Xi heads to Africa summit with agenda
SLEW OF DEALS ARE EXPECTED AMID CHINA SLOWDOWN
African leaders and Chinese President Xi Jinping will hold two days of talks in Johannesburg starting tomorrow as the continent seeks to secure further massive investment despite China’s economic slowdown.
A slew of deals are expected to be announced for power plants, infrastructure and agriculture projects, but analysts say Chinese largesse in Africa has already been reined in this year.
China drove the commodity boom as it bought up oil, iron ore, uranium and copper from around the world over the past decade, but its growth has dipped this year, triggering a sharp slump in prices.
Speaking to reporters in Beijing, vice minister of foreign affairs Zhang Ming billed China’s “new normal” as a boon to Africa, saying the continent was now at “the early stage of industrialisation”.
“China-Africa cooperation has now come to a stage where it needs to be upgraded and transformed,” he said.
But Africa is already feeling the pinch, with Chinese investment falling by more than 40 per cent in the first half of 2015, according to official data. “The rhetoric will probably be very excitable, as usual. You have got to separate the rhetoric from reality,” Ian Taylor, professor of international relations at the University of St Andrews, said.
“We are likely to see a more sober meeting point between China and Africa.”
Preliminary discussions
Xi was expected to hold talks with South African President Jacob Zuma in Pretoria yesterday before the sixth Forum on China-Africa Cooperation (FOCAC) opens at a convention centre in Johannesburg’s financial district of Sandton. “China’s packages towards Africa are going to be more diversified,” said Yun Sun, China expert at the US-based Brookings research organisation.
“The Chinese always emphasise that its economic engagement in Africa is not altruistic.
“In some cases, Beijing is willing to put up with a loss, but I think Xi is going to be very careful. Their foreign reserves aren’t unlimited.” China became Africa’s largest trading partner in 2009, with volumes expected to exceed $300 billion (Dh1.1 trillion) this year.
Ahead of FOCAC, China emphasised it had delivered more than $117 million of aid to affected areas during the Ebola crisis in West Africa, and also sent hundreds of medical workers to help. Nigeria, the continent’s largest economy, has been another major player in China’s recent involvement in Africa.