For the last decade, Africa has been a major recipient of Chinese investment in the form of infrastructure projects such as the construction of roads, seaports, railways and airports as well as the provision of agricultural equipment.
Whereas the US and its allies by extension typically treat Africa and its struggling human development crisis as a problem needing to be solved, in contrast, China attempts to project the image of mutual opportunities and development where growth can take place.
President Xi Jinping often frames China as a “developing nation” despite its significant economic and technological advancements. This perspective is rooted in China’s need to address internal disparities, particularly in rural areas, and to focus on long-term goals like achieving modernisation by 2049.
President Xi highlights that while China has made great strides, it still faces challenges such as poverty, regional inequality, and environmental issues. This self-identification as a developing nation also plays a role in China’s foreign policy, particularly in negotiations over climate change and global trade, where it seeks special considerations given its state of development.
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This rhetoric has enabled the president to give China a strategically advantageous position in the African continent in terms of diplomacy, aided in large part due to its non-interference policy that strictly focuses on business and development that allows various African leaders to receive aid and investment without any ideological pressure to conform to a specific political framework or economic policy.
Where Western entities like the IMF often impose strict economic requirements in exchange for further financial aid, in some cases, China has been known to forgive debts incurred by its African partners as a further step towards business integration, going hand in hand with their Belt and Road Initiative intent on constructing a series of roads connecting Africa to Asia and Europe.
Established in 2000, the Forum on China-Africa Cooperation (FOCAC) has expanded into a large-scale multilateral platform that guides China-Africa engagements in a variety of sectors. From infrastructure to technology and climate change, the forum has been a testament to China’s deepening ties with the continent, fostering collaborations with far-reaching implications.
Over the past 10 years, economic cooperation has been the most visible aspect of China-Africa relations, and FOCAC has been instrumental in solidifying this partnership. Trade between China and Africa skyrocketed, and China remains Africa’s largest trading partner, with trade volumes exceeding $200 billion annually in recent years.
The Belt and Road Initiative (BRI), often discussed during FOCAC summits, has led to major infrastructure investments, from railways to ports, providing the foundation for increased connectivity across African countries.
In 2018, China pledged $60 billion in loans, grants, and investments for African countries, with a focus on promoting sustainable development. This commitment under FOCAC has fostered numerous projects, including transportation networks, telecommunications, and energy plants. China has also been instrumental in Africa’s pursuit of industrialisation, building industrial parks and investing in sectors like mining, manufacturing, and agriculture.
On his return from the 2024 FOCAC meeting in Beijing, President Bola Ahmed Tinubu vowed to replicate China’s economic miracle in Nigeria, leveraging China’s resolution to deepen political ties and develop unique business relations to potentially alleviate the nation’s economic woes.
With diplomatic ties dating back to 1971 Nigeria and China have always had a working relation. In 2006 the two states agreed that Nigeria would give Chinese petroleum firms preferential treatment and in return China would help construct a railway system in Kaduna. In 2021, the trade volume between the two nations reached nearly $19.27 billion while Nigeria primarily exports crude oil to China.
However, the bedrock of China-Nigeria relations is economic cooperation, as a long-time beneficiary of Chinese investment, particularly in infrastructure development such as the Lagos-Ibadan railway, the construction of a new Nnamdi Azikiwe Airport International terminal and the Zungeru hydropower station have boosted Nigeria’s transport and energy sectors, directly impacting economic growth.
Trade between the two countries has surged, with China being Nigeria’s largest trading partner and imports a wide range of manufactured goods, machinery, and electronics, creating a trade imbalance that concerns some economists. The Nigerian government has been working to diversify its economy and increase exports to China, particularly in agriculture and raw materials.
In terms of future industrialisation, China’s expertise and manufacturing capacity are areas that Nigeria can capitalise on. China has increasingly positioned itself as a partner for African nations looking to develop manufacturing sectors. Nigeria, with its youthful population and large domestic market, can attract more Chinese companies to establish manufacturing plants, helping to diversify Nigeria’s economy away from oil dependence.
One key issue is the trade imbalance; Nigerian manufacturers cannot fairly compete with Chinese imports through trade manipulation and dumping of cheap goods in the market, killing local industries. This imbalance will lead to an over-dependency on Chinese producers for access to basic goods and services.
To address this, Nigeria must develop policies that encourage local production and exports to China, reducing its reliance on imports. The growing anti-Chinese sentiment in some parts of Africa, spurred by concerns over economic control and debt-trap diplomacy, could influence the future of Nigeria-China relations.
It is essential for Nigeria to manage its relationship with China carefully, ensuring that investments benefit Nigerian citizens and do not lead to over-reliance on Chinese financial aid.
Ibrahim wrote from Abuja via [email protected]
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