Archived Bulletin

Issue No.45 of 2018

Issued on Nov. 19, 2018

China, Africa and the art of mutual benefit

by Rajiv Bhatia, Distinguished Fellow, Gateway House, former High Commissioner to South Africa, Kenya and Lesotho

Source: https://www.gatewayhouse.in/china-africa-mutual-benefit/

China’s footprint in the African continent is growing because it is a zealous summiteer. And now, in response to
‘debt-trap’ criticism, it also appears to be stressing private sector investment in Africa over loans and credit. Are
there any takeaways for India in this?

India’s vice president returned last week after a fruitful visit to Botswana, Zimbabwe and Malawi, bringing the total number of visits to Africa in the last four years by the top three representatives of the country to 29. India is ramping up its engagement with the African continent, but China has been doing so for quite some time now: can India find some of its strategies relevant?

The 7th session of the Forum on China-Africa Cooperation (FOCAC), held in Beijing on September 3-4, is a case in point: 53 African countries, the highest number so far, were represented at the summit. Launched in 2000, the Forum has been organising these ministerial/summit-level conferences with remarkable consistency,
alternating between Beijing and an African city as host every three years.

The Beijing summit portrayed China and Africa as “a community with a shared future”. It reflected their commitment to develop and enrich “the comprehensive strategic and cooperative partnership”, covering all possible sectors. A central feature of the Beijing Declaration, the summit’s outcome document, was the weaving of the Belt and Road Initiative (BRI), President Xi Jinping’s signature project, into the main fabric of the China-Africa engagement. Both sides agreed to form “a strong synergy” between the BRI, Agenda 2063 of the African Union and the 2030 Agenda for Sustainable Development of the UN. As the BRI became a catch-all phrase, China announced its plan to host the second BRI Forum for International Cooperation in 2019, expecting Africa to be an active participant.
The Chinese leadership’s central message was that it delivered on commitments and was able to continue to offer financial resources to assist development in Africa. It promised a financial package of $60 billion for the next three years, while Xi Jinping spelt out “eight major initiatives” for cementing cooperation in industrial promotion, infrastructure connectivity, trade facilitation and capacity building projects among others.

The Beijing Action Plan (2019-2021) presented the proposals agreed upon, covering both the traditional and newer areas, such as social development cooperation and the ocean economy: the two sides recognised the enormous potential in maritime economic cooperation and resolved “to promote the blue economy for mutual benefit”.

Varying perceptions

The words ‘mutual’ and ‘benefit’ in the context of China’s engagement with Africa today draw mixed reactions. Some western scholars criticise China for laying a debt trap for the African countries, countries which may end up forfeiting their national assets eventually. This is a scenario that is assuming serious proportions in several countries already, such as Angola, Djibouti, Zambia and the Republic of Congo.

Chinese spokespersons and their supporters in Africa argue, in turn, that their country’s objective now is to move beyond loans and credits and concentrate on increasing direct foreign investment, especially investment by private Chinese companies: of the promised $60 billion package, $10 billion is expected to come via the latter route. The breakdown of the sum of $60 billion – with a portion of it devolved to the private sector – is significant, indicating that China is responding to criticism about its manner of entrapping countries in debt. It appears to be changing tack.

African scholars, for their part, have been laying the responsibility at the feet of the governments accepting
Chinese loans, their argument being that nobody is compelling Africa into a state of indebtedness.

The fact remains that there is an utter paucity of capital for development projects. One could not help noticing that African participants, who spoke at the Beijing summit, were quite willing to accept funds – and ideas – from China.

Occasionally, African concerns did come to the fore. Cyril Ramaphosa, president of South Africa and co- chairman of the Beijing summit, said at the opening session, “Much of what is exported from Africa are raw materials and primary products; much of what is imported from China are finished goods.”Clearly, it is not China alone, but other partners too need to internalise Africa’s hunger for industrialisation and employment creation, and for opportunities to unleash its entrepreneurial capabilities. Trade patterns ought to change. It is not enough to sell manufactured goods to Africa: it needs help to produce indigenously and become a modern economy.

The ‘China-in-Africa’ story is special because the Chinese footprint there is substantial and expanding, and the presence of African businessmen and students in Chinese cities is also on the increase. These connections are being presented as “globalisation from below”. Africa has emerged as a platform for assessing China’s influence in the developing world, but Africa too is striving to influence China in practical ways.

Some takeaways

India can draw some conclusions from the emerging China-Africa cooperation model. The Beijing summit showed that apart from high-level visits, ministerial/summit-level conferences should be held with consistent regularity. In 2008, India began with the once-in-three-years summit only to change it to once-in-five-years in
2015. This calls for a review.

Second, while India cannot match China’s financial muscle, it should aim to make its next assistance package at least one-fourth of China’s, that is, $15-20 billion. Increasing India’s private sector investment in Africa will make such assistance more effective.

Finally, India ought to consult with Africans more in the implementation of a joint strategy. There is a pressing need to create new stakeholders in civil society – beyond governments and the business sector. This alone will help create a sense of true ownership.

Pence says 'empire and aggression' have no place in Indo-Pacific

by John Geddie and Aradhana Aravindan, Reuters

Source: https://in.reuters.com/article/asean-summit-pence/pence-says-empire-and-aggression-have-no-place-in-indo-pacific-idINKCN1NK093

U.S. Vice President Mike Pence told leaders of Southeast Asian nations on Thursday that there was no place for "empire and aggression" in the Indo-Pacific region, a comment that could be interpreted as a reference to China's rise.

Pence did not mention China in his remarks at the opening of a summit with the Association of Southeast Asian Nations (ASEAN) in Singapore, but stressed that small countries as well as large ones should be allowed to prosper in the Indo-Pacific.

The prime minister of Singapore later said that Southeast Asian countries did not want to take sides when pulled in different directions by major powers, but that one day it may have to.

Leaders at the ASEAN meetings this week heard warnings that the post-World War Two international order was in jeopardy and trade tensions between Washington and Beijing could trigger a "domino effect" of protectionist measures by other countries.

"Like you, we seek an Indo-Pacific in which all nations, large and small, can prosper and thrive – secure in our sovereignty, confident in our values, and growing stronger together," Pence said. "We all agree that empire and aggression have no place in the Indo-Pacific."

He said Washington had taken action to promote this vision, including steps to spur private investment in infrastructure and a pursuit of trade that is "free, fair, and reciprocal".
The vice president also highlighted the United States' "pressure campaign" on North Korea, its "commitment to uphold the freedom of the seas and skies" and determination to ensure that Southeast Asian nations are secure in their sovereign borders, on land, and at sea in the digital world.

Pence's comments follow a major speech in October in which he flagged a tougher approach by Washington toward Beijing, accusing China of "malign" efforts to undermine U.S. President Donald Trump and reckless military actions in the South China Sea.

The United States has conducted a series of "freedom of navigation" exercises in the contested South China
Sea, angering Beijing, which says the moves threaten its sovereignty.

China's claims in the South China Sea, through which some $3 trillion of shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines and Vietnam - all ASEAN members - as well as Taiwan.

Beijing and Washington are locked in a trade war in which they have imposed increasingly severe rounds of tariffs on each other's imports.

Asked at a news conference how important it was for ASEAN not to take sides when major powers are trying to pull it in different directions, Singapore Prime Minister Lee Hsien Loong said:

"It is very desirable for us not to have to take sides, but the circumstances may come when ASEAN may have to choose one or the other," Lee said. "I hope it does not happen soon".

Leaders from the 10-nation ASEAN joined counterparts from China, the United States, Russia, India, Japan, South Korea, Australia and New Zealand for the meetings.

French president requests respect following Trump's tweets

by Sylvie Corbet, Associated Press

Source: https://www.yahoo.com/news/france-fires-back-trumps-lack-common-decency-132904457.html

French President Emmanuel Macron said France and the United States must respect each other, in a response to a flurry of critical tweets by Donald Trump.

Macron said in an interview Wednesday with French television TF1 from the Charles-de-Gaulle aircraft carrier off the coast of southern France that "the French don't expect from me to answer to tweets."

Trump lit into Macron Tuesday over his suggestion for a European defense force, French tariffs on U.S. wine and even Macron's approval ratings.

Asked whether Trump's four tweets were unpleasant and inelegant, the French leader answered: "you summed up everything."
He said he thinks that Trump "is doing American politics and I let him do American politics." "To be honest, I don't do diplomacy or politics through tweets and comments", he added.
Earlier Wednesday, government spokesman Benjamin Griveaux suggested that the U.S. president lacked
"common decency" by launching his broadside on a day when France was mourning victims of the November
2015 attacks in Paris.

"We were commemorating the assassination of 130 of our compatriots three years ago in Paris and Saint-Denis, and so I will reply in English: 'Common decency' would have been appropriate", Griveaux said.

Trump's tweets underscored tensions between the once-chummy leaders and displayed the U.S. president's irritation over criticism of how he acted in France.

"Diplomacy is not made through tweets but through bilateral discussions," Macron said during Wednesday's weekly Cabinet meeting in comments reported by Griveaux.

The French and the American leaders met on Saturday in Paris before ceremonies commemorating a century since the armistice of World War I.

Since Macron's election last year and their first white-knuckle handshake at a NATO summit, they have had an up-and-down relationship. Macron called Trump "my good friend" in front of reporters this weekend and their meeting was described as cordial by the French presidency.

Trump's tweet Tuesday that said "MAKE FRANCE GREAT AGAIN!" revived French national pride on social media. Many replied by recalling France's World Cup victory in July, 20 years after winning its first title.

France player Benjamin Mendy replied "don't worry bro," placing two stars in his tweet to signify the country's two World Cup victories. Many others posted photos and reference to the soccer victory.

French decathlon champion Kevin Mayer tweeted "work in progress, dear Donald," posting a photo of his recent world record, beating U.S. athlete Ashton Eaton's previous mark.