Wednesday, September 07, 2022

INTER-IMPERIALIST RIVALRIES

Japan ramps up aid to Africa to weaken China's grip on continent

Tokyo has announced an ambitious multibillion-dollar program of economic assistance to Africa, in a bid to counter Beijing's growing economic and political influence.

The Tokyo International Conference on African Development was held in Tunisia this year

Japan is ramping up its aid and economic assistance to African nations, with Tokyo recently promising $30 billion (€30.24 billion) to help develop the continent over the next three years. 

The financial commitment was unveiled at the Tokyo International Conference on African Development (TICAD), which was hosted by the Japanese government in Tunisia over two days in late August.

First organized in 1993, TICAD has traditionally been held in Japan but this year moved to the North African country due to concerns about the COVID pandemic.  

Japanese Prime Minister Fumio Kishida delivered the opening speech from Tokyo, where he was recovering from a bout of the virus, emphasizing to delegates that Japan intends to use its wealth to invest in Africa's human capital and foster high-quality and sustainable development across the continent.  

Even though Kishida did not comment on China or Russia, it is clear that Tokyo's latest economic assistance is designed to push back against growing Chinese and Russian influence in the region.  

How is China affecting Japan's Africa policy?

In recent years, Japanese diplomats in African nations have been busy warning their host governments of the potential pitfalls of accepting what appears on the surface to be generous economic assistance from Beijing.

At the TICAD conference, Japan promised $30 billion to help develop Africa over the next three years

Critics say that the Chinese aid on offer too often takes the form of huge loans for grand infrastructure projects, including commercial ports, strategic airfields, railways, bridges and highways. They argue that when the recipient nations fall behind in their debt repayments, state-run Chinese companies could be quick to step in to take over control of the assets. 

Japan and other nations are particularly concerned about strategically-located facilities with potential dual uses coming under Beijing's control, such as the Hambantota Port in Sri Lanka. The government in Colombo borrowed $1 billion from China 20 years ago to build the facility.

But when the project became economically unviable and Sri Lanka could not repay the loan, it agreed to give China a controlling equity stake in the port and a 99-year lease for operating it.

However, Beijing rejects accusations it is pursuing such "debt-trap diplomacy," and alleges that it's a narrative promoted by some in the West to tarnish China's global image.

In August, Wang Wenbin, a spokesperson for China's Foreign Ministry, slammed the Chinese debt trap claims, saying that Western officials and media are seeking to drive a wedge between China and other developing nations by leveling such allegations, state-run tabloid the Global Times reported.

As Beijing tries to boost its trade and investment ties with Africa, pledging $40 billion in financing to the continent in 2021, Tokyo is increasingly worried about China's increasing sway in the region.

"The biggest reason behind Japan's aid is obviously China," said Akitoshi Miyashita, a professor of international relations at Tokyo International University. "Kishida is very concerned that Japan — and other developed nations — are falling behind Beijing when it comes to appealing to governments in Africa." 

There is similar concern about Russia's influence in Africa as well. "Russia is courting China, India and a number of countries in Africa to express their support for its actions in Ukraine, so clearly there is a strong political motivation for Japan to do more in Africa," Miyashita pointed out. 

Why is Japan deeply concerned?

Stephen Nagy, an associate professor of international relations at Tokyo's International Christian University, concurred that Japan is "deeply concerned" about China's growing influence in Africa.

But he stressed that the concern was partly driven by its own trade worries. 

"China has been extremely proactive in the Republic of the Congo and other countries with large deposits of the rare earth minerals that are critical to modern technology," he said.

"Japan is working hard to make sure that China does not obtain a monopoly on those resources, which would cause serious problems for Japanese companies."

Tokyo's aim is to create a broad-based coalition of nations that share its calls for a rules-based international order, free and open ocean trading routes and a commitment to joint development.

Japan fears China does not share the same goals and wants to reshape the international order in a way that suits Beijing's interests.

"China is becoming very powerful and politically influential and they use their overseas investments and assistance to further that ambition," said Haruko Noguchi, a professor of health economics at Waseda University. "But Japan thinks and acts very differently." 

What's the difference between Chinese and Japanese aid?

Noguchi has served as an adviser to the Japanese government on aid to African countries, including to schools in Burkina Faso.

"The program there was to create a greater community in schools, to involve parents and other people in these villages, and we were able to determine that this helped children's health and academic outcomes," she said.

"Empowerment has a very positive impact on children's well-being." 

It is this sort of assistance that Japan is likely to focus its efforts on, she said, rather than the construction of airports and port infrastructure.  

"We see the future of Africa in the empowerment of its people and the development of their human capital," she said. "And yes, that might mean that Japanese companies miss out on huge construction projects, but I hope that in the future, a child who has benefited from our aid might rise to a leadership role in these countries. And that is when Japanese aid will pay off."

Edited by: Srinivas Mazumdaru


China scraps tariffs and steps up the

charm offensive in Africa

China has removed tariffs on 98% of goods imported from nine of Africa's poorest countries. The move benefits China's image, but has little economic impact; experts say.




China wants to increase the import of agricultural products from Africa

China has removed tariffs on 98% of taxable items originating from nine of Africa's least-developed nations.

The new tariff policy, which came into force on September 1, applies to agricultural and mineral imports from the Central African Republic (CAR), Chad, Djibouti, Eritrea, Guinea, Mozambique, Rwanda, Sudan, and Togo.

Several Asian countries have also been included in the scheme.

It follows Chinese President Xi Jinping's announcement at the China-Africa summit in November 2021 that steps would be taken to increase the import of agricultural products from Africa.

Xi said at the time that the aim was to boost these imports from the continent to $300 (€302 billion) over the next three years, eventually reaching $300 billion a year by 2035.

Africa, which still primarily exports raw materials toChina, only accounts for a small part of China's total imports.

In 2020, food and agriculture sales to China from African countries reached $161 billion, making up 2.6% of China's total imports.
African nations keep accumulating debt

Mozambican economist Joao Mosca from the NGO Rural Environment Observatory (OMR) believes the new tariff scheme will have "practically no effect on Mozambique's economy."

He went on to explain that his country still relies on imported foodstuffs and will continue to do so for a very long time, with no capacity to export in a meaningful way.

China is Mozambique's principal individual creditor and its third-most important trading partner. But trade is largely a one-way street, to the detriment of Mozambique's overall balance of payments. The elimination of trade tariffs will not help reduce Maputo's deficits or ease its debt, explained Mosca.

But Beijing has shown a growing interest in Mozambique's commodities. Recently, China partnered with South Korea for joint natural gas exploration in the Rovuma Basin in Cabo Delgado province, which is now set to start production in 2024.

Observers see the agreement, which was signed in August, as a sign that China may want to enter the international race for Mozambican gas at full tilt.
China needs Africa's commodities

"China has become very dependent on African energy and minerals, including cobalt and coal, which are needed for high technology," said Chenshen Yen, an expert in African politics at Taiwan's National Chengchi University.

"I believe that this measure will also help China acquire more raw materials and make it easier for African minerals to enter China," he added.



China has shown increased interest in Mozambique's natural gas


Harry Verhoeven, a senior researcher at the Center on Global Energy Policy at Columbia University, told DW that scrapping tariffs on mineral exports from Africa to China will do little to further encourage already massive flows from the continent to East Asia.

"They will, in most cases, just make it cheaper for Chinese importers to do so," he said.

Verhoeven does see a potential gain for the poorest African countries when it comes to manufactured goods, however.

"Some evidence suggests that China's lowering of tariffs has encouraged a diversification of exports from African states," he said.

Africa's agriculture has economic potential

A bet on agriculture could benefit both sides in future trade relations. China is, after all, the world's biggest food importer and the agricultural sector is the biggest employer and driver of economic activity on the African continent. 60% of the world's uncultivated arable land is in Africa.


China has been criticized for the debts caused by its infrastructure projects in Africa

"In a very long-term perspective, China is interested in reserving land for food production in the entire African Indian Ocean area, from Mozambique to the Horn of Africa," researcher Mosca said.

With a growing population to feed and a plan to focus on high-tech industries — as well as finding new markets for its products — China has a genuine interest in Africa's development.
China as an alternative choice

Mosca relayed a story, however, in which a former Chinese president told a Mozambican prime minister that Beijing "is set on industrializing Africa in the next 100 years." That includes exporting highly polluting industries — for which China is now under permanent scrutiny, the expert warned.

In the short term, though, the measures announced by Beijing must be seen in the context of geopolitical positioning.

This is especially true in light of the war in Ukraine, which has placed many African states in a position of conflicting loyalties. This is something that China is seeking to capitalize on, Mosca believes.

"China is saying: 'Look, there is an alternative to your age-old, traditional dependency on European countries and the US," he said.

William Young contributed to this article.

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