China invites leaders of five more countries to summit

BRICS Plus a sign that mechanism is evolving

China has invited the leaders of Egypt, Guinea, Mexico, Tajikistan and Thailand to the upcoming BRICS summit, Chinese Foreign Minister Wang Yi said on Wednesday.

The model of BRICS Plus, which is an expansion of BRICS, is meant to “strengthen dialogue cooperation between BRICS nations and other emerging markets and developing countries, to promote the establishment of broader partnerships and to foster mutual development and prosperity on a larger scale,” Wang said at a press conference in Beijing.

He noted that China has invited leaders of the five countries to attend the BRICS summit in Xiamen to discuss South- South Cooperation and other plans for international development.

“They each come from a different region and have their own unique characteristics, which will give this dialogue a broader representation,” he said.

Qian Feng, an expert at the Chinese Association for South Asian Studies, said these five countries were chosen based on their closeness with China, their regional economic or political influence, and whether their leaders are available during the summit.

“Most of these countries are important regional players. For example, Egypt is a leading country in northern Africa and has much political sway in the Middle East. So is Thailand in Southeast Asia and Mexico in Latin America. Tajikistan is China’s strategic partner, which also plays an important role in China’s border security,” Qian told the Global Times.

Meanwhile, Guinea is this year’s chair of the African Union and is one of the first African nations to receive Chinese aid. It is rich in natural resources and has developed a close partnership with China politically and in trade, according to He Wenping, a research fellow at the Institute of West- Asian and African Studies of the Chinese Academy of Social Sciences.

BRICS – Brazil, Russia, India, China and South Africa – is recognized as an important force in global governance. China holds the BRICS presidency this year and President Xi Jinping is scheduled to chair the BRICS summit in Xiamen, Fujian Province from September 3 to 5.

Evolving group

Lu Yang, an assistant researcher at Tsinghua University’s Belt and Road Strategic Research Institute, told the Global Times that it is common practice for the BRICS host country to invite neighboring countries to the summit, and China this year had been expected to invite Southeast Asian or Central Asian nations.

When India was BRICS host in 2016, leaders of the Bay of Bengal Initiative for Multi- Sectoral Technical and Economic Cooperation, including Bangladesh, Bhutan, Nepal and Sri Lanka, Myanmar and Thailand were invited to the summit.

Lu said the BRICS Plus is a sign that the mechanism is evolving.

“I believe these five countries were carefully chosen to represent different regions. It will also be easier for BRICS members, which come from different continents, to engage with them,” Lu noted.

Egyptian President Abdel- Fattah al- Sisi told Chinese media before his trip to China that “Our participation in the meetings with the BRICS countries is of great importance, especially as Egypt enjoys promising economic possibilities and provides an outstanding strategic location that can help it effectively support the BRICS community and its priorities,” the Xinhua News Agency reported on Wednesday.

“The visit will also provide a good opportunity to follow up on joint projects in various fields, taking into account the contribution of Chinese companies to several ongoing infrastructure projects in Egypt, including the new administrative capital project, electricity and energy development projects and transportation,” Sisi noted.

In 2011, the BBC provided a documentary on Chinese migrants in Africa, titled The Chinese Are Coming.

Barely six years later, Western media such as the Financial Times and Quartz now say the Chinese are leaving, alleging that overseas Chinese are returning from the continent after low commodity prices have devalued African economies.

The influx of Chinese in Africa since the early 2000s has been linked to booming trade ties and the strategy of Chinese companies to “go overseas.”

But without reliable statistics, it remains debatable to categorically say migration has peaked and the trend has started to reverse.

Western media appears to have drawn this conclusion by combining the decline of trade figures with the frustrations of migrants about the business environment – from weak currencies to exorbitant taxes and fees.

Chinese have been settling on the continent since Chinese ships first arrived at East African shores in the 15th century. They have remained for six centuries through good times and bad. Small ethnic Chinese communities have existed over 100 years in some African countries.

Since 2000, the number of Chinese migrants in Africa has risen dramatically and has been estimated at over 1 million for some years.

Even if a tiny fraction of these Chinese have packed up and left this time, there should be no concern. A decline in the number of small businesses is a sign that China- Africa economic engagement is entering new phase.

Early Chinese construction projects in Africa did involve a substantial number of Chinese laborers. But over the years, the African workforce has gradually gained the skills required and adapted to Chinese work systems. A trend can be seen in Chinese companies hiring more local workers.

Across the continent, Africans typically fill more than 85 percent of the jobs on labor- intensive projects. And they are not only laborers and technicians, more are becoming managers and con- sultants. Other than construction workers, small retailers were also said to be leaving. But on the other hand, African businessmen have been living in major Chinese trading hubs, such as Guangzhou and Yiwu, for some time and are able to order made- in- China products themselves.

This serves as evidence that African business communities have benefited from the economic engagement and they have learned enough to outperform the immigrants.

Nowadays, Chinese entrepreneurs are encouraged to instead invest in more sophisticated sectors where they hold a comparative advantage. Retail has lost its appeal. Those who are still in the sector have seen profits dive. It is time to pack up and do something else.

It is also worthy to note that Chinese migrants have been lured to return due to opportunities in China, rather than being forced to leave due to sluggish economic growth in Africa.

Fuqing, in East China’s Fujian Province, has likely produced more emi- grants than other places in China. For centuries, residents of the coastal villages surrounded by hills took dangerous voyages at sea to find better places to live.

But the internet revolution, along with improvements in rural infrastructure, has become a game changer.

People in remote villages can easily find buyers via e- commerce apps and websites. A modern logistics network also aids the movement of goods. It is not just about trade. Villagers can have access to quality healthcare and education and take part in other economic activities through online collaboration.

As China is continuously exploring new economic drivers, Africa stands a good chance of benefiting.