Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,CHINAS NEW ROLE IN AFRICA,Ian Taylor,School of International Relations,University of St Andrews,From,Chinas New Role in A,frica,published by Lynne Rienner Publishers this year,Material and ideas based on fieldwork and interviews I conducted in:,Botswana,Cape Verde,Eritrea,Ethiopia,The Gambia,Mauritius,Namibia,Nigeria,Senegal,Sierra Leone,South Africa,Uganda,Zambia,Zimbabwe,China(Beijing and Hong Kong),London and Washington,DC.,CONTENTS OF BOOK,1.CHINAS AFRICA POLICY IN CONTEXT,2.OIL DIPLOMACY,3.THE IMPACT OF CHEAP CHINESE GOODS,4.THE ISSUE OF HUMAN RIGHTS,5.ARMS SALES,6.PEACEKEEPING IN AFRICA,7.WHAT DOES IT ALL MEAN?,OIL,Oil dominates the profile of Africas exports to China(around 70%),Chinas dependence on imported oil rose to 47%of annual demand,an,increase of 4.1 percent since 2005-expected to rise to around 60%by,2021,FIVE KEY WAYS BEIJING SEEKS TO LESSEN PRESSURE,Increased energy conservation(this will only moderate growth in consumption),Fuel switchingreducing the dependence on imported fuels by switching to renewable energy and coal,of which China has large domestic reserves(but the environment),Increase in domestic oil production by seeking out new resources and exploiting existing ones more efficiently(there have been new discoveries within China but not enough to satisfy demand).,Beijing encourages national oil companies(NOCs)to increase purchases in international oil markets,Beijing facilitates acquisition of oil reserves abroad through“sweetener deals with foreign governments,However,liberalization has resulted in a shift of,power away from Beijing toward NOCs,The ability by Beijing to tell the NOCs what to do is,limited,Question:Are particular ventures a result of,Beijing directing an NOC,or,the NOC seeking,diplomatic assistance once it has identified a,target oilfield?,China lacks a central ministerial agency,overseeing the oil industry,PROBLEM:,Beijing has as yet been incapable of enforcing,a geographical division of labour on the main,NOCs,Result:,competition,and,overlap,between:,China National Petroleum Corporation(CNPC),China Petroleum&Chemical Corporation(Sinopec),China National Offshore Oil Company(CNOOC),Example,CNPC and China Petroleum and Chemical Corporation(Sinopec)competed against each other for a pipeline project in Sudan.,The NOCs in fact view one another as,rivals,competing not only for oil and gas assets,but also,for political advantage.,The more high-quality assets a company acquires,the more likely it is to obtain diplomatic and,financial support from Beijing for its subsequent,investments.,especially true for CNOOC,which does not have as much political influence as CNPC and Sinopec,This inter-firm competition is normal in the capitalist West,obviously,but puts a different take on“China Inc.and its“oil strategy in Africa.,Problem:the NOCs have the reputation to let the,Chinese government take the dangerous consequences,engendered by their foreign-oil and gas quest,Thus commercial interests of Chinese NOCs can risk,damaging Chinese governments diplomacy and,international reputation overseas,Same as some Western oil companies behave,But government control over the actions of Chinese NOCs,in Africa not be as easy as many seem to think in the West,IMPACT OF CHINESE IMPORTS,One of the more contentious issues in Sino-African relations,Cheap manufactured goods blamed for decline in African exportsparticularly of clothing and textiles,African imports from China 712%jump from$895m in 1996 to$7.3bn in 2005,Many African observers see this as the cause of decline of Africas manufacturing sector,“Africa is becoming a dumping ground while African companies are dying-quote from an African newspaper,INTERNATIONAL DYNAMICS,African Growth and Opportunity Act(AGOA)(May 2000),offered incentives for African countries to open their,economies and build“free markets,Modifications made permitting least developed African,countries to employ materials from the cheapest contractors,worldwide,Effect was that global apparel industry took advantage of,Africas unexploited quota access to EU and US via“quota,hopping,“Quota hopping,various foreign companies,mostly Asian,set themselves up in,Africa as a means to evade the obstacles placed on them by the,Multi-Fibre Agreement,The MFA allocated export,quotas to low-cost developing countries,and limited amount of imports for states whose domestic textile,industries were negatively affected,targeted at imports from Asia and particularly China,Triangular production networks thus developed whereby Asian,firms made products in Africa for export to Western markets,Result:African exports of textiles and clothing to US boomed,In 2000,apparel exports to US=$776 m;by 2004=$1,782 m-increase of 130%,HOWEVER,this was artificial-vast majority of“African clothing being exported to US was made using foreign fabrics:,Lesotho=98%,Madagascar=92%,Kenya=98%,Mauritius=