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How Did China Involvement In Africa

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How Did China Involvement In Africa
First, it is important to note that China didn’t suddenly enter Africa just to acquire available natural resources. China has long been engaged in Africa, and its strategy is based on its values and history. Current China-Africa relations trace their source to the revolutionary period of Chinese foreign policy, which lasted from 1950s to the early 1970s. During this era, in the wake of the Communist revolution, China internationally emphasized ideology over economics. It did so by establishing ties with the anti-colonial and pro-independence movements in Africa. Therefore, support for socialist countries and independence movements marked the first years of China’s aid program in Africa. The aid program included sending construction …show more content…
China began moving from an ideological to an economic co-operation. At the same time, African countries played an important role in in the 1971 UN vote that recognized the PRC as the legitimate representative of the Chinese people. The support that China received from African countries motivated it to increase its engagement with Africa. The subsequent Chinese engagement in Africa focused on providing loans to build infrastructure, factories and farms that would be repaid with the profits from their future operations. These loans were primarily given by the Chinese Exim Bank. This economic cooperation would become known as the infrastructure for resources …show more content…
Japan was earliest to enter the Chinese market. In 1973, worried about its energy security and aiming to diversify its suppliers during the first oil price crisis, Japan began to import Chinas oil. Four years later, oil made up nearly half of Japanese imports from China. A step further was made in 1978, when China and Japan signed a long term trade agreement. The trade agreement was based on Japan providing China with low interest loans as a way for China to finance technology imports from Japan, while China was to subsequently repay these loans by exporting the equivalent value of oil and coal. Such an agreement allowed Chinese companies without access to foreign currency to import equipment and machinery, delaying payment until they could pay with the goods later produced. It was said that “the construction of an oilfield will be paid for with oil, construction of a coal mine will be paid for with coal, and construction of a factory will be paid for with the products of the factory”. China found it convenient to be able to import technology and expertise from Japan; while on the other hand, its natural resources made China an ideal partner for Japan. Japans first package of loans was used to build infrastructure to facilitate the export of raw materials to Japan. China used Japans interest in oil to build infrastructure for transport and export capacity. Japan

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