Paper short abstract:

China is an important new actor in African raw materials markets. The paper seeks to answer the following questions: What tools do Chinese companies use to compete for African resources? What helps China to achieve its goals? And what are the results of this actor’s efforts in the continent?

Paper long abstract:

The millennium sees dramatic intensification of China activity in Africa. Chinese economy’s demands for raw materials, primarily oil, continue to grow, prompting Beijing to engage in fierce competition with other global actors on the African continent. In struggle for Africa China uses multiple tools. Loans and credit lines, development aid and diplomatic support help China to win favor with African governments.

China’s success in Africa is largely due to its key principle of non-interference in the internal affairs of other states. China’s doesn’t link business with demands for democracy, good governance and non-violation of human rights. “Chinese menace” is a popular cliché in Western media. But is China’s policy a real ‘neocolonial’ menace to Africa? Aid packages, which include investments not only in raw materials, but also in African infrastructure, benefit African economies. When Western companies are often afraid of high investment risk in Africa, China fills up the vacuum. China-Africa cooperation based on win-win approach is attractive for the Black continent. In 2011-2012 Africa demonstrates an average growth of 5 percent, partly thanks to Chinese investments. Chinese aid, trade and investments give African countries new opportunities. To strengthen its influence in African countries China actively uses a “soft power”. Not everything in Chinese policy suits Africans. They fear the pressure with which China operates in Africa, they view the growing presence of Chinese people and the influx of Chinese goods in their countries as a threat. But they appreciate the advantages, which China’s aid gives them. After the Cold War the West has reduced attention to Africa; China has forced developed countries to refocus attention on the problem of marginalization of the continent.