Is China’s Investment in Africa an Example of Neo-Colonialism or Is It an Example of South-South Development?
Is China’s Investment in Africa an example of Neo-Colonialism or is it an example of South-South Development?
China has been significantly involved in the development of African countries in recent years, with an estimated 1 million Chinese people now residing in Africa. Trade between China and Africa was worth in excess of $100 billion in 2010, which shows how important the relationship between the two areas has become. However, there are questions surrounding whether China is merely using Africa for its own benefits rather than investing in development of the poorest continent in the world.
Angola
Angola is China’s largest trading partner with a trade value of $24.8 billion in 2010. Angola is a country with vast oil reserves and is now China’s largest supplier of oil shipping one million barrels every day. This supply has caused many Chinese TNCs to setup operations in Angola. These TNCs have brought with them their own Chinese workers due to their reputation for a high level of speed and efficiency in their work. These workers earn what would be a huge wage for Angolans (£20 per day). They return this money back to China meaning that income is lost from Angola and also there is a reduction in employment opportunities for Angolan workers, which doesn’t help to improve the high unemployment situation.
However, many Angolans think Chinese investment is a massive positive due to the new infrastructure, goods and services that will be available for the public to purchase. The Chinese are helping to reconstruct a main railway line that runs through a large part of Africa. This has allowed small business people to sell their goods all across Africa. The effect of this is an increase in consumption for the economies as trade is vigorous and this could cause an increase in economic growth if trading continues and also grows. Locals think that Chinese have done a good job on the railways as they are making more money (increase in standard of living)
However, the
China has been significantly involved in the development of African countries in recent years, with an estimated 1 million Chinese people now residing in Africa. Trade between China and Africa was worth in excess of $100 billion in 2010, which shows how important the relationship between the two areas has become. However, there are questions surrounding whether China is merely using Africa for its own benefits rather than investing in development of the poorest continent in the world.
Angola
Angola is China’s largest trading partner with a trade value of $24.8 billion in 2010. Angola is a country with vast oil reserves and is now China’s largest supplier of oil shipping one million barrels every day. This supply has caused many Chinese TNCs to setup operations in Angola. These TNCs have brought with them their own Chinese workers due to their reputation for a high level of speed and efficiency in their work. These workers earn what would be a huge wage for Angolans (£20 per day). They return this money back to China meaning that income is lost from Angola and also there is a reduction in employment opportunities for Angolan workers, which doesn’t help to improve the high unemployment situation.
However, many Angolans think Chinese investment is a massive positive due to the new infrastructure, goods and services that will be available for the public to purchase. The Chinese are helping to reconstruct a main railway line that runs through a large part of Africa. This has allowed small business people to sell their goods all across Africa. The effect of this is an increase in consumption for the economies as trade is vigorous and this could cause an increase in economic growth if trading continues and also grows. Locals think that Chinese have done a good job on the railways as they are making more money (increase in standard of living)
However, the