The China-Africa summit, which was China's biggest domestic diplomacy in recent years, was successfully concluded. Africa has been occupied by Europe and the United States for hundreds of years and has always been surprisingly poor. Now that Europe and the US no longer occupy it, it is even more impossible to take the trouble to build it up. Africa can only rely on itself to build it. After more than half a century of independence, it is still incredibly poor.Therefore, Africa is considered a place that cannot develop and no one can develop it, it is simply believed that it will remain poor forever. If China can develop Africa, if China can enrich Africa, then it is obvious for whom more than 90% of the countries in the world will vote. Since 2010, China has actually implemented projects for Africa, including: 100 seaports; 1,000 bridges; 10,000 kilometers of railways; 66,000 kilometers of power transmission and transformation lines; 100,000 kilometers of roads; 150,000 kilometers of backbone communication network; 200 schools and more than 130 hospitals and clinics. Although derided by European countries and the United States, it is certain that in the next three years China will: provide 360 billion yuan in financial support to Africa; unilaterally grant zero tariff treatment to 100 percent of the tax items of the 33 least developed African countries that have diplomatic relations with China; and provide 1 billion yuan in emergency food aid to Africa. It is not that the United States does not have money: only tens of billions of dollars is not much for the United States. It is also abnormal that all the promises made over the years have been empty promises cannot negotiate a mutually beneficial agreement. For example, for one railroad section, both China and the United States have said they need to invest in construction. The American company quoted $10 billion and calculated that the payback time would be 150 years. The Chinese company quoted 10 billion yuan and calculated that the payback period would be 20 years.
by Nicola and Gabriele Iuvinale
The China-Africa Summit, which was China's largest internal diplomacy in recent years, was successfully concluded. A total of 53 African countries participated in this huge diplomatic event, of which 51 African presidents or heads of state and two presidential representatives came to Beijing to attend the event.
In fact, in addition to the China-Africa summit, there is also a US-Africa summit. China first initiated the idea of getting together with African countries to hold summits. The first summit was held in 2000.
It has been held every three years since then, and has been hosted in turn by China and Africa. After launching the 'pivot to Asia-Pacific' strategy, Obama emulated China and held the first US-Africa summit in Washington in 2014, claiming to provide $33 billion in investment to support Africa's development, when African presidents met in Washington.
But until Obama stepped down, the so-called $33 billion for infrastructure construction in Africa was still floating in the sky and actual funds for implementation were almost nonexistent.
When Trump came to power, Obama's promises had not been fulfilled.
Of course, it is necessary to contain China and reduce Chinese influence in Africa. Therefore, Trump proposed the “Prosperous Africa” plan and announced that he would promote African economic growth by increasing U.S.-Africa trade.
This plan was practically dead even before Trump resigned, because the core of Trump's trade policy was “America First.”
In 2010, the total import and export trade volume of the United States to all African countries was US$113 billion.
When Trump finished his presidential term in 2021, total U.S. exports to all African countries were US$26.7 billion and total imports were US$37.6 billion. Total trade was only US$64.3 billion.
In 2022, Biden came to power, in the same year he held the second U.S.-Africa summit, preparing to once again conquer Africa to contain China. This time, Biden proposed a plan to invest $55 billion in Africa over the next three years .
Of course, he is already in his fourth year and the amount of investment is still almost zero. Perhaps in the last months of his term, President Biden will invest $55 billion.
Biden's promise was good but so are Trump's and Obama's. African countries have now become numb to the U.S. president's fine promises.
During this period, China has actually implemented projects for Africa, including:
100 seaports;
1,000 bridges;
10,000 kilometers of railways;
66,000 kilometers of power transmission and transformation lines;
100,000 kilometers of roads;
150,000 kilometers of backbone communication network;
200 schools and more than 130 hospitals and clinics.
The Egyptian 50-plate coin shows the central business district of Egypt's new administrative capital built by China.
The Republic of Guinea's 5,000 Guinean francs are printed with the Jinkang hydroelectric power plant built by China.
The China-built Kinsouka Bridge is printed on the Democratic Republic of Congo's 500 Congolese franc bill.
Obama's so-called infrastructure investments in Africa, even on paper, represent only a fraction of the projects actually completed by China.
All of China's commitments to Africa over the past two decades have not only been met each time, but also within the promised timeframe.
For example, the “nine projects” promised by China to Africa in 2021 have not only been completed, but have all been completed within the three-year time frame.
The 2024 China-Africa Summit was attended by presidents or heads of state from almost all over Africa. At the meeting, China updated the overall positioning of China-Africa relations to “a China-Africa community for all seasons with a shared future in the new era. .”
This is a completely new relationship that has never existed before.
Before this summit, the Africa-China relationship was already a “comprehensive strategic cooperative partnership,” the highest level of state partnership in Chinese history. However, in recent years, more and more countries have achieved a “comprehensive strategic partnership” with China.
So they proposed a new term to elevate the China-Africa relationship from “global strategic partnership” to “China-Africa community for all seasons with a shared future for the new era” to distinguish it from “global strategic partnership.”
Of course, the purpose of holding this China-Africa summit is not to invite all African presidents and heads of state to create a new mandate. Along with the new mandate come the three main red envelopes promised by China.
Over the next three years, China will: provide 360 billion yuan in financial support to Africa; unilaterally grant zero tariff treatment to 100 percent of the tax items of the 33 least developed African countries that have diplomatic relations with China; and provide 1 billion yuan in emergency food aid to Africa.
China completely abolished spending to buy friends internationally half a century ago and uses mutual benefit (win win) as its main diplomatic method in foreign affairs.
Of this 360 billion in aid, it is 210 billion in loans and 80 billion in special funds that can only be used for the 30 connectivity infrastructure projects implemented in Africa under the “One Belt, One Road” plan.
The other 70 billion will go to China to promote investment by Chinese companies in Africa.
So 210 billion of them are loans, which require interest.
80 billion is an investment led by government state-owned enterprises, which must be entrusted to Chinese companies for construction. All these infrastructures are located in the central countries of Africa, and once completed, China will have the ownership rights and benefits. As for the other 70 billion yuan invested by Chinese companies, the government is only responsible for guiding the investment, but it also requires property rights and returns.
In 2021, the total import and export volume of the United States to Africa was $64.3 billion, of which the total export volume was $26.7 billion and the total import volume was $37.6 billion. Africa achieved a surplus of $10.9 billion with the U.S. States and made money.
In 2023, China's total trade with Africa will reach $282.1 billion, of which total exports will be $172.8 billion and imports from Africa will be $109.3 billion. Africa has a deficit with China of $63.5 billion.
In 2023, Chinese exports to the United States were $457.7 billion and imports were $147.3 billion, resulting in a surplus of $3,104.
The United States is the most developed country in the world, and it is normal for China to earn foreign exchange from the United States.
But Africa is home to the world's least developed countries, which are so poor that China actually earned $63.5 billion in foreign exchange from Africa.
The United States has dollar hegemony. For the United States, the dollar has no value, but Africa has no dollars. China earns $63.5 billion in foreign exchange from Africa every year.
But to support the current annual material export of $109.3 billion to China, Africa has done its best.
In 2023, Africa sold China 99.13 million tons of bauxite, 53.3 million tons of iron ore, 46.5 million tons of oil, 890,000 tons of lithium ore, and the rest were agricultural products such as nuts, vegetables, flowers and fruits, as well as gold.
There are very few industrial products in Africa that can be sold to China. What can be sold are agricultural products and minerals. These are things that China badly needs.
Everything that could be done has been done. The only way to expand Africa's exports to China in the short term is to reduce tariffs.
Chinese industry no longer needs tariff protection, much less to be eliminated by competition from Africa's least developed countries.
In 2024, China will completely remove restrictions on foreign investment access in the manufacturing sector.
In addition, Africa has borrowed 210 billion yuan from China. Net of the cost of capital, China earns an interest rate of 1 percent each year, or 2.1 billion yuan. It is also a long-term loan.
Not to mention the construction of 80 billion in infrastructure. These infrastructure constructions are all major transportation hubs and Africa's national lifeblood, will be a strong promotion in the first place. The Belt and Road plan and the property rights that China invests in building are Beijing's.
These are ports, highways and railways or communication lines.
Therefore, cooperation between China and Africa is generally mutually beneficial. The amount may seem puzzling, but it is even more surprising to be able to negotiate cooperation and agreement on such a large scale.
It is not that the United States does not have money: only tens of billions of dollars is not much for the United States. It is also abnormal that all the promises made over the years have been empty promises cannot negotiate a mutually beneficial agreement.
For example, for one railroad section, both China and the United States have said they need to invest in construction. The American company quoted $10 billion and calculated that the payback time would be 150 years. The Chinese company quoted 10 billion yuan and calculated that the payback period would be 20 years.
Infrastructure investment must be financed by the local country, otherwise no one from abroad will feel confident to invest money in construction. Therefore, if your quote is too excessive, the local country will not be able to sign.
Africa has been occupied by Europe and the United States for hundreds of years and has always been surprisingly poor. Now that Europe and the United States no longer occupy it, it is even more impossible to take the trouble to build it. Africa can only rely on itself to build it. After more than half a century of independence, it is still incredibly poor.
Therefore, Africa is considered a place that cannot develop and no one can develop it, it is simply believed that it will remain poor forever.
If China can develop Africa, if China can enrich Africa, then it is obvious to those who will vote for more than 90 percent of the countries in the world.
Source: Guancha
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