China’s Expanding Influence in Africa: The Role of the Belt and Road Initiative and the FOCAC Summit10/25/2024
Introduction In the past two decades, China has become the top bilateral trading partner for sub-Saharan Africa. The International Monetary Fund (IMF) reports that China accounts for about 20% of the region’s exports and 16% of its imports.[1] In 2023, trade between China and Africa reached a record $282 billion.[2] Africa primarily exports primary commodities—metals, minerals, and fuel—making up roughly 60% of total trade, while 94% of Africa's imports from China are manufactured goods, including telecommunications equipment and textiles.[3] Economic cooperation continues to strengthen through the Forum on China-Africa Cooperation (FOCAC) and the Belt and Road Initiative (BRI). FOCAC Summit The FOCAC is a partnership platform initiated by Chinese President Xi Jinping to enhance understanding, build consensus, strengthen friendships, and promote cooperation between China and African nations. Since its inception in 2000, the FOCAC Summit has been held every three years and is a key component of China’s diplomatic strategy toward the Global South, showcasing its commitment to supporting developing nations. Through this forum, China seeks to reshape global trade and geopolitics to increase its influence compared to the United States and its allies. Beginning with the 2003 summit, China has gradually expanded preferential tariffs for African countries, reaching zero tariffs on 98% of trade from 33 African nations by 2023.[4] China has also initiated programs to aid in the development of infrastructure. For example, in 2006, China announced the establishment of ten Agricultural Technology Demonstration Centers, later increased to thirty in 2009, throughout Africa to support Africa’s agricultural modernization in collaboration with the UN Food and Agriculture Organization (FAO). That year, China also introduced a $5 billion China-Africa Development Fund to facilitate infrastructure building in Africa, including the development of six special economic zones in five countries: Zambia, Nigeria, Ethiopia, Mauritius, and Egypt.[5] In 2023, Xi pledged $50.6 billion in new financing over the next three years, emphasizing a shift from investments in infrastructure projects to initiatives that support local manufacturing and exporting opportunities from Africa.[6] The Belt and Road Initiative In 2013, President Xi introduced the BRI, which aims to enhance regional connectivity and embrace a brighter economic future by building infrastructure and broadening trade links across Asia, Europe, and Africa. The BRI provides funding to Africa and countries in other regions. By the end of 2023, over 200 BRI cooperation agreements have been signed with more than 150 countries across Asia, Africa, Europe and Latin America and thirty international organizations. By funding infrastructure projects in developing countries, China aims to benefit from increased trade facilitated by new infrastructure, be strategically less dependent on sourcing materials from the United States and its allies, and establish alternative routes for transporting natural resources.[7] For several years, China prioritized large-scale infrastructure projects, including the Standard Gauge Railway in Kenya and the Addis–Djibouti Railway in Ethiopia. According to the Global Development Policy Center of Boston University, nearly $170 billion has been lent to African countries from Chinese financial institutions between 2000-2022. (In recent years, lending has been at lower levels than what was seen in the 2010s.[8]) Global Perspectives on BRI Despite its popularity in developing nations, the BRI has faced criticism from leaders of advanced economies. One major concern is the initiative's lack of transparency, making it difficult to ascertain details about the loans, including their amounts, terms, contractor selection, and associated environmental and social risks.[9] China has been accused of engaging in "debt-trap diplomacy," where it imposes high-interest debt on countries that struggle to repay, thereby gaining leverage over them. In May 2019, then-U.S. Secretary of State Mike Pompeo criticized China for using "corrupt infrastructure deals" to gain political influence and for employing "bribe-fueled debt-trap diplomacy" that undermines good governance.[10] UNCTAD recently reported that 24 African countries have public debt exceeding 60% of their GDP, and twenty African nations face debt servicing costs that surpass 10% of their revenue.[11] Yet, numerous African leaders, politicians, and business elites have publicly challenged the narrative of “debt-trap diplomacy” and praised China’s development model to both Chinese and international audiences.[12] The Next Chapter in China-Africa Economic Relations Despite criticism and concerns regarding power imbalances and China's underlying motivations by Western countries, China continues to show commitment to strengthening ties with African nations through ongoing dialogue of the FOCAC summit and through BRI. In a 2025-2027 action plan released on 5 September, Chinese and African decision makers said they would “keep the global industrial and supply chains stable and smooth, oppose all forms of unilateralism, protectionism, and maximum pressure, and oppose erecting walls and barriers, decoupling and supply disruption”.[13] As China’s strong presence in African trade grows, the United States may risk losing opportunities with a region that is expected to be one of the quickest-growing economies in 2024.[14] Africa is not only a large source of raw materials for many manufacturers but a growing consumer market for exports. Many U.S. politicians, including U.S. Senators Chris Coons (D-DE) and James Risch (R-ID), have advocated deepening trade relations with Africa by supporting aid programs along with strategic partnerships and investments, such as the African Growth and Opportunity Act (AGOA), the Generalized System of Preferences (GSP) and Kenya Strategic Trade and Investment Partnership. In this evolving landscape, the U.S. faces the challenge of developing a coherent strategy to engage with African nations while addressing competition from China. To remain relevant, it must strengthen existing frameworks and adapt to Africa's changing needs. By fostering equitable partnerships and prioritizing sustainable development, the U.S. can build meaningful relationships in Africa and maintain its influence amid China’s growing presence.[15] The future of U.S.-Africa relations will depend on a collaborative approach that acknowledges Africa’s agency and potential as a key global player. Kayleigh Park [email protected] [1] Blanchard, B. (n.d.). China says 'fed up' with hearing U.S. complaints on Belt and Road. [2] Nyabiage, J. (n.d.). China-Africa trade hit US$282 billion in 2023 but Africa’s trade deficit widens, with commodity prices a key factor. [3] Boston University. China-Africa Economic Bulletin, 2024 Edition. [4] Yeping, China to give LDCs including 33 African countries zero-tariff treatment, move to boost trade prosperity. [5] Nanlu, L. (2015). Issue Brief . Beijing: United Nations Development Programme. [6] Dodwell, D. (n.d.). China-Africa summit a fitting showcase of Global South’s rise. [7] Li, Hackenesch. (n.d.) FOCAC 2024: Moving Away from Large Infrastructure Deals towards Normative Power of China. [8] Moses, O. (n.d.). 10 Charts to Explain 22 Years of China-Africa Trade, Overseas Development Finance and Foreign Direct Investment. [9] Christian Shepherd, V. C. (n.d.). China hosts African leaders to rekindle ‘Belt and Road’ outreach. [10] Blanchard, B. (n.d.). China says 'fed up' with hearing U.S. complaints on Belt and Road. [11] Dodwell, D. (n.d.). China-Africa summit a fitting showcase of Global South’s rise. [12] Cash. China is not pushing Africa into debt trap, South African president says. [13] Embassy of the People’s Republic of China in the Republic of Rwanda. The Characteristics of Chinese Path to Modernization [14] African Development Bank Group. Africa dominates list of the world’s 20 fastest-growing economies in 2024—African Development Bank says in macroeconomic report. [15] Léautier. In brief: The future of US-Africa trade and investment The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO), held in Abu Dhabi in February, brought together 166 trade ministers’ delegations to address pressing issues in global trade. Outcomes offer insights into the evolving landscape of cross-border trade challenges and opportunities for enhanced international cooperation. Milestones Achieved: Amid ongoing challenges on the role and relevance of the WTO, MC13 demonstrated the importance and potential for furthering multilateral cooperation in trade governance and trade facilitation.
Challenges: Roadblocks to progress remain. The inability to address fisheries and agricultural issues reflects the ongoing complexities of balancing national interests and collective goals within the WTO framework.
Outlook for the Future: Navigating Challenges Ahead Looking ahead to future engagement, it is important to highlight that despite former President Donald Trump's criticism of the organization and the proposed WTO withdrawal legislation introduced by Members of the U.S. Congress, there are 31 governments still in the queue requesting to join the global trade community [viii]. Despite skepticism that soared in recent years and the ongoing challenges of WTO, governments around the world continue to perceive the organization to be valuable to join. Lingering issues including fisheries subsidies and agriculture require renewed and ongoing efforts and cooperation to reach meaningful agreements as preparations begin for the next WTO ministerial in 2026. Lack of progress in these areas translates into uncertainty and potential market distortions. Consequently, businesses may encounter barriers to market access, encounter difficulties in complying with inconsistent regulations, or face increased competition due to unfair subsidies. Entrenched positions reflect broader tensions within the WTO, where diverging national interests often impede consensus-building and hinder the organization's effectiveness. Influential members, such as the United States and India, have employed blocking tactics and have obstructed other broader discussions in the WTO [ix]. As the global community grapples with the complexities of trade governance and facilitation, addressing obstacles and roadblocks requires sustained efforts to bridge ideological divides and foster constructive dialogue among WTO members. [i] Ministers approve WTO membership of Comoros and Timor-Leste at MC13 World Trade Organization (26 February 2024) [ii] Dispute Settlement Reform Ministerial Decision World Trade Organization (2 March 2024) [iii] New disciplines on good regulatory practice for services trade enter into force World Trade Organization (27 February 2024) [iv] Three-quarters of members mark finalization of IFD Agreement, request incorporation into WTO World Trade Organization (25 February 2024) [v] Agreement on Fisheries Subsidies World Trade Organization [vi] Fisheries deal at WTO insufficient for Pacific islands, Fiji says Reuters (29 February 2024) [vii] G-33 Ministerial Statement on Agriculture Trade Negotiations at the 13th WTO Ministerial Conference World Trade Organization (25 February 2024) [viii] Joint Resolution of Withdrawing approval of the Agreement Establishing the World Trade Organization Josh Hawley U.S. Senator for Missouri; Members and Accessions World Trade Organization [ix] No deals on fish, agriculture at MC13; e-commerce moratorium extended Inside U.S. Trade (1 March 2024); WTO MC13: India to oppose any negotiation mandate on non-trade issues Business Standard (7 February 2024) Written by Amanda (Hsinyi) Lin The Panama Canal is internationally recognized as one of the world’s busiest and most crucial shipping routes. Completed in the early 20th century, the 80-kilometer waterway revolutionized global trade by providing a shorter and safer alternative to navigating around the southern tip of South America, saving shipping companies time and money [1]. The Panama Canal connects the Atlantic and Pacific Oceans and via the manmade Gatun Lake. At approximately 85 feet above sea level, Gatun Lake forms a major part of the Canal, carrying ships nearly halfway across the Isthmus of Panama [2]. For each ship, 200 million liters of freshwater is used to move it through the locks before being dumped into the sea [3].
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