Investment abroad on right track

Many in the West claim China’s investments overseas, particularly in Africa, serve its own political purpose, which exposes their Cold War mentality. Three experts share their views on the issue with China Daily’s Liu Jianna. Excerpts follow: mining, manufacturing, financial and technical services sectors. On the one hand, Chinese investment in Africa’s infrastructure has significantly improved the continent’s investment environment, making it more attractive to global investors. On the other hand, China’s production-capacity cooperation with and investment in Africa have boosted the African countries’ industrialization process, helping unleash their economic vitality. to project and area to area.

Still, some in the West accuse China of exacerbating African countries’ debt burden by providing them with more loans. But the fact is, many of these countries were in debt long before China set foot on the continent, not least because of Western countries’ high-interest loans. China’s low-interest loans have helped the capital-starved African countries take a shot at development. Moreover, China’s investments are sustainable in nature. For example, ever since its completion, the MombasaNairobi Railway has been making profit at a relatively high rate, which can only increase.

Unlike what many in the West believe, Chinese creditors don’t want to lose their money, and therefore do ascertain whether the African countries can repay before actually giving them loans.

Looking ahead, it is imperative for Chinese investors to further connect their investment plans with African countries’ own development plans. As African countries are at different stages of development, and have different priorities and resources, Chinese investors should make targeted plans for different countries.

Besides, the investors should keep coordinated development in mind so as to prevent the waste of resources and promote the overall development of Africa. For example, it would be a disaster if the Chinese investors put in all their money and resources in the same industry in two neighboring countries, as it would lead to ruinous competition.

He Wenping, a senior research fellow at the Charhar Institute and a researcher on African Studies, Chinese Academy of Social Sciences Zhang Youqin , a professor at the School of Public Affairs, Xiamen University

Some Chinese netizens have complained that the Chinese government has spent huge amounts of money on overseas investment plans and foreign aid while millions of people at home still live in poverty.

Such complainants forget that most of the investments are reciprocal in nature. For instance, a large part of the loans for Belt and Road Initiative projects are commercial in nature, as they are essentially driven by the market. As long as the scale of overseas investment and foreign aid is in accordance with China’s national strength and development strategy, they should be respected.

Nonetheless, the authorities should fulfill their due responsibility to publicize at home the results of the investments in and aid to foreign countries, in order to make the Chinese people understand why the programs are necessary. Of course, poverty-alleviation measures at home should be strengthened to eliminate abject poverty by 2020. But it is also necessary for China to make friends overseas and help build a community with a shared future for mankind.

When it comes to overseas investment and foreign aid, we should keep in mind the old Chinese saying — give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. Therefore, it is vital to help other countries to become self-dependent, which is possible only if they release their own development potential.