. } Continue reading
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New Report Debunks Myth of China Colonialism in Africa
Lawrence Freeman July 3, 2017 A new report, “Dance of the lions and dragons,” released by McKinsey & Co. supplies valuable information that exposes the lie of “China Inc” exploiting Africa and instead details the how private Chinese companies are providing jobs and training that is advancing economics growth in African nations. The following is included in McKinsey’s report: *findings suggest there are more than 10,000 Chinese owned firms operating in Africa. *31 percent Chinese companies are involved in manufacturing, estimated to be 12 percent of Africa’s industrial production-valued at $500 billion a year. These firms serve domestic markets with 93 percent of revenues from local or regional sales. *these Chinese firms claim nearly 50 percent of Africa’s internationally contracted construction market. *74 percent of Chinese firms are optimistic about the future. *over 1,000 companies interviewed, 89 percent of employees were Africans, adding up to over 300,000 African jobs. Extrapolating to all 10,000 Chinese owned businesses, several million Africans are already being employed by these firms. Chinese SOEs employ an 81 percent African workforce. *44 percent of local mangers of Chinese owned businesses surveyed were Africa, with some firms at 80 percent. *with a “business as usual” model in the three industries dominated by Chinese firms–infrastructure, manufacturing, and resources–Chinese firms in Africa would grow from $180 billion in revenues today to $250 billion in 2025, By expanding aggressively into new sectors, revenues could reach $440 billion in by 2025. *In Ethiopia 62 percent of nearly 700 Chinese firms are manufacturing. *Chinese commitments to infrastructure amount to $21 billion, more than the combined total the African Development Bank, European Commission, World Bank, International Finance Corporation and the G-8 nations. While I do not agree with all of the report’s recommendations, it is clear that China has done more to transform Africa than all Western nations. However, given the huge infrastructure deficit in Africa, there is no zero-sum limit, and no competition for limited markets. China’s New Silk Road provides an opportunity for Africa, the United States and Europe to collaborate with China in creating an economic renaissance for the people of Africa. Read: Dance of the lions and dragons
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THE BELT AND ROAD INITIATIVE: A New Trajectory for Mankind
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Once the United States Joins the Belt and Road Initiative, a New Paradigm for Mankind Can Begin
Helga Zepp LaRouche May 14-15, 2017, Bejing China China Investment Magazine, supervised by China’s National Development and Reform Commission, arried this article by Helga Zepp-LaRouche in its May issue. The article was distributed both in Chinese and in English to every participant in the May 14-15 Belt and Road Forum for International Cooperation in Beijing. Thus, the return on infrastructure investment is actually measured by the increase of the productivity of the entire economy. Therefore the financing can not be left to the private investor, but it must be the responsibility of the state, which is devoted to the common good of the national economy. The most important aspect of the concept of the United States joining with the Belt and Road Initiative, however, would be to inspire the whole population with hope for the future, a better future for generations to come—something which has been lost in the last five decades Continue reading
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Beijing Belt and Road Forum Launches ‘Project of the Century’
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Initiative charting new trajectory for mankind
William Jones May 10, 2017 It was no doubt the unique circumstances of China’s internal and external developments during the first decade of this century that convinced President Xi Jinping to place the Belt and Road Initiative at the top of China’s foreign policy agenda. More importantly, China has reinvigorated with the Belt and Road spirit, the spirit which imbued the ancient Silk Road with its profound exchange of both goods and ideas. That was a period of time during which there was a tremendous exchange of goods－silk, spices, jade and gold. Continue reading
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HELGA ZEPP-LAROUCHE ADDRESSES PERU ASSOCIATION OF ECONOMISTS The New Silk Road Concept, Facing the Collapse of the World Financial System
Helga Zepp LaRouche November 17, 2016 To finance all of this China together with the other BRICS countries, a completely alternative financial system, responding to the fact that in the last decades the activities of the IMF and the World Bank have betrayed criminal neglect of funding infrastructure in the developing countries, leading to the underdevelopment of such continents as Latin America or Africa, or large parts of Asia. China remedied that by creating the Asian Infrastructure Investment Bank (AIIB) in 2015, which immediately, despite massive pressure from Washington not to do so, had 57 founding members Continue reading
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Progresses Report on China’s Belt and Road Initiative
William Jones October 21, 2016 While the U.S. public has only recently become acquainted with the Chinese Belt and Road Initiative (BRI) because of the almost total neglect of the project by the myopic U.S. media, the BRI has already shown itself to be the most comprehensive development project since the post-war Marshall Plan. But the BRI has already gone far beyond the Marshall Plan in the magnitude of investment and number of countries benefiting from it. continue reading
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South Africa’s Role in the BRICS Vision
Mr. Van Niekerk, South African Embassy in Denmark January 30, 2015 The New Development Bank is aimed at achieving the central desired objective, namely to ensure that funding becomes available for priority infrastructure and sustainable development projects. The question whether this central objective could be met, is now becoming a reality, so there’s no question about it. In South Africa, we also have our own infrastructure plan, which requires funding beyond the means of our own fiscus, and this bank will certainly bring complementary funding to facilitate the implementation of such projects Continue reading
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The BRICS Perspective for African Development
Themble Joyini, Permanent Mission of South Africa to the UN. January 17, 2015 On BRICS, I agree, this is just the beginning of a new international economic order; it will be a gradual, but steady process. I also agree that not everybody would agree on the importance of the BRICS bank, but the creation of the BRICS bank is significant for the future international order for three reasons. Second, the BRICS bank demonstrates China’s global leadership. Given China’s huge size and quick development, there is little doubt that the world truly needs China’s leadership Continue reading
China Unequivocally Supports Ethiopia’s National Reconstruction, Industrialization, and Modernization of Agriculture
July 24, 2023
These statments from China’s leading diplomat, Wang Yi’, in his meeting with Ethiopia’s Prime Minister, Abiy Ahmed, and Deputy PM, Demeke Mekonnen, make abundantly clear, China’s commitment to assist in the economic development of Ethiopia. This is essential to bring peace and stabilty to the Horn of Africa.
On July 21, 2023, Wang Yi, member of the Political Bureau of the Central Committee and director of the Central Foreign Affairs Office, visited Ethiopia on his way to South Africa to attend the meeting of the BRICS High Representatives on Security Affairs, and Ethiopian Prime Minister Abiy met with Wang Yi in Addis Ababa.
Mr. Abiy spoke highly of the great achievements of socialism with Chinese characteristics and appreciated China’s determination to follow the development path in line with its own national conditions and its rapid economic and social development, which has set an example for developing countries. Ethiopia will never forget the strong support given by China when it faced difficulties and regards China as a great and reliable friend. Ethiopia is willing to learn from China’s development concepts and experience, and strive to realize self-sufficiency in agriculture and rapid economic growth, and promote green and sustainable development. Ethiopia abides by the one-China principle, supports China’s position in international affairs, actively participates in the construction of the “Belt and Road”, and is willing to work closely with China on mutually beneficial cooperation in various fields to promote greater development of relations between the two countries.
Wang Yi said that Ethiopia is a major African country with significant influence. China and Ethiopia are comprehensive strategic partners with each other, the two countries have common goals and common pursuits, and have carried out fruitful cooperation under the framework of building the “Belt and Road” and the Forum on China-Africa Cooperation (FOCAC), which is at the forefront of China-Africa cooperation. China values its traditional friendship with Ethiopia, firmly supports its domestic reconstruction and economic recovery, and is willing to further explore the potential of cooperation with Ethiopia to help it accelerate industrialization, modernize agriculture and explore green and low-carbon development. China encourages strong and reputable enterprises to invest in Ethiopia, and is willing to play an active role in alleviating the debt pressure on Ethiopia. We hope that Ethiopia will actively create a favorable business environment.
Wang Yi said that China’s cooperation with Africa is an important part of South-South cooperation and mutual support and assistance among friends. China has never interfered in the internal affairs of other countries, never attached political conditions and never sought geopolitical self-interest in its cooperation with Africa. China is willing to work with African countries, including Ethiopia, to strengthen cooperation in trade and investment, green development, digital economy, health and sanitation, and continuously create a new situation for China-Africa cooperation.
On July 21, 2023, Director of the Central Foreign Affairs Office (CFA) Wang Yi met with Ethiopian Deputy Prime Minister and Foreign Minister Demeke in Addis Ababa.
Wang Yi said that China and Ethiopia are good brothers who care for each other’s guts, good friends who watch out for each other, and good partners in common development. China has stood with the people of Ethiopia at the critical moment of safeguarding national peace and stability, and will continue to stand with the people of Ethiopia as it enters a new phase of peace restoration and national reconstruction. China firmly supports Ethiopia in safeguarding national sovereignty and territorial integrity, supporting Ethiopia’s commitment to national unity and stability, and supporting Ethiopia to play a greater role in regional and international affairs, and is willing to continue to strengthen strategic collaboration with Ethiopia, deepen practical cooperation in various fields, and work together to safeguard the fundamental interests of the two countries and the common interests of developing countries, and to maintain the basic norms of international relations.
Wang Yi said that China has great potential for cooperation with Ethiopia. China is willing to strengthen high-level exchanges with Ethiopia and exchanges at all levels in all sectors, support strong and reputable enterprises to invest in Ethiopia, accelerate the implementation of key cooperation projects, expand the scale of bilateral trade, and help Ethiopia to promote industrialization and modernization of agriculture and improve its capacity for independent development. It is hoped that Ethiopia will take practical and effective measures to ensure the safety of Chinese organizations and personnel. China is willing to work with Ethiopia to promote the implementation of the “Horn of Africa Peaceful Development Concept” and support Africans to solve African problems in an African way.
Demeke said Ethiopia has a long history of relations with China and is firmly committed to strengthening cooperation with China at bilateral, regional and multilateral levels. Ethiopia is grateful to China for its help in maintaining national security and stability, and looks forward to China’s support for the consolidation of peace, reconstruction and economic revitalization of Ethiopia, as well as the global development initiative, global security initiative and global civilization initiative put forward by China, and is willing to strengthen all-round exchanges among the government, political parties and enterprises with China, and deepen the mutually-beneficial cooperation in the field of trade and economic cooperation. Ethiopia firmly opposes the use of human rights as a tool to interfere in the internal affairs of developing countries, actively supports participation in collective cooperation among developing countries, and is willing to work with China to implement the “Horn of Africa Peaceful Development Concept” to promote regional peace and prosperity.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
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China Fully Engaged in Africa for 2023-The Future is Trade Not Debt
Ethiopian Prime Minister, Dr Abiy Ahmed with Chinese Foreign Minister, Qin Gang, in Addis Ababa (Courtesy of VOA)
January 23, 2023
For the thirty-third consecutive year, the first foreign trip by China’s Foreign Minister was to Africa. China’s new Foreign Minister, Qin Gang, the former Ambassador to the United States, traveled to Ethiopia, Gabon, Angola, Benin, and Egypt, from January 9 to 16, 2023. In addition to visiting these five African nations he was also invited to meet with African leaders at the African Union and the League of Arab States Headquarters. The stated purpose of the trip was: To deepen the China-Africa comprehensive strategic and cooperative partnership and boost friendly cooperation between China and Africa.
Friendship Remains Strong
Starting in the year 2000, China organized the Forum on China-Africa Cooperation (FOCAC), which meets every three years, alternating between China and Africa. These conferences provide a unique opportunity for African leaders and Chinese President, Xi Jinping, to discuss future economic, cultural, and political collaboration. Contrary to continued efforts by the U.S. to malign Africa-China cooperation, China and Africa have remained steadfast in their shared common interest; the development of their people
One of the highlights of Foreign Minister Qin Gang’s visit to Ethiopia, was to inaugurate the new Headquarters of the Africa Center for Disease Control and Prevention (Africa CDC). The new Africa CDC, located outside of Addis Ababa, the capital of Ethiopia, was built by China and given as a gift to Africa.
This is a critically important contribution to Africa, a continent of one and a half billion people, which was given a very low priority for vaccinating against COVID 19, and continuously suffers from a weak healthcare system.
Foreign Minister Qin met with Ethiopia’s Prime Minister, Dr. Abiy Ahmed, and Deputy Prime Minister and Foreign Minister Demeke Mekonnen. He was the first foreign government official to visit Ethiopia following the signing of the peace agreement of November 2, 2022, that ended a two year long war in northern Ethiopia. He expressed China’s support for “Africans in solving African problems in African ways.” This attitude differs dramatically from the U.S. and Europe, who undermined the government of Ethiopia during the war. Foreign Minister Qin pledged to assist Ethiopia in its reconstruction efforts, which are formidable following the terrible damage that the country suffered in fighting to maintain its sovereignty. Additionally, he announced that China will forgive thirty million dollars in Ethiopian debt.
In December 2022, the U.S. convened its first U.S.-Africa Summit in eight years. The unspoken “secret topic” and motivation for the three-day conference was, how to counter China’s growing influence on the African continent.
There are yet to be any “deliverables” from the U.S.-Africa Summit. While the Biden administration seems to be more focused on exporting the “infrastructure of democracy,” China is building and financing more hard infrastructure projects in Africa than the rest of Western nations combined. These projects impact the daily material needs of the African people, which is essential to eliminate poverty on the continent.
China-Africa Trade Not Debt
China’s trade with Africa during 2022 expanded to its largest single year total of $282 billion. China exported $164.5 billion to Africa and imported $117.5 billion over that twelve-month time, which represented an increase of 11% over 2021. From January to November of 2022, U.S. exports to Africa, were $28.5 billion and imports of $38.9 billion for a total trade of $67.3 billion, almost no increase over 2021. Thus, U.S. trade with Africa was approximately one-fourth that of China for 2022. If the U.S. intends to counter or challenge China in Africa, it will have to do a lot more than “exporting democracy.”
As you can see from the chart below the myth spun by Western officials and the media that China is primarily responsible for Africa’s debt, is simply not ture. This intentionally false allegation has been refuted again and again, but Western governments continue to propagandize Africa nations that China is using a ‘debt-trap’ diplomacy to seize their resources. Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa,
The total outstanding debt for sub-Saharan African nations to foreign entities totals: 454.4 billion USD. China is not even close to being the largest debt holder. China owns 79 billion USD of sub-Saharan Africa’s debt, less than one firth-17%. The debt held by bondholders, the World Bank, and the IMF, equals 286.9 billion USD,-63% of the total foreign debt of sub-Saharan Africa,
Courtesy of Reuters Graphics
Investing in Manufacturing
Contrary to Western propaganda, which accuses China of stealing Africa’s resources, China is actually expanding Africa’s manufacturing sector. This is a vital contribution since African nations suffer from an anemic production capability to add value their natural resources. A good example is the investment by Dinson Iron and Steel Company (DISCO), a Chinese steel manufacturer, who intends to invest in building a lithium battery manufacturing plant in Zimbabwe. Chinese firm to manufacture lithium batteries in zim. The Zimbabwean government has wisely banned the export of raw lithium. Having its own manufacturing plant, will create jobs and improve the standard of living of Zimbabweans, since mining and export of valuable minerals does not lead to economic growth for the population.
This kind of investment in local manufacturing along with China’s Belt and Road strategy of building infrastructure throughout Africa, is exactly what is needed to assist African nations in creating strong sovereign economies.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
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Exciting News for Africa! Djibouti Will Build Africa’s First Spaceport
The spaceport, expected to include seven satellite launch pads and three rocket testing pads, will be the first orbital spaceport on the continent.
Africa is entering a very exciting period in which it is asserting its scientific and engineering capabilities. Humankind’s exploration of space is the highest form of human discovery of the universe, and introduces into society new advanced technologies. With the completion of Ethiopia’s Grand Renaissance Dam in 2025, a scientific-engineering marvel, and the creation of Djibouti’s spaceport in five years, Africa is demonstrating its leadership for the 21st century, and creating the scientific foundation for economic growth. This is true sceintific-economic progress for the nations of Africa, whcih should make all poeple, of all nations happy.
Janary 23, 2023, Quartz Africa Weekly
Excerpts follow:
Africa could soon get a new spaceport after Djibouti signed a partnership deal with Hong Kong Aerospace Technology to build a facility to launch satellites and rockets in the northern Obock region.
According to the preliminary deal, the Djibouti government will “provide the necessary land (minimum 10 sq km and with a term of not less than 35 years) and all the necessary assistance to build and operate the Djiboutian Spaceport.”
The $1 billion spaceport project will also involve the construction of a port facility, a power grid and a highway to ensure the reliable transportation of aerospace materials.
The deal’s signing was presided over by the president of Djibouti, Ismail Omar Guelleh, and the project is set to be completed in the next five years.
The spaceport is a massive milestone for Africa, making it the first orbital spaceport on African soil.
The Djibouti spaceport project
According to Victor Mwongera, Head of the Department of Mechanical Engineering at Kenyatta University, the projection will avail a launch base that will serve all Africans.
“It will push eastern Africa off the sleeping state as far as active development of space-based innovations are concerned,” he explained.
Trial and small-scale launches have been executed in Africa in the past, including the Italian-operated Broglio Space Centre (San Marco) in Malindi, Kenya and Algeria’s Reggane.
Mwongera sees the expansion of Africa’s space industry—with a number of African countries already building and operating their own microsatellites—as a growing trend.
“It has taken time but we needed time as a continent to be ready for this age. Now that we are ready, you are seeing the number is increasing and it is bound to increase further,” he said.
Africa’s space industry is a billion dollar sector
According to the 2022 annual sector report of research firm Space in Africa, the value of the African space and satellite industry has risen to more than $19.6 billion.
The charge is fuelled by 14 countries that have launched 52 satellites into space.
South Africa, Egypt, Algeria, and Nigeria have the highest number of satellites in space as of 2022, each having launched more than five satellites.
Mwongera explained that east African countries are well positioned to harbor more spaceports, due to their proximity to the equator.
“At the equator… there is minimal energy required,” he said.
The original version of this article was published by bird-Africa no filter.
Read entire article: Africa Will Get A New $1 Billion Spaceport in Djibouti
Read my ealier posts below:
GERD: Utilizing the Blue Nile to Create Energy for Development in Ethiopia & The Horn of Africa
Science and Space Exploration Essential For Africa’s Economic Growth
Science and Technology Will Transform Africa: Ethiopia to Launch New Satellite in 2019
China & the US Can End Poverty by Exploring Space: Africa Gains
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
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African Youth Favor China’s Development Policy Over the U.S.
June 29, 2022
According to a recent survey by Ichikowitz Family Foundation, African youth favor China’s involvement on the continent over that of the United States.
In an article from the VOA-Voice of America, China wins battle of perception among young Africans, they report:
“Seventy-seven percent of young Africans said China was the ‘foreign actor’ with the greatest impact on the continent, while giving the U.S. an influence rating of just 67%. In a follow-up question on whether that influence was positive or negative, 76% said China’s was positive, while 72% said the same of the U.S.
“By contrast, U.S. influence has dropped by 12% since 2020, according to the survey of more than 4,500 Africans 18 to 24 years old and living in 15 countries across Africa.”
One of the primary reasons for their choices is: “Beijing’s investments in infrastructure development on the continent and China’s creation of job opportunities in African countries.” (Emphasis added)
Ivor Ichikowitz said:
“Young Africans are telling us that they are seeing tangible, visible and very impactful signs of the role that China has played in the development of Africa.”
“Albeit that there is significant criticism of Chinese investment in Africa, it’s very difficult for African governments not to value China because China is providing capital, providing expertise, providing markets at a time when Europe and the United States are not.”
China Embraces Economic Transformation of Africa
The Journal of International Development published in May of this year, Economic Transformation in Africa: What is the role of Chinese firms? This research paper explains why China has surpassed the U.S. in favorability among African youth.
The abstract of this paper bluntly states exactly what Western geopolitical ideologies still refuse to accept:
“Africa–China trade leads to mixed results, while Chinese investment and infrastructure construction are found to contribute positively to transformation. Chinese firms are also found to support capacity building, spillovers, and innovation in African countries.”
The authors have identified a central concept. African nations need Economic Transformation (ET), which is not equal to simplistic and false notions of economic growth measured by Gross Domestic Product (GDP).
They correctly explain the difference in their introduction:
“The process of economic transformation (ET), indicating the changes affecting the structure of an economy, is at the core of development. While GDP growth is often used as a metric for development, it simply points to an expansion of a country’s economic size, but it does not guarantee that the economy has become more diversified, resilient to shocks or inclusive. Conversely, ET, indicating a transition from an economy based on traditional agriculture to one where modern sectors take the central place, can deliver job creation, diversification, and inclusive development.
“Today, African countries face an ET gap. While many African economies have grown over the last few decades, their structure has not transformed. In contrast with other regions of the world, where the majority of people are employed in the secondary and tertiary sectors, a large share of Africa’s labor force works in agriculture and related activities, where average productivity is lower.
“When Chinese economic engagement with Africa started intensifying at the turn of the century, it raised hopes for ET. China’s extraordinary growth and poverty reduction performance could be a model for African countries; and with China as a trade, investment and development partner, African economies could hope to follow a similar path. African engagement with China was deemed particularly promising for industrialization on the continent. (Emphasis added)
Regrettably, both for the U.S., and Africa, and the rest of the developing sector, the West no longer believes in economic transformation. The U.S. in particular, is no longer devoted to fostering economic development for itself or other nations, contrary to many outstanding periods of its history. Whatever shortcomings exist in China’s relationship to Africa, China is committed to promoting real economic development i.e., economic transformation on the African continent. Yet Western governments continually attack China and its Belt and Road Initiative for assisting African nations in addressing the most critical deficiency in their economies; the lack of infrastructure and a manufacturing sector.
Many people, including so called economic experts fail to understand that money is not the basis of economic growth. The addition of all the monetary values of an economy’s goods and services measured in GDP, does not determine economic growth. The only proper, scientific measure of economy is not monetary values, but the ability of each particular mode of economic production to provide an increased standard of living to an expanding population. A physical economist like myself understands, that it is those physical inputs that lead to an increase in the performance-output of the productive powers of labor that determines real economic growth. Infrastructure and manufacturing capacity are crucial physical inputs required for economic transformation.
That is what the Chinese are providing for Africa, unlike the West. Could that be why young Africans think more approvingly of China’s policies in Africa than the U.S.?
Read the entire paper: Economic Transformation in Africa: What is the role of Chinese firms?
Read my earlier post: Africa Needs Real Economic Growth, Not IMF Accountants; For the Development of Africa: Know and Apply Franklin Roosevelt’s Credit Policy
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a writer, researcher, and consultant, and the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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Time to End Clap-Trap About ‘Debt-Trap Diplomacy’ in Africa!
June 14, 2022
Africa’s Bigger Worry Is Western Bondholders-Study Finds, an article in the South China Morning Post (see below), is yet another refutation of the baseless ‘debt-trap diplomacy.’ Western propaganda accuses China of deliberately driving African nations into debt, in order to seize their assets upon default on their loans. These charges have been disproved again, and again, including by the China-Africa Research Institute-CARI, Johns Hopkins University Washington DC. Not to overlooked: not one African asset or project involving China has been seized!
“Contrary to the debt-trap narrative, if a wave of African defaults materializes in the near future, as IFI officials have been fearing since at least 2015, it will be catalyzed more by private-sector maneuvering and intransigence than by Chinese scheming,” the study said
These false allegations against China and its Belt and Road Initiative, have been repeated without a scintilla of evidence, by leaders of Western governments including several U.S. Presidents, members of Congress, and State Department officials. The motivation for the mindless repetition of what is a blatant falsehood, is the perverted geopolitical doctrine. The followers of this geopolitical mindset insist that for the U.S. led West, to maintain their supremacy in the world, they must suppress and weaken other superpowers, to prevent them from challenging the U.S.-West hegemonic status. Sadly, from the ideology of western geopolitics, the African continent is seen as a mere chess board with African nations as mere chess pieces to counter China’s emergence. To China’s credit they have collaborated with African nations to build vitally necessary infrastructure, while for the last fifty years, the West has refused to make these long term investments.
As I have documented on this website for years, Africa’s infrastructure is so huge, that the demand for capital investment cannot be satisfied by one nation alone.
There is a harmony of interest for the U.S. and China to cooperate with African nations to eliminate poverty and hunger, which I know can be done within one generation. Let us jettison the relic of geopolitics and adopt a mission that is in the shared-common interest of humankind.
Africa’s Bigger Worry Is Western Bondholders-Study Finds
Chinese debt traps in Africa? The bigger worry is bondholders, study finds
•China is the continent’s biggest bilateral creditor but most of the debt is due to private Western holders of African debt, according to a new report
•Private-sector manoeuvring rather than Chinese scheming more likely to induce a wave of defaults, researchers say
Jevans Nyabiage, June 6, 2022
The rise in African debt due to Chinese lending pales in comparison with the debt burden created by private creditors in the last decade, according to a new report taking aim at accusations that Beijing engages in “debt-trap diplomacy” on the continent.
The study – by Harry Verhoeven from the Centre on Global Energy Policy at Columbia University, and Nicolas Lippolis from the department of politics and international relations at the University of Oxford – says the debt-trap narrative is a function of China-US strategic and ideological rivalry rather than a reflection of African realities or perspectives.
“What keeps African leaders awake at night is not Chinese debt traps. It is the whims of the bond market,” the report says.
Debt-trap diplomacy involves extending loans to countries and taking control of key assets if the debtor defaults on repayments.
While China is the continent’s biggest bilateral creditor, most of the debt is due to private Western holders of African debt, according to the researchers. Capital, in the form of debt repayments, thus continued to flow from Africa to Europe and North America, the study said.
Verhoeven said the percentage of African debt owed to China was less compared to that borrowed from private creditors.
“[Chinese debt] is not the most rapidly growing segment of debt. Other credit lines have grown a lot more in recent years, especially those towards commercial creditors,” said Verhoeven, co-author of the report “Politics by Default: China and the Global Governance of African Debt”.
“These are bondholders, people from London, Frankfurt and New York who are buying African debt. That segment in the last couple of years has grown much faster than any liabilities that African states owe other creditors.”
The report cited confidential estimates of international financial institutions (IFIs) that showed sub-Saharan Africa’s government debts to Chinese entities at the end of 2019 totaled around US$78 billion. This was about 8 per cent of the region’s total debt of US$954 billion and 18 per cent of Africa’s external debt.
Continue reading the entire article: Africa’s Bigger Worry Is Western Bondholders-Study Finds
Read my earlier posts:
Africa’s ‘poverty trap’ more dangerous than so-called debt trap
Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the 0blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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U.S. Geopolitics Exposes Itself in CFR report on China’s Belt and Road-Will Africa benefit?
China’s Belt and Road Initiative- BRI (Courtesy of dailysabah.com)
February12, 2022
Lawrence Freeman
The Council on Foreign Relations (CFR) March 2021 report: China’s Belt and Road: Implications for the United States, would be humorous, if it was not so pitiful. In the course of almost 200 pages, the CFR, the premiere think tank of the U.S. Establishment, maligns China’s Belt and Road Initiative (BRI), but admits that the success of the BRI is the result of a failure of U.S. policy. The entire analysis is inherently flawed from the beginning because it proceeds from the axioms of the diseased doctrine of geo-politics, which views the world as a zero-sum game. Rather than understanding that the world is composed of human beings and sovereign nations who share a common interest, Anglo-American devotees of geopolitics only see two sides. In this case, China, and the U.S., where “an advantage to one side is a loss to the other.”
The CFR report is replete with a compilation of:
- Contradictions
- Speculation that BRI nations debt to China “might” or “could” lead to economic distress
- China is not playing by the international rules imposed by Western international financial institutions
- Recommendations that do not address the reasons for the success of the BRI, but instead propose new forms of political-economic warfare to undermine China.
The report’s Executive Summary bluntly states:
“U.S. inaction as much as Chinese assertiveness is responsible for the economic and strategic predicament in which the United States finds itself. U.S. withdrawal helped create the vacuum that China filled with BRI…it [the U.S.] has not met the inherent needs of the region.” (emphasis added)
US Infrastructure Investment?
US stopped loaning money to Africa for infrastructure for several decades
It is well known that beginning in the 1970s, the U.S. moved away from investing in hard infrastructure. Hard infrastructure is essential to the growth of the physical economy. It is irreplaceable in providing a platform that is the foundation of a healthy economy. The U.S. abandoned the needs of the majority of the nations of the world and foolishly sabotaged the U.S. economy as well.
According to estimates by the World Bank sited in this report:
“…$97 trillion needs to be spent on infrastructure globally by 2040 in order to maintain economic growth and to meet the UN Sustainable Development Goals, but an $18 trillion gap exists.”
The report acknowledges that Western financial institutions and governments do not fund hard infrastructure.
Should BRI nations be punished for trying to improve the lives of their population by accepting China’s financing help? The African continent, which has the largest infrastructure deficit in the world, encounters a gap upwards of $100 billion a year for essential infrastructure investment.
The report itself admits the global benefits of the BRI:
“Since BRI’s launch in 2013, Chinese banks and companies have financed and built everything from power plants, railways, highways, and ports to telecommunications infrastructure, fiber-optic cables, and smart cities around the world…BRI has the potential to meet long-standing developing country needs and spur global economic growth.” (emphasis added)
Geopolitics Governs Western Thinking
If the CFR were genuinely concerned about addressing the huge lack of hard infrastructure that is keeping nations underdeveloped and forcing billions of people around the world to live in poverty, they would propose the U.S. collaborate with the BRI. However, they are more concerned in trying to maintain U.S. unipolar dominance.
For those of you who do not know, the Council on Foreign Relations is a 100 year old arm of the Anglo-American establishment. Founded in 1921 as the American branch of the British Royal Institute for International Affairs, otherwise known as Chatham House, which was createdtwo years earlier. Chatham House was created by Lord Alfred Milner, then acting as Secretary of State for the British Empire’s colonies, through a vast trust funded by the estate of race-patriot Cecil Rhodes.
(Courtesy of slideshare.net)
The CFR report makes clear their fear of China usurping the U.S. as the one and only world superpower when they write that the BRI will “enable China to lock countries into Chinese ecosystems…“The report attacks China for the crime of violating the so called free-trade system by subsidizing “state-owned and non–market oriented Chinese companies” and that the BRI is “undermining world macroeconomic stability.”
Nevertheless, the report states: “The United States, even if not formally part of BRI, would likely benefit in some ways if BRI builds infrastructure that accelerates global economic growth.” (emphasis added)
The actual threat for the Western financial system, overburdened with quadrillions of dollars of derivatives and unpayable debts, is that it will be outperformed by China, dislodging the U.S. from its perch as the sole economic superpower.
No Debt Trap, Debt Crisis Instead
The CFR report is forced to admit there is no Chinese debt-trap, and no asset seizure.
“Although not setting explicit debt traps, China’s lending practices contribute to debt crisis along BRI.” However, “there has yet to be a case in which China has taken control of other countries’ infrastructure.”
Revealing their real concern, the report speculates, “the risk is clear that countries unable to repay their debts to China could become clients of China, deferring to it on political or strategic issues.”
The CFR report, while explicitly acknowledging multiple times that there is no debt-trap, argues that Chinese BRI loans are driving the “emerging debt crisis,” threatening todisruptthe global financial system. They write: “When these emerging debt crises in BRI countries materialize, they will undermine global economic growth and macroeconomic stability…”
They also allege that: “BRI participants [will be forced] to choose between meeting debt-service requirements to China or funding local economic recovery and critical medical services at a moment of historic crisis.” Isn’t that precisely what the World Bank and International Monetary Fund have been demanding of developing nations for the last several decades?
China dwarfs the West in infrastructure investment
Gyude More, the former Minister of Infrastructure in Liberia, has on multiple occasions pointed out the fallacies of claiming that China is causing debt distress in African nations. He estimates that Africa’s debt to China is between 20-23%, with a handful of African nations responsible for the majority of the debt. Approximately 80% of the continent’s debt is owed to multilateral Western financial institutions, the private sector, and hedge funds.
Moore cogently points out that prior to China’s involvement in the continent, African nations were forced to pay debt service and arrears on unpayable Western loans. Africans also received no benefit from multi-billion dollar Western extractive mining interests that looted Africa’s resources, contributing little or nothing to improving the conditions of life for Africans. With China there is a new “win-win” model. Moore explains that natural resources are instead used to secure loans from China to actually build vitally needed infrastructure that benefits the lives of Africans. Why should African nations reject this arrangement, which also comes with no demands for political of financial reform of the host nation? The West “doth protest too much, methinks.”
CFR Proposals: Impotent or Geopolitical?
The recommendations of the CFR report are a combination of impotency and geopolitical idiocy, arrogantly displaying no respect for the sovereignty of BRI nations. However, the report itself affirms that China’s BRI is a reality across the globe, and it is here to stay. All of the recommendations in this report avoid addressing what the BRI is providing; government subsidized credit for the construction of hard infrastructure. Instead, they recommend for the U.S. to menacingly wage geopolitical propaganda war against China and the BRI. Their suggestions include for the U.S. to; raise awareness of BRI risks, fund investigative journalism in BRI countries, champion anticorruption, work with IMF and World Bank to assess debt sustainability for BRI nations, and prepare for a conflict with BRI countries.
Notice the glaring absence of a positive development policy that promotes real economic growth around the world, demonstrating the bankruptcy of U.S. foreign policy, as well as the CFR.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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Africa’s ‘poverty trap’ more dangerous than-called debt trap
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Kenyan President Uhuru Kenyatta (L) and Chinese Foreign Minister Wang Yi attend the completion ceremony of the Chinese-built oil terminal at the port of Mombasa in Mombasa, Kenya, January 6, 2022. /Xinhua
Lawrence Freeman
CGTN, January 24, 2022
Editor’s note: Lawrence Freeman is a Political-Economic Analyst on Africa, who has been involved in economic development policies for Africa for over 30 years. The article reflects the author’s opinions and not necessarily the views of CGTN.
In his visit to Kenya on January 6, 2022, China’s Foreign Minister, Wang Yi, emphasized China’s support for economic progress in Africa, and in particular, the Horn of Africa.
Wang was continuing China’s 32-year-old tradition of having their foreign minister begin each year with an overseas trip to Africa. In the first week of January, Wang met with officials in Eritrea, Kenya and Comoros. Both Eritrea and Kenya are located in East Africa, a region where Ethiopia, the second most populated nation in Africa, is engaged in a 14-month war to defeat an armed insurrection led by the Tigray People’s Liberation Front. Kenya, an important ally of China, is a key nation in China’s Belt and Road Initiative (BRI) and Maritime Silk Road.
Eliminating poverty
Wang, in his press conference, focused on the number one challenge facing Africa: poverty and the extremely low standard of living affecting the majority of its 1.4 billion people.
He polemically stated,” If there is any trap in Africa, it is the trap of poverty and the trap of backwardness,” which he counterposed to the so-called debt trap that he referred to as a “speech trap” created by the West. China speaks with authority, which has accomplished a modern day miracle in lifting over 750 million of its people out of extreme poverty and has pledged to help Africa do the same.
A woman fills up her water jerrycan in Nairobi, capital of Kenya, January 1, 2022. /VCG
China’s approach to the current challenges in the Horn of Africa is in stark contrast to that of the U.S. Instead of punishing Eastern African nations with sanctions and economic warfare, China is promoting peace and economic development. According to Wang, China will appoint a special envoy for the region, with the goal:
“To support the Horn of Africa in realizing lasting stability, peace and prosperity, China is willing to put forward the ‘Initiative of Peaceful Development in the Horn of Africa’ and support regional countries in addressing the triple challenges of security, development and governance.”
Emphasizing China’s infrastructure-led economic approach, Wang encouraged nations of the region to “accelerate regional revitalization to overcome development challenges,” adding that “the two principal axes, the Mombasa-Nairobi Railway, and the Addis Ababa-Djibouti Railway, should be enlarged and enhanced with the aim of expanding to neighboring countries at an opportune moment.”
Wang announced that China would provide an additional 10 million doses of coronavirus vaccine to Kenya which follows President Xi Jinping’s November pledge at the Forum on China Africa Cooperation conference in Dakar, to make 1 billion doses available to Africa.
China’s policy guided by development
The dominant feature of China’s relation to Africa is development, contrary to the Western geopolitical propaganda against China. The infrastructure-driven BRI has made physical improvements in African economies through the construction of railways, roads, power generation capacity, ports and airports. There is not a single Western nation that even remotely compares to China’s level of investment in Africa.
As every African leader knows well, if China were to cease offering loans for infrastructure, there would be no Western nation to address the continent’s huge deficit in the field, and African nations would suffer terribly.
The U.S. has failed to modernize its own rail network and is incapable of building advanced transportation corridors in other countries, while China had constructed around 40,000 kilometers of high-speed rail by the end of 2021.
Unlike U.S. officials who travel to African nations, Chinese representatives do not attach political conditionalities or arrogantly dictate what domestic policies must be adopted by their host countries. Instead, China is thoughtful by responding to the most critical and urgent needs of African nations. That is the elimination of poverty, which necessitates massive investments in hard and soft infrastructure.
Africa-s-poverty-trap-more-dangerous-than-so-called-debt-trap
Read my earlier posts:
Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa
China-Africa Debt Trap Refuted Again. Belt and Road Building Infrastructure-Developing Africa
A Brief Response: Marshall Plan for Africa or “Debt Trap?”
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
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China’s Belt & Road is Helping Empower African Nations to Realize Their Economic Potential
https://lawrencefreemanafricaandtheworld.com/wp-content/uploads/2021/11/Prof_Freeman.mp4 November 15, 2021Please watch my 45 minute presentation to the Special Session on Africa, at the ICG 16 in Qingdao, China, on October 25, 2021, entitled: “How China Is Empowering Africa’s Self Development.”I discuss as a physical economist the critical importance of infrastructure in developing a progressive pro-growth economy. Expansion of vital categories of infrastructure, such as railroads and electricity is the most essential task for African nations today. I present in detail how China’s Belt and Road Initiative (BRI) is assisting African nations in developing their economies. The West, dominated by the disease known as “geo-politics” is spreading false propaganda against China’s investment in Africa. I expose their their anti-China propaganda regarding so called “debt-trap” diplomacy. Viewing my presentation will prove valuable to those familiar and those unfamiliar with China’s cooperative relationship wit African nations.Please watch: Africa-China: Belt and RoadLawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.________________________________________________________
The Truth: It is good that China Is Investing in Africa’s Energy and Transportation Infrastructure
The Truth: It is good that China Is Investing in Africa’s Energy and Transportation Infrastructure
Lawrence Freeman April 8, 2021 Below are two articles examining China’s investment policy in Africa that should be read to learn the truth about China’s lending to the continent. One, is a briefing paper from China Africa Research Initiative (CARI) entitled, Twenty Years of Data on China’s Africa Lending. The second is entitled, “Why Substantial Chinese FDI is Flowing into Africa, by Shirly Yu. Combined, both papers provide a thorough analysis of the positive contribution of Chinese investment in Africa, surpassing the United States in all categories. As many African leaders know, without China’s contribution to Africa’s development, especially in infrastructure, Africa would be worse off. There is absolutely no indication that the U.S. and the West would fill that void. It is undeniable that China has invested heavily in the development of Africa over the last two decades. Ignore the claptrap allegations of a deliberate Chinese debt-trap policy to seize control over Africa’s resources. It is nonsense and has not happened; not once, not in a single African nation. According to CARI’s data base, from 2000-2019, China has made $157 billion in loans to Africa. Of these 1,077 loans, 85% have been in categories of infrastructure, of which 65% have been in energy and transportation. According to CARI, only 13% of Africa’s debt is owed to China. The largest portion of Africa’s debt is owed to multilateral institutions at 32%, followed by loans from private bond holders. Outside of Angola, only 8% of Chinese lending was for resource backed loans. 90% of the contractors in Africa from China are private Chinese companies, not state owned enterprises (SOEs). Also, 90 % of Foreign Direct Investment (FDI) is from private Chinese companies, although SOEs are the largest investors in Africa in total value. President Biden has recently suggested that the U.S. and Europe should lead a western version of China’s Belt and Road (BRI). If it were to be as productive as China[‘s (BRI), African nations would benefit greatly, especially in this challenging economic period. Excerpts from Shirly Yu: “Make no mistake, Chinese state-owned enterprises (SOEs) are still the largest investors in Africa by value and continue to dominate the energy, transportation and resources sectors due to the strategic nature and long-haul return of these investments. For instance, one third of Africa’s power grid and energy infrastructure has been financed and constructed by state-owned Chinese companies since 2010. China is the most significant foreign contributor through SOEs and state-owned banks to Africa’s energy development. “By 2034, Africa’s labour force is forecast to surpass that of China and India combined. By 2050, the African population is expected to be 2.5 billion, while China’s population will decline to below 1 billion. With these figures in mind, Africa’s young labour force is exactly what China’s labour-intensive manufacturers seek today.”___________________________________________________________________________________________
Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa
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China’s Friendship and Economic Partnership With Africa in 2021
HISTORIC NEWS FOR DR CONGO !
China and DRC sign MoU on Belt and Road cooperation
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Belt and Road Infrastructure Contributes to Africa’s Development: No ‘Debt-trap’
Belt and Road Infrastructure Contributes to Africa’s Development: No ‘Debt-trap’
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China Brings Good News for Humankind: Eliminating Poverty and Discovering Abundant Energy for the Future
“Modern science has revealed that most of the energy we use today originated from sunlight—coal and oil are basically storage of ancient sunlight. Scientists and engineers have been trying to build a smaller sun on Earth for decades. And helium-3 is a great fuel to do that. “100 tons of helium-3 can generate the energy needed by all humans for a year. And there may be a million tons of helium-3 on the Moon—which can help humans survive another 10,000 years. Building the artificial sun requires many strict conditions, some of which can be easily met on the Moon since the sphere has much less gravity than the Earth. “Imagine if we don’t need oil anymore. Lots of wars will become pointless and we may enjoy one of the most peaceful ages ever. Isn’t that great? And that’s why we should continue the effort of lunar exploration. China’s international Moon lab could be a good start.”This is not the first time that CGTN has highlighted the helium-3 issue, but has been a steady companion to most of its coverage of the Chang’e-5 mission since it began. It has also been underlined by many of the researchers involved in the Chang’e-5 project in their briefings on the project.
China Commissioned a Tokamak Fusion Reactor Today!
People’s Daily reports that China began the commissioning of its HL-2M Tokamak nuclear fusion reactor in Chengdu, Sichuan province today, after its installation work was completed. This is the step required for testing operations and verifying functioning of all reactor systems and components before full operation can begin. PhysOrg reports that this tokamak is China’s largest and most advanced, which Chinese scientists plan to use in collaboration with scientists working on the International Thermonuclear Experimental Reactor (ITER), which is also a tokamak. People’s Daily wrote that this “breakthrough has laid a solid foundation for China’s independent design and construction of nuclear fusion reactors… The development of nuclear fusion energy is not only a way to solve China’s strategic energy needs, but also has great significance for the future sustainable development of China’s energy and national economy.” And of the world development, we might add. (China Nuclear Powered Artificial Sun) China Lifts Last Nine Counties Out of Absolute Poverty, Achieves Historic End to Poverty in 2020 On Nov. 23, authorities in southwest China’s Guizhou Province announced that they had lifted the last remaining nine counties in their province out of absolute poverty. “This means that all 832 registered poor counties in China have shaken off poverty,” Xinhua reported. At the end of 2019, there were still 52 counties across China on the poverty list. “Earlier this month, all poor counties in Xinjiang Uygur Autonomous Region, Guangxi Zhuang Autonomous Region, Ningxia Hui Autonomous Region, as well as the provinces of Yunnan, Sichuan and Gansu were lifted out of poverty,” Xinhua reported. With Guizhou now reporting the same, the national goal has been met. A Global Times op-ed by Yu Shaoxiang Nov. 24 celebrated and explained China’s historic achievement:“First, China is able to concentrate its efforts on major tasks with strict enforcement of orders and prohibitions. This is what many other countries cannot do…. “Second, based on local conditions, we helped people move out of places such as remote mountains that are not suitable to live in. This was a complex project requiring a great amount of capital and manpower. It also demanded coordination between governments between their origins and place of settlement. The relocation efforts solved the survival problem of many people…. “Third, China has reduced poverty with industrial development. This has been one of the most direct and effective measures to offer long-term solutions for impoverished places. Nowadays, many places around the world are still troubled by poverty. Even in developed capitalist countries there are large numbers of people living under crippling circumstances. Capitalism’s nature of profits at all costs determines that many countries don’t take poverty relief as one of their top priorities…. “Against this backdrop, we can contribute Chinese wisdom to the governance of global poverty. China not only emphasizes poverty reduction, but also avoids situations where people can fall into poverty again…. The elimination of extreme poverty does not mean that the problem of poverty will no longer exist. After all, ‘poverty’ is a relative concept. Therefore, as extreme poverty is now deemed to be officially eliminated, China’s definition of poverty will gradually expand. The goal will be to upgrade from meeting the needs of basic subsistence to living a decent life. These include providing clean drinking water, better health care and education.”China Daily also weighed in editorially:
“Feeding, clothing and sheltering 1.4 billion people is no easy job. But somehow China has managed to do it. And, in so doing, it has become the first developing country to accomplish the poverty reduction target of the UN 2030 Agenda for Sustainable Development—and done it 10 years ahead of schedule…. The country has therefore fulfilled its decades-long goal of eliminating absolute poverty. As President Xi Jinping proudly shared with other G20 leaders via video link the other day, lifting more than 700 million people out of poverty in a matter of four decades has been no mean feat…. “The good news from Guizhou came despite the country having to contend with the twin pressures from the economic downturn and the novel coronavirus outbreak.” Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
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China Eliminated Poverty With Science and Infrastructure. It Can Be Done in Africa Too!
China Employs Hamilton’s Principles of Credit for Railroads
(EIRNS) —China’s exciting announcement of its plan to increase the pace of development of maglev and its high-speed rail network, is based on its assurance that it knows how to implement that, and to finance it on top-down principles of the type proposed by Alexander Hamilton. China announced its plans to build a system of 600 kph (373 mph) maglev vehicles, after it successfully conducted its maiden test run of a maglev vehicle at a test track at Tonji University in Shanghai on June 21. Though the train-set did not run at top speed of 600 kph, but at a lower speed, various important features were tested. Prototype vehicles are approved for construction in 2021, and up to nine new maglev lines, totalling over 1,000 km (600 miles), are planned for the future. Equally impressive, China’s plan to double its existing 35,000 km of high-speed rail already in operation, to 70,000 km by 2035, shows how a Confucian/Hamiltonian economy actually works. Based on estimates by the Lange Steel Information Research Center in Beijing, reported by the Wall Street Journal, China would have spent $180 billion for 35 approved railway projects in 2019, most of them high-speed rail, launching the next phase of HSR development. In the first half of 2020, according to the Aug. 13 *China Daily), China invested $207 billion in combined railway, highway, waterway and civil aviation infrastructure, of which $46.9 billion was in railways. China’s transportation infrastructure investment alone, is 5-10 times that of every country on Earth. Featured in China’s railway investment is a new, 1700 km high-speed rail system between Chengdu, Sichuan and Lhasa, Tibet; high-speed rail in landlocked Shaanxi Province, etc. China finances the rail and other critical infrastructure, through two methods of directed credit: China’s four largest state-owned commercial banks—the Industrial & Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the China Construction Bank—make ample loans directly to the China Railway company, the China Railway Rolling Stock Corporation (CRRC), which builds the rail equipment, etc. This is overseen by China’s three “policy banks.” Second, the national government and local governments purchase bonds issued by China Railway Corporation, CRRC, and so forth. China has announced its new rail construction program. The government plans to build 200,000 km of rail by 2035, about 70,000 of which will be high-speed rail. All cities with a population of 200,000 or more will be connected by rail, and all cities with 500,000 people or more will be connected by high-speed rail. China is also working on the next generation maglev train that could travel at speeds of 600 kph. Pause for a moment from your daily activity. Let your imagination look into the future, and ponder what the nations of Africa would look like if, all cities with 200,000 people or more were connected by railroads. The topology of the continent would be different. China has proved it can be done. It is not a matter of Africa following the China model. Rather, it is comprehending the scientific principles of Alexander Hamilton’s economic system. Read my earlier posts: Alexander Hamilton’s Credit System Is Necessary for Africa’s Development and Nations Must Study Alexander Hamilton’s Principles of Political Economy In his article below, William Jones provide an insightful analysis of the forces behind the anti-China mantra, rampant in the Trump administration. As the ‘Five Eyes’ gear up to confront China, can anyone say that the British Empire is a thing of the past? “A recent article published in the China Economic Diplomacy Watch pointed to the “Five Eyes” – the U.S., UK, Australia, Canada and New Zealand – as the key rallying group for Pompeo’s call for a containment policy toward China. The article has indicated a crucial element in the danger the world is facing. The unifying factor in this grouping is, firstly, that the “Five Eyes” are all English-speaking countries, and secondly, that they all at one time or the other belonged to the British Empire.” Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com________________________________________________________________________________________
No More Lies, No More Anti-China Propaganda: There is No China-Africa ‘Debt-trap’
June 20, 2020 China-Africa Research Initiative-(CARI) presented an interesting and useful webinar entitled : Debt Relief with Chinese Characteristics, using research presented from a Working Paper #39 and Policy Brief #46. View: CARI: Debt Relief With Chinese Characteristics In response to China’s growing economic and political influence in the world, especially on the African continent, various propaganda outlets located in the West have launched a new assault on China. Their line of attack is to malign China and African leaders with the false narrative that China is intentionally luring African nations into a ‘debt-trap’ in order to seize control of their natural resources. This cynical view of China’s alliance with African nations flows from the age old doctrine of “geo-politics” that only perceives nations as either winners or losers in a fixed zero-sum view of the world. In this evil world view, stronger powers, hegemons believe they can only maintain their supremacy by having their foot on the neck of weaker nations. The “geo-political” doctrine rejects the notion that all nations share a common interest. Misinformation or Disinformation As Deborah Brautigam, director of CARI has stated before, there is no evidence, none, not one single case of China using debt to seize control of an African nation’s assets. “We found no “asset seizures” and despite contract clauses requiring arbitration, no evidence of the use of courts to enforce payments, or application of penalty interest rates.” Despite no substantiation of China using debt as a weapon against African nations, the ‘debt-trap’ mantra is repeated by either misinformed individuals, including Africans, or by those who are deliberately disseminating disinformation with malice. The CARI working paper reports the following: “The rating agency Moody’s warned that countries ‘rich in natural resources, like Angola, Zambia, and Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors.’ These assumptions of a malign China were repeated in publications like The New York Times, which contended that Chinese loans “frequently use national assets as collateral” and require refinancing ‘every couple years’ (our Africa data supports neither of these statements).” (emphasis added) If there is any honesty or integrity left in our duplicitous culture, all claptrap about China’ alleged ‘debt-trap’ as a nefarious attempt to gain control of Africa’s wealth should cease immediately! If one examines the long history of China’s relationship with Africa and the more recent twenty year period, it is clear that China desires to resolve issues with African nations through consultation. China may choose other means of responding to payment difficulties, but there is no evidence that they want to take over African holdings, contrary to prevalent popular opinion. Read: Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa Debt Cancellation As COVID-19 spreads in Africa, nations are struggling to survive economically and simultaneously defeat the deadly virus. Debt service is onerous and must be suspended indefinitely or cancelled, as leaders of many Africans nation have rightly insisted. According to Dr. Brautigam, from 2000-2018, China has made loan commitments of $152 billion, and of Africa’ total external debt, China holds 17%, while the World Bank hold 18%, and private lenders 31%. Thus, China will and has already engaged in debt relief, but will do it differently than western institutions like the Paris Club and World Bank. “Our [CARI] study found that between 2000 and 2019, China has cancelled at least US$ 3.4 billion of debt in Africa. There is no “China, Inc.”: for interest-bearing loans, treatment for inter-governmental debt and Chinese company loans are negotiated separately, and often loan-by-loan rather than for the entire portfolio. While rescheduling by increasing the repayment period is common, changes in interest rates, reductions in principal (“haircuts”), or refinancing are not. We found that China has restructured or refinanced approximately US$ 15 billion of debt in Africa between 2000 and 20190…Chinese lenders prefer to address restructuring quietly, on a bilateral basis, tailoring programs to each situation.” China, up this point has only cancelled zero interest loans, which represent only 5% of loans from China, and are issued from China’s Ministry of Commerce. It is unlikely that there will be unilateral debt suspension. Thus, we can expect that China will negotiate debt relief bilaterally with each nation, and each loan reviewed separately. Even if debt cancellation is continued into 2021, which has not yet been agreed to, it will be insufficient. The level of investment required to meet Africa’s’ minimal infrastructure needs is in the trillions of dollars, which belies the “geo-political” nonsense of zero-sum assumptions. Debt relief must be accompanied by issuance of credit for infrastructure and related sectors of production, otherwise Africa and the world will suffer from the spread of COVID-19 and future zoonotic diseases. Poverty is a co-factor for all diseases. Lack of electricity is a co-factor for the spread of disease and hunger, as is the lack of clean water, and inadequate transportation. China’s Belt and Road Initiative over recent years has begun to address Africa’s infrastructure deficit, but much, much more is required. Collaboration between the U.S. and China on the development of Africa would be consequential for the continent. I have addressed this issue in earlier posts: World Needs New Economic Platform to Fight COVID-19, New Economic Order Required to Combat COVID-19 in AfricaView: CARI: Debt Relief With Chinese Characteristics
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com________________________________________________________________________
China’s Belt & Road Needed to Revitalize World Economy: CGTN
May 18, 2020 Below are excerpts from my article on the strategic role of China’s Belt and Road in today’s world economy, published by CGTN The global economic breakdown ignited by the COVID-19 pandemic entails China and its Belt and Road Initiative (BRI) playing an important role in restoring health to the world economy. While Western nations are still struggling with COVID-19, and are months away from beginning to refurbish their economies, China has already started its recovery, following its earlier success in combating the coronavirus. The collapse of nations to conditions resembling the Great Depression and the inability to contain the deadly virus have belied the alleged success of globalization. The underlying flaws of the deregulated post Bretton Woods financial system, which has become an international gambling casino to make fast money, are now nakedly revealed. Given the breakdown of the present global financial system, it is urgent that leading nations issue a call to convene a conference to initiate a New Bretton Woods system, which values human life over making money. For civilization to progress, a new economic architecture dedicated to ending poverty, and promoting productive economic growth is compulsory. Without question, the United States and China will have to perform outsized roles in establishing a new paradigm of political-economic relationships among nations, notwithstanding current tensions. Read the entire article: Belt and Road Needed to Revitalize World Economy________________________________________________________________________
End Racism Against China: CORONAVIRUS is a Human Disease
I concur with the statement below by Mrs LaRouche from the German based Schiller Institute. China is making an heroic effort to contain the Coronavirus, and I might add without international support. While President Trump supports President Xi Jinping, the US has given no assistance. Building a new hospital from scratch in 9 days is nothing short of stupendous! Racism against China, by many of US elected officials, fellow citizens, and some of my African friends, must end. China has emerged as a global power. A more thoughtful policy would be for the United States to collaborate with China and Russia to find solutions to various strategic crises endangering peace and security in the world.
CHINA DESERVES PRAISE AND COOPERATION IN THE FIGHT AGAINST THE CORONA VIRUS
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China Has Embraced Africa’s Development; The US Has Not
China Has Embraced Africa’s Development; The US Has Not.
By Lawrence Freeman It is as clear as day and night, the difference between China’s approach to Africa and that of the United States. There is no equivalence. Historically, China has viewed African nations as part of the developing sector from which China emerged. This has contributed to China’s distinct attitude to partnering with African nations in promoting economic growth. Over the last two decades especially, the ties between China and Africa have grown stronger, with Africa’s East Coast materializing as an integral part of China’s Belt and Road Initiative. The US has not always dismissed the importance of contributing to Africa’s growth. President John Kennedy, following in the footsteps of President Franklin Roosevelt, was a strong opponent of colonial subjugation of Africa. President Kennedy, as US Senator advocated Africa’s liberation movement, and as US President supported President Kwame Nkrumah’s plans to construct the hydro-electric dam and bauxite smelting complex on Ghana’s Volta River. By the end of the 1960s the US had lost its optimism and vision for the world, adopting in its place, a British inspired cynical “geo-political” doctrine. Geo-politics divides the world into two categories; winners and losers in a zero sum game. Today’s unfounded attacks against China’s involvement in Africa, alleging that China is deliberately entrapping nations into debt and stealing their natural resources flows from this perverted world view. Chinese President, Xi Jinping promotes a different philosophy; it’s called “win-win.” Building, Not Extracting Unlike British Imperialist Cecil Rhodes, and degenerates like King Leopold II, China is not raping Africa for its resources. Since Royal Dutch Shell discovered oil in southern Nigeria in 1956, the West has focused its investment chiefly in oil and gas-i.e. hydrocarbon extractive industries. China in recent decades has become the leading nation in financing and building infrastructure in Africa. It is well known that investment in extractive industries do not expand the economy nor provide a large amount of jobs. However, it does yield large streams of revenue. China has chosen a different business mode; one more beneficial to the African people. According to McKinsey consulting company’s publication, Dance of the lions and the dragons, released in June 2017, China in 2015 financed $21 billion worth of infrastructure projects in Africa. That is three times the combined total of France, Japan, Germany, and India. US financing of infrastructure in Africa was too minimal to even mention. Detailed in the same document, China’s export and import trade with Africa is quantified as $188 billion in 2015, compared to the US at $53 billion. Deloitte’s 2017 Africa Construction Trends, further documents China’s role in expanding Africa’s infrastructure. As of June 2017, China was only second to African governments in funding large infrastructure projects, 15.5% and 27.1% respectively. The US was listed at 3%, the UK and France at 2%. When it comes to who actually builds these projects the figures are more shocking; China constructed over one quarter or 28.1% of these projects, the US 3.3%, and the UK 2.3%. Infrastructure Is Essential Infrastructure is critical for every economy to expand, grow and develop. Africa’s deplorable lack of infrastructure is literally killing its people. There is no more crucial single element of economy that must be addressed for African nations to develop. Infrastructure adds value to the entire economy by augmenting the productive capability of every farmer and worker. More capital intense economies will be affected by technologically advanced infrastructure platforms. The history of humankind demonstrates that progress of civilizations emanates from the realization of scientific discoveries transmitted through more efficacious technologies. Infrastructure reflecting more advanced machinery is a primary means of transferring technology (science) to the economic production process. There is nothing wrong with African nations using their resources for collateral or payment of loans for infrastructure. Wealth is not the monetary value of natural resources extracted from the earth. Economic wealth is understood to be that which contributes to the increase of the power of society to provide the material wellbeing of its citizens and their posterity. Infrastructure performs that function. China’s contribution to building new railroads in Africa, replacing century old British and French antiquated rail lines, and constructing new hydro-electric dams, and ports, is precisely what African nations need to develop. China is providing indispensable assistance; the US and Europe are not. An experienced former US ambassador to Africa told me bluntly; the US stopped investing in infrastructure in Africa in the early 1970s. Sadly, today, the US continues to repeatedly proclaim, “we don’t build infrastructure.” Debt-Trap or Claptrap? In her latest paper, A critical look at Chinese ‘debt-trap’ diplomacy: the rise of a meme, Deborah Brautigam, China-Africa scholar and Director of the China-Africa Research Initiative-(CARI) at SAIS*, puts a nail in the coffin regarding false accusations of China deliberately entrapping African nations through debt. She writes: “…for over a decade Western politicians and pundits have warned that China is a rogue donor with regard to its finance, is a new colonialist, and a predatory and pernicious lender that snares vulnerable states in a debt trap leveraging its loans in order to have its way with weak victims.” Brautigam responds to these allegations by asking: “However, does evidence exist for this kind of debt leverage?” Then she answers: “It [SAIS database] has information on about more than 1000 loans and, so far, in Africa, we have not seen any examples where we would say the Chinese deliberatively entangled another country in debt, and then used that debt to extract unfair or strategic advantages of some kind in Africa, including ‘asset seizures’.” (emphasis added) With the population of 55 African nations projected to reach 2.4 billion in the next three decades, the continent needs trillions of dollars in new infrastructure. Presently, the US is more concerned in countering China in Africa, than developing Africa. Many African leaders are hopeful the US will establish a more robust economic relationship with their nations. As has been the case with previous administrations, the lack of vision, and adherence to “geo-politics” is preventing the US from engaging with Africa in a win-win relationship. This can and should change. *Johns Hopkins School of Advanced International Studies Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
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Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa
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Fruitful Cooperation: Ethiopia and China’s Belt and Road
China-Ethiopia dialogue highlights sustainable investment under BRI
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Yes, Chinese engagement is helping Africa’s industrialization
Chinese engagement helps Africa’s industrialization: ITC executive director
Speaking to Xinhua on Wednesday, November 20, Arancha Gonzalez, Executive Director of the International Trade Center-(ITC), empathized China’s growing engagement and interest in Africa’s existing and emerging potential was driving the continent’s industrialization. “China has focused a lot of attention to the industrialization of the African continent,” the ITC Executive Director told Xinhua on the sidelines of the Africa Industrialization Day commemoration event, which was marked on Wednesday at the headquarters of the African Union (AU) Commission in the Ethiopian capital Addis Ababa. “It (China) has focused a lot in manufacturing,” Gonzalez said, as she emphasized other emerging potential areas in the industry sector that are benefiting from and attracting Chinese engagement across Africa. “First, I think now there is interesting opportunity that is coming in two other sectors, one is agro-processing, so helping Africa transform a lot of the raw materials, agricultural commodities that this continent produces into processed products.Continue Reading: Chinese engagement helps Africa’s industrialization
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It Cannot Be Denied: China Helping Africa Realize Its Dream
China to help Africa realize “African dream” early: Chinese state councilor
Xinhua|-November 23, 2019
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China’s Successful Economic Model Eliminates Poverty
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Africa and China Cooperate on Development and Eliminating Poverty
November 8, 2019
Cabinet applauds Chinese investment push for attracting R116bn
The South African government on Thursday applauded the growing trade and economic relations with the People’s Republic of China, which has led to at least 88 Chinese companies investing massively in the country’s economy.
Addressing media in Cape Town on the outcomes of a Cabinet meeting held on Wednesday, Minister in the Presidency Jackson Mthembu said the growing two-way trade between Beijing and Pretoria has led to Chinese companies investing a capital expenditure of R116-billion from 2003… Read: South Africa Cabinet Applauds Chinese Investment_______________________________________________________________________________
China’s capacity building support wins acclaim in Ethiopia
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President Xi Jinping Addressing China International Import Expo: The Common Good of Humanity and Eliminating Poverty
Speaking at the opening ceremony of the Second China International Import Expo, President Xi Jinping discussed the continuing process of “reform and opening up,” but focused his remarks on an appeal for the world to come together for the common good. “Of the problems confronting the world economy, none can be resolved by a single country alone. We must all put the common good of humanity first rather than place one’s own interest above the common interest of all. We must have a more open mindset and take more open steps, and work together to make the pie of the global market even bigger…. “All problems could be settled in the spirit of equality, mutual understanding and accommodation. We need to promote development through opening-up and deepen exchanges and cooperation among us. We need to join hands with each other instead of letting go of each others hands. We need to tear down walls, not to erect walls.” “China’s development, viewed through the lens of history, is an integral part of the lofty cause of human progress. China will reach out its arms and offer countries in the world more opportunities of market, investment and growth. Together, we can achieve development for all. The Chinese civilization has always valued peace under heaven and harmony among nations. Let us all work in that spirit and contribute to an open global economy and to a community with a shared future for mankind.” President Xi Jinping delivered his keynote address “in front of a countdown screen for winning the country’s battle against poverty,” Xinhua reported. China has so far lifted some 850million people out of poverty, and intends to do the same with the remaining 20 million by the end of 2020. Xinhua went on to report that “Xi said China is ready to share its poverty relief experience with other countries and jointly build a community with a shared future for humanity featuring common development and the elimination of poverty.” Read my recent post: CGTN: China Reaches New Stage of Development With CIIE_________________________________________________________________________________________
CGTN, China’s media giant published my article on the second China International Import Expo-CIIE, on the opening day of the conference in Shanghai.CGTN
China reaches new stage of development with CIIE
by Lawrence Freeman________________________________________________________________________________
China & Russia-Africa Leads to Economic Growth; Not Debt Trap
November 2, 2019 Below you will read about the success of the second segment of Kenya’s Standard Gauge Railroad, and President President Cyril Ramaphosa’s firm refutation of allegations that a number of countries in Africa are being led into a debt trap by China and RussiaThe Mombasa-Nairobi line was initiated in 2009 discussion between the China Road and Bridge Corporation and the Kenyan government, as reported by P.D. Lawson in the April 27, 2018 EIR. China’s Exim Bank extended credit for 90% of the project. By May 2016, initial track laying was completed in just over 1 year. Passenger service was opened May 31, 2017, eighteen months ahead of schedule. Freight services commenced in January 2018. Plans are now underway to electrify the segment from Mombasa to Nairobi, which will greatly lower operating costs.
Benefits of the new, faster technology now extend far beyond mere transport, where the railway has taken hundreds of trucks (and buses) off the notoriously congested highways, making them safer and more useable for the population.
With the increased capacity and speed of freight transport, Kenya’s exports to the East African Community (including neighboring states Uganda, Tanzania and South Sudan) have hit a three-year high in the first eight months of 2019. Not only have government earnings from domestically produced goods increased 6% compared to 2018, but Kenya’s domestic consumption of electricity—certainly not a nation known for its over consumption of this resource—has increased 3.2% in the first 8 months of 2019.
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Russia-Africa Summit: African countries not being led into debt trap —South Africa’s Ramaphosa
President Cyril Ramaphosa on Monday refuted allegations that a number of countries in Africa are being led into a debt trap as they take up loans to fund a number of projects. Ramaphosa said this during his weekly address from the Desk of the President in Cape Town, after returning from the Russia-Africa Summit held in Sochi last week. “One need only look at initiatives such as the Forum on China-Africa Cooperation, which was last held in Beijing in 2018, to see that the focus is now on partnership for mutual benefit, on development, trade and investment cooperation and integration,” Ramaphosa said. He lambasted remarks which label initiatives like the recent Russia-Africa Summit as an attempt by world powers to expand their geopolitical influence. African countries had taken part in the summit to discuss ways of how to increase trade and cooperation between Russia and Africa. He said the summit was a sign of the growing economic importance of Africa on the world stage. “What we are witnessing is a dramatic re-balancing of the relationship between the world’s advanced economies and the African continent,” he said. African countries have consistently affirmed that Africa no longer wants to be passive recipients of foreign aid, said Ramaphosa. The president said African countries are developing and their economies are increasingly in need of foreign direct investment. “We are ever mindful of our colonial history, where the economies of Europe were able to industrialize and develop by extracting resources from Africa, all the while leaving the colonies underdeveloped,” said Ramaphosa. Even now, African countries are still trying to stop the extraction of its resources, this time in the form of illicit financial flows through commercial transactions, tax evasion, transfer pricing and illegal activities that cost the continent more than 50 billion dollars a year, according to Ramaphosa. The age where “development” was imposed from outside without taking into account the material conditions and respective requirements of our countries is now past, the president said. “China, Russia, Organisation for Economic Cooperation and Development countries and other large economies are eager to forge greater economic ties with African countries. “This is because they want to harness the current climate of reform, the deepening of good governance, macro-economic stability and the opening up of economies across the continent for mutual benefit,” the president s______________________________________________________________________________________
Russia Assists Uganda With Nuclear Energy. China Land Grabbing Is A Myth
Russia to help Uganda develop nuclear energy
September 18, 2019French Agronomist Proves that China’s “Land Grab” in Africa Is a Myth
PARIS, Sept. 16, 2019 – After the nomination of Chinese biologist, Vice Minister of Agriculture and Rural Affairs of China Qu Dongyu, as Director-General of the UN Food and Agriculture Organization (FAO) on June 23, rumors went wild against the alleged Chinese plot to “take over” African food production. French agronomist Jean-Jacques Gabas, a scientist, who traveled over Africa to investigate the situation, offered some clarity to {Le Monde} on September 13. In effect, China became the head of the Organization for Industrial Development, the International Union for Tele-communications, the International Organization of Civil Aviation and, between 2016 and 2018, of Interpol. “As a matter of fact, OECD financing of agriculture has been very poor over the last 30 years. It fell increasingly and led to the 2008 food crisis…. When you discuss the Chinese strategy with African agriculture ministers, they tell you: ‘Stop giving advice and creating fear. What did you finance over the last 30 years? Very little, given the need.’ And they aren’t mistaken,” he pointed out. Asked if China wants to develop its imports of African agriculture products, Gabas, debunking what so many people fear. “No. Since the end of the 2000, Beijing certainly is the first trading partner of Sub-Saharan Africa, but the share of agriculture in African exports to China represents only 2-3% of trade volume, almost nothing. China’s investments in African rice and sugar production go to regional African markets. Of course, Africa has 1.4 billion people to feed, which makes it very dependent on food imports. However, China knows that in world economic crises, notably in case of a food crisis in Africa, prices will be shaky and products will become scarce, impacting China’s domestic cereal production. China also wants to stabilize the African continent’s food production. What it imports from Africa are rubber, manioc for food packaging, and, depending on the years, peanuts, cotton, and wood. South African vineyards are also bought for export purposes. All of this implies very low volumes, far less than African food exports to Europe or those of mining products and fossil fuels to Africa…. Chinese companies are present and profit from market and investment opportunities, but without a marked strategy to ‘feed China.'” Asked about the allegation of Chinese “land grabbing,” Gabas answers: “Respecting Chinese land acquisitions, viable statistics tell us that China is not number 1 and comes in only as 8th or 9th. Be it land for farming, mining, forestry, or rubber production, the largest investors remain OECD countries (U.S.A., U.K., and France), national companies or Gulf States such as Saudi Arabia. One observes that whenever the Chinese buy land and a conflict arises about the land or with part of the population, they retreat or change the nature of the utilization. … Chinese land grabbing is a myth.” _______________________________________________________Italian economist Antonino Galloni discusses principles of economic growth for developing nations.
Speaking from Xi’an, China on Sept. 12 “Africa and countries with an higher rate of demographic growth and lower GDP growth should promote a higher domestic growth,” Galloni said, by “improving their domestic industries, substitute imports, upgrading infrastructure, building efficient connections with Europe and the rest of the world.” Those countries should “export less raw materials and semi-finished products, create a productive capacity to fulfill the domestic demand and cut down low-wage exports.” Galloni recalled that the first economist who understood this was the Italian Antonio Serra, at the end of 16th century, who demonstrated to the Spanish Viceroy in Naples that national wealth was not achieved through gold or silver, through taxation or selling raw materials, but “by improving the industriousness of citizens, mainly by education.” Galloni also pushed the Transaqua project to bring water to Sub- Saharan Africa. “Recently industrialized countries, like China, have correctly chosen to increase domestic demand instead of exports.” Investments in infrastructure, higher wages and employment are compatible with the increase of profits, but not with the “increase of the rate of profit,” which is typical of stock markets and financial investments.___________________________________________________________
China-Africa Debt Trap Refuted Again. Belt and Road Building Infrastructure-Developing
July 12, 2019China Announces $1 Billion Belt and Road Africa Fund Led by South African
Announced July 3 on the sidelines of the Summer Davos Meeting World Economic Forum in Dalian, China, this $1 billion investment fund also achieves another first–in that it will be not be run by the state government–thus being China’s first “NGO.” It will also notably be led, not by a Chinese, but by a South African. Intended to be up and running by September, this fund–to be capitalized by wealthy Chinese businessmen and their families–will be headed by Dr. Iqbal Survé, “born and educated in Cape Town” (according to his website). Survé had started his own, Sekunjalo investment fund in 1997, leaving his medical career at the call of Nelson Mandela, who was seeking local investors to lead the development of the economy. Dr. Survé had become “affectionately known as the ‘Struggle Doctor’ because of his provision of medical care towards victims of apartheid brutality,” says his “about” page. Since then Survé came to serve as chair of the BRICS Business Council for South Africa, and most recently as a member of the Business Council Chairman for the five BRICS countries. A hedge fund operator he definitely is not. Commenting from China, Dr. Survé said, “The discussions that we’ve had with Chinese business people, state-owned enterprises and family offices, have resulted in the establishment of this fund. Africa is ready to grow and is heading towards a $5 trillion economy. The [Africans] have seen how China was able to grow from 1980, when China made up only 2% of the global GDP when compared to today, where China makes up 19% of the global GDP. This fund is a great boost for the development of Africa.” The fund will be overseen by a Belt and Road Business Council, eventually to grow to 1,000 Chinese and African members._____________________________________________________________
June 20, 2019China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?
Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations.{Independent}: Belt and Road Contributing to Prosperity in Africa
A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo. Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.German Mittelstand Supports New Silk Road
China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17. “The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms. Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated. “The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.” Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded. “The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a forum later this year in Germany on the BRI for partners to establish project-related contacts.____________________________________________________________
In Africa, the Belt and Road Is Generally Spurring Socio-Economic Development_
May 12, 2019Belt-Road Initiative and Belt-Road Forum: A New Model of Global Development
May 9, 2019Belt-Road Initiative is Now Second Largest Trade Bloc
{Global Times} reports today that the BRI has become the second-largest trade bloc in the world, surpassing NAFTA, now second only to the EU. The BRI countries account for 13.4% of world trade, while the EU is about 20%. In terms of investment, {Global Times} reports, the BRI countries have become the most important destinations for foreign capital inflows in the world, accounting for 31.6 percent of the total in 2017, exceeding the 23-percent share of NAFTA and the 21.2-percent share of the EU.Vladimir Yakunin: BRI is “A Future Model of Global Development-in-Solidarity”
Vladimir Yakunin, the former president of Russian Railways and the initiator of the Dialogue of Civilizations (DOC — the Rhodes Conference), has posted an article on the DOC Research Institute website titled: “The Belt and Road Initiative as a new model for global inclusive development and solidarity.” Yakunin writes that the Second Belt and Road Forum “should be seen to represent significant global development amidst uncertain times.” He reviews the decay of the world economy that led to the 2008 financial crisis, where investments in infrastructure were drastically curtailed, while “the world economy became `financialized;’ i.e., the financial sector increasingly dominated the real sector. This uncontrolled imbalance eventually led to the financial crisis and later to the global systemic crisis.” The DOC, founded in 2012, took on an effort to develop “a new approach to under-standing the role of infrastructure projects in global development,” which was published as: “Trans-Eurasian Belt Development: RAZVITIE project,” and presented at a specially organized conference in Milan in November 2012. The developments at the Second Belt and Road Conference this past week, Yakunin writes, “showed an increasingly widespread unders-tanding that economic egotism and arrogance is giving way to rational collectivism and an orientation towards a new type of globalization, based on principles of equality, sovereignty, and mutual development.” Yakunin notes that some Western officials are worried that the BRI, together with the new financial institutions like the AIIB, the BRICS’s NDB, and the Silk Road Fund, are challenging their “long-time dominant positions,” but notes that “the traditional international development institutions did not provide the necessary weight for developing countries to participate in the global financial system.” He reviews the huge growth in the BRI, such as the 73% increase in China-Europe freight trains in 2018 over 2017, with 6,363 trips in 2018, connecting 59 Chinese cities and 49 cities in 15 European countries.” His conclusion: “[T]he key idea of the Belt and Road initiative — equal and mutually beneficial cooperation without imposing any political conditions — clearly contradicts the currently dominant thesis in contemporary world politics. The new approaches could change the very essence of geopolitics and geo-economics by altering the outdated Cold War mentality of the past. Geopolitical theory has always been articulated through a lens of conflict, dividing the world into `us’ and `them’…. “The Belt and Road Initiative could be the source of a future model of global development-in- solidarity. The key here is the inability to return to the concept of a uni-polar or bipolar world, which can be seen today in global trends towards development of a truly multilateral world.” Excerpts below:“SEARCHING FOR A NEW PARADIGM OF SOCIO-ECONOMIC DEVELOPMENT”
“Numerous studies conducted after the crisis demonstrated a positive correlation between investment in infrastructure and economic growth. Importantly, it was also shown that infrastructure projects play a positive role in short-term outcomes as well, due to their creation of new jobs and their development of local enterprises, which increase long-term regional development levels.[1] Another conclusion voiced by many prominent economists over the last ten years has been the necessity of developing a new economic model to replace the existing neo-liberal system because neo-liberalism no longer meets requirements. Such statements were difficult to imagine before the crisis, but now seem obvious”“CHALLENGES ON THE PATH TO IMPLEMENTATION”
“Taking into account the scale of the Belt and Road Initiative and the amount of investment China put into it through the newly founded multilateral financial institutions like the Asian Infrastructure Investment Bank, the New Development Bank, and the Silk Road Fund, it is not surprising that major powers including the European Union and the US are expressing significant concerns.” Read entire article__________________________________________________________
Second Belt & Road Forum: Infrastructure is the Bedrock of Development
April 30, 2019Xi Jinping’s Keynote to Belt and Road Forum Emphasized Goals of the BRI
Chinese President Xi Jinping’s speech to the opening ceremony of the Second Belt and Road Forum on April 26, “Working Together To Deliver a Brighter Future For Belt and Road Cooperation,” broadly laid out the BRF approach and prospects for the future. “Together, we will create an even brighter future for Beltand Road cooperation…. The joint pursuit of the BRI aims to enhance connectivity and practical cooperation. It is about jointly meeting various challenges and risks confronting mankind and delivering win-win outcomes and common development…. A large number of cooperation projects have been launched, and the decisions of the first BRF have been smoothly implemented. More than 150 countries and international organizations have signed agreements on Belt and Road cooperation with China…. “Infrastructure is the bedrock of connectivity, while the lack of infrastructure has held up the development of many countries. High-quality, sustainable, resilient, affordable, inclusive and accessible infrastructure projects can help countries fully leverage their resource endowment, better integrate into the global supply, industrial and value chains, and realize inter-connected development. To this end, China will continue to work with other parties to build a connectivity network centering on economic corridors such as the New Eurasian Land Bridge…. “Innovation boosts productivity; it makes companies competitive and countries strong…. China will continue to carry out the Belt and Road Science, Technology and Innovation Cooperation Action Plan and Technology Transfer.” President Xi also used his speech to present a list of a half-dozen major policy steps China has undertaken as part of its Opening Up strategy: “First, we will expand market access for foreign investment in more areas…. “Second, we will intensify efforts to enhance international cooperation in intellectual property protection…. “Third, we will increase the import of goods and services on an even larger scale. China has a vast potential for increasing consumption…. “Fourth, we will more effectively engage in international macro-economic policy coordination. A globalized economy calls for global governance. China will strengthen macro policy coordination with other major economies and keep the RMB exchange rate basically stable…. “Fifth, we will work harder to ensure the implementation of opening-up related policies.”President Xi Jinping Chairs Roundtable at 2nd BRI Forum– ‘Boosting Connectivity for New Sources of Growth’
The concluding day of the 2nd Belt and Road Forum for International Cooperation in Beijing, President Xi Jinping chaired the Roundtable discussion among the 39 guests–37 heads of state plus the leaders of the IMF and United Nations. A joint communiqué has been issued (see separate slug,) and the Chinese Foreign Ministry has also posted a summary of the “Deliverables” from the Forum. After a day of presentations, as well as sideline bilateral meetings, Xi and his wife Peng Liyuan hosted a welcome banquet for the national leaders. The cordial, but high-level tone of the deliberations April 25-27, was set in Xi’s keynote opening yesterday, when he happily welcomed everyone, “Good morning! As a line of a classical Chinese poem goes, ‘Spring and autumn are lovely seasons in which friends together to climb up mountains and write poems.’ On this beautiful spring day, it gives me great pleasure to have you with us here at the Second Belt and Road Forum for International Cooperation (BRF).” Read President Xi’s Key Note addressSecond Belt & Road Forum Joint Communiqué States Development Commitments; Lists 35 Specific Economic Corridors–Including “The New Eurasian Land-Bridge”
The 37 national leaders were listed in the very first point of the Communiqué, and the following points identified the role of the “ancient Silk Road” to “the strengthening of the connectivity and the expansion of the world economy in the spirit of promoting peace and cooperation, openness, inclusiveness, equality, mutual learning and mutual benefit” and the role for today’s “Belt and Road cooperation” to do the same thing for the future. The remaining points were grouped under these headings: “Strengthening Development Policy Synergy”; and “Boosting Infrastructure Connectivity”; and “Promoting Sustainable Development”; and “Strengthening Practical Cooperation”; and “Advancing People-to-People Exchanges”; concluding with, “Way Forward,” which stated, “We envisage the Belt and Road Forum on regular basis with possible follow-up events…[looking forward] to the 3rd Forum.” Here is the full list of “Economic corridors” identified in the Communiqué: (1) Addis Ababa-Djibouti economic corridor, including the development of industrial parks along the economic corridor (2) Agua Negra Pass International Tunnel (3) Baku-Tbilisi-Kars new railway line and Alyat free economic zone in Baku (4) Brunei-Guangxi economic corridor (5) China-Central Asia-West Asia economic corridor (6) China-Europe Land-Sea Express Line (7) China-Indochina Peninsula economic corridor, including Laos-China economic corridor (8) China-Kyrgyzstan-Uzbekistan International Highway (9) China-Laos-Thailand Railway Cooperation (10) China-Malaysia Qinzhou Industrial Park (11) China-Mongolia-Russia economic corridor (12) China-Myanmar economic corridor (13) China-Pakistan economic corridor (14) Eastern Economic Corridor in Thailand (15) Economic corridor in Greater Mekong Subregion (16) the EU Trans-European Transport Networks (17) Europe-Caucasus-Asia International Transport corridor and Trans-Caspian International Transport Route (18) the Industrial Park “Great Stone” (19) International North-South Transport Corridor (INSTC) (20) the Lake Victoria-Mediterranean Sea Navigation Line-Linkage Project (VICMED) (21) the Lamu Port-South Sudan-Ethiopia Transport corridor (22) Malaysia-China Kuantan Industrial Park (23) the Nepal-China Trans-Himalayan Multi-dimensional Connectivity Network, including Nepal-China cross-border railway (24) New Eurasian Land Bridge (25) the New International Land-Sea Trade Corridor of the China- Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (26) Northern Corridor Trade Route in Africa linking the maritime port of Mombasa to countries of the Great Lakes region of Africa and Trans-Africa Highway (27) North-South Passage Cairo-Capetown Pass-way (28) the Port of Piraeus (29) Port Sudan-Ethiopia Railway Connectivity (30) Regional Comprehensive economic corridors in Indonesia (31) the Suez Canal Economic Zone (32) Transcontinental shipment of cargo using the capacities of the Northern Sea Route (33) Transoceanic fiber optic cable (34) “Two Corridors and One Belt” Framework (35) Uzbekistan-Tajikistan-China International Highway Read entire communique of Belt-Road ForumBelt and Road Is Unstoppable: `Critics’ Are Strong Supporters
The extraordinary attendance of governments, heads of state and government, and thousands of businesses at the Second Belt and Road Forum, comparing with the largest international meetings in history, was already proof that the Belt and Road Initiative (BRI) has expanded greatly since the first BRF in 2017 and is now an unstoppable new paradigm of economy. After the Second BRF, certain myths of “backfire” and “criticism” in Asia also fell away. Malaysian Prime Minister Mahathir Mohamed gave interviews in which he expressed full confidence in the BRI and surprise at its scope. Speaking to Bernama News Agency April 28, he said: “We feel that the [One Belt, One Road] OBOR initiative is not a domination plan by China, which would end up being controlled by China. Instead, it is a policy developed by all the countries, and not only focused on China. Previously … including the Trans-Pacific Partnership, developed countries made the proposals and asked us to accept them. This is not like that; the forum attendees are from small countries and they are sitting with China…They sit together at the same level, and talk about how to develop infrastructure projects.” In an interview with China’s TV network CGTN, Dr. Mahathir said he had thought the Belt and Road was an infrastructure project for Asia. “Now it is quite clear that it is, practially, a worldwide project …to improve connectivity and infrastructure development all over the world…I’m very glad I’m here, because now I understand better the character of the project. China has a lot of new technologies, and we need these new technologies.” He forecast large-scale Chinese investment and exports into Malaysia. Indonesia’s investment minister, Harvard graduate Tom Lembong, who had been critical of China’s rail investments, told {South China Morning Post} that Indonesia has “found China’s openness to its feedback on improving the Belt and Road Initiative highly encouraging…. I believe in the next 5 to 10 years, BRI will stimulate additional investment in probably tens of billions of dollars [in Indonesia],” Lembong said. In Europe, Italy and Austria are joining Portugal in planning issuance of “Panda Bonds” — infrastructure bonds issued by other countries in yuan, to be issued into China’s bond market. Even Germany Economics Minister Peter Altmaier found the Beijing forum “better than expected,” and is headed back with a Mittelstand delegation.__________________________________________________________________
China’s Belt and Road Aids Africa’s Growth in New Globalization
Editor’s note: Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policy of Africa for 30 years. The article reflects the author’s opinion, and not necessarily the views of CGTN.
On the eve of the second Belt and Road Forum (BRF), it is irrefutable that the world has been transformed in the five years since Chinese President Xi Jinping announced the Belt and Road Initiative (BRI).China’s archetype for global development is based on the more elevated concept of each country contributing to the “common destiny of all nations” and mankind’s “shared future.”
By focusing on “global connectivity” through massive investments in infrastructure, linking China to the rest of the world through its land and maritime new Silk Roads, China has presented the world with a new paradigm for development – in effect, redefining globalization.
According to the World Economic Forum (September 2018), “the BRI will encompass 70 percent of the world’s population (4.4 billion) and 63 percent of the world’s GDP (21 trillion U.S. dollars),” primarily from construction of rail lines, highways, ports, airports, hydro-energy plants and pipelines.
The first BRF held in May 2017 included 29 foreign heads of state, 11 heads of international organizations and over two dozen attendees on the ministerial level. Because of the expansion of the BRI over the last two years, already 40 world leaders have confirmed their attendance for this year’s conference.
Awakening the Sleeping Giant, Africa
Nowhere, outside of China itself, are the positive effects of China’s BRI more evident than on the African continent. At the 2017 BRF, the only African heads of States who attended were Ethiopia and Kenya, and ministers from Egypt and Tunisia. With Nigeria, the most populated nation in Africa, officially joining the BRI in 2019, and increased collaboration with China throughout all geographical sections of Africa, participation at this year’s BRF from Africa will undoubtedly be higher.
Prior to the announcement of the BRI, China had already forged a close working relationship with Africa by convening China-Africa Summits (Forum on China-Africa Cooperation) every three years beginning in 2000, rotating the venues between China and Africa. At the seventh summit held last year in Beijing, all but one of the 54 African nations attended.
Unfortunately, the West lost its vision of development for Africa after the death of President John F. Kennedy, instead adopting a no-infrastructure policy. What Africa has needed most since the 1960s “Winds of Change” liberation from colonialism is infrastructure, water, energy, rail and roads. China has a different view on this.
Ambassador David Shinn, a respected scholar on Africa, wrote last month: “China has been indisputably the single most important builder of infrastructure in Africa since the beginning of the 21st century.”
Take, for example, Djibouti, which is a BRI hub. China is building the Doraleh Multi-Purpose Port and international free trade zone in this northeast African nation, strategically located right off the Indian Ocean and on the Gulf of Eden. It is estimated that one-third of global shipping passes by this port.
In 2016, the first electrically driven train in sub-Saharan Africa, connecting Addis Ababa, the capital of landlocked Ethiopia, to the port city of Djibouti was inaugurated. This rail line built by Chinese companies utilizing and training African laborers and engineers is key to the develop-ment of the Horn of Africa, providing Ethiopia a port to export the products of its nascent manufacturing sector.
Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua that “projects involving cooperation with China are helping Djibouti promote trade in Africa as well as distribution across the East African region… which couldn’t be achieved without developing proper infrastructure, such as seaports and railway connections.”
Hadi called the “debt-trap” propaganda against the BRI, “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”
African nations are attempting to industrialize their economies with growth in their manufacturing sectors. China is assisting by creating special economic zones, industrial parks, and industrial zones in Nigeria, Djibouti, Ethiopia, Egypt, Morocco, and Rwanda. Industry and infrastructure generate jobs, raise skill levels and transfer technology.
Will the West Join the BRI?
Africa’s requirement for infrastructure is enormous, allowing Western nations the opportunity to join with China to industrialize this vast undeveloped continent, which is projected to have 2.5 billion people by 2050. President Xi, at the first BRF, said: “We should foster a new type of international relations featuring win-win cooperation” and “development holds the master key to solving all problems.” Regrettably, western nations have been hostile to joining the BRI. However, last month’s ground-breaking signing of a memorandum of understanding (MOU) by Italy – the first G-7 nation to join China’s BRI – portends a potential change towards a new constructive dynamic.
China, Belt & Road: Eliminate Poverty, Not “Debt-Trap”
April 21, 2019President Xi Jinping Hands-on Drive to Eliminate Poverty
As part of his government’s plan to entirely eliminate poverty from China by the end of 2020, President Xi Jinping carried out “an inspection tour to southwest China’s Chongqing Municipality” earlier this week, Xinhua reported, in which he pledged to address the issue like “a hammer driving a nail.” Xi first flew to Chongqing, China’s fourth largest city, and then spent another three hours, first by train and then by road, to reach Huaxi Village, where 302 people living in 85 households are registered as living below the poverty line. Xinhua added: “Huaxi Village is a typical case of China’s impoverished regions. The basic needs for food and clothing have been met, but more efforts are needed for compulsory education, basic medical care and safe housing.” It is to be noted that China’s criteria for poverty reduction are not strictly monetary, but include key physical-economic parameters such as education, health, and housing. As of 2018 there were still 16.6 million rural residents living in poverty in China. The government plans to lift about 10 million of those out of poverty during 2019. Xinhua then quoted Xi during his tour: “The battle against poverty has entered a decisive and critical stage. We must press ahead with our full strength and strongest resolve and never stop until we secure a complete victory. After visiting the village, I feel reassured. We may have about 6 million impoverished people and 60 impoverished counties left at the beginning of 2020. If we make sure this year’s work is well-implemented and push ahead next year, we will eliminate poverty. We are confident about accomplishing the mission. “Less than two years are left before fulfilling the objective of poverty alleviation. This year is particularly crucial,” Xi said at a symposium held Tuesday afternoon in Chongqing. “The most important thing at this stage is to prevent laxity and backsliding.” Xinhua’s account emphasized the top-down involvement of government officials in achieving this national goal. “Throughout the years, more than three million officials from governments above the county level, state-owned enterprises and public institutions have stayed in impoverished villages to offer assistance. _______________________________________________________________“2018 FOCAC: Africa in the New Reality of Reduced Chinese Lending”
August 31, 2018Debt Trap or Much-Needed Investment?
The debt trap diplomacy case, however, has never been convincingly argued and its application in Africa is, at best, tenuous. The reality of Africa’s debt to China is not particularly remarkable when taken against the sources of continent’s external debt stock (see figure below). A number of African countries’ (Djibouti, Kenya, and Angola) debt obligations to China are alarming—as they would be regardless of creditor. China’s $115 billion credit to Africa between 2000 and 2016 is still less than 2 percent of the total $6.9 trillion of low and middle income countries’ debt stock. Recent studies have shown that China is not a driver of debt distress in Africa—yet. The language of debt trap diplomacy resonates more in Western countries, especially the United States, and is rooted in anxiety about China’s rise as a global power rather than in the reality of Africa. Continue reading entire article _____________________________________________________________China’s Belt And Road Forum to Gather 37 World Leaders, and Representatives from Five Continents
There will be no less than 37 heads of state and government attending China’s Second Belt and Road forum in Beijing next week, Chinese Foreign Minister Wang Yi said on Friday. In addition there will be 360 attendees at ministerial level, 100 leaders of international organizations and 5,000 participants. 4,000 reporters will also be attending the Forum, whose theme is “Belt and Road Cooperation, Shaping a Brighter Shared Future.” “The second Belt and Road Forum will be held in Beijing on April 25-27. It will become China’s largest international event this year. Thirty-seven leaders of state and government will participate in the forum,” Wang told a press conference. This will include the leaders of Austria, Egypt, Hungary, Italy, Russia, the United Arab Emirates and others. “Senior representatives” of France, Germany, Britain, Spain, Japan, the Republic of Korea and the European Union will also participate; other diplomatic representatives of the United States and North Korea will also be there. International Monetary Fund Managing Director, Christine Lagarde, and Antonio Guterres, the UN secretary- general, are also expected to participate, according to Wang. This is the highest level event for cooperation on the Belt and Road Initiative, Minister Wang said. He said this year’s event will be characterized by a clear direction, a solid foundation, a warm response from participants, a program of practical cooperation and clearly defined results. A Leaders’ Round-Table Summit will issue a Joint Communique to show the political consensus of the leaders in building the Belt and Road. The long-term effects of the Initiative will be to strengthen multilateralism, to enrich the principles of cooperation, to build a network of partnership and to build a strong support system for continued development. Wang Yi also underlined the connection between the BRI and China’s new phase of “opening up.” The new phase of China’s “reform and opening up” will “bring more opportunities for promoting the ‘Belt and Road Initiative’ and the common development of all countries,” he said. “I believe that the forum will inject stronger impetus into the world economy, open even broader horizon for the development of the countries, and contribute to the building of a community with a shared future for humanity,” Wang continued._________________________________________________________________
China’s Belt & Road New Paradigm for Development: United States Should Join
April 18, 2019Belt and Road Creates New Asian Paradigm for Global Economic Integration and Inclusiveness
That is the headline on an April 15 {Global Times} op-ed by Toumert Al, the director of Education, International Bachelor Program at the International School under the China Foreign Affairs University. The article provides a tour d’horizon of BRI achievements to date in infrastructure projects on various continents. “In South Asia, the Belt and Road Initiative is seen as a main driver for infrastructure construction in a region that must bridge the ever-growing gap between its economic potential and the realities of its insufficient infrastructure. According to the World Bank, South Asia requires about 2 trillion dollars of investment in infrastructure construction from 2011 to 2020 if the region wants to be part of the new economic order shaping the future.” The article then discusses a couple of key projects, such as the Padma bridge in Bangladesh and Gwadar port in Pakistan.The Belt and Road Initiative Keeps Growing
China is now engaged in heavy organizing in the countdown to the April 26-27 Second Belt and Road Forum in Beijing, which will bring together representatives of over 100 countries and 29 international organizations. Just how powerful a draw the BRI is to nations across the planet, was shown earlier this week when the tiny Caribbean nation of Jamaica announced that they had signed an MOU with China on the BRI –notwithstanding the withering pressure that Washington and London have brought to bear. A similar, if strategically weightier example of this process was Italy’s signing an MOU with visiting Chinese President Xi Jinping last month. Foreign Ministry spokesman Lu Kang yesterday discussed China’s approach to the upcoming Forum: “While the BRI was proposed by China, it has grown into an international public good. The success of the first BRF together with the bumper practical outcomes speaks volumes. The fact that more countries and international organizations are taking an active part in the second forum is further proof to its success.” Asked about media accounts that India would not be sending a delegation–as they hadn’t to the First Belt and Road Forum–because they view the BRI’s China Pakistan Economic Corridor (CPEC) as infringing on Indian sovereignty, Lu responded: “I would like to reiterate that the BRI is an open and inclusive initiative for economic cooperation. It never concerns territorial disputes. In pursuing BRI cooperation, China and partner countries are committed to equality, openness and transparency, to business operations centered around enterprises and to market rules and international norms. For those with inaccurate judgment on the BRI based on misunderstandings due to lack of knowledge of the real situation, I would like to reassure them that China is sincerely and resolutely committed to the principle of consultation and cooperation for shared benefit, equality and mutual benefit. Since its initiation, the Belt and Road cooperation has been inclusive and open to all countries that are interested in joining and working for win-win cooperation. It excludes no one. If the relevant country would like to take some time to see, we can wait.” Meanwhile, Xinhua interviewed Cambodia’s Information Minister Khieu Kanharith who said that “the BRI forum will also further promote cooperation between China and ASEAN and between China and Cambodia…. For Cambodia, with Chinese assistance, we can build mega-infrastructure projects, and those projects are crucial to boosting economic growth and making communication easier and faster…. Our first priority is to boost economic growth and to make everybody have a fair share of the economic growth, The BRI can help us through sup-porting infrastructure projects and human resources development.” He continued: “China has assisted us on equal footing, meaning that although China is a big country and Cambodia is a small country, China always treats us equally. With Chinese support, Cambodia has gained confidence in ourselves and our people are proud and confident in rebuilding the country.”Chinese Insist the U.S. Should Join the Belt and Road
Asian Infrastructure Investment Bank President Jin Liqun told last weekend’s Harvard China Forum that the “infrastructure bottlenecks are the sewage problems of development. I would say that that’s also a problem for the United States”–a statement Americans can agree with. He presented the Belt and Road Initiative as “a platform for all participating countries to work together, including on connectivity,” which he called a matter not only of regional development, but also of “world peace and prosperity.” When a discussion arose on how China had gone from being a debtor nation dependent on foreign development assistance, to one of the largest contributors to the World Bank’s International Development Assistance facility today, Jin pointedly commented that how much money a country has is not the issue. “Accumulated wealth cannot buy you respect unless you help do good things for the rest of the world. So China has been trying to invest and help other countries through its own experience,” Jin stated. At a Center for China and Globalization conference in Beijing over the same weekend, Jin Xin, director of the China Center for Contemporary World Studies of the Communist Party’s International Liaison Department, took on the arguments of former U.S. Ambassador Terry Miller (from the G.W. Bush days), who asserted the U.S. had no interest in participating in the Belt and Road Initiative, which is viewed as “a Chinese show” that “doesn’t have much to do with us.” Jin Xin countered that the U.S. should work with China in third-country markets under the BRI. If it decides not to do so, the U.S. will again find itself “excluded,” just as it excluded itself from the AIIB, in which more than 90 countries are now members, Jin said._______________________________________________________________________
China’s Belt & Road Redefining Globalization & International Relations for Belt-Road Forum
April 10, 2019Preparations for the Second Belt and Road Forum
On March 29, Yang Jiechi, member of the Political Bureau of the Central Committee of the Communist Party of China and director of the Office of the Central Commission for Foreign Affairs, spoke at length with the media about preparations for the late April Second Belt and Road Forum for International Cooperation in Beijing.Italy, China, and Africa Busting Apart Old Geo-Political Regime
March 23, 2019Italy and China Sign Groundbreaking MOU on Belt and Road Initiative
Italy and China have signed the famous Memorandum of Understanding on Belt and Road cooperation today, together with 10 economic agreements and 18 institutional agreements (19 with the BRI MOU). The MOU is a milestone and is said to already be being studied by other countries that want to follow Italy. The MOU says at the outset that “The Parties will work together within the Belt and Road Initiative (BRI) to translate mutual complementary strengths into advantages for practical cooperation and sustainable growth, supporting synergies between the Belt and Road Initiative and priorities identified in the Investment Plan for Europe and the Trans-European Networks, bearing in mind discussions in the EU China Connectivity Platform.” With the MOU, Italy is the first large industrial economy to join the Belt and Road, as Chinese media proudly stress. The signature of the MOU occurred in spite of trans-Atlantic pressures and open hostility by Italy’s “partners” in the EU. Italian Minister for Economic Development Luigi Di Maio, who signed the MOU together with his counterpart He Lifeng, chairman of the National Development and Reform Commission, stated that “today is for us a very important day, in which the Made in Italy is winning, Italian firms are winning. We made a step to help our economy to grow. Italy came first with China.” The economic agreements include: a strategic partnership between the Italian Cassa Depositi e Prestiti and the Bank of China to finance Italian firms in China; a MOU between the Italian oil company ENI and the Bank of China for explorations in China; Ansaldo Energia signed two agreements, one to develop gas turbines with UGTC and another one for the supply of a turbine to Shanghai Electric and Benxi Steel; the Port Authorities of Trieste and Genoa signed an agreement with the construction giant CCCC. Cassa Depositi and the natural gas utility Snam signed a deal with the Silk Road Fund for investments along the Silk Road; the Institute for Foreign Trade signed a deal with Suning to create a platform to promote Italian lifestyle in China; and the Danieli group signed a contract with China Camc Engineering for the construction of a steel plant in Azerbaijan. The institutional agreements, besides the MOU on the BRI cooperation, include cooperation on innovative startups and electronic trade, as well as cooperation between the two space agencies, agriculture and culture, health and media. Read article
Italian Finance Minister Tria on Italy-China-Africa Cooperation
In an op-ed in {China Daily}, entitled “As Belt and Road Opens New Doors Across Globe, Italy To Play A Key Role,” Italian Finance minister Giovanni Tria emphasized Sino-Italian cooperation to develop Africa. After praising the BRI as a way to relaunch global economic integration, Tria recalled that “In September, the Italian government signed a memorandum of understanding with China’s National Development and Reform Commission for joint cooperation in third countries. This way, Italy and China are committed to collaborating in important geographical areas such as Africa, which in the near future will be a top actor for demographic reasons and due to its prospects for economic growth. “Playing a role in building and restoring large infrastructure is an invaluable opportunity for Italian companies. There is an astonishing variety of areas of expertise where Italy can provide a competitive, paramount contribution. Beyond those more strictly linked to the physical construction of infrastructure (machiner), logistics and plant construction), Italy has strong capabilities in the provision of high-quality technical services such as consulting, feasibility studies, design, engineering services, security, finance and insurance. “Italy believes in the prospective cooperative development of the BRI. This process will help to identify the paths of action and the main projects. Italy also enjoys a strategic geographical position along the current and future frames of commercial relations between the East, the West and Africa. Located on the Mediterranean Sea, Italy is the second-largest manufacturing country in Europe, leading in technological innovation and equipped with high-quality ports and road and rail networks. These features make Italy the ideal southern gateway to continental Europe and for the trade routes between Europe and China. “By opening new connections and intensifying trade relations, the BRI will help improve the competitiveness of Italian and Chinese companies operating in each other’s markets and together toward third markets, leaving the respective governments with the task of providing adequate support to foster a business-friendly climate that can enhance their expertise, strengths and innovative approaches. “I believe that developing physical connections, while enlarging and strengthening cooperation networks and partnerships, represents a valuable opportunity to face the challenge of sustainable growth and to avoid backtracking toward protectionism and nationalism. Commercial synergies and relationships of trust represent the path we want to take to counter international tensions and to favor wider and more widespread global well-being.”____________________________________________________________________________
China and Italy Challenging Old Geo-Political World Order
March 21, 2019 This signed article by Xi Jinping, President of the People’s Republic of China, was published March 20, in Corriere della Sera, a leading Italian newspaper on the eve of his state visit to Italy. It is a beautiful expression of the potential alliance of “East and West.” The old geo-political order manipulated this so called division to maintain political domination. Hopefully, we are now embarking on a new era with the old-order is coming to an end.East Meets West — A New Chapter of Sino-Italian Friendship
It is a great pleasure for me to pay a state visit to the Italian Republic at the invitation of President Sergio Mattarella in this blossoming season of spring. In 2011, I visited Rome on celebrations of the 150th anniversary of Italian unification and, in 2016, I had a stopover on Sardinia. I was deeply impressed by the way of life and industrial outlook of Italy that blend together the ancient and the modern, the classic and the novel. Now that I am about to set foot again on this beautiful country, it feels like I am to be among old friends, and get immersed in their wonderful hospitality. China and Italy are both stellar examples of Eastern and Western civilizations, and both have written splendid chapters in the history of human progress. Being the birthplace of ancient Roman civilization and the cradle of the Renaissance, Italy is known to the Chinese people for its imposing relic sites and masterpieces of great names in art and literature. Friendly ties between our two great civilizations go back a long way. As early as over 2,000 years ago, China and ancient Rome, though thousands of miles apart, were already connected by the Silk Road. During the Eastern Han Dynasty (AD 25-220), Chinese emissary Gan Ying was sent to search for “Da Qin”, the Chinese name of the Roman Empire at the time. Roman poet Virgil and geographer Pomponius Mela made many references to Seres, the land of silk. The famous explorer Marco Polo’s Travels roused the first wave of “China fever” among European countries. That pioneer of cultural exchanges between East and West was followed by a long list of personages in search of friendship over the centuries. In our own era, China-Italy relations, tracing the footsteps of our ancestors, are brimming with dynamism. The People’s Republic of China and the Italian Republic established diplomatic relations in 1970. In 2020, the two countries will celebrate the 50th anniversary of our relations. Through the past decades, our two countries have enjoyed mutual trust and close cooperation regardless of changes in the international landscape. Together, we have set a fine example of mutually beneficial relations between two countries that have different social systems, cultural backgrounds and stages of development. The traditional friendship between us, stronger than ever, has become a strong pillar supporting the rapid and steady growth of our bilateral ties. Sino-Italian friendship is rooted in our long history of exchanges. In the course of over two millennia, our two countries have embraced the principles of mutual respect, mutual learning, mutual trust and mutual understanding in our interactions, principles that underpin our long-lasting, ever-strong friendship. Confronted by the transformations and challenges of today’s world and informed by our deep appreciation of history, China and Italy both envision a new type of international relations that are built on mutual respect, fairness, justice and win-win cooperation, and a community with a shared future for all mankind. Sino-Italian friendship is embedded in our deep strategic trust. Both countries’ leaderships approach our relations from a strategic and long-term perspective. Since the establishment of a comprehensive strategic partnership in 2004, our two countries, guided and driven by high-level exchanges, have given each other understanding and firm support on issues concerning our respective core interests and major concerns. Our strategic trust provides a firm underpinning for the long-term and steady growth of China-Italy relations. Sino-Italian friendship is reflected in our multi-faceted cooperation. As key trading and investment partners for each other, China and Italy have deeply entwined interests. Two-way trade exceeded 50 billion U.S. dollars in 2018 and investment surpassed 20 billion dollars in accumulative terms. “Made in Italy” is a guarantee of quality, Italian fashion and furniture are immensely popular with Chinese consumers, and pizza and tiramisu are the love of many young Chinese. Every now and then, we hear stories about the success of Sino-Italian cooperation in satellite R&D and manned space exploration. Initiatives such as the China-Italy Science, Technology and Innovation Week, joint police patrols and football training, to name just a few, are applauded by people in both countries. Sino-Italian friendship is carried forward through our intensive cultural exchanges. Chinese and Italians have a deep interest in each other’s cultures. A Chinese professor in his 70s spent 18 years translating Dante’s Divine Comedy, and after revising several drafts, completed this mammoth task before his final days. From Martino Martini, author of the first Chinese grammar book in Europe, to Giuliano Bertuccioli and Federico Masini who wrote Italy and China, many Italian Sinologists have built bridges between Europe and China and contributed to a long-running boom of China studies on the Apennine Peninsula. The well-known Italian writer Alberto Moravia once wrote, “Friendships are not chosen by chance, but according to the passions that dominate us.” In a world that faces profound changes of a kind unseen in a century, the onus is on us to bring China-Italy relations to a higher level and to jointly safeguard world peace, stability, development and prosperity. Through my upcoming visit, I hope to work with Italian leaders to map out the future of our relationship and move it into a new era. China hopes to work with Italy to strengthen our comprehensive strategic partnership. Our two countries may plan more high-level exchanges and cooperation between our governments, parliaments, political parties and sub-national entities, strengthen policy communica-tion, enhance strategic trust and synergy, and continue to give understanding and support to each other on issues of core interests and major concerns, so as to consolidate the political foundation of our relations. China hopes to work with Italy to advance Belt and Road cooperation. Our two countries may harness our historical and cultural bonds forged through the ancient Silk Road as well as our geographical locations to align connectivity cooperation under the Belt and Road Initiative with Italy’s plan to develop its northern ports and the Invest-Italia program, and jointly build the Belt and Road of the new era on sea, on land, in the air, in space and in the cultural domain. China hopes to work with Italy to expand cooperation into new areas. China will open up further to the rest of the world, and share its market opportunities with Italy and other countries through the annual China International Import Expo and other avenues. Our two countries may fully tap our cooperation potential in ports, logistics, ship-building, transportation, energy, telecommunications, medicine and other fields, and encourage our companies to partner with each other in third markets for win-win cooperation. China hopes to work with Italy to promote closer people-to-people ties. As countries with the largest number of UNESCO world heritage sites, China and Italy have plenty of cultural and tourism resources. We may encourage our world heritage sites to forge twinning relationships and our cultural institutions and individuals to organize premium relic and art exhibitions. We may also encourage joint production of films and TV programs, the teaching of each other’s languages, as well as more mutual travel and visits. Through these exchanges, we will make new contributions to the diversity of civilizations and mutual learning between different cultures. China hopes to strengthen coordination with Italy in international affairs and multilateral organizations. China is ready to enhance communication and collaboration with Italy in the United Nations (UN), the G20, Asia-Europe Meeting and the World Trade Organization (WTO) on global governance, climate change, UN reform, WTO reform and other major issues. Working together, we will promote our shared interests, uphold multilateralism and free trade, and safeguard world peace, stability, development and prosperity. Looking back at the last five decades, China-Italy relations have struck deep roots and borne rich fruits. Looking ahead, China-Italy cooperation will continue to flourish and prosper. The Chinese people look forward to working hand in hand with our friends in Italy to carry forward our blossoming relationship and imbue our friendship with more vitality and dynamism.______________________________________________________________________________
China’s Experience: Helping Transform An African Desert Into a Garden
Home CTGNEditor’s note: William Jones is the Washington Bureau Chief for Executive Intelligence Review and a non-resident fellow of the Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author’s opinion, and not necessarily the views of CGTN.
With the upcoming visit of Chinese President Xi Jinping to Italy, there will no doubt be some discussion of cooperation between the two nations on the African continent. For Italy, helping to resolve the dire economic situation in Africa is both a humanitarian and an economic concern. The devastated economy in many African countries is bringing more and more refugees to Italy’s shore, and the burden is taking its toll on the Italian economy. For China, Africa has always been a particular concern having shared in the condition of underdevelopment for so many years. Even when both were clearly developing countries, China offered its assistance to its African brothers.
One of the most significant projects in that regard is the Transaqua project. This project would take some of the water from the Congo River, a river with the greatest flow of water in the world, and through a series of canals to the Chari River which flows into Lake Chad, a lake whose surface has been dramatically reduced from 25,000 km2 in 1960 to 1,500 km2 today.
The water transfer project would help revive the lake, and with the construction of dams and power plants along the canal, would help to bring development to the region, directly affecting the Democratic Republic of Congo, Central Africa and Nigeria, through which it would pass. In addition, it would also bring economic benefits to Niger, Cameron, Chad and Congo Brazzaville as well.
Representatives from both Bonifica and PowerChina were invited in 2018 as speakers at the International Conference on Lake Chad, in Abuja, sponsored by the Government of Nigeria. The final declaration of the conference stated that Lake Chad needs to be saved and that its current situation demands immediate action. The Italian government at the time pledged 1.5 million Euros (1.7 million U.S. dollars) to start the Transaqua feasibility study.
The expansion of the BRI to Africa has kindled new hope in a continent that had virtually been abandoned by the West in terms of large development projects. The Mombasa-Nairobi railway, the Nigerian coastal railway, the Chad-Sudan railway, the Port Sudan-Khartoum railway have already provided the template for industrializing the entire African continent.
While some Western nations are trying to depict the BRI as a geopolitical “ploy” by China, anyone looking at the effect of the project on the recipient countries will see the falsehood of these claims. As Abraham Lincoln famously said, “You can’t fool all the people all the time.” And to the extent that countries overcome their fears and begin to work with the BRI and contribute their strength to developing other countries, they will better understand the importance of the project and its more profound implications for global development.
China has made great gains in reversing the effects of desertification by means of their water diversion projects, their reforestation efforts and their irrigation projects. If some of this know-how were to be applied in Africa, it would help turn the devastated Sahel region into a veritable garden, which it once was. And the lessons learned can be used on a broader scale to change the nature of life on this planet – for all its people.
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Italy Wisely Becomes First G-7 Nation to Join China’s Belt and Road: Financial Predators Upset
March 7, 2019
City of London’s {Financial Times} Beside Itself over Italy’s Joining Belt and Road
The City of London mouthpiece {Financial Times} criticizes Italy for becoming, as they write, “the first G-7 country to formally endorse China’s controversial Belt and Road global investment drive, in a move that has drawn a sharp response from the White House and is likely to cause alarm in Brussels.” {FT} has suddenly discovered that Italy is going to sign a memorandum of understanding during President Xi Jinping’s Rome visit scheduled for March 22-23. The daily quotes Undersecretary for Economic Development Michele Geraci, who says that “the negotiation is not over yet, but it is possible that it will be concluded in time for [Xi’s] visit. We want to make sure that ‘Made in Italy’ products can have more success in terms of export volume to China, which is the fastest-growing market in the world.” {FT} then quotes U.S. National Security Council spokesman Garrett Marquis, who makes a not-so-veiled threat: “We view BRI [Belt & Road Initiative] as a ‘made by China, for China. We are skeptical that the Italian government’s endorsement will bring any sustained economic benefits to the Italian people, and it may end up harming Italy’s global reputation in the long run.” Marquis further said that U.S. officials had raised concerns about what he called the negative effects of “China’s infrastructure diplomacy,” and urged “all allies and partners, including Italy, to press China to bring its global investment efforts into line with accepted international standards and best practices.” Marquis was brought into the National Security Council by John Bolton, for whom he had earlier worked as a spokesman at the Foundation for American Security and Freedom. The {FT} goes on to allege that “Italy’s support for China’s BRI initiative would undercut U.S. pressure on China over trade and would under-mine Brussels’ efforts to overcome divisions within the EU over the best approach to deal with Chinese investments. Italy is a founding member of the EU.” President Xi will visit Italy on March 22 and meet Sergio Mattarella, the Italian president, as well as Prime Minister Giuseppe Conte, and attend a military ceremony before traveling to Sicily. The article concludes quoting National People’s Congress spokesman Zhang Yesui as saying this week that 67 countries had signed up to the BRI in the past year or so, bringing the total number of countries or international organizations that have formal endorsements to 152. China takes the issue of debt very seriously and within a project the Chinese side never imposes things, nor, least of all, creates debt traps,” {FT} quotes Zhang. “Of course, like any international co-operation, some problems and challenges may crop up. With experience it will improve.”
Italy’s Geraci Rejects {Financial Times} Criticism of Italy Joining the Belt and Road Initiative
In an interview with the Italian financial daily {Il Sole 24 Ore}, Italian Undersecretary to the Economic Development Ministry rejects criticism raised by the City of London’s {Financial Times} and defends Italy’s sovereign choice to join the Belt and Road. “Sincerely, I am a bit surprised. I do not understand what it is, that is controversial,” Geraci said. “I confirm what I said in an interview with this newspaper last Feb. 21st. I said the same thing to the {Financial Times}: We work every day down to the last detail. “It will be a framework agreement: Just the indication of some strategic sectors in which joint investments are promoted and orders by Italian firms are accelerated. We work on infrastructure, transport and highways, trade, industry, green economy. It will be up to private companies to choose whether to participate or not. If they do it, they will have guarantees in terms of protection from disputes and questions about rules.” As for the U.S. position, Geraci stated: “I wonder where such a big concern comes from. We will protect our know-how thanks to a ‘golden power’ rule we have in Italy, which is among the strictest in Europe. And we just fulfill demands from our companies to create for them more room in the most promising markets, such as China. Anyway, we have supplied the United States, as per normal exchanges we have with our main diplomatic partners, all insurances on the issue.” On the concern about Italy being the first G-7 country to sign a New Silk Road protocol, Geraci replied to the criticisms: “So what? Poland, Hungary, Portugal, Greece have done it and I do not consider them second-class countries in Europe. Those who think differently do not have a real European view. And the G-7 club may be a somewhat outdated concept: It no longer represents the real world economic powers, since it does not include either China or India.” Italy is not “selling out” its ports, as some have claimed, he countered: “We do not sell, at most we give concessions to create greenfield investments, which means starting from zero. You cannot sell out things that were not there in the first place.”
China Responds to U.S. Attack on Italy Joining the Belt and Road
The Chinese Foreign Ministry today responded to the attack on Italy’s plan to join the Belt and Road by Garrett Marquis, a long-time ally of National Security Adviser John Bolton (who brought him onto the National Security Council). An unsigned editorial in {Global Times,} titled: “White House’s Criticism of Italy’s Plan To Join BRI Ridiculous,” reports that Lu Kang, spokes-person of China’s Ministry of Foreign Affairs, at a routine press conference today, said: “Italy, as a major country and economy in the world, is clear about its interests. It could make its own policies and decisions.” {Global Times} added: “The BRI is an important inter-national public good that China contributes to global cooperation for common development. China and more than 150 countries and international organizations have signed BRI cooperation agreements, which witnessed more than $6 trillion in cumulative trade between China and participating countries, Yang Jiechi, a member of the Political Bureau of the Communist Party of China Central Committee, said at the 55th Munich Security Conference in February, the Xinhua News Agency reported.”
Greek Foreign Minister in Beijing To Discuss Intensifying Belt and Road Cooperation
Greek Foreign Minister Giorgos Katrougalos began a five-day official visit to Beijing on March 5, in which he co-chaired the 13 Joint Inter-ministerial Committee with China’s Foreign Minister and State Councillor Wang Yi and with Commerce Minister Zhong Shan. On the margins of the meeting, Katrougalos met Foreign Minister Wang Yi, Commerce Minister Zhong Shan, Vice Chairman of the National Development and Reform Commission Ning Jizh, and chief of the Development Commission He Lifeng, according to a statement by the Greek Foreign Ministry.The Greek delegation included Christos Lambridis, Secretary General of Ports, Port Policy, and Maritime Investment, and officials from the Hellenic Ministry of Agricultural Development. “From all these contacts, both with my counterpart, the Minister of Foreign Affairs, as well as with the head of Foreign Relations of the Communist Party of China, and the economy ministers, the Minister of Commerce, the head of the crucially important Planning Commission of China, the conclusion drawn is dual in nature: First of all that Greece and China are seriously investing in their bilateral strategic partnership. This is not occasional, it has as its guide the ‘One Belt One Road’ initiative which the Chinese government is promoting at the moment, but there is a significant alignment of interests, precisely because we too endeavor that our country becomes a bridge between Europe, Asia, and Africa. The second thing that was affirmed is the observation that Greece has exited the economic crisis and offers significant opportunities for investment to the Chinese side. Katrougalos also participated in the formal commencement of proceedings of the annual plenary of the National People’s Congress, ahead of which he said, “As you know, China has achieved a lot. It is on its way to becoming the world’s largest economy. It helped 700 million of its citizens out of complete poverty.” Chinese Foreign Minister Wang Yi congratulated Katrougalos on assuming his new post as foreign minister, and expressed satisfaction that “Mr. Foreign Minister chose China as the first country to visit after taking office, which demonstrated with concrete actions his friendship with China and the importance he attached to China-Greece relations and that both countries are good friends and good partners.” He further stated that “as the birthplace of Mediterranean civilizations, Greece possesses profound cultural heritage and enormous development potential. The Chinese side feels happy that Greece has overcome the influence brought by financial crisis and regained economic and social vitality, and is willing to, together with the Greek side, strengthen high-level exchanges, increase understanding and mutual trust, expand bilateral cooperation fields under the framework of the Belt and Road Initiative….”
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China Friend or Foe? Published in AU’s “Invest in Africa” magazine
Below is my article on China: Friend or Foe?-January 2019, that was published (abridged) in the African Union magazine: “Invest in Africa“-2019 vol 1. You can find it on page 65 (85 on the link to the magazine). There are many worth while articles to read in this volume of the AU magazine
https://issuu.com/amipnews/docs/invest_in_africa_2019_vol_1 By Lawrence Freeman
January 1, 2019
The short answer is a China is friend and contributor to Africa’s progress. Ignore all the propaganda, ignorance and outright lies claiming that China is the new colonizer of Africa. There is absolutely no truth in the contorted comparison between China’s involvement in Africa today, and 500 years of slavery and colonialism by Western nations.
Following the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, we have witnessed an escalated disinformation campaign alleging that China is attempting to snare African nations in a new “debt-trap.” New vicious rumors have emerged that China is taking over ownership of key infrastructure projects in Africa. Every African Head of State who has spoken out, has refuted these allegations and praised their cooperative relationship with China.
According to a report by the British based Jubilee Debt Campaign, “Africa’s growing debt crisis: Who is the debt owed to?” China is owed a minority of external debt. Their figures compiled from the World Bank and the China Africa Research Institute show that 20% of African government external debt is owed to China in contrast 32% to private lenders, and 35% to multilateral institutions such as the World Bank.
Of these 14 countries that have they examined: 11 owe less than 18% of their debt to China (Burundi, Cape Verde, Central African Republic, Chad, Gambia, Ghana, Mauritania, Mozambique, Sao Tome and Principe, South Sudan, Sudan and Zimbabwe); and three owe more than 24% -Djibouti (68%), Zambia (30%) and Cameroon (29%).
The proponents of the “debt-trap” accusation conspicuously, egregiously omit from their chronicle the history of the financial imprisonment of the then newly independent African nations by the IMF, World Bank, Paris Club, and their kith and kin in the City of London and Wall Street. Through manipulation of terms of trade, controlling prices, and forcing currency deviations, African nations found themselves shackled in several hundred billion dollars of new debt to the West shortly after African nations achieved liberation from imperialist colonial masters. Western debt replaced slavery and colonialism as the new method of looting Africa of its wealth, reinforced by the ill-fated Structural Adjustment Programs-SAPs, otherwise known as the “Washington Consensus.”
So, who is kidding whom about a “debt-trap?”
Debt for Infrastructure is Necessary
Credits issued for hard infrastructure; energy, railroads, ports, roads, bridges, and soft infrastructure in well equipped; schools, libraries, universities, and hospitals will always result in an increase in productivity i.e. the economic power of the society. By employing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output.
All nations that have experienced real economic growth and raised the living standard of their citizens have created credit i.e. public-sector debt or borrowed debt at non-usurious interest rates for targeted physical economic growth.
China is the single largest nation contributing to financing and constructing of infrastructure projects in Africa according, to Deloitte’s 2017 edition of Africa Constructive Trends. The report examines 303 infrastructure projects begun in the first half of 2017 that costs over $50 million. Appropriately, energy& power, and transport comprise 167 of these projects-over 55% of the total. While African governments fund 27.1 % of the funding, China accounts for 15.5% of the funding and 28.1% of the construction for these projects. The US accounts for 3% and 3.3% respectively. Both Italy and France are larger than the US percentage in building infrastructure in Africa.
African Development Bank President, Akinwumi Adesina, speaking on November 28, 2016 accurately linked the deadly migrant crisis to deficiencies in Africa’s economic development and infrastructure.
“I believe that Africa development deserves significant support, even in the midst of these challenges. We must not forget that the reason several thousands of Africans have been (illegally) migrating to Europe, is because of the lack of jobs and shrinking economic opportunities at home. Our result must not be to reduce support, but to increase support to help build greater resilience, boost its economies, address its structural challenge, such as closing its huge infrastructure gap, strengthening intra-related trade, and creating jobs for its teeming youths.”
A study done by the AidData Research Lab at William and Mary College in Virginia that analyzed China’s investments in the developing sector between 2000 and 2014, concluded:
“We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.”
China has come to know, what the US has forgotten, that infrastructure is the sine qua non to drive economic growth.
Africa’s huge infrastructure deficit is the causal factor for widespread poverty, and insecurity across the continent, precisely that which China has begun to address over the last decade. The Western financial system that dominated Africa from 1960-2000 contributed almost nothing to help African nations industrialize and failed to help create vibrant agro-manufacturing sectors. China with its Belt and Road Initiative has presented the world with a new paradigm to guide political-economic relations among nations; Africa is the beneficiary.
Lawrence Freeman is a Political-Economic Analyst for Africa, and Vice Chairman of the International Scientific Advisory Committee to the Lake Chad Basin Commission
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China, Africa, and exploring the Universe for Mankind
Displaying China’s commitment and friendship to Africa, the first foreign trip of the new year by China’s Foreign Minister began in Ethiopia, and included a meeting African Union Chairman, Moussa Faki Mahamat. Landing on the dark side of the Moon for the first time history with China’s new rover is a step forward for Mankind.
Wang Yi Opens New Year with Visit to Africa
Jan. 4, 2019 As has become the tradition of Chinese Foreign Ministers, Wang Yi’s first foreign trip of 2019 is to Africa. It began yesterday with meetings with Ethiopia’s highest officials, followed by his meeting today with the head of the African Union, headquartered in Ethiopia. Wang will then travel to Burkina Faso, Gambia, and Senegal. China reported that Wang hopes through this trip to strengthen coordination with Africa for the implementation of the decisions taken in last September’s historic summit in Beijing of the Forum on China-Africa Cooperation (FOCAC). Wang met with both Ethiopia’s Prime Minister Abiy Ahmed and Foreign Minister Workneh Gebeyehu. The statement posted by the Prime Minister after his meeting with Wang praised China’s “immense contribution to Ethiopia,” reported that Abiy had “highlighted” that for Ethiopia, “the new frontier of a strengthened relationship [with China] needs to capitalize on introducing new forms of technology,” and to continue the support in infrastructure development. Neighboring Kenya’s {Daily Nation} covered Wang’s meetings in Ethiopia with a blast at the “China debt trap” lies. Citing statistics from the “conservative” American Enterprise Institute), the paper emphasized that from 2005 to 2018, China’s total on investment and construction in Sub-Saharan Africa was $298 billion. Making China “the single largest bilateral financier of infrastructure in Africa, exceeding the combined total of the African Development Bank, the European Union, International Finance Corporation, the World Bank and the Group of Eight countries.” Wang had “initially sidestepped concerns, often made by Western nations, about whether the debt payments were sustainable,” the {Daily Nation} reported, but he then he answered: “Generally, debt in Africa has been a protracted issue left from history. It didn’t come up today, still less is it caused by China,” Wang said. He added that China is well-aware that some African nations have encountered financing difficulties, and “we’re always ready to extend a good hand when African countries need it.” According to Anadolu Agency, Wang discussed plans to start a dialogue on security with Africa, when he met with African Union Chairperson Moussa Faki Mahamat today, arguing that “peace in the African continent is very important for stability in the whole world.” Faki, for his part, praised China’s help in capacity building in Africa, being the biggest partner of Africa in building roads, ports and energy facilities.
Chang’e-4: “Exploring the Unknown Is Human Nature”
There is extensive coverage in the Chinese media, both TV and print, of the astonishing Chang’e-4 achievement, and the ongoing activities of the lander, the rover, and the relay satellite. Comments by a number of China’s top scientists involved in the project are also reported: “Exploring the unknown is human nature. The Moon is a mysterious world to us. We have a responsibility to explore and to understand it. Exploration of the Moon will also deepen our understanding of Earth and ourselves,” said Wu Weiren, chief of China’s lunar program. On CGTN’s “China 24” program this morning Wu said that although China started late in its lunar program, unlike the U.S. program it is not a race, but scientific, and started from a higher ground. He said China’s lunar program welcomes contributions, even in subsystems and system integration. “It is a perfect display of human intelligence,” said Jia Yang, deputy chief designer of the Chang’e-4 probe, from the China Academy of Space Technology CAST). “Solving those problems might help lay the foundation for future space exploration. High-precision landing is a necessity for further exploring the Moon and asteroids. We hope to be able to reach the whole Moon and even the whole solar system,” said Sun Zezhou, chief designer of Change-4 probe, from CAST. “Exploring the far side of the Moon is one contribution China is making to the world. Although we still don’t know what we might find, this exploration might influence several generations,” said Shen Zhenrong, a designer of the lunar rover.
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Despite Claims From the West: Report Reveals That China’s Africa Infrastructure Projects are Reducing Economic Inequalities
Chinese Investments in Developing Sector Decrease Inequality
December 12, 2018 A study done by the AidData institute at William and Mary College in Virginia showed that China’s investments in the developing sector between 2000 and 2014, unlike many western investments, reduce economic inequality in the targeted countries. Financed by the UN, the Singapore Ministry of Education, the German Research Foundation, USAID, and several other foundations, the study collected data on Chinese projects in 138 countries, concluding: “We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.” “Beijing has demonstrated that it is both willing and able to address the unmet infrastructure financing needs of developing countries. These development projects—in particular, investments in highways, railways, roads, bridges, tunnels, and ports—could strengthen economic ties between rural and urban areas and thereby help to spread the benefits of economic growth to more remote and traditionally disadvantaged areas.” “The findings from the study are encouraging: Chinese development projects—in particular, “connective infrastructure” projects like roads and bridges—are found to create a more equal distribution of economic activity within the provinces and districts where they were located.”Read the article with a link to the report
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Don’t Listen to Propaganda & Gossip. Follow the Facts: China is not Creating a ‘debt-trap’ for Africa
November 3, 2018 A useful report, “Africa’s growing debt crisis: Who is the debt owed to?” by the British based Jubilee Debt Campaign, again belies the propaganda and gossip that China is manipulating African nations into a ‘debt-trap.’ This report excerpted below, using figures from the World Bank, and the China Africa Research Institute-(CARI) at Johns Hopkins SAIS in Washington DC, shows the percentage of debt owed to China by African nations is not the cause of a debt crisis. In fact, in many cases the debt owed to China is less than the total owed to Western nations and financial institutions. It is clear that for strictly geo-political reasons many Western think tanks and various media have gone into overdrive demonizing China with false claims of a new ‘debt-trap.’ This has also led to increased attacks on African leaders, portraying them as weak and not acting in the interest of their citizens. They have been accused of succumbing to China, which has been dubbed, the new imperial power. Sadly, many Africans have been duped, or simply out of frustration and anger, joined this western orchestrated chorus. Of course, the truth of the matter is quite different. From the early 1980s on Western financial intuitions such as the IMF, World Bank, and Paris Club, loaded up African nations with so much debt that they were unable to service the debt, forcing them into unpayable arrears. The vicious irony, is that several hundred billion dollars of debt lent by the West was never meant to actual develop African economies. It was in fact, intended to create a real ‘debt-trap’ for Africa. It has only been in the last ten years that Africa’s huge deficit in infrastructure is being addressed in collaboration with China’s non-western model of development. As I have written over many years, debt is not the problem when it is used as credit to improve the productive powers of a society to increase its physical wealth. Technologically advanced infrastructure is an excellent, if not the premiere method to drive an economy forward. This is exactly what China is accomplishing through its Belt and Road Initiative, and is at the heart of the Forum on China-Africa Cooperation-(FOCAC). Unfortunately, the dominance of the “geo-political” ideology since the death of Franklin Roosevelt has thoroughly contaminated the thinking of Westerners and Africans alike. Creating a culture (with few exceptions) of people unable to think strategically, and who cynically reject the idea that a powerful nation would extend itself to actually assist other nations. China, according to all accounts, has lifted 700 million of its people out of poverty. President Xi Xinping has pledged to help eliminate poverty in Africa, the continent with highest rate of poverty in the world. Yet, many Africans reject this offer as insincere, suggesting a sinister motive lurking behind China’s offer. This attitude, is in part, the result of today’s political culture, which has failed to understand one of the most profound universal principles: all mankind shares a common interest in the development of the creative potential of each and every human being. Let us all agree, now, that we will all act on the this principle of the common good, and affirm as did the Treaty of Westphalia, that the interest of the other is also the interest of thy self.“Africa’s growing debt crisis: Who is the debt owed to?”
October 2018 (excerpts follow) Summary • African government external debt payments have doubled in two years, from an average of 5.9% of government revenue in 2015 to 11.8% in 2017 • 20% of African government external debt is owed to China • 17% of African government external interest payments are made to China • In contrast, 32% of African government external debt is owed to private lenders, and 35% to multilateral institutions such as the World Bank • 55% of external interest payments are to private creditors Minimum amount of African government external debt owed to China as percentage of total debt is 18% Creditor grouping, total debt owed, percentage of external debt owed, are as follows: China $72 billion 18% Paris Club $40 billion 10% Other governments $18 billion 4% World Bank $66 billion 16% IMF $18 billion 4% Other multilateral institutions $61 billion 15% Private sector $132 billion 32% Total $407 billion Maximum amount of African government external debt owed to China as percentage of total debt is 24% Creditor grouping’Total debt owed, percentage of external debt owed, are as follows: China $100 billion 24% Paris Club $40 billion 10% World Bank $66 billion 16% IMF $18 billion 4% Other multilateral institutions $61 billion 15% Private sector (excl. Chinese private sector) $132 billion 32% Total $417 billion Checking these figures through country cases Another way of identifying how much African government debt is owed to China is to look bottom-up at the individual data available by each government. Of these 16 countries, 14 have figures on how much debt is owed to China (for the full analysis see Appendix 1.). Of these 14: • 11 owe less than 18% of their debt to China (Burundi, Cabo Verde, Central African Republic, Chad, Gambia, Ghana, Mauritania, Mozambique, Sao Tome and Principe, South Sudan, Sudan and Zimbabwe). • Three owe more than 24% -Djibouti (68%), Zambia (30%) and Cameroon (29%). • The mean average amount owed to China is 15% of a government’s external debt, and the median average is 8%Read Complete Report: Who Is Africa Debt’s Owed To?
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“The Debate on China’s Role in Africa a Different Point of View”
CASADE: COUNCIL ON AFRICAN SECURITY AND DEVELOPMENT
The Debate On China’s Role In Africa; A Different Point Of View
A Brief Response: Marshall Plan for Africa or “Debt Trap?”
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The New Silk Can Create A New Global Paradigm
October 17, 2018 Excerpts from a presentation by Schiller Institute founder and President Helga Zepp-LaRouche in Washington, D.C. on Oct. 17. It was titled, “The New Silk Road and the End of Colonialism: A New Shared Future for Humanity,” …Now, ever since Xi Jinping announced the New Silk Road in Kazakhstan in 2013, about 100 countries have joined this effort. There have been investments in all of these countries, 12 times the size of the Marshall Plan, and all based on “win-win” cooperation. An enormous amount of infrastructure corridors, industrial parks, power plants; various agricultural projects have been built. And in the recent time, you have the building of a completely new system of international relations based on the respect for the sovereignty, and respect for non-interference in the affairs of the other country, respect for the perspective of a different social system, and this has created a different dynamic in the world. This has, for example, recently led to the integration of the Shanghai Cooperation organization(SCO) with the Belt and Road Initiative. There is a new formation of South-South relations which became very apparent at the recent annual BRICS meeting in Johannesburg, where you had the formation of Global South, which was practically all the organizations from the developing sector, the G77, the Organization of Islamic Countries, Mercosur, the African Union, many regional organizations. And then, subsequently, you had the very big Africa-China summit, FOCAC [Forum on China Africa Cooperation] in Beijing at the beginning of September, where you had about 48 presidents and 5 heads of state of governments participating from Africa, announcing a new age in the friendship and historic relationship between China and the African continent Now, Putin at the BRICS summit, had already promised that Russia would light up Africa in providing electricity, not from oil and gas, but through helping African nations to build nuclear power. And Xi Jinping at the same meeting, had said that Africa, of all the places in the world, has the biggest development potential in the world. The New Silk Road Spirit, which has captured this dynamic is transforming geopolitical conflicts in many parts of the world. For example, the very successful developments around North and South Korea, who are now fully on the way to possibly announce a peace treaty before the end of the year, going in the direction of unification. This is definitely one of the great successes of President Trump, who at the Singapore summit where he met with Kim Jong-un, is promising to help the make North Korea a prosperous country if denuclearization continues to proceed. And China has promised to integrate the Koreas into the Belt and Road Initiative. Russia has promised to help the economic prosperity in North Korea. This is a model, where you can see how this new spirit is helping to transform previous crisis situations into real miracles. A similar thing is happening in the Horn of Africa, where as a result of the construction of the fast railway between Djibouti and Addis Ababa, you have now Somalia, Djibouti, Eritrea and Ethiopia developing new diplomatic relations and cooperation which was unthinkable a very short period before. Now, the biggest breakthrough in this development was the signing of a MOU-Memorandum of Understanding between the Italian government and the Lake Chad Basin Commission on the realization of the Transaqua project. Transaqua is a project which the LaRouche organization has been fighting for, for over 30 years, and the fact that it is now agreed upon between China, Italy and six African nations to build is a game-changer for the entire African continent. Transaqua is the idea that you refill Lake Chad, which is now down to about 10% of its previous volume, bringing 3-4% of the water from the tributaries of Congo River, from about 500 meters high, through a system of canals into Lake Chad. And this will provide an inland waterway for participating countries: It will provide hydro-power, it will provide huge amounts of water for irrigation, it will fill up Lake Chad, and it will still provide for a large areas in the Sahel zone to be irrigated: And that way you can really improve the life about 40 million people who are living there. This is a tremendous breakthrough, and I think this is really the kind of project which can happen around the world everywhere. Now, in the context of the New Silk Road, there have been also an enormous amount of strategic realignment of countries which previously, for historical reasons and past wars, were at complete odds. For example, now there is a new cooperation between Japan and China, where both of them said that there is the possibility of joint projects in Africa. Prime Minister Shinzo Abe, just two days ago, said that Japan and China can cooperate in third countries and the pivot of it could be Thailand. And as we have been fighting for another great project, also for more than 30 years, the Kra Canal, there has been recently a conference putting that back on the agenda: And that would be a game-changer for the entire transport route in Southeast Asia. A wonderful example of cooperation with the New Silk Road is Austria, where Chancellor Sebastian Kurz will conduct a big forum, a Europe-Africa Forum, before the end of the year, because Austria has the presidency of the European Union for this present half-year; and many institutions in Austria and Vienna are completely enthusiastic. For example, the head of the Vienna Chamber of Commerce [WKW] is pushing for the complete integration of Austria into the New Silk Road. And he said the New Silk Road is very easily explained: It is our economic future. The Mayor of the city of Linz called the connection of Austria to China the “Trade Route of Creativity.” Also the Italian government, the new government, which is being attacked by the mainstream media practically every day, is practically going for a full strategic alliance with China. Various cabinet ministers, Michele Geraci and Giovanni Tria were just on trips to China making huge deals, inviting China to rebuild the Italian infrastructure. And the substitute commerce minister, Paolo Savona, who made a wonderful speech in the Italian Chamber of Deputies, calling for the new economic plan of Italy is Franklin D. Roosevelt’s New Deal, and he advocated the cooperation of China and Italy in Africa. And in the Transaqua memorandum of understanding, there was previously memorandum of understanding between China and Italy to engage in this great project: So this can be a model of any Western country…. There is a new concept of great power relations, developed by China, and proposed to the United States. The {Global Times}, a government-related newspaper recently, in light of the tensions between China and the United States, asked the question: What should the relations be between China and the United States in 30, 40, 50 years from now, or even towards the end of the century?… And I would like to remind you of what Friedrich Schiller, [a great German poet] said, in “Why We Would Study Universal History,”- and I’m saying it now in my own words: We should look at the long chain of generations before us, who gave us the tremendous heritage. And should it not be our proud and passionate desire to connect our ephemeral life to that long chain of human generations, and contribute with our own life, that soon that generation will be living a better life as a result of what we have done?…________________________________________________________________________________________
Marshall Plan for Africa or “Debt Trap?”
Lawrence Freeman September 20, 2018 The world is witnessing an increase in attacks on Africa’s relationships with China in various articles, as well as low-level, unthoughtful, messages on Twitter, Facebook, and YouTube. Not only does that content intend to demonize China as the new colonial empire of Africa, but it also includes vulgar demeaning caricatures of African Heads of State. Could the reason for the uptick of these kinds of diatribes be related to the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, attended by leaders from almost every African nation? China has reached out to Arica and formed a special relationship which is being embraced by African Heads of State. It should be clear to any intelligent historian, that China is not acting as an Imperialist manner towards Africa. However, what has been conspicuously, egregiously omitted from this unsubstantiated vilification of China, is the history of Western nations and institutions, which have acted as an Imperialist power towards Africa. The latest accusation is that China is deliberately entrapping African nations into unpayable debt. However, this is precisely what the IMF, World Bank, Paris Club, along with their allies in the City of London and Wall Street did to Africa immediately following the “Winds of Change.” The motivation for this propaganda barrage is that China via FOCAC and the Belt & Road Initiative is offering African nations a pathway toward growth uncontrolled by the financial predators in the City of London and Wall Street. Contrary to the myth that China is stealing African resources; which the Western powers did first under slavery, then under colonialism, and have continued under neo-colonialism, China is actually providing credit for physical infrastructure; the sin qua non to spur economic growth. Debt and Credit for What? A pervasive and quite serious problem affecting well-intentioned individuals from all corners of the globe is the lack of understanding of what actually creates economic growth. Neither money, nor financial transactions, nor derivatives, nor speculation, nor rising stock markets, nor the market place are the cause of growth or synonymous with real economic growth. Credits issued for infrastructure; water, energy, rail, roads, healthcare, and education, identifying the most vital categories, if properly organized, leads to an increase in the productivity i.e. the economic power of the society. This is measured by the ability of society to increase its physical output from one production cycle to the next. By utilizing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output. Shortly after the death of President Kennedy, the US ceased its commitment to assist Africa nations in expanding their infrastructure. China is committed to lending, issuing credit-yes creating a debt to fund long-term investment in infrastructure. Credit directed in this way is good debt. With non-usurious interest rates over 15-20 years, the loan can be retired from the profit it generates to society. This form of debt is not equivalent to the hundreds of billions of dollars African nations were forced to pay to the financial capitals of the world for loans to cover rigged terms of trade, and currency devaluations. If you study the American System of Political Economy with its cornerstone; Alexander Hamilton’s national credit policy, you will realize that China is emulating the best of America’s past. For example, President Franklin Roosevelt, who successfully applied Hamilton’s principle to rebuild the Depression riddled US with state issued credits, would have little trouble understanding the principles of President Xi Jinping’s Belt & Road. Economics and the Common Good There is a deeper level to comprehending economic growth. Every human being is united by a universal principle often expressed as the “common good of mankind.” Yes, all human beings regardless of religion, color, ethnicity, or place of birth, share a “common interest.” We are all created with the power of creativity. Not logic, not deduction, not induction, but the power to hypothesis new ideas. The power of discovery, to discern new principles of the universe that we previously did not know but were there waiting to be revealed to the human mind. These scientific discoveries spawn new technologies which are the primary source of economic growth. Thus, it is the responsibility, nay the obligation of every society to nurture and develop that creative potential innate in all its citizens from birth to death. For all citizens to realize their potential, live productive lives, and raise their families without fear of hunger and security, a nation must have the economic means to expand the total physical wealth of society over succeeding generations. An advanced industrialized nation requires a healthy manufacturing sector, which is also an essential component of a productive agriculture sector. The absence of robust agro-manufacturing economies in Africa is crime along with its huge deficit in infrastructure. Sadly, the West does not have the vision to assist African nations in overcoming these deficiencies. China in all, but name has launched the equivalent of a Marshall Plan for Africa. Among the eight major initiatives that President Xi laid out at the Africa-China Summit, China will:China has come to understand that it is the common interest of its own country, and in the fact all nations, is to help Africa develop productive industrialized societies not dependent on revenue from one resource or one crop. Under these improved conditions, hunger and poverty, the underlying causes for conflict, can be eliminated. Great progress can be accomplished in Africa and the world, if the US and Europe acquire the wisdom to join China’s Spirit of the Belt & Road1.Promote industrialization; 2. Support agricultural assistance programs; 3. Work with the African Union (Agenda 2063) to formulate a China-Africa infrastructure cooperation program; 4. Increase its imports from Africa, in particular non-resources products; 5. Train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.
Below are three articles with excerpts that provide useful background to understanding Africa’s productive relationship with China.
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West Uses “Debt Trap” to Thwart Alliance of China & Africa for Economic Development
African Development Bank President, Adesina, Denies Debt Crisis in Africa
Speaking to the reporters on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Beijing Summit on Sept 5, and addressing the western propaganda that China is drowning Africa with debt, President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, said: “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure.” “The population is rising, urbanization is there, and fiscal space is very small,” the AfDB president added. “They are taking on a lot more debt, but in the right way,” Adesina said, Xinhua reported on Sept 5. Scoffing at the international campaign that the China imposed debt has begun to cripple Africa, Adesina pointed out that Africa’s overall debt-to-GDP went up from 22 percent in 2010 to 37 per cent last year. He stressed that the ratio is markedly lower than the 100 per cent or 150 per cent of many higher-income countries, and over 50 per cent among emerging economies. Meanwhile, in an interview with the Nikkei of Japan, the foreign minister of Djibouti, Mahmoud Ali Youssouf, said his country intends to help promote China’s Belt and Road Initiative, but is also cautious about over reliance on China in light of Djibouti’s growing debts linked to Chinese investment. “If [the initiative] brings wealth, progress, development, we welcome it,” he said in that interview, Nikkei reported todayNigerian President Buhari Debunks the “Debt Trap” Hoax
Muhammadu Buhari, the President of Afria’s most populous nation, Nigeria, has emerged from the hugely successful Forum on China-African Cooperation (FOCAC) with a refutation of what he called “insinuations about a so-called Chinese debt trap.” “Let me use this opportunity to address and dispel insinuations about a so-called Chinese debt trap,” he told the press today. “These vital infrastructure projects being funded are perfectly in line with Nigeria’s Economic Recovery & Growth Plan. Some of the debts, it must be noted, are self-liquidating. Nigeria is fully able to repay all the loans as and when due, in keeping with our policy of fiscal prudence and sound housekeeping.” He said: “I am happy to note that Nigeria’s partnership with China through FOCAC has resulted in the execution of critical infrastructure projects valued at more than $5 billion, over the last three years. We have completed West Africa’s first urban rail system, valued at $500 million, in Abuja. Before then was the 180km rail line that connects Abuja and Kaduna, completed and commissioned in 2016, and running efficiently since then,” the President declared. He said that Nigeria is currently leveraging Chinese funding to execute $3.4 billion worth of projects at various stages of completion. Among these are: upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project, and fibre cables for our internet infrastructure. Nigeria signed an agreement for an additional $1 billion loan from China. The money is for additional rolling stock for the newly constructed rail lines, as well as road rehabilitation and water supply projects.“Debt Trap” Hoax Exposed by Chinese Spokesperson
At a September 4 press conference on the morning of the second day of the FOCAC Summit, Xu Jinghu, the Special Representative of the Chinese Government on African Affairs, was asked by Reuters about whether the $60 billion financing that President Xi Jinping promised in aid for Africa in his keynote address, would create debt problems for Africa. Xu Jinghu went through the importance of the eight areas outlined by President Xi in order to raise the level of production and productivity of the African economy. She also made clear that all of the projects are done in close consultation with the African countries in order to meet what they see as their real needs for further industrialization. She added that Africa is in “the ascending phase” of its development and “faces a gap in the funding for all of their endeavors…”They need capital development and the African and Chinese economy, which is more developed, are therefore complementary.” Xu commented, “You have to take into consideration the international situation. The costs of financing for development on the international market has become very expensive and most of the African countries are still dependent on exporting their raw materials. And the price of these have fallen,which has increased the debt of African countries a great deal. And if you look at the African countries, you will see that China is not the creditor of those African countries with the biggest debt burden.China Africa Research Initiative Refutes “Death Trap” Propaganda
The China Africa Research Initiative-(CARI) at the Johns Hopkins School of International Studies, Washington DC refuted the “death-trap” narrative that China is subverting African nations by forcing them into debt. Their The Path Ahead: The 7th Forum on China Africa Cooperation-(Briefing Paper #1, 2018), reports: “Finally, in just three African countries, Chinese loans are currently the most significant contributor to high risk of/actual debt distress” They are; Djibouti, Republic of Congo, and Zambia. Read complete CARI briefing paper______________________________________________________________________________________________
FOCAC Summit: President Xi “China and Africa will walk together towards prosperity.”
{I have been telling my friends for years that China-Africa cooperation will change the African continent. With investments in vital categories of infrastructure, African nations can industrialize and develop advanced agro-manufacturing sectors. Economic sovereignty is now possible for African nations after 500 years of slavery and colonialism. This recent FOCAC summit has placed Africa-China relations on center stage in front of the whole world. As Faki Mahamat, Chair of the African Union Commission said at the conference; China-Africa cooperation is a solid foundation for a new international order.(Watch the video of his remarks below) I will be writing more on the significance of the new era of China-Africa cooperation, but for now, we can and should rejoice. The world has changed for the better, even though there are dangerous pitfalls ahead. }China To Invest $60 Billion in Africa over the Next Three Years; Xi Says: ‘Explore a New Path of International Relations’
Sept. 3, 2018 Chinese President Xi Jinping in his keynote of the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), announced that China would be investing $60 billion in Africa over the next three years, which would include $15 billion of interest-free and concessional loans, $20 billion of credit lines, a $10 billion special fund for development financing, a $5 billion special fund for financing imports from Africa, and encouraging investment by Chinese companies to the tune of $10 billion in Africa. In his speech, President Xi said that China-Africa cooperation was based on the following principles; The Five “No’s”: No interference in African countries and pursuit of development paths that fit their national conditions; No interference in African countries’ internal affairs; No imposition of China’s will on African countries; No attachment of political strings to assistance to Africa; No seeking of selfish political gains in investment and financing cooperation with Africa. “We welcome Africa to the fast train of Chinese development,” Xi said. Central to the cooperation has been the Belt and Road Initiative, which in Africa is in synergy with the African Union’s “Agenda 2063,” which marks the centennial of the official end of colonialism in Africa in 1963. President Xi laid out the eight major initiatives that China would implement in collaboration with Africa in the coming three years: 1. In industrial promotion, China will set up a China-Africa trade expo in China in order to encourage Chinese investment in Africa. 2. It will also carry out 50 agricultural assistance programs, provide $147 million in food aid to African countries affected by natural disasters and send 500 agricultural experts to Africa. 3. With regard to infrastructure, China together with the African Union will formulate a China-Africa infrastructure cooperation program. 4. With regard to trade, China will increase its imports from Africa, in particular non-resources products. 5. On green development, China will undertake 50 projects focusing on climate change, ocean, desertification prevention and control, and wildlife protection. 6. On capacity building, China will set up 10 workshops in Africa to offer vocational training for young Africans. It will also train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges. 7. In health care, China will upgrade 50 medical and health aid programs for Africa. On people-to-people exchanges, China will set up an institute of African studies and enhance exchanges with Africa on civilization. 8. And on peace and security, China will set up a China-Africa peace and security fund and continue providing free military aid to the African Union and will support countries in the Sahel region, and those bordering the Gulf of Aden and the Gulf of Guinea, in upholding security and combating terrorism in their regions.African Union’s Moussa Faki Mahamat, Addresses FOCAC Conference
Please review this excellent speech by Faki Mahamat, Chair of the African Union Commission, at the Forum on China-Africa Cooperation. In his remarks the AU Chair called for “the urgent reform of the international financial institutions…That China-Africa cooperation is a solid foundation for a new international order…Our partnership [with China] can reshape the world’s geo-political landscape”He went onto say that the AU welcomes the Belt and Road Initiative and its synergy with AU’s “Agenda 2063.”Presidents Ramaphosa and Kegame: Africa Supports the Belt and Road Initiative
In his speech to the FOCAC Summit, South African President Cyril Ramaphosa said, the Belt and Road Initiative was in the interests of the African nations. China-Africa cooperation, he said, was in the interests of the African nations. “In the values that it promotes, in the manner that it operates, and in the impact that it has on African countries. FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe...It is premised on the African Union’s Agenda 2063, a vision that has been crafted in Africa, by Africans. It is a vision of an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the international arena.” “Why do we support the Belt and Road Initiative?” Ramaphosa asked. “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China. It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.” Ramaphosa was followed by Rwandan President Paul Kagame, the current rotating chairman of the African Union. “Africa wishes to be a full and integral part of the Belt and Road Initiative. The gains will be enjoyed by everyone.” Kagame praised in particular the personal commitment of President Xi to this initiative. “He has visited every region of our continent, including my country Rwanda. China has proven to be a win-win partner and dear friend,” Kagame said. UN Secretary General Antonio Guterres gave support to the message expressed by the African leaders, who said that “it is vital that current and future development cooperation contributes to peace, security and to building a ‘community of shared future for mankind,'” reiterating a concept that lies at the basis of President Xi’s conception of a new form of international relations. Guterres also expressed support for the importance of the strengthening South-South cooperation._____________________________________________________________________________________
Big Plus for Africa: Belt & Road, BRICS, and Africa-China Summit, Converging for Development
{Heading into the 7th Forum On China-Africa Cooperation-(FOCAC) we are already witnessing significant changes in the physical infrastructure of Africa as a result of China’s One Belt and Road Initiative, the BRICS and previous FOCAC summits. Next week’s China-Africa Summit portends greater cooperation for investment in infrastructure and manufacturing, leading to the long over due industrialization of the continent. Thus finally liberating Africa from the effects of 500 years of slavery and colonialism. In addition to China, many nations are investing in Africa in constructive ways, but unfortunately not the United States, which is retreating from Africa. President Trump can and should reverse this trend by joining China’s Belt and Road development of this great continent, which in less than two generations will be the population center of world. Please review the articles below.}Chinese Envoy to FOCAC: `Twin-Engines’ of BRI and FOCAC Will Transform Africa
Aug. 29, 2018 –Zhou Yuxiao, Chinese Ambassador to the Forum for China-Africa Cooperation (FOCAC), spoke of the historic impact of the Sept. 3-4 FOCAC summit, in an interview with Xinhua yesterday. His observations come as many African heads of state are already arriving in Beijing, even before the Sept. 3-4 formal sessions of the Forum take place. Founded in 2000, FOCAC has had two previous heads-of-state meetings, one in 2006 and one in 2015. Zhou said that the China-Africa collaboration had proceeded in small steps, but successfully over the years. All the while, China’s ability to “walk the walk,” and Africa’s success in collaborating, made things work, to the point of widespread trust and effectiveness. At the 2015 FOCAC meeting in South Africa, China pledged financing in the range of $60 billion for implementing ten cooperation plans announced at the time. Now financing is also coming from the Silk Road Fund, the BRICS New Development Bank, and private Chinese firms. Xinhua summarized, “A key aspect to watch, Zhou said, will be how China and Africa link the Belt and Road Initiative (BRI) with the UN 2030 Agenda for Sustainable Development, the African Union’s Agenda 2063, and African countries’ development plans.” This year, diplomatic relations were established between the African Union Commission (currently headed by Rwanda) and FOCAC. Zhou referred to the the BRI and FOCAC being “twin engines” for driving cooperation further in Africa. Many African leaders and experts are forecasting what lies ahead. Lesotho’s Prime Minister Thomas Motsoahae Thabane, said in an Aug. 22 Xinhua interview, that the upcoming summit, “is a landmark in the world aiming to improve itself for the survival of the human race, which faces multiple challenges today … the commitment is not only to specific countries in Africa, but to Africa in general.” China is a “true friend” of Lesotho, not “by word of mouth … but through actions, actions that push us to go from the situation of being underdeveloped to a situation of being developed. What more can you wish for from a friend than to stretch a hand of friendship in order to raise you up when you were flat on your stomach?” Thabane further pointed out that relations with China are “mutually beneficial.” In the past, for Western countries, the benefit was “always for what they call `the Mother country.’ Now, China is not like that, that is why we feel like we have a true and loyal friend in China.” Hisham AbuBakr Metwally, an Egyptian researcher with the Ministry of Foreign Trade and Industry, wrote an Aug. 21 opinion article for CGTN, reviewing accomplishments in rail, agriculture, energy, education, and other areas in Africa, thanks to work with China to date. {“FOCAC — Unprecedented Successful Mechanism, Reshaped Africa”} But he forecast more and bigger projects and a bright future. “After the completion of all mega infrastructure projects and industrial zones, the continent will change completely.” Note that CGTN has prepared a five-episode documentary entitled “A New Era of China-Africa Cooperation,” to show the development of African countries and to present the achievements of China-Africa cooperation. __________________________________________________________________________________ China-Africa Research Initiative-(CARI) at Johns Hopkins in Washington DC, provides a useful report on the progress of China-Africa collaboration. It also dispels the myth that Chinese loans are bankrupting all Africa nations. Many decades before China started investing in Africa, the continent had been suffocated by hundreds of billions of dollars of parasitic debt from Western institutions. Excerpt from its conclusion highlight: “Belt and Road. The language of the 2018 FOCAC will likely include more mentions of the Belt and Road Initiative, given that it is a priority of President Xi Jinping. Chinese contractors are keen to win Chinese finance for infrastructure projects desired by African governments, many of whom have been inspired by China’s industrialization and infrastructure capacity. Chinese-financed infrastructure projects in Africa such as the standard gauge railway transport projects in Kenya and Ethiopia, and new trade and industrial zones in Djibouti, Egypt, and Morocco, have been marketed as part of the Belt and Road Initiative.” Read the complete report: The Path Ahead: The 7th Forum on China-Africa Cooperation _________________________________________________________________________________ This article discusses the “deepening relations” with Africa by the rest of world, and appropriately asks: “Where does this Leave the United States?” Read: The World is Coming to Sub-Saharan Africa. Where is the United States?_______________________________________________________________________________________
President of Togo: “The Path to Growth Has No End”
{Togo First}–Ahead of the upcoming China-Africa Cooperation Summit-(FOCAC) in Beijing, Togo’s President, Faure Essozimna Gnassingbé, gave an interview to Chinese TV CGTN on August 23. During the interview, the leader praised relations between his country and China over the past 40 years. He declared also that the coming summit will further improve these relations. Faure Essozimna Gnassingbe, optimistically proclaimed, “The path to growth has no end.” President Gnassingbe’s interview, and the collaboration between Togo and China in the One Belt-One Road Initiative, encapsulates in one African country, the optimism that is radiating through each and all 54 countries in Africa, in the realization that the age of colonialism is ending and the era of development is underway. As reported by {Togofirst.com}, CGTN asked, “Which types of China companies do you wish to attract to Togo?”. President Gnassingbe responded, “[Chinese] investments have helped Togo grow and advance in its development. However, you know that the path to growth has no end. There is no limitation to our progress, so far. We have achieved some progress, but more can be done…. Regarding our preferred sectors for new investments, I would obviously say agricutlure, since it is the most important for our economy. Our agricultural sector needs to be modernized and industrialized, transformed into an agro-industry. I would say we need Chinese firms to invest in that sector.” Later in the interview, the Togolese President added, “While some economic powers try to do things on their own, the foundation of the relationship between China and Africa lies in dialogue, focusing on a win-win cooperation. Both sides win…. In regards to economy, I believe we will have the opportunity to discuss a major project, which I praise, the ‘One Belt, One Road’ project. We will discuss how Africa can contribute to this ambitious, generous and revolutionary project….[I]t is quite rare to see a country, even a huge one such as China which is currently the world’s second leading economic power, launch such a major project that would involve almost every continent.” He added that he recently read President Xi Jinping’s book on ways to fight poverty. President Faure Gnassingbe has a stuffed schedule in China from Sept. 2 through 10. He will attend the FOCAC forum from Sept. 3-4. He will attend Sept. 5 hearings with Chinese financial and state institutions, including China Merchant Group, the Eximbank of China (which is very active in Togo), the China Development Bank, as well as the managing director of the BRICS bank. He will meet with Xi Jinping the following day, to be followed by a trip to Zhiejiand, China’s fourth largest economic province, where discussions will be held on implementation of Togo’s National Development Plan.Foreign Minister Wang Yi Previews Upcoming FOCAC Summit–‘A New Phase of China-Africa Development’
Chinese Foreign Minister Wang Yi outlined the format and the program for the upcoming Forum on China-Africa Cooperation Summit in Beijing, which will be held on September 3-4. The Summit, which Wang Yi characterized as a “reunion of the China-Africa family” will have four major foci: 1) it will renew the call for a shared future for China and Africa bound by their common interests; 2) it will initiate a new phase of China-Africa development, enhancing the African countries’ participation in the Belt and Road Initiative, and focusing on upgrading cooperation on trade and infrastructure and people-to-people relations; 3) it will introduce pathways to a higher level of cooperation over the coming three years, and there will be the signing of a number of cooperation agreements with some of the countries, focusing on areas critical for Africa; 4) it will enhance the story of China-African cooperation historically with new measures to be introduced, which are people-centered. Wang Yi also said that there would be a great focus on young people in order to carry the relationship further down the road. The morning of the first day will consist of an opening dialogue between participants, focusing on issues of practical cooperation, increasing synergy and improving trade ties. President Xi and the other African leaders will participate in this discussion, as well as business leaders and other delegates. In the afternoon, there will be the opening ceremony where President Xi will give a keynote speech. This will be followed by more formal discussion will take place, focusing on industrial cooperation, the development of trade, health issues, peace and security issues. The discussion will be tailored to the needs of the African countries. The co-chairs of this meeting will be President Xi, and Cyril Ramaphosa, South African President and the chairman of the African National Congress. In the evening there will be a grand banquet and entertainment program for the delegates. On September 4 there will a round-table discussion, with the morning session chaired by President Ramaphosa and the afternoon by President Xi. They will discuss the three-year plan moving toward the year 2021. On the sidelines, there will be bilateral meetings with President Xi and the African leaders. Xi’s wife, Peng Liyuan, will also be chairing a forum on AIDS.China at Center of Zimbabwe’s Electricity and Total Development
Zimbabwe will require 11,000 megawatts of electricity to achieve its vision of becoming a middle-income country according to its 2030 Plan, stated Ministry of Energy Director of Policy and Planning Benson Munyaradzi. Munyaradzi stated, in Xinhua’s paraphrase Aug. 25, that “the huge demand for power presents vast opportunities for China to further invest in Zimbabwe’s energy sector.” He spoke at a two-day international conference on China’s Belt and Road Initiative organized by the University of Zimbabwe in conjunction with the Confucius Institute. The ideas and plans worked out at the conference will, undoubtedly, flow into the Sept. 3-4 Forum on China-Africa Cooperation conference to be held in Beijing, at which most of Africa’s 54 countries will participate, as well as the head of the African Union Commission. Zimbabwe, a landlocked country of 16 million people in southern Africa currently has 2,000 MW of installed generating capacity. So to get to the 11,000 MW target, would require building 9,000 MW of capacity, which is a tall order, but which China, in collaboration with Zimbabwe, has shown it can meet. In March, Sinohydro, the Chinese state-owned hydro-power engineering and construction company completed the 300 MW Kariba South Hydro Power expansion project, and in June, Sinohyrdo began the expansion by a further 670 MW of the coal-fired Hwange Power station. But as in many African countries, the power-generation is one aspect of the capital goods transfer and infrastructure building that China is engaged in to help Zimbabwe to leap forward. China has pledged to set up a “cutting-edge” urological-surgical center in Zimbabwe, and in an agreement signed in July 2017, Beijing pledged to send medical experts, supply medical equipment, and train Zimbabwean doctors in China. China also built a supercomputer center at the University of Zimbabwe, making it the fifth African country to host a supercomputer. China will also create the 1,700 km Trans-Zambezi Railway, connecting Zimbabwe, Zambia and Mozambique on the Zambezi River, from Binga, Zimbabwe to Nampula near the Mozambique coast. The first phase of this project consists of a 400 km railway between Shamva, Zimbabwe and Moatize, Mozambique. At the Aug. 24-25 conference at the University of Zimbabwe, University Dean Charity Manyeruke underscored that the BRI offers an exciting opportunity for Africa “to leapfrog its economic development. Zimbabwe is under sanctions from the West, and China stands as a very important strategic partner.” ____________________________________________________________________________________________________China’s Belt & Road Initiative Truly is Helping Africa Develop
Below are edited excerpts from a new report by the China-Africa Research Initiative-at Johns Hopkins in Washington DC (Brief #23, 2018). It provides a useful analysis that refutes the misinformation that China is “stealing” Africa’s resources.“Silk Road to the Sahel: African ambitions in China’s Belt and Road Initiative”
Yunnan Chen Where Does Africa Fit? THE BRI SIGNIFIES A SHIFT IN CHINA’S economic engagement with Africa, away from the resource trade characterized by the boom of the 2000s, towards a greater emphasis on infrastructure, industrial cooperation, and connectivity. From single bilateral infrastructure projects, there has been a new term ‘corridorization’ of infrastructure: creating economic corridors and networks at a regional scale to promote cross-border trade and integration. East and North Africa have been the focus of the BRI in Africa, though countries in West and Southern Africa have also signed cooperation agreements under the framework of the BRI. As part of the ‘maritime silk road’, Chinese actors have been linked to several major port and transport projects. Chinese firms have invested heavily in Egypt’s Suez Canal corridor, with plans to expand to a second canal as well as new terminals at the port of Alexandria.___________________________________________________________________________________________________
BRICS Summit: Part of a New Paradigm for the World
Below is an interesting analysis on the role that the BRICS are playing in creating a new paradigm of international relations independent from British “geopolitical” control. This is especially important for Africa, which will soon be the most populated continent on the planet. (excerpts below)“BRICS Countries at the Center of a New, Just World Economic Order!”
by Helga Zepp-LaRouch July 28, 2018 “While the West is trying in vain to uphold the old paradigm of the neo-liberal economic system, more and more nations are working with the BRICS, the Shanghai Cooperation Organization (SCO), and other regional organizations under the rubric of the Belt and Road Initiative, on the basis of win-win cooperation, and demonstrating that the world can be organized in a much more human fashion than that which we have seen from the European Union with its barbaric refugee policy._______________________________________________________________________________________________
Russia will light up Africa – Putin
Modi Emphasizes India’s Commitment to Africa’s Development at the BRICS
July 27, 2018 Addressing a BRICS Outreach Dialogue Session today in presence of a large number African heads of state, Indian Premier Narendra Modi said: “The coming together of so many African leaders during this program is a wonderful thing. India’s ties with Africa are time-tested. The Government of India has deepened engagement with Africa. Economic and development cooperation between India and Africa have touched new heights,” India’s WION TV news reported from Johannesburg. Among the African heads of state were: Paul Kagame (Rwanda), Yoweri Museveni (Uganda), Edgar Lungu (Zambia), Hage Geingob (Namibia), João Lourenço (Angola), Emmerson Mnangagwa (Zimbabwe), Ali Bongo Ondimba (Gabon), Mokgweetsi Masisi (Botswana) and Peter Mutharika (Malawi). The African leaders were invited by the host nation, South Africa, to discuss ways of pursuing inclusive growth on the continent with the BRICS heads of state, reported China CGTN television network. South Africa’s BRICS website points out that since it last hosted the summit in 2013, all BRICS hosts have included an out reach format: “In 2013, South Africa took the initiative to activate the provision for a BRICS Dialogue with partners from the Global South, as per the Sanya Declaration that stated: ‘We are open to increasing engagement and cooperation with non-BRICS countries, in particular emerging and developing countries, and relevant international and regional organisations.'” In his address, Modi, highlighting the ongoing cooperation between India and the African nations and welcoming the effort for regional economic integration by the African countries, he said “in the last four years, we have had more than 100 visits and meetings at the levels of heads of state and various government levels and these have taken our economic relations and development cooperation to a new high. India has offered 180 lines of credit worth $11 billion in more than 40 countries in Africa.” In addition, he said that “every year 8,000 African students get scholarships to study in India” and pointed out that his country now has an e-network in 48 African countries for telemedicine.____________________________________________________________________________
President Xi Jinping to BRICS Business Forum in South Africa:
“Keeping Abreast of the Trend of the Times to Achieve Common Development”
“Home to more developing countries than any other continent, Africa has more development potential than any other region in the world.”
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BRICS Summit Portends New Era of Cooperation and Development for Africa and the World
July 27, 2018Lavrov Welcomes South Africa’s Initiative for Africa at BRICS Summit
July 26, 2018–In an article in the South African magazine {Ubuntu}, published by the Department of International Relations and Cooperation (DIRCO), Russian Foreign Minister Sergey Lavrov said “we support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness…. Sub-Saharan Africa is the most dynamically developing region of the planet, which plays a key role in world mineral and hydrocarbon markets, a broad and rapid-growing consumer market, and one of the most attractive investment areas,” Lavrov said, according to Moscow Foreign Ministry website. Pointing out that BRICS-Africa Partnership that was launched during South Africa’s 2013 BRICS chairmanship is steadily developing, Lavrov said “we welcome special attention paid by Pretoria to Africa-related issues in the work of BRICS. This area of work is becoming increasingly important for Russian foreign policy as well. Russia has significantly contributed to decolonization processes and the rise of new independent states on the continent.”Sergey Lavrov: BRICS a Stabilizing Factor in Global Affairs; Focus on Africa is Key
July 25, 2018-An article published in South Africa’s {Ubuntu} magazine, prior to the BRICS summit, Russian Foreign Minister Sergey Lavrov noted the symbolism of the BRICS returning to Africa in 2018, the 100th anniversary of the birth of Nelson Mandela,– “a prominent political and public figure on a global scale.” Mandela contributed personally to establishing friendly relations between South Africa and Russia, he recalled, making possible today’s “high-level of a comprehensive strategic partnership.” Lavrov particularly praised South Africa’s leadership in the BRICS, -“special attention paid by Pretoria to Africa-related issues,” that has become especially important for Russia’s foreign policy. “We support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness.” Of special importance, Lavrov added, is that BRICS countries will foster cooperation with other associations and consolidate positions in international organizations to present a “united front.” The invitation to Argentina, Indonesia and Turkey, plus other African nations, to attend the July 25-27 summit reflects the BRICS-Plus initiative, he explained. “Thus we will expand the global reach of the Group and establish an outer circle of like-minded countries. In this regard, BRICs has good potential to become a unique platform for linking various integration processes in a flexible way.” Coordination between BRICS and other major international organizations is crucial, Lavrov underscored, since consolidation of efforts “is a key to ensuring world stability and a way to settle serious conflicts.” He particularly referenced how the BRICS-Africa Partnership has advanced since 2013. At the current summit, “a special outreach session will be held with the participation of the heads of State presiding over regional organizations of the continent in order to focus on its most relevant issues,” he said.Why India Is Keen To Invest in Africa with China: An Overview
July 26, 2018–Ahead of the 10th BRICS Summit, China’s President Xi Jinping and India’s Prime Minister Narendra Modi had embarked on tours through some African countries. Xi, arriving in South Africa on July 24, pledged $14.7 billion of investment in the country. During a less-than-24 hour visit on July 24, Modi pledged $205 million to Uganda. The sum is intended to help the East African country to develop its dominant agricultural sector and electricity distribution infrastructure. Both Xi and Modi were in Rwanda earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones, CNBC reported. In recent years, both China and India, which have been widely labeled in the West as rivals, have brought to African nations their focus on all-round development, investing to improve their infrastructure, agriculture, education, and technological skills, among other areas. The reasons why they chose to cooperate and collaborate in Africa’s development are many. For instance, the African nations are most receptive to all actual developmental efforts, large or small. Because of the needs of the African nations, which had all along been looked at only as sources for natural resources consumed by developed nations, every bit of investment made in these nations has a positive effect and is welcomed. China and India consider that providing Africa the ability to develop will bring about a sea-change in the direction and magnitude of global trade. India is keen to expand its economic relations mostly with Southeast Asia and Africa. For China and India, Africa does not pose any geopolitical threat. Moreover, the better understanding developed between Xi and Modi since their Wuhan meeting last April, enables both of them to work in tandem to improve the living conditions in Africa.Putin BRICS Remarks Imply Need for New Monetary System
July 26, 2018–Very brief remarks delivered by Russia’s President Putin at the Johannesburg BRICS Summit today (apparently after a leadership meeting), implicitly point to the need for a new monetary system, and the basis which has been created for such a system in the cooperative banks, funds and institutions created by the BRICS, the Belt and Road and China, and the Shanghai Cooperation Organization. Putin’s statement dealt with this. He said: “We view positively the activities of the [BRICS] Council to implement joint multilateral projects. It is necessary to conduct these activities in close cooperation with the [BRICS] New Development Bank. It is important that the business community should help enhance the Bank’s loan portfolio. “The New Development Bank has considerably expanded its operations as of late. Members of the Board of Directors have approved 21 projects worth over $1 billion, including five that will be implemented in Russia. “We support the idea of opening regional offices of the Bank. Talks are underway with Brazil on this issue. Hopefully, the possibility of opening the Russian office will be discussed after the talks. “The establishment of the BRICS Contingent Reserve Arrangement [to support countries under balance-of-payments pressure] deserves praise, and this has become an important mechanism for the prompt financing of our countries’ banking sector… “In 2017, we met in Xiamen [China] and decided to establish the BRICS Local Currency Bond Fund. This is very important for the development of the financial systems of our states. Therefore, the Fund’s timely initial operations, due to commence in 2019, serve the interests of BRICS.”BRICS Could be an Alternative Model of Development to Western Dominance
July 25, 2018–In a July 25 article published on the website of the Valdai Discussion Club, entitled “Brics and the World Order,” Georgy Toloraya suggests that the current BRICS grouping, plus other nations that form part of the “BRICS-Plus” structure (not official members) could offer the world “an alternative model of socio-economic development, differing from the West” that is based on “mechanisms of a liberal market or profit gaining…that assumes the dominance of the West.” Toloraya is the Executive Director of the Russian National Committee for BRICS Research. He debunks arguments that the BRICS is just a “China-centered structure,” intended only to promote China’s interests or its Belt and Road Initiative. These accusations, he notes, “are very sly statements. The Chinese factor is only one of the BRICS development facets.” In today’s “turbulent global situation,” Toloraya adds, it is especially important that the BRICS “common denominator” grows. Why? In contrast to the G7, BRICS expresses a “touching unanimity, which is not faked. This is not a mutiny on the ship we see with the G7, when the captain led to one direction while the crew wants to go to another one.” By the time Russia takes over the chairmanship of the group in 2020, he notes, BRICS “could become a united center of the multipolar world…Now BRICS creates its own structure of global governance, and it must develop in that direction. I do not know, whether that could be accomplished in the context of growing counteraction from the West, but we have to keep working.” Because the BRICS is a global organization, Toloraya concludes, “these five leading ascendant powers could create a world order that will be more just and balanced than what we see now.” It may not expand yet, but “what we see in the BRICS+ format, which is involving the largest countries that are not the group’s members, but show interest in it, is a significant step towards increasing the BRICS value and making this union a representative of the greater part of humanity.” On the eve of the Johannesburg summit, he concludes, BRICS is not {against}, but {for}: for just economic development conditions, for sustainable development concept centered on human beings.”_____________________________________________________________________________________________
Rwanda and South Africa Sign Deals With China and India Before BRICS Summit
Xi Jinping Arrives in Johannesburg, South Africa for BRICS Summit
July 24, 2018 China’s President Xi Jinping arrived in South Africa today for a bilateral meeting President Cyril Ramaphosa, to be followed by the July 25-27 Tenth BRICS Summit. As is his custom, Xi wrote an op-ed in the local press before his arrival, titled “For a New Era of China-South Africa Friendship.” In it, Xi began by emphasizing that “Our peoples forged a deep friendship during our common struggle against imperialism, colonialism and racism.” He then wrote: “Over the past six years, our two countries have worked closely as co-chairs of the Forum on China-Africa Cooperation (FOCAC) to advance the comprehensive strategic and cooperative partnership between China and Africa. Our bilateral ties have thus served as a model for China-Africa relations, for South-South cooperation, and for unity and cooperation among emerging market countries, and offered valuable experience for building an even stronger community with a shared future between China and Africa and a new type of international relations featuring mutual respect, fairness and justice, and win-win cooperation…. “We must strive for new outcomes in our practical cooperation. We need to promote complementarity between our development strategies, and make full use of bilateral mechanisms, FOCAC-(Forum on China-Africa Cooperation), the Belt and Road Initiative, BRICS cooperation, and other platforms to deepen cooperation in key areas such as industries, production capacity, resources and energy, infrastructure, finance, tourism, and digital economy and deliver more benefits to our peoples.” On the bilateral front, South African President Ramaphosa announced that the two countries signed “several agreements and memorandums of understanding that are intended to further deepen our relations, including investment commitments that have been struck to the value of $14.7 billion.”Xi Jinping and Rwanda’s Kagame Sign Multiple Agreements Strengthening Belt and Road Cooperation
Chinese President Xi Jinping met on July 23 with Rwandan President Paul Kagame on the third leg of his tour of Africa and the Middle East, which so far has taken him to the U.A.E. and Senegal. Xi travelled to South Africa today (for the July 25-27 BRICS summit), and he will then stop in the Indian Ocean island-nation of Mauritius on the way back to China. Xinhua reported that “after their talks, the two heads of state witnessed the signing of multiple agreements on bilateral cooperation in the Belt and Road Initiative and other areas.” In the meeting with Kagame, Xi stated, according to Xinhua, that “Beijing is willing to work with Kigali to translate their traditional friendship into concrete benefits for the two countries and the two peoples, and open a new chapter in their friendly cooperative relations.” As he has done on his other stops, Xi called on the two countries to “strengthen the link between their respective development strategies, give full play to their complementary advantages, and …cooperation in more areas and at deeper levels.” Xi told Kagame, Xinhua wrote, that “China welcomes Rwanda’s participation in the international cooperation within the framework of the Belt and Road Initiative, and encourages more Chinese investment in Rwanda to help advance its industrialization and modernization.” Xi also talked about broader China-Africa relations, which “have always been defined by sincere friendship, unity and cooperation. The two sides have become a community with a shared future going through thick and thin together as well as a community with shared interests dedicated to win-win cooperation.” Kagame, for his part, called China “a reliable friend who shares weal and woe with Africa. Kegame said it is of great importance for Rwanda and Africa to develop friendly ties with China. He spoke highly of China’s valuable assistance for Rwanda in such areas as infrastructure construction, agriculture and education, adding that China’s helping hand has made positive contributions to his country’s reconstruction and livelihood improvement.” Xinhua further said that Kagame emphasized that “Rwanda is willing to enhance cooperation with China within the framework of the Belt and Road Initiative, which offers a significant opportunity for both Rwanda and Africa. As the [African Union] AU’s rotating chairman, Kagame stressed that China’s long-standing firm support is of great value to Africa’s development. The African side, he said, looks forward to attending the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) in September, and stands ready to jointly push forward the development of FOCAC, so as to generate more benefits for the people of both sides.”Modi in Rwanda Witnesses Signing of Economic and Defense Agreements
On his way to attend the 10th anniversary BRICS Summit over July 25-27 in Johannesburg, South Africa, the Indian Premier, Narendra Modi, stopped in Rwanda and, along with Rwandan President Paul Kagame, witnessed the signing of seven bilateral pacts at Village Urugwiro, the President’s office in Kigali, by Indian and Rwandan officials, reported Rwanda’s {New Times}. Prime Minister Modi is the first Indian head of government to visit the East African nation, which is considered an important gateway for India to eastern Africa. Modi is on a three-nation tour, beginning with Rwanda and Uganda, and thence to Johannesburg for the BRICS summit. He arrived in Rwanda just as Chinese President Xi Jinpig was leaving that country. Agreements in the area of trade, defense, dairy cooperation, agriculture, culture, leather and allied sectors and two lines of credit worth $200 million for expansion of the special economic zone and irrigation scheme were signed, IANS reported.“During the talks, both leaders reviewed the entire gamut of bilateral cooperation and expressed satisfaction at the excellent relations between Rwanda and India in the overall context of Strategic Partnership,” India’s Foreign Ministry stated. Ties between India and Rwanda were elevated to the level of Strategic Partnership in January last year, IANS reported.
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It’s Time for Africa |
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Alignment with China’s development vision heralds a new era of opportunity on the continent
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At present, the trade volume between China and Africa has exceeded more than 200 billion U.S. dollars
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“The closest look yet at Chinese economic engagement in Africa”
Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.
In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies. Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.Africa’s largest economic partner
In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years. We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.