Every journey begins with a first step. While a few steps have been taken by China into resource-rich Africa, the country’s growing influence has been thrown into the spotlight with the investment by the Industrial and Commercial Bank of China in Standard Bank — a deal totalling a staggering R36,7-billion.
The Chinese say this is just the start. The counsellor tasked with economics and commerce at the Chinese embassy in Pretoria, Giuru Ling, is upbeat about the outlook. ‘Our influence is growing. We come to South Africa because the infrastructure here is very good and there is a stability.â€
But the new friend Africa, and South Africa, have found in the People’s Republic of China is a source of distress for the United States and European countries, who are worried about China’s human rights record.
China’s insistence on not meddling in the domestic affairs of the countries it does business with is a further cause for concern. Some refer to China as the new colonialists who swoop in to loot Africa’s resources for their own benefit.
Ling is convinced the worries are borne out of insecurity.
‘They feel uncomfortable now that China is coming to Africa. They just feel threatened. We don’t rob [African countries]. We don’t do any harm to the countries with which we trade. China has never occupied an inch of land [in foreign countries] and has never traded in black slaves.â€
China insists the trade that takes place is mutually beneficial. But for South Africa the exchange is skewed in favour of China.
The trade between the two countries totals R60,7-billion, but less than 25% of this amount is exports from South Africa to China. ‘We don’t seek surplus trade, we want to meet each other’s needs, not have China have the bulk of the trade. It works in our favour if there is a balance,†Ling says.
China’s interest in Africa is sparked by the massive market for goods, as well as the mineral resources African countries own. Chinese companies have invested in South African iron and steel operations, creating 3 000 jobs. More investments will be made possible by the foreign reserves that China has stashed away — by March this year they totalled $1,202-trillion.
This will not only be used to fund further investments in the rest of the world, but also to serve as an insurance policy against investments made that do not pay off as handsomely as hoped. China expects that the countries it does business with will keep their views on Chinese governance to themselves. ‘The people must decide on their governments. If they don’t think they’re doing a good job, they must tell them to go.â€
But on the contentious issue of Sudan, the view is different. China sent a special envoy to convince government and anti-government forces to sit down and talk. The international community accuses China of indirectly funding the conflict in Darfur because it continues to buy oil from the Sudanese government.
Ling says the Chinese made an exception, not because of pressures from the West, but because ‘people on the ground are getting hurtâ€.
China is also Africa’s ally on the thorny issue of reform at the United Nations. As a permanent member of the Security Council, a position coveted by many African nations, China supports the extension of permanent seats to accommodate South Africa.
‘In a new economic order more voices from the developing countries are needed.†The new economic order does not always work in China’s favour, though.
Recently the South African government had to beg the Chinese to curb the growth of exports in the textile industry to soothe internal feelings, with the trade unions insisting that Chinese imports are crippling the local industry. The Chinese agree, but Ling says that when the agreement comes to an end in 2008 it will be business as usual. The only way for these industries to become sustainable and shield themselves against international imports is to become more competitive, he argues.
He discounts the possible effect trade unions might have on a leader the ANC will choose. The party’s policies will still allow for a long relationship with China, says Ling.