What the Biden era means for Africa-China relations
China is Africa’s largest trading partner and provider of foreign capital. However, 2020 provided challenges for relations between the regions. This, as Chinese trade and investment was seen stumbling over hurdles created by Covid-19. With China well on the road to recovery, what are the new frontiers of co-operation? Pat Thaker, Editorial Director for the Middle East & Africa at the Economist Intelligence Unit joins CNBC Africa for more.
Wed, 07 Apr 2021 16:45:33 GMT
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AI Generated Summary
- Africa and China faced challenges in trade and investment in 2020 due to COVID-19 disruptions, signaling the need for diversified supply chains and local manufacturing capacities.
- The recovery of China post-pandemic presents opportunities for increased cooperation and business expansion in Africa, highlighting the potential for mutual benefits in the relationship.
- African nations are urged to focus on developing local industries, leveraging Chinese investments in infrastructure and manufacturing, while navigating challenges posed by cheap Chinese imports through strategic mechanisms like tariffs.
China's significance in Africa as a major trading partner and foreign capital provider has been undeniable. However, the year 2020 brought challenges to the relations between the two regions, as Chinese trade and investment faced hurdles due to the COVID-19 pandemic. With China now on the path to recovery, the focus shifts to the new frontiers of cooperation between Africa and the Asian powerhouse. Pat Thaker, the Editorial Director for the Middle East and Africa at the Economist Intelligence Unit, shed light on the evolving dynamics in a recent interview with CNBC Africa. In the discussion, Thaker emphasized the necessity for African nations to diversify their supply chains and strengthen local manufacturing capacities to reduce vulnerability to future disruptions in global supply chains. Amidst these considerations, the prospect of an Africa-first strategy was explored as a potential avenue for shaping the future of Africa-China relations. Thaker highlighted the synchronized downturn experienced by both China and Africa in the wake of the pandemic, signaling a mutual recovery that could benefit the African market. Over the past two decades, China has emerged as Africa's largest bilateral trading partner, setting the stage for deeper economic ties in the years to come. Thaker projected a trajectory of increased cooperation and commercial activity between the continents, presenting new opportunities for local businesses and non-Chinese entities in Africa. The potential for a win-win scenario in Africa-China relations was underscored, with Thaker noting that while challenges and disparities exist, strategic partnerships could yield mutual benefits. The conversation also delved into the geopolitical implications of US-China tensions and their impact on Africa. Thaker highlighted the contrasting approaches of the US and China in engaging with African nations, emphasizing the need for pragmatic bilateral and multilateral cooperation under the Biden administration. He noted that Africa had witnessed a shift in focus from the US to China during the Trump era, with China stepping up its engagement through Pan-African initiatives while the US adopted a more inward-looking stance. Looking ahead, Thaker outlined key areas of partnership for investments from China in Africa, including infrastructure, energy, and manufacturing. He emphasized the importance of developing local industries and leveraging China's investments to drive economic growth and innovation in Africa. Thaker also touched upon the challenges of competition from cheaper Chinese imports stifling the growth of local companies in sectors like steel and textiles. The discussion revolved around the strategies employed by African countries to safeguard their industries through mechanisms like tariffs amidst the increasing dependency on China. Thaker urged African leaders to renegotiate trade terms from a position of broader public benefit and cautioned against prolonged negotiations that could delay progress. In the context of connectivity, Thaker highlighted the significance of China's Belt and Road Initiative (BRI) in Africa, which aims to enhance infrastructure and connectivity across the continent through initiatives like 5G services. As Africa navigates the complexities of its relationship with China in the post-pandemic era, strategic decision-making and proactive measures will play a crucial role in defining the future of Africa-China relations.