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FastCompany Issue 126

China's New Oil Supplier

By: Richard BeharSun Jun 1, 2008 at 1:00 PM

EnlargeChina in Africa

China in Africa | photo illustration by Plamen Petkov




For all of Gabriel's Western manners, he has sharp words when I ask him to compare the West with China. "If you were in our shoes -- a developing country, with not a lot of funds -- and the Chinese come and will do for 3 what it costs 10 from others, what would you do?" he asks. "The Chinese listen better, and they understand that sometimes you need to make sacrifices for a future gain. They'll do a hydroelectric plant at half the price, and, in return, they get future projects. With U.S. companies, we feel more squeezed and squeezed. They just take the oil and do nothing else. Of course they are losing ground to the Chinese. The World Bank and the IMF also come. 'No, we don't need you,' the president says all the time."

In the wake of the Riggs debacle, E.G. keeps its oil money stashed away in Cameroon. Says Gabriel: "The president is asking all the time for assistance in managing the funds. To Justice [Department]. To State [Department]. They don't listen. They're very busy." As we finish up our talk, Gabriel takes a jab at the country's former colonial masters. "Do you notice that we're not speaking Spanish in the government? In the future, we will speak English, French -- maybe Chinese."

President Obiang's sense of abandonment by the West -- not to mention the coup attempt and the Riggs disaster -- seems to have moved him to look East, where Senate probes don't happen and where mercenaries don't pile onto planes from Beijing. In late 2005, he visited China and, on his return, announced, "From now on, China will be our principal partner for the development of Equatorial Guinea." Then, expertly playing the two sides against each other, Obiang visited Washington in early 2006, where Condoleezza Rice welcomed him as "a good friend" of the United States. Within months of that visit -- despite its annual reports portraying E.G. as a land of corruption, arbitrary arrests, scant human rights, and freedoms denied -- the State Department installed its first resident ambassador in E.G. in 12 years. It even gave the okay to open a consulate stateside. In Houston.

But if Obiang remains a good friend to the United States, China has now outmaneuvered us once again. Last year, during a visit to E.G., China's foreign minister described his country as E.G.'s "best friend."

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From Issue 126 | June 2008

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May 22, 2008 at 2:33am by j luther

A great case for the need of a transforming mode Western Capitalism

June 5, 2008 at 10:31pm by Yele Odofin

I would like to commend the journalistic efforts of this writer, whom I first saw on Lou Dobbs show. Most of Richard Behar's arguments were spot-on; however, these positions were understandably based on North American perception of Africa, as a homogeneous continent of beggars and "Have Nots". Having worked on development policy issues in Nigeria, as well as reviewed a significant number of other African nations’ foreign policies. I would like to stress some points Richard omitted in his piece.
Firstly, African countries have strategic needs and these needs vary quite significantly. There is a growing fear among most African political and academic elites that a strong economic ties with the West would come with a lot of unrealistic strings such as the imposition of liberal social issues all in the name of 'Human Rights', there is also a need to diversify economic, diplomatic and military interests. It’s a no brainier that make these countries less vulnerable to external influence and western sanctions most of these countries have learned from the Zimbabwe experience. Most African countries have actively pursued the so called "South- South" development partnership. Nigeria and other African states, in the last decade have seen a huge bi lateral trade boost with countries like Brazil, Russia, India, and countries in the Middle East.
The reason for the Chinese acceptance by African leaders has little to do with corruption as there are many havens in the Caribbean, some European Territories, South America and Middle East to launder such funds.
Finally, contrary to North American media and Hollywood’s exaggerated depiction of desperate living conditions in places like Western Sudan, Somalia, Liberia, Sierra Leone and some parts of Congo. I wish to state that as a result of institutional reforms in financial sector, communication and industries, Nigeria, Ghana, Botswana, Ethiopia and many more African countries have witnessed unprecedented increase of their respective middle class populations.
The Chinese are not exploiting Africans; they are simply filling a vacuum.

June 6, 2008 at 1:44pm by Afam Edozie

The United States and the West are no more special to Africa than any other country or group of countries that can provide markets for their goods, capital for their industry and expertise for their development. During the cold war the US understood this. For sure before the emergence of Asia the United States and the West had much more of these things than others and was therefore perceived as more important.

The great mistakes of US foreign policy (if I can call them mistakes) are that the US does not to have a strategy nor to have any 'real' values that they adhere to.

So they foreigners neither look up to them as a moral beacon, nor have they built in strategic advantages that will give them an edge in the future.

As a result the US lost the Shah's Iran and is loosing a host of other countries. And will likely loose much of Africa to China.

The Chinese also have no values worthy of emulation, but they do have an effective strategy.

Their strategy is to

i) use loss leaders (and leverage their low cost base) to get a foot hold into a country (foreigners bearing gifts policy),

ii) Ignore national politics (I see no evil policy),

iii) corrupt the locals (despite Nigeria's reputation as a den of corruption I know many people who don't take bribes, regardless the Chinese still try to bribe them and when they don't accept they try even harder, like they were told to do this in head office, and

iv) invade the country

I live in Nigeria and the Chinese are moving in here at an alarming rate, there are more Chinese living here than any other minority group and they are coming in at every level. Large, Medium and Small sized Chinese companies. As well as sole Chinese traders. They have factories in almost every corner of the country.

They go to the middle of no where, ask the locals for land to build a $10 million processing plant (or something) (why should anyone say no, no one else - not even our own govn - has come to do anything to provide us with jobs) and in any locality outside of the major cities even $1 million investment is a big deal. They then import hundreds of Chinese workers for every job except the most menial and go ahead to treat all their workers (Chinese and Nigerians) like slaves.

They do not transferring skills, they do not train, they do no even die (I kid you not, Chinese do not die in Nigeria), when one dies his death is kept secret, his body is shipped back to China in bulk using refrigerated containers and another Chinese comes to take his job.

The only part of their colonialisation strategy that is failing is that they are not allowed to marry local girls. But I think they have a shortage of girls of their own, so we see an increase in the number of 'secret' wives. How this one will pan out is anyone's guess. But I guess they will get shipped out and we will be left with lots of half Chinese babies.

Few policy makers in Africa understand the Chinese strategy and even fewer of them have the capability of doing anything about it. In 20 years, the Chinese will be a big minority in Africa, with significant participation in industry and economic life.

The west has not had a coherent strategy since neo-colonialism failed in the 70s. The US attempt to establish an African command is laughable and is seen across the whole of Africa as a desperate attempt to introduce a military strategy.

No doubt a charm offensive with promises of dollops of aid will eventually get them the base, and no doubt they will be able to establish a military presence through their planned deep water port in Sao Tome. But as you can see it does not stand up to the Chinese strategy which involves feet on the ground and involvement in the community.

June 9, 2008 at 10:19pm by Aliou Sylla

The US bet on Iraq has yet to bear real fruits whereare China's has paid off many folds. Go figure!