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During the Forum on China-Africa Cooperation （FOCAC） held in early December in Johannesburg, Chinese President Xi Jinping met with 50 African leaders, announcing a new loan and aid package valued at US$60 billion.
Doubling the figure previously pledged by Chinese Premier Li Keqiang during his 2014 Africa tour, the package, which includes US$35 billion in low-interest loans and export credit, US$5 billion in grants, and a US$5 billion top-up of the existing China-Africa Development Fund, has once again put China’s Africa policy in the spotlight.
It has been almost a decade since the last China-Africa summit convened in 2006. Subsequently, China has emerged to become the continent’s No. 1 collective trading partner, with bilateral trade volume reaching US$222 billion in 2014, as well as the world’s largest single investor in Africa.
But as oil and commodity prices have plunged and China’s economic growth has slowed, China’s relationship with its African partners is facing a new and challenging set of circumstances. According to data released by China’s Ministry of Commerce, Sino-African trade volume fell by 18 percent in the first nine months of 2015. In the meantime, China’s investment in Africa in the first half of the year dropped by more than 40 percent.
As economies on both sides wake up to this new reality, it appears to have drawn China closer to Africa.
Industrialization
A term reflective of China’s updated commitment to Africa conveyed repeatedly during the summit was “industrialization.” Not only was a “China-Africa industrialization program” at the top of a list of 10 initiatives outlined, it was also highlighted in China’s latest Africa policy paper.
Released on December 4, apparently to coincide with the FOCAC summit, the updated policy paper mentioned the term “industrialization” seven times, and listed industrial development as a top priority in the section on “deepening economic and trade cooperation.”By contrast, China’s first Africa policy paper, released in 2006, didn’t mention the term at all, and the word “industry” only appeared once.
A shift in focus towards industrialization may very likely change the bedrock of the China-Africa relationship. In the past, a major criticism leveled at China’s presence in Africa has been its massive extraction of the continent’s rich raw materials and energy resources, traded for the large-scale import of cheap Chinese manufactured goods.
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