Symbiotic Success

Symbiotic Success: Sino-African Relations and A New Development Model

By Robert Burton

A Masters Thesis Submitted in Partial Fulfillment of theRequirements for the Degree of Master of Arts International Studies

In the School of Business and Professional StudiesConcordia University

Irvine, California

Abstract

China has the world’s fastest developing economy and is slated to be the next world superpower.

African resources will fuel much of China’s eminent rise, yet Africa is the world’s poorest

continent but the most resource abundant. “Symbiotic Success: Sino-African Relations and A

New Development Model” is a study that explores the vicissitudes of China’s investment on the

African continent, as well as looks into the impact of investment and aid on the people,

economies, and politics of the African nations. The author explores the impact and potential of

such a relationship between the world’s fastest growing economy and the world’s poorest-one

that will play a major role on the future world stage. The question is whether or not this new

relationship will be one that is a “Win-Win?” Will it be mutually beneficial? How can African

governments leverage this investment to ensure symbiotic success? Judgment sampling was

used to collect field data, which was analyzed to chart participants’ attitudes concerning areas of

Chinese investment. Besides the majority of participants not being aware of their government’s

investment, their attitudes reflected areas where they felt China would benefit Africa and where

Chinese investment might not cause some problems in the long run. African governments should

imitate many of the tactics used by China to achieve China’s level of rapid economic growth as

well as use the tactics that China used against the west to garner leverage with investing Chinese

agencies.

Keywords: word, word, word, word, etc.

Table of Contents

Introduction………………………………………………………………………………………1

Purpose of Study…………...…………….……………………………………………………2

Literature Review………………………………………………………………………………..3

Methodology…………………………………………………………………………………….10

Data Analysis……………………………………………………………………………………17

Conclusion………………………………………………………………………………………26

Summary…………………………………………..……………………………….………...26

References……………………………………………………………………………………….32

Appendix

1SYMBIOTIC SUCCESS

Introduction

Symbiotic Success: Sino-African Relations and a New Development Model

Since opening its doors to the world in 1978, China has lifted 500 million people out of

poverty (World Bank, 2014). Thirty-six years of development, at a yearly average of 10% GDP

growth per year, has helped China bolster its economy into middle-income status. This was

possible due to certain economic reforms initiated by Deng Xiaoping. Deng’s reforms

galvanized the economy, which allowed the minimum wage to increase, narrowing the wealth

gap and developing a sense of security, based on the improvement of government regulations

(Inch, 2014). China’s growth might be hard for the West to match; the system of government for

most Western countries is constituted of elected bodies of men, all of who have agendas and

other entities to represent. Thus, the implementation of new legislation and infrastructural

change is not only time-consuming but often hindered, compromised, changed, or just vetoed.

Therefore, the author opines that for the Chinese, change can be implemented quicker than it

would be in Western countries.

The African continent is endowed with near global monopolies on platinum, chromium

and diamonds; a proportion of the world’s vital metals and reserves of precious necessities such

as gold, coal, copper, nickel, and perhaps more importantly uranium (Rocha, 2007). However,

it’s the most underdeveloped in the world while also being inhabited by 50% of the worlds’ poor

people. Little needs to be said of Africa’s dire monetary poverty.

China is now the leading recipient of Foreign Direct Investment (FDI) but will soon

become the largest exporter of Overseas Direct Investment (ODI), mainly to Africa (Inch, 2012).

Africa’s natural resources could potentially fuel China’s economic growth in exchange for

financial aid. Underdeveloped nations could both be attractive to China and beneficial for

2SYMBIOTIC SUCCESS

Chinese investment. However, the intricacies and vicissitudes of a symbiotic relationship

between the growing economic giant and the developing African nations receiving its investment

could have both advantages and disadvantages economically, politically, culturally, and socially.

The author understands that the relationship between different national economies is complex.

As such, problems facing Chinese investment in Africa would have multiple sources, which will

be discussed later in this paper.

This study will establish a connection between two of the above-mentioned sources:

1. How is investment conducted and who benefits?

2. What are the attitudes behind the citizenry of the investing nation?

This study will lead to a set of suggestions that could help the African nations stabilize their

economic growth. In addition, it will explore what China can teach Africa, not because Africans

are ignorant, but because China has better adapted to the economic environment of the modern

age. Additionally, China and Africa are two groups that have rarely interacted and have the

potential to create an interesting scenario in regard to how the Chinese people’s attitudes about

Africa will affect the nature of China’s investment and its dealings with the African people.

The author will survey Mainland Chinese to ascertain not only the implications of this

massive trading partnership but the nationalistic, economic, and personal agendas of the

individuals involved. The author will analyze the Chinese model of development to determine

which ideas and policies African nations may adopt that will provide them leverage in this new

rapidly emerging world.

In nature, symbiosis describes a relationship that is mutually beneficial for both parties

involved. Thus this work, entitled Symbiotic Success: Sino-African Relations and a New

Development Model will explore whether or not Sino-African relations are in a state of

3SYMBIOTIC SUCCESS

symbiosis. It will explore China’s investment in Africa, to determine whether or not it is truly

beneficial for both parties and highlight Chinese economic development strategies from which

Africa may learn.

In evaluating the Chinese method of investment, the writer will examine the factors that

influence political and economic policy, namely the social and cultural attitudes that are either

behind investment or can seriously affect is nature. It will be taken that “investment” means the

transference of infrastructural and “valued” resources, not necessarily money, which normally

happens between a developing and a developed nation. The writer will use Dambisa Moyo’s

definition of Aid, the sum total concessions and grants, which are mostly monetary. Aid to

Africa exists in two forms: either bilateral or multi-lateral. Bilateral aid consists of government-

to-government transfers while multi-lateral is given via institutions. The radical characteristic of

Chinese investment is that a still-developing nation is providing investment to other developing

nations in the form of both concessions and grants.

Key Terms

Symbiotic: adjective describing any independent or mutually beneficial relationship

between two persons, groups or countries (Dictionary.com)

Win-Win: A business or trade relationship where both parties gain (Dictionary.com).

South-South: Trade partnership between two separate nations that are considered apart of

the economic “South” and are developing nations (World Bank, 2014).

Non-Conditional Aid: Foreign Aid/Investment which is given with absolutely no

conditions or stipulations concerning Human Rights or good governance (Moyo, 2009).

Aid: All payments made directly to governments either through government-to-

government transfers or transferred via institutions such as the World Bank (Moyo, 2009).

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Literature Review

Historical Development of Africa

Starting with the Marshall Plan of 1947, Aid has had many shifts in its structure and

purpose (Moyo, 2009; Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-

Saharan Africa, 2004). Through 5 of the previous decades traversing the latter half of the last

century, starting in the 40s and moving forward into the 1990s, the purpose of Aid has changed

based on the needs, wants, and desired goals of the hegemonic western powers (Moyo, 2009;

Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-Saharan Africa, 2004).

Initially, Aid was structured in a way that mimicked the development of Europe after World War

II, from there it moved into a conduit of industrialization before it transformed into a mechanism

to fight poverty on a continental scale; starting in the 70s it became a tool for stabilization, and

then a buttress of democracy, before finally crystalizing into what it is today, the only known

solution for Africa’s problems (Brautigam & Knack, Foreign Aid, Institutions, and Governance

in Sub-Saharan Africa, 2004; Congressional Digest, 2007; Moyo, 2009).

Historically, much of Africa’s problems with Aid have had to do with monetary

investment and how it has been allocated. Through most of its history, Aid to Africa was

European in origin, and has always been controlled by developed Western financial agencies,

until now (Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-Saharan

Africa, 2004; Moyo, 2009). However, western investment has dictated terms that were often

deemed unreasonable and counter-productive to growth while failing to stimulate manufacturing,

which is crucial to job creation (Wamboye, Adekola, & Sergi, 2014) (Rebol, 2010).

5SYMBIOTIC SUCCESS

As Aid and its processes have fluctuated over the years, is has affected different African

governments in numerous ways (African Growth Initiative at Brookings, 2011; Hailu, 2011;

Wamboye, Adekola, & Sergi, 2014). There is evidence that FDI has had both positive and

negative effects on import and exports while ODA has positively affected imports and negatively

affected exports (Hailu, 2011). Most importantly, this creates deficits that affect resource

distribution and economic growth (Hailu, 2011; African Growth Initiative at Brookings, 2011;

Congressional Digest, 2007; Wamboye, Adekola, & Sergi, 2014). One pertinent issue that has

been raised is good governance and whether or not malfeasant behaviors can be blamed on Aid’s

removal of responsibility from African bureaucrats. African countries have also displayed an

inability to wean themselves off of Aid and many haven’t grown economically, creating Aid

dependent conditions that have ensconced the recipient countries in an atmosphere ripe for

economic stagnation and political corruption (African Growth Initiative at Brookings, 2011;

Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-Saharan Africa, 2004;

Hailu, 2011; Moyo, 2009; Obiorah, 2007; Wamboye, Adekola, & Sergi, 2014). The author

should note that Africa’s history with Aid has not been completely bleak. Some African

countries have been able to turn foreign investment into sustainable, measureable growth (Hailu,

2011; African Growth Initiative at Brookings, 2011). However, all sources agree that despite

gargantuan sums of cash being injected into a majority of the separate economies on the

continent, Africa has not come near the level of economic growth that Asian competitors have

seen (African Growth Initiative at Brookings, 2011; Brautigam & Knack, Foreign Aid,

Institutions, and Governance in Sub-Saharan Africa, 2004; Congressional Digest, 2007; Hailu,

2011; Wamboye, Adekola, & Sergi, 2014; Moyo, 2009; Rebol, 2010).

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Sino-African Investment

Though this economic phenomenon is new, there is a wealth of information that explores

the relationship between China and Africa and its implications on the African people and the

world. Many, written by American, Chinese, and African scholars concern hopes, wishes, and

many fears about this investment model, its implications, and the agenda behind it. The overall

reasons for the heightened investment began with China’s need for raw materials (Marks, 2007).

From there, certain ideological frameworks have been put into place to validate China’s

involvement in the affairs of a land with which it had had little prior involvement. The

ideological premise is that both China and African nations are currently at developing nation

status and relations should be fostered and sustained because of the “brotherhood between

developing nations” as well as South-South economic development (Kjollesdal & Welle-Strand,

2010; Taylor, 2007; Rocha, 2007).

Ideologically this transference of economic growth is not new. In fact, what the modern

world is witnessing is a repetitive historical trend. Take for instance the Mongol invasion of the

whole of Asia. By 1219 A.D the Mongols, led by Genghis Khan, conquered territories stretching

from Eastern Europe to the borders of Song Dynasty China, allowing them control over the

commercial flow of goods from what is now southern China to the main purchasing centers in

what is now the Middle East, setting the scene for future transference of knowledge, expertise,

technology, tradable goods, and human capital throughout Asia (Weathorford, 2003). This

“flow” undoubtedly transformed into the Silk Road, carrying the above mentioned from a unified

Asia west into Europe. Fast forward through hundreds of years of economic development and

industrialization and the current developed nations of the West are floundering, allowing for the

flow of knowledge and expertise to soon reverse its movement from the “West to rest” and now

7SYMBIOTIC SUCCESS

flowing back again from the “east to the least,” (Inch, 2012; Gupta & Wang, 2009). The “least”

being the developing nations located due west of China, which would include Africa.

Apart from historical trends and ideological framework exists a real reason for China’s

investment in Africa. The context for Sino-African relations is quite complicated and contains

intricacies and nuances on both sides of the perspective lens. For starters, according to Moyo

(2009), Sub-Saharan Africa has the highest concentration of poor people in the world; over 50%

of the world’s poor, and that percentage is predicted to increase. Although aid from western

countries has totalled $2 trillion over the last 50 years, there has been very little, noticeable,

effective change (Moyo, 2009). Western aid is arguably outdated and could be an ineffective

module of Foreign Direct Investment (FDI) that was created as an imitation of the Marshall Plan,

the development module aimed to reconstruct Europe after the end of the last World War. The

issue is that Europe was rebuilding damaged infrastructure, which previously existed, while

Africa had very little infrastructure to begin with (Moyo, 2009). Not only has the structure of aid

been proven antiquated it’s also a façade, as it has assisted in the propping up of corrupt regimes

(Karumbidza, 2007; Kjollesdal & Welle-Strand, 2010; Moyo, 2009).

From the African point of view, Africa is stuck in an economic and policital rut with no

foreseeble exit. China offers a new means of development, a new ally, and a shift of paradigm

(Moyo, 2009;Marks, 2007). China offers a new route towards development that challenges the

idea that Democracy and transparency are prerequisites for development and a good life (Moyo,

2009; Marks, 2007). The Chinese model offers fewer conditions, more investment, fewer

meetings, and more rapid, immediate infrastructural implementation (Moyo, 2009; Karumbidza,

2007; Marks, 2007).

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From the Chinese point of view, investment in Africa is absolutely imperative for the

survival of the Chinese people and China’s global security. Firstly, China has one-fifth of the

world’s population and only between seven to eight percent of its arable land (Brautigam, 2009).

That is a far stretch as far as it comes to feeding a population of 1.5 billion. China has developed

a pretty good solution to its food security problem: Agribusiness. As far back as the 1980s,

China has been investing in Africa’s unused, underdeveloped land to develop farms used for

hybridizing different strains of rice (Brautigam, 2009).

Natural resources have been trumpeted as China’s main reason for investment, yet, it is

only one reason. However, since natural resources are an imperative for development, China

and Chinese businesses have begun to invest heavily in Africa on multiple economic levels,

ranging from cheap goods on the micro level, to infrastructure and industrial development on the

macro level. In return, China receives ample amounts of various natural resources from

recipient-countries all over the African continent (Kjollesdal & Welle-Strand, 2010; Obiorah,

2007; Marks, 2007; Lemos & Ribeiro, 2007). The list of resources is vast while the type of

exchange depends on what the ricipient nation has to offer and what they need from China in

exchange. Looking from another angle, an African land squeeze combined with African

underdevelopment has made the continent look very attractive to Chinese companies being as it

creates supply and demand (Brautigam, 2009). If China were to fill this economic vacuum then

it could create a lucrative, long-term niche in a growing African market (Brautigam, 2009).

Many scholarly on-lookers ponder the purity of China’s motives in Africa. Being that the entire

project is supposed to be a win-win scenario, no one doubts that China is expecting something in

return for their efforts but will this be at a disadvantantage to Africa? Beijing has ensconced its

approach in many layers of political rhetoric and foreign policy statements (Brautigam, 2009).

9SYMBIOTIC SUCCESS

China’s stance is that their dealings with Africa are on par with South-South economic relations

and China’s foreign policy initiatiaves (Brautigam, 2009; Marks, 2007).

Chinese Investment in Africa

The history of how aid has been given to African nations and the “bureaucratic” nature of

Western aid has made Chinese aid extremely attractive (Kjollesdal & Welle-Strand, 2010;

Karumbidza, 2007). The Chinese have a radically different model for investment in Africa being

that they have a “no interference” policy, a different interpretation of human rights, as well as

non-conditional loans which disperse quickly and lack a bureaucratic process (Kjollesdal &

Welle-Strand, 2010; Rocha, 2007; Taylor, 2007). In fact, China is simply emulating the method

Japan used to invest in China in earlier decades (Brautigam, 2009). Influenced by their own

development history, Chinese investment is mostly industrial: Chinese companies receive the go-

ahead to depart to African countries and invest themselves into either buying land, extracting

resources, or starting some commercial enterprise (Brautigam, 2009). Brautigam (2009) explains

it best: Chinese companies, acting pseudo-independently, have set up factories, purchased land to

invest in agribusiness, and set up special economic zones (SEZ), all while building roads,

hospitals, stadiums, transferring knowledge and expertise while even footing the bill for the

African Union’s new headquarters in Addis Adabba, Ethiopia. Of the above mentioned,

Agribusiness, or developing agricultural practices for ordinary or commercial uses, is slated to be

the most profitable. Africa’s underdevelopment offers great tracts of unused land available for

purchase that offers an opportunity for Chinese companies to create a permanent stake in a

budding African market (Brautigam, 2009).

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Besides radically reshaping the paradigm of development for Africa, the effects of

China’s investment are numerous and complicated. Quite frankly, it’s too early to make a certain

judgment as to whether or not China’s influence will be good or bad. For one thing, China has

certainly challenged the notion that establishing a democratic state, in emulation of the West, is

the only route to development (Kjollesdal & Welle-Strand, 2010; Brautigam, 2009; Moyo,

2009). Most of the literature agrees on the current, noticeable effects of China’s presence on the

continent.

In summation, Africa will benefit from the transference of knowledge and expertise while

having to contend with 300,000 to 700,000 mainland Chinese immigrants, an influx of cheap

imported goods from China, and what might be a entity establishing another permanent, non-

African presence on the continent (Taylor, Kopinski, & Polus, Contextualizing Chinese

Engagement in Africa, 2011; Karumbidza, 2007; Obiorah, 2007; Kjollesdal & Welle-Strand,

2010; Moyo, 2009; Lemos & Ribeiro, 2007).

African Concerns

When one examines the rhetoric given by Chinese ministers and the economic

circumstances between Africa and China, one then must delve further and examine the

implications of Chinese investment in Africa from the African perspective. This investment

schema consists of both concerns, which are common areas where there may be some defects,

and threats, or areas where there are some issues that could seriously harm Africa’s future

development and the well being of its people. African authors seem to have many concerns over

Chinese Direct Aid ranging from whether or not it is beneficial for the African people, worries

11SYMBIOTIC SUCCESS

about China simply becoming another colonizer, to China’s shady relations with some nations

that have not-so-desirable leadership (Karumbidza, 2007; Marks, 2007;Obiorah, 2007). A huge

concern is how some African nations are releasing control of huge sectors of their respective

economies to be developed by Chinese Multi-national companies (Rocha, 2007; Karumbidza,

2007; Kjollesdal & Welle-Strand, 2010;Taylor, Kopinski, & Polus, Contextualizing Chinese

Engagement in Africa, 2011;Lemos & Ribeiro, 2007). This concern brings up questions about

the feasibility of China’s investment and whether or not this model is really conducive to African

economic development. Once Chinese corporations control sectors of the economy, can the

African economies regain control or see any benefit or growth? Taylor (2007) highlights an

issue that extends from the previous one. Once a Chinese corporation or government creates a

presence in the aid-recipient country, it’s possible that there may be some interference in local

politics, of course with advantage going to the party in power, whoever they may be. One of the

most salient concerns is whether or not the African governments in power can leverage Chinese

investment, coming from a position of strength, so that it can convert investment into actual

economic growth (Taylor, Governance in Africa and Sino-African Relations: Contridictions or

Confluence, 2007; Moyo, 2009). African scholars have made many assertions concerning

various defects of Chinese investment and the cultural attitudes or ideologies of China’s

corporations and government. Brautigam (2009) defines a few and refutes some; asserting that

Chinese aid is not just about oil, minerals and resources but also about the infrastructure needed

to extract them, as well as the fact that the autonomy that Chinese businesses exercise in their

affairs debunks any notion of a “grand Chinese plan” (Brautigam, 2009). Brautigam (2009),

however, does confirm that China is indeed gaining business with low environmental and social

standards. Some have accused China of being absolutely corrupt, that doing business with them

12SYMBIOTIC SUCCESS

is to dance with the devil. While China has not aggressively condemned corrupt regimes, it

certainly hasn’t propped them up either; combine all of the above concerns with the fact that

their policies and practices are evolving and you have a very complicated picture (Brautigam,

2009).

Methodology

This research was designed to explore the economic and social implications of China’s

investment model throughout Africa. It was designed to compare social and racial attitudes of

the most socially astute Chinese to the nature of the investment module to see if there is a

correlation between how Chinese view Africa and African people and the way investment in

Africa is conducted and approached. This research ascertained the general attitudes of the

Chinese.

The study used snowball and judgment sampling to seek out only those who are socially

astute or involved in business in some way, preferably business overseas. The sample size for

this study reached a maximum of 220 Chinese who are situated at the lower and middle rungs of

the socio-economic ladder and know little of Africa. The study included those participants who

have occupations that would indicate that they have some knowledge of foreign affairs and

international relations. For example, teachers, government officials, businesspersons, and etc.

are already overseas and most likely represent people with more enlightened perspective on the

subject.

13SYMBIOTIC SUCCESS

Research Instrument

The survey was designed to extract the attitudinal variations from the participants and

compare the findings to find any similarities. The next phase identified any discrepancies in

terms of their attitudes and what is happening on the ground. The research included quantitative

methodology using a survey questionnaire. The questionnaire asked participants questions that

determined their demographics in regards to age, gender, occupation, income, travel experience,

nationality, education, and whether or not they had any previous business experience in Africa.

The independent variables were exposure to foreigners, travel experience, opinion of Chinese

investment in Africa and whether or not it is beneficial for both parties, or what those benefits

might be and for whom. The dependent variable was their perception of Africa and Africans.

Other independent variables, which were included to influence their perspective, had to do with

whether or not they’ve traveled to Africa, and, if the participant is a businessperson and whether

they have done any business with Africans.

On some questions I used a Likert scale to gauge if these responses indicate a positive

attitude towards Africa, Africans, and investment in Africa. Some questions were formulated as

“On a scale from one to 5, 5 being the highest and 1 being the lowest…” Other questions read as

“would you say …Beneficial, Neutral, and Unbeneficial.”

Sampling

This research targeted Chinese who have been determined by preliminary study to be

most informed about the subject. This includes Chinese who are involved in business or have an

occupation that indicates that they have some astute knowledge of international affairs and

foreigners, specifically Africans, who live and work in China. Those who are in business or

14SYMBIOTIC SUCCESS

some type of government related work will be sought out for a face-to-face interview. The goal

was a sample of size 200 Chinese, preferably, educated and knowledgeable of world affairs. .

The survey was anonymous, confidential, and voluntary. No one had to participate if they

did not wish to do so and were not pressured. The author tried to minimalize the chances of any

risk to the most possible extent. The author promised confidentiality and made sure that any

personal information given was not disclosed.

The demographic portion of this paper detailed who was surveyed, and the social

positions of the participants, in order to garner the attitude of the people about being part of the

survey. Whatever attitude seems to prevail will be indicative of a particular section of the

population. As such, it will be determined how demographic information is relevant to African

development and if any effect is prevalent. This survey’s aim was to have between 200 and 500

participants and the following findings are the result of a sample size of 220 persons who are

mostly Chinese.

The age categories encompassed all ages from 19 or less to over 70. The demographics

were segregated into seven age brackets, the first and last being larger than the five in the

middle. The most prevalent age bracket is that of those aged 40-49 years of age, the number of

persons in this bracket being 42.7%

Thus we can see the main participants are middle-aged Chinese professionals with

families, since many middle and high school students helped disseminate a sizable portion of the

questionnaires. The mean age bracket was that of those ages 30-39.

15SYMBIOTIC SUCCESS

Age

19 or less

20-29

30-39

40-49

50-59

60-69

70 and above

0 10 20 30 40 50 60 70 80 90 100

Figure 1.1 Age distribution of survey sample (N=172)

As is evident, most of the participants were middle-aged (40-49) professionals. The

second largest group prevalent is that of the young, ages 19 or less. Any attitudes displayed in

the following analysis of data will come from drastically different generations. Most of those

aged 19 or less are students. Those who are between 40 and 49 make up 52.3% of the sample

participants (N=220) while those aged 19 or less constituted 31.3 % of the surveyed participants.

Those who were 20-29 also factored in, showing that young urban professionals (those whom the

Chinese refer to, as “Ants”) will also have a voice counted. Those aged 60-69, or 70 and above

were not heavily represented with a total of less than twenty to non-existent.

Subjects’ Gender

Overall, 122 females were surveyed and 98 males participated. The numbers were only

10 people away from reaching equilibrium. This is mostly to do with which member of the

16SYMBIOTIC SUCCESS

family is involved in business. Since the aim was to direct students to the parent that is involved

in business, the male to female ratio is somewhat arbitrary. Another factor could have been that

students simply gave the survey to the parent that was home. Surveys were also widely

distributed at English Centers, where the majority of the students are women. Women made up

55% of the sampled group while the males were the remaining 45.

GenderMaleFemale

Figure 1.2: Gender of Participants (N=220)

Occupation

Occupation was crucial to determine from which working portion of the society the reflected

attitudes stem. It was important to ascertain what the attitude is, but more so what factors

influenced the attitude, and furthermore, how relevant the attitude is to African development.

Five categories were available for choosing: Business, Education, Government, Entertainment,

and Other. Three of these categories are important, Business, Education, and Government, as

17SYMBIOTIC SUCCESS

these participants have the attitudes, beliefs, and ideas most relevant to the situation in Africa.

These categories were chosen because the researcher believed these persons most likely would

consist of those who are most aware, even care, and have an informed opinion on the subject

matter. Furthermore, the persons in this category will be more likely to have some aspect of

their employment involving Africa or development. The aim was to find participants involved in

business. Forty-six percent of the survey sample (N=220) is employed in business in some form;

this increases the number of subjects involved in business in Africa. The second largest category

was that of “Other”, which consisted of 37% of the sample size (N=220), 82 participants who are

most likely students or are employed in some industry that isn’t Government, Business, and

Education related. Many of the 37% were students studying at Shanghai Pinghe Bilingual

School. Other categories included Education, Entertainment, and Government in total equaled

20% of the total survey sample (N=220). The attitudes displayed in this research would mostly

reflect a mix of businesspersons and students; an interesting variation of opinions, a blend of

those with intimate knowledge with business and development and those without.

Income and Education

In this survey, income and education were used to gauge affluence. The impression

evolved around the idea that affluence brings awareness. If this is indeed the case, then the

higher the income and education of the participant the more likely they are to have an informed

opinion of China’s development in Africa due to exposure.

In regards to income, the results presented a dichotomy between those with and those

without.

18SYMBIOTIC SUCCESS

Annual Income in RMBLess Than 10,00011,000-2100021,000-30,00031,000-40,00041,000-50,00051,000-60,00061,000-70,00071,000-80,00081,000-91,000over 100,000

Figure 1.3: Annual Income in Renminbi

Fifty-three percent of the survey sample (N=220) has an annual income over 100,000 RMB. If

affluence were indicative of awareness, than this would be beneficial for extracting an informed

survey sample. Yet, 39% of participants are those who earn less than 10,000 RMB a year. This

is because the 31% of total participants (N=220) were students, but paradoxically are probably

children of wealthy adults.

Data about education levels also proved useful as over 64% of the participants had a

college or university degree, which includes undergraduate, graduate and or doctoral degree.

The second largest group was those who earned master’s degrees, including Masters in Business

Administration, and law degree (20%).

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Education Level

High school diplomaCollege/UniversityMasters/MBA/Law DegreeDoctorate/Ph.D/Medical DegreeOther

Figure 1.4: Educational Levels of Participants

Figure 1.4 shows the participants’ educational levels are evenly distributed. This shows

that the attitudes in the research are going to reflect a mix of those who are educated and those

with less education. With over 64% (N=220) of the participants having some diploma, I believe

this has greatly increased the chances of drawing participants who are informed and aware of

African development.

Data Analysis

This research includes quantitative analysis. The quantitative analysis includes univariate

analysis in order to compare factors that will reveal unique information about the subject matter,

and to discover more about China’s role in African development. Businesspersons and

professionals were to extrapolate attitudinal variables from the perceptions of Chinese people.

These variables will be compared to see what the Chinese think about Africa, African people,

and the effect of investment on African economies and people.

20SYMBIOTIC SUCCESS

Uni-variate Analysis: Are you aware of China’s Development in Africa?

Fifty-five percent of the participants surveyed were between the ages of 40-49, and were

mostly women, who most likely had a child or two at Pinghe’s Bilingual school in Shanghai,

China. The sample (N=220) tended to be a mix of the wealthy elite, young urban professionals

and students, who are most likely the progeny of that wealthy elite. Fifty-two percent of the

participants earn over 100,000 RMB per year, indicative of at least middle class status or affluent

people who have an informed opinion of the subject matter.

Fifty-nine of the participants surveyed (N=220) were unaware of China’s development

and investment in Africa prior to 2006. Thus, so far, 27% of the participants’ attitudes will

reflect that of people not aware of what is going on between China and Africa and their opinions

may be nuanced by a sense of apathy. As the chart in figure 1.5 shows, most of the participants

were aware and this will be beneficial to extracting informed opinions.

Are you aware of China's de-velopment of Africa?

YesNo

Figure 1.5: Are you aware of China’s development in Africa?

21SYMBIOTIC SUCCESS

With 73% of the participants having some form of awareness about China’s

development, keen insights should reign prevalent in the attitudes displayed in this research.

The other variable worthy of attention is how the Chinese see Africa and Africans. The

writer’s personal hypothesis is that the image the Chinese have of Africa in their collective sub-

conscience will have an impact on, or either is emblematical of China’s investment model.

Several buzzwords were used to extract either a positive attitude or a negative attitude.

Participants were told that they could choose up to three. Positive word associations such as

“Beautiful”, “Fellow Developing Nation,” or “Exotic Travel Destination,” were used to connote

positive attitudes about Africa while negative word associations such as “Poor”, “Unstable,” and

“Dangerous” were used to denote negative attitudes about Africa. Of the sample size (N=220)

the most common buzzword selected to described Africa was “Fellow Developing nation”, while

the second most popular was that of “Poor”. A combination of attitudes seems to be prevalent

here, while seeing African nations as fellow comrades in the struggle can be seen as positive,

being viewed as a people without money can be dangerous, especially in the Chinese paradigm,

where having money is valued.

Fellow Developing Nation

Exotic Travel Destination

Unstable

Unknown

Interesting

0 10 20 30 40 50 60 70 80

Describe What Africa is to You

Describe What Africa is to You

22SYMBIOTIC SUCCESS

Figure 1.6: What does Africa mean to you?

Figure 1.6 shows that attitudes about Africa straddle the spectrum. If the different words were

designed to have certain connotations, then the amount of positive or negative associations is

distributed throughout to varying extents. Surprisingly, the most prevalent selection was that of

fellow developing nation, which denotes an amiable working partnership. The issue would then

be to determine whether or not this partnership is truly symbiotic. Attitudes about Africa seem

to vary from person to person, with no one group of people reflecting a certain attitude. What

would feed this attitude would be not only what you know, but also the source of the

information. For example, 84% of the 220 participants said they get their information about

Africa from the media or news. It is common knowledge that the Chinese media is controlled by

the State. Therefore the Chinese people, on average, receive information based on what the State

wants them to know. Africa’s image, or more accurately the African image that people in China

receive will be that which is controlled, manipulated, and mitigated by the state. Perhaps the

prevalence of seeing Africa as a fellow-developing nation stems from state missives and rhetoric.

Interestingly, 46 of the participants claim they see Africa as poor. If poor is a negative

association, the question is what effect will this have on China’s relations with Africa? Will

there be a superior-inferior relationship? Will the Chinese approach Africa with paternalism, or

perhaps maybe condescension?

Participants were asked a series of questions designed to determine whether or not Sino-

African development was seen to be mutually beneficial. 75 participants (43%) stated that

China’s investment in Africa is beneficial for Africa. However, 20% said that Chinese

investment was not beneficial for China. This evidence seems to highlight that many Chinese

see this investment as benefitting Africa more than it would benefit China. Interestingly, when

23SYMBIOTIC SUCCESS

asked about how beneficial Chinese investment will be for Africa, 71% of the participant’s

replies indicated they thought it would be beneficial. That is a majority, yet another interesting

aspect is that of those who did not give a response that implied benefit, most of the answers were

not “unbeneficial” but rather “neutral.” Here, we have an answer set dichotomized between a

positive response and neutrality. This could be indicative of the apathy spoken of earlier.

Below, figure 1.8 shows two pie charts, the one on the left shows that the majority (71%)

remarked that Chinese investment will be beneficial, and then in blue you see those who marked

any other type of response while the chart on the right displays, in more detail, what is consisted

in “other”.

Beneficial

Neutral

Not Beneficial

Beneficial for Africa

Figure 1.7: Will Chinese Investment be Beneficial for Africa?

The very next question in the survey asked, whether or not China’s investment would be

beneficial for China. The responses drew very different conclusions. In figure 1.8 only 35% of

the respondents said Chinese investment in Africa would be beneficial for China. Instead of

implying that it would be unbeneficial, 44% marked neutral. Actually, there are more people

24SYMBIOTIC SUCCESS

that did not say beneficial than those who did. Yet, this data seems to be suggesting many

Chinese do not see their country’s investment in Africa to be something done for the benefit of

China. To add to this, during a presentation on this topic given to a class taught by the author of

this study, many students inquired as to which methods were used to invest in Africa. This may

indicate that though many are aware this is happening, many simply do not know how it is being

done. Comparing the two previous data sets shows that in the Chinese mindset Chinese

investment is seen as comparatively more beneficial for Africa than it is for China. Existentially

speaking, this isn’t symbiosis: this is one more economically advantaged country helping one

that is more disadvantaged.

Beneficial35%

Neutral44%

Not Beneficial21%

Benefical for China?

Figure 1.8: Will Chinese investment be beneficial for China?

Figure 1.8 displays the attitudes that had to do with dissecting the more minute aspects

of the Chinese investment model in Africa. As mentioned earlier, Chinese investment offers a

number of benefits that local African populations could take advantage of, namely cheaper

goods, infrastructure, job-creation etc. Yet this study wants to analyze which of these benefits

25SYMBIOTIC SUCCESS

will be more prevalent. So the next set of questions offers a list of options and the participants

were told to select up to three. Figure 1.9 shows how often each item was selected.

Cheaper

Goods

Infra

structu

reJo

bs

Non-conditi

onal Loan

sTra

de

Tranfer

ence

of Knowled

ge an

d Exper

tise

Other

12

101

69

1

31 34

4

Greatest Benefit For Africa

Greatest Benefit For Africa

Figure 1.9: Greatest Benefit for Africa

As seen above, the Chinese see infrastructure as the greatest benefit for Africa.

As investment comes in, building projects, which provide crucial infrastructural needs, will grow

in number and the Chinese believe this will be the main facet of China’s legacy in Africa.

Following infrastructure, jobs were listed as a benefit for the continent. They were the second

largest group, numbering 69 out of a total 220 selections indicating that the participants (N=220)

see this as a potential benefit. However, from an economic standpoint there is a discrepancy

because when asked what would be the greatest flaw in China’s investment model, the most

prevalent response was that of the lack of transference of actual money into African economies.

26SYMBIOTIC SUCCESS

No transfer-ance of actual

monies

Chinese businesses will not hire enough of the local popula-

tionSupporting unstable

governments

Chinese Companies may monopolize sectors African

economies

other

China could be another col-onizer

Greastest Flaw

Figure 2.1: Greatest Flaw in Chinese investment model

Figure 2.1 shows that the Chinese are very aware of what they describe as possible

economic discrepancies, and this could be indicative of a failed attempt at symbiosis. If one

looks at Figure 2.1, the combination of “no transference of actual money” with “Chinese

businesses don’t hire enough of the local population” could highlight a serious problem. In fact,

there have been concerns about Chinese companies only employing up to 70% Chinese staff

(Rocha, 2007). Fifty-nine participants (28%) said the Chinese might “monopolize certain sectors

of the economy,” which could be a serious

27SYMBIOTIC SUCCESS

Summary and Conclusion

This summary has analyzed Chinese attitudes concerning Sino-African

investment. The evidence presented in this study can in no way be considered indicative of any

profound, life changing results. The examination of literature puts the entire phenomena into

context while the study reached an appropriate audience but did not necessarily reach any

conclusive results. The methodology proved partially effective, in the end, but did reach a large

amount of people. If there were ever a future study, a larger sample size would certainly foster

greater chances for a more successful study with more rewarding findings.

In terms of the data, this sample was not large enough to amass any statistics that could

be used to make any general statements, yet it could be an indicator of possible chances for

future study. What this particular sample set has shown is that among educated, middle-class

Chinese, sentiments towards Africa seem to be, at best, ambivalent. Chinese investment in

Africa is viewed as a beneficial means for developing the African continent, but in no way are

these findings demonstrative of any form of symbiosis. The attitudes seem to be centered on

neutrality and ambivalence. To say it explicitly, when asked if the entire scheme of investment

will be beneficial for Africa, the most common response was “yes.” When asked the same

question about China, the most common answer was “neutral.” This is a major discrepancy in

attitudes and further research should be done on the extent of these attitudes, but should also

include African viewpoints as well.

The participants of this study have concluded that Africa’s greatest benefit, in their

opinion, will be infrastructure and the creation of jobs. That infrastructure has already been

implemented in the form of roads, hospitals, schools, and facilities that extract resources. The

most prevalent flaw is the potential of African economies being monopolized by Chinese

28SYMBIOTIC SUCCESS

companies. This means certain major Chinese multi-national companies could come in and set

up business powerhouses on African soil in which African businesses will not be able to

compete. This combined with the second largest concern, the lack of actual currency being

injected into African economies and pockets, could spell an economic cesspool of stagnant

development with Africa being turned in a resource colony for China.

Limitations and Suggestions

This study had a few limitations that prevented it from having an optimum level of

success. For starters, if the sample size were larger then more conclusive results could have been

drawn. Another issue was the instrument/survey itself. Whether it was the survey not being

clear enough or that this type of research doesn’t happen often in China, participants either didn’t

know how to take a survey or answered questions in a way that almost caused the author to have

to throw out data.

It is the opinion of the author that because this study has highlighted some discrepancies,

discovered a few cognitive dissonances, and has brought up more questions than definite

answers; there are some good areas for further study. Case in point, this study has analyzed the

Chinese attitudes but not African ones. Another study could be conducted in the near future

where African and Chinese businessmen could be interviewed, these businessmen would have

more in-depth, professional views on what is going on “on the ground.”

Discussion And Suggestions

29SYMBIOTIC SUCCESS

The whole of Africa’s development is riding on two things. First, the ability of the

governing parties on the continent to unify, and second, their ability to leverage their resources to

acquire whatever it is they need to develop economically. The author would like to put together

some suggestions for African governments to aid them in actuating their economic development.

The author will display which methods China used in order to acquire the rapid economic growth

that it is has accomplished in the past 36 years.

China has amassed one trillion Yuan worth of monetary reserves and has effectively

transitioned from an impoverished nation to a star-developing nation, all by doing one simple

thing: be on one accord. China isn’t communist anymore and there aren’t visible traces of

communist tendencies in the hearts and minds of the people. In fact, the Chinese are quite

capitalist and their business acumen is laudable. The point of the matter is that the rapid level of

economic advancement manifested by China is something that Africa should imitate - all of it.

By “all of it”, I mean even the methods the Chinese used to negotiate with the West to leverage

what Western companies had to offer. Beijing has successfully negotiated with giants bigger

than itself. A one-party system, well-detailed five-year plans, and the obedience and willingness

of a national politic that has directed its efforts to slaving away for the glory of a greater ideal,

have made it possible for China to achieve great heights. The Chinese seem to move with

consensus towards their economic destiny, convinced that they deserve it and that it’s their

rightful place.

Keeping all of this in mind, Africa would be wise to watch, listen, and imitate. Like

China, Africa should consider making use of its kith and kin entrenched in countries throughout

the Western world. A large part of China’s success came from its ability to make use of its

diaspora; likewise, the African diaspora will be crucial to African economic growth, for two

30SYMBIOTIC SUCCESS

reasons. First, the African diasporans have attended Western schools, served in Western armies,

obtained Western knowledge and expertise, and second, they have Western money. In past

decades Africa has suffered from something of a brain drain, similar to China. In order for

investment to truly work, Africa must call its children home, and with them, must come Western

know-how, knowledge, and funds. A further note on the African diaspora: Africa must be

willing to call home both those of the diaspora who left voluntarily and those who left

involuntarily, being that both groups have what African nations need. An example of this would

be the case of the United States 40 million African-Americans, whom posses one trillion dollars

in spending power. If even a small percentage of this figure was directed towards investment in

small and middle-sized businesses all over the continent, businesspersons could potentially

transfer control over African resources into the hands of local people. The author posits that if

this is augmented by Chinese investment, is an effective method for obtaining the wealth that the

continent needs.

The next issue at hand would be the method in which African governments handle the

vast investment given by Chinese companies. African governments should consider “slanting

the game” of development in their favor. If the governments could come to some form of a

consensus that the aim of doing business with foreign entities in Africa is to acquire whatever is

needed to benefit the African people, they could start to affect change in a way that creates

power. If an action does not benefit the African people it should not be done. Foreign Direct

Investment did not simply pour into China uncontrolled, yet it was first examined, measured,

tested in Special Economic Zones, and then implemented on a larger scale.

The Chinese government has been successful in utilizing foreign aid and distributing it

based on which industry or sector needs it most. In sectors of the economy where the Chinese

31SYMBIOTIC SUCCESS

found themselves in need of investment, they legislatively forced foreign companies to form

joint ventures, which helped knowledge and expertise to pass from foreign minds to the Chinese

companies, and in the name of profits and secure market niches, foreign enterprises acquiesced.

What this does is attract foreign investment and then create companies that could do business in

that industry. African countries should consider this, but if it is to be done it must be carried out

en masse and on a continent-wide scale.

Next, Africa should consider marketing itself as a secure locale for cheap labor. At first

this might be a little humiliating, but in the future it should be deemed necessary. This will bring

businesses and create jobs for people without them, as well as give people a share in the

development of their country.

Africa should also market itself as an exotic travel destination. Wealthy Chinese citizens

are travelling more than ever, and Africa, with its natural scenery and wildlife, could secure a

sizable portion of the Yuan spent on overseas travel. African music, dance, and other vestiges

belonging to the plethora of cultures in Africa seem exotic and enticing to many Chinese while

its people seem uninhibited and “magical.” Playing on this would allow African countries to

capitalize on the image that many have of African people. Also, an unknown, southern province

of China known as Yunnan is home to an Ethnic Minority park, which is proof of the Chinese

people’s fascination with cultures and peoples they deem “exotic.” The author does not deny

that the existence of this Minority Park is both humiliating and a little denigrating to the 56

ethnic minorities in China; however, opines it should be used as an economic tactic.

Africa should also be concerned over some of the activities of Chinese businesses

concerning agribusiness. While the development of the African agricultural sector is to be

applauded, the government should contemplate the implications of allowing foreign entities such

32SYMBIOTIC SUCCESS

power. Once Chinese companies secure enough land in Africa, they will have created a

permanent market niche and power in the local food market. Demanding that Chinese

companies hire a certain number of African employees could delineate this power and create

more jobs. Demanding that these companies even create joint ventures with African businesses

guarantees the transference of expertise and creates future companies that can compete against

their Chinese mother company and prevent monopolies.

The next point of this article might prove unpalatable to many. Africa needs to unify on a

continent-wide scale and become one economic bloc. Without this unification nothing will

happen for Africa. While some countries in Africa have an abundance of resources to bargain

with (e.g. Nigeria, Somalia) others don’t have enough and risk being left alone, bullied and

bereft. Whereas oil rich Nigeria will grow, small and resource-lacking countries may be left to

fend for themselves. Though this may seem like basic, historical common sense, it isn’t. This

method will only leave cracks in the wall of development that will later cause it to fall down.

Another issue is the myth that democracy and capitalism are prerequisites for

development. Lifting 500 million people out of poverty in 36 years at the behest of a single-

party state is proof enough that the idea of capitalism and democracy being the only route toward

development is a fallacious assertion. African governments should determine which economic

system is best for the cultures, peoples, and populations they rule in consideration of the

respective histories and economic situations in those nations. China has proven that a single

party state works well for nations with large numbers of the uneducated and impoverished. It

allows the powers-to-be to make decisions quickly and then implement them with all due haste.

Democracy is best suited for giving a wealthy, educated population a stake in their government

while allowing them to have a say in the direction of the nation. For many African countries,

33SYMBIOTIC SUCCESS

democracy isn’t a viable option at this point. For others, like South Africa, it is more realistic.

Arguably, communism and capitalism are simply two opposite ends of the political spectrum.

They both have agendas, manifestos, advantages and disadvantages. They benefit different

people and serve different purposes. Arguably, history has shown that one can stand the test of

time and the other can’t. Yet, the validity of one over the other is irrelevant.

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