China over Africa.
Posted On Monday, August 20, 2007 at at Monday, August 20, 2007 by UnknownWhen Yang Jie left home at 18, he was doing what people from China’s hardscrabble Fujian Province have done for generations: emigrating in search of a better living overseas.
What set him apart was his destination. Instead of the traditional adopted homelands like the US and Europe, where Fujian people have settled by the hundreds of thousands, he chose this small, landlocked country in southern Africa.
“Before I left China,” said Yang, now 25, “I thought Africa was all one big desert.” So he figured that ice cream would be in high demand, and with money pooled from relatives and friends, he created his own factory at the edge of Lilongwe, Malawi’s capital. The climate is in fact subtropical, but that has not stopped his ice cream company from becoming the country’s biggest.
Stories like this have become legion across Africa in the past five years or so, as hundreds of thousands of Chinese have discovered the continent. The Xinhua News Agency recently estimated that at least 7,50,000 Chinese were working or living for extended periods on the continent, a reflection of deepening economic ties between China and Africa.
Even when Yang arrived here in 2001, he said, he could go weeks without encountering another traveller from his homeland. But as surely as his investments in the country have prospered, he said, an increasingly large community of Chinese migrants has taken root, and now runs everything from small factories to health care clinics and trading companies.
Today, in many of the countries where the new Chinese emigrants have settled, like Chad, Chinese-owned pharmacies, massage parlours and restaurants serving a variety of regional Chinese cuisines can be found; the Western presence, once dominant, has steadily dwindled, and essentially consists nowadays of relief experts working international agencies or oil workers, living behind high walls in heavily guarded enclaves.
At first, this new Chinese exodus was driven largely by word of mouth, as pioneers like Yang relayed news back home of abundant opportunities in a part of the world where many economies lie undeveloped or in ruins.
Conditions like these often deter Western investors, but for many Chinese entrepreneurs, Africa’s emerging economies are inviting precisely because they seem small and accessible. Competition is often weak or nonexistent, and for African customers, the low price of many Chinese goods and services make them more affordable than their Western counterparts.
You Xianwen sold his pipe-laying business in Chengdu, in southwest China, this year to move to Addis Ababa, Ethiopia’s capital, to join a startup company with a Chinese partner he had met only online. His new business, ABC Bioenergy, builds devices that generate combustible gas from ordinary refuse, providing what You said would be an affordable alternative source of energy in a country where electricity supplies are erratic and prices high.
This Chinese activity reflects an intense appetite for African oil and mineral resources needed to fuel China’s manufacturing sector, but big Chinese companies have quickly become formidable competitors in other sectors as well, particularly for big-ticket public works contracts. China is building major new railroad lines in Nigeria and Angola, large dams in Sudan, airports in several countries and new roads, it seems, almost everywhere.
Africans view the influx of Chinese with a mix of anticipation and dread. Business leaders in Chad, a central African nation with deepening oil ties to China, are bracing for what they suspect will be an army of Chinese workers and investors.
“We expect a large influx of at least 40,000 Chinese in the coming years,” said Renaud Dinguemnaial, director of Chad’s Chamber of Commerce. “This massive arrival could be a plus for the economy, but we are also worried. When they arrive, will they bring their own workers, stay in their own houses, send all their money home?”
In Zambia, where anti-Chinese sentiment has been building for several years, merchants at the central market in Lusaka, the capital, said that if Chinese people wanted to come to Africa, they should come as investors, building factories, not as petty traders who compete for already scarce customers for bottom-dollar items like flip-flops and T-shirts.
“The Chinese claim to come here as investors, but they are trading just like us,” said Dorothy Mainga, who sells knockoff Puma sneakers and Harley Davidson T-shirts in the Kamwala Market in Lusaka. “They are selling the same things we are selling at cheap prices. We pay duty and tax, but they use their connections to avoid paying tax.”
Although Chinese oil workers have been kidnapped in Nigeria and killed in Ethiopia, the growing Chinese presence around the continent has produced few serious incidents.
Misunderstandings are common, however, and resentments inevitably arise. Africans in many countries complain that Chinese workers occupy jobs that locals are either qualified for or could be easily trained to do. “We are happy to have the Chinese here,” said Dennis Phiri, 21, a Malawian university student who is studying to become an engineer. “The problem with the Chinese companies is that they reserve all the good jobs for their own people. Africans are only hired in menial roles.”
Another frequent criticism is that the Chinese are clannish, sticking among themselves day and night.