Chinese people, goods, construction not welcome in Africa

In SCMP Teddy Ng’s report from Beijing today entitled “The Bigger Picture on Africa”, he says, “China’s ties with Africa have been largely based on trade and investment over the past decade. China, which by early this year had poured in direct investment of US$15.3 billion, is one of the major buyers of the continent’s oil and other resources.

“The trade pattern, along with allegations of labour rights violations, led to criticism that China is merely interested in extracting mineral wealth from Africa to feed its booming economy – which doesn’t fit Beijing’s mantra that the nation’s economic rise will not pose problems for others.”

Ng then quotes Chinese African affairs specialist He Wenping’s words “China is on track to becoming a major global power, and it needs some strategic partners.” “As China’s investment in Africa continues to rise, it is inevitable the country will become more influential in the continent.”

All Ng said is true, but he fails to give the larger picture behind that.

In the first half of the 20th century, Chinese people succeeded in establish colonies in the Philippines, Indonesia, Malaysia, Singapore, etc. Those overseas Chinese made a fortune there from nothing. They kept Chinese culture and remained patriotic there. When China was invaded by Japan, their donations were a major source of funds for Chinese government. When China turned red, lots of their youngsters turned red too and returned to China to study in Chinese colleges. I had some overseas Chinese schoolmates from Indonesia when I studied at Anhui University.

The most amazing was that when China began to open to the outside world, they vied with one another to invest in China. Their investment accounted for 70% of the foreign investment in the initial years of China’s reform and opening-up.

The overseas Chinese could become rich abroad without any initial capital when China was very poor and backward. Now, lots of Chinese have become rich and want to find places for investment and expansion. Like the Chinese pioneers in South East Asia in the past, they are not afraid of the freezing weather in Siberia and North Korea or the heat in Southeast Asia. Lots of Chinese have gone there and are doing successful business there. The Chinese government is supporting them. It has been making great efforts to have good relations with Russia and Central Asian countries through the Shanghai Cooperation Organization and with Southeast Asian countries through Asean.

True, China needs the natural resources from Africa, but it have a much greater need for outlet of its investment and especially human resources because of the difficulties in providing jobs for its huge population.

Africa seems the best virgin land for the establishment of Chinese colonies there in the same manner as overseas Chinese did in Southeast Asia in the past.

However, China does not seem to have a prospect to succeed in colonization in Africa. The Chinese who have done business or worked in Africa are all of the opinion that Chinese people are not welcome in Africa.

As for Chinese goods, they are notorious for their poor quality in Africa as due to the low purchasing power there, China exports cheap products with very poor quality to Africa. So is Chinese construction. Chinese contractors take projects at very low prices. In order to avoid losing money, they use substandard materials and become notorious for the quality of their construction.

There are in addition conflicts of culture between Chinese and African people. Having accepted European culture, African people are law abiding and pay great attention to hygiene while Chinese people still lack sense of rule of law and good hygiene.

The Chinese government may have good relations with African countries but Chinese people will not succeed in their colonization in Africa.

Can China extend its colonization to Africa?

It seems that no Western power has succeeded in their colonization in the past and their influence in their previous colonized countries is limited now. However, Chinese people were extraordinarily successful in their colonization in South East Asia when China was very poor and weak.

France made great efforts and spent a lot in order to turn its colonies in Africa into parts of France but failed. It had to allow them to split from France. The French colonies (the French communities there) in those countries mostly returned to France. That was the case with almost all Western powers’ abroad. They either returned to their countries of origin or like those in the US, South Africa, etc. remained there but became separated from their countries of origin.

Chinese colonies in South East Asia are completely different. They and their posterity a few generations later remain Chinese. When there was a democratic revolution in China, they donated lots of funds to support it. When China was invaded by Japan, their donations were a major source of funds for Chinese government. When China turned red, lots of their youngsters turned red too and returned to China to study in Chinese colleges. I had some overseas Chinese schoolmates from Indonesia when I studied at Anhui University.

The most amazing was that when China began to open to the outside world, they vied with one another to invest in China. Their investment accounted for 70% of the foreign investment in the initial years of China’s reform and opening-up.

The investors were all successful businessmen. They certainly knew they had to make investment decisions based on business consideration instead of their patriotic enthusiasm.

One of my cousins made a fortune from nothing in Indonesia and then returned to China to do business after World War II. He told us that Chinese had the best business acumen in the world. He and lots of his friends became rich in South East Asia from nothing.

Like my cousin, those investors had business acumen. In addition, being familiar with Chinese history, they knew the historical cycles. After more than a century of poor government, good government will emerge. They made good bets and have got lots of return. At that time, we, staff in a top multinational law firm, has to do lots of persuasion to urge US companies to invest in China. Our major argument was that they had to get a footing earlier than others in China due to the great potential of the vast Chinese market.

Now, lots of Chinese have become rich and want to find places for investment and expansion. Like the pioneers in South East Asia in the past, they are not afraid of the freezing weather in Siberia and North Korea or the heat in Southeast Asia. Lots of Chinese are doing successful business there. The Chinese government is supporting them. It has been making great efforts to have good relations with Russia and Central Asian countries through the Shanghai Cooperation Organization and with Southeast Asian countries through Asean.

African offers especially great opportunities as few other countries are making real efforts in that continent.

SCMP says in its report “China expands its African ties”, “Dozens of African countries are represented at a Beijing forum, reflecting China’s growing role in the continent as investor and security player”.

According to SCMP, “The Forum for China-Africa Cooperation in Beijing will see China boost its influence in the continent, with President Hu Jintao to announce new measures to strengthen co-operation in areas such as investment, finance and security, the foreign ministry said.

“Two documents on strengthening co-operation will be signed tomorrow, when the forum concludes.”

“China’s total direct investment in the continent had reached US$15.3 billion by April, up from less than US$500 million a decade ago.

“China, in return, receives resources from the continent to meet its rising energy needs. China’s imports from Africa, including oil and iron ore, reached US$93.2 billion last year, up 38.9 per cent year on year.”

“Analysts said Beijing is stepping up its political and security influence in the continent because China’s quest for resources has drawn the country into internal conflicts, with its oil installations and workers being targeted by armed groups.”

However, China does not seem to have a prospect to succeed in colonization in Africa. The Chinese who have done business or worked in Africa are all of the opinion that Chinese people are not welcome in Africa.

As for Chinese goods, they are notorious for their poor quality in Africa as due to the low purchasing power there, China exports cheap products with very poor quality to Africa. So is Chinese construction. Chinese contractors take projects at very low prices. In order to avoid losing money, they use substandard materials and become notorious for the quality of their construction.

There are in addition conflicts of culture between Chinese and African people. Having accepted European culture, African people are law abiding and pay great attention to hygiene while Chinese people still lack sense of rule of law and good hygiene.

Clinton once openly spoke against China’s colonization of Africa, but in my opinion, the Chinese government may have good relations with African countries but Chinese people will not succeed in their colonization in Africa.

SCMP.com – China expands its African ties

via SCMP.com – China expands its African ties.