china's changing foreign policy and resource diplomacy towards africa

111 Pages·2017·0.93 MB·English

CHINA’S CHANGING FOREIGN POLICY AND RESOURCE DIPLOMACY TOWARDS
AFRICA: THE ROLE OF CHINA IN THE SOCIO-ECONOMIC DEVELOPMENT OF
NIGERIA

by

NKANYEZI MSIMANGO

submitted in accordance with the requirements for
the degree of

MASTER OF ARTS

In the subject

DEVELOPMENT STUDIES

at the

UNIVERSITY OF SOUTH AFRICA

SUPERVISOR: PROF VUSI GUMEDE

08 November 2016

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DECLARATION

Student number: 5577-954-9

I, Nkanyezi Msimango , declare that this thesis — China’s changing foreign policy and
resource diplomacy towards Africa: The role of China in the socio-economic development of
Nigeria — is my own work, and that all the sources that I have used or quoted have been
indicated and acknowledged by means of complete references.

________________________ 08 November 2016

SIGNATURE

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SUMMARY
China’s economic expansion in recent years is one of the most important geopolitical
developments of the 21st century (Mockli, 2007). More interestingly, Africa relations with
China continue to be of keen concern to many, precisely because these two countries have
been humiliated severely during the years of colonialism. This study examines, to the extent
possible, Chinese changing foreign policy and resource diplomacy towards Africa, using
Nigeria as a case study specifically looking at socio–economic issues. The study uses the
Hegemonic Stability Theory as a framework of analysis. While the method of data collection
is premised on existing qualitative and quantitative analysis on Africa–China relations, face-
to-face interviews and one telephonic interview with an expert on Africa–China relations
were conducted as a method of gathering new data. The present study, finds that China’s
economic expansion can be detrimental to Africa in many ways. For instance, China
continues to export to Africa cheap manufactured goods, while extracting raw materials to
fuel its own industrialization. This situation works against intra–Africa trade, which could
potentially address the socio–economic issues facing the continent. However, to maintain its
resource supply and stable market, China’s foreign policy of ‘non–interference’ has changed
significantly, particularly towards Africa. For example, China recently opened its first
military base in Africa. This study argues that, because of the above mentioned arguments,
the repercussions of the Africa–China relations could be dangerous for Africa since the
continent is not really benefiting from these dealings. Furthermore, this study notes that
China is contributing negatively towards the socio–economic development of Nigeria, despite
the fact that it provides Nigeria with aid and loans, primarily for infrastructure projects.

Key Words. Africa, aid, China, loans, investment, trade, foreign policy, hegemony, Nigeria

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DEDICATION

I dedicate this study to my late father, Ferris Chundo Nkomo and Granma, Nomvula
Msimango, both of whom departed this world in 2010, may your souls rest in eternal peace.
This work is dedicated to you.
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ACKNOWLEDGMENTS
First of all, I would like to thank God almighty for giving me strength on a daily basis. I
would also like to thank and acknowledge the supervision from Professor Vusi Gumede.
Without his guidance, this research paper would not have seen its completion. The
discussions and constructive criticism you provided since the inception of this study shaped
me in many ways. Thanks once more, Professor Vusi Gumede, for not doubting my abilities,
even in face of the challenges I endured during the course of this study. I am also thankful to
my family, my mother, Jabile Msimango, for raising me and for her continuous support. I am
grateful to Dikeledi Mokoena, Lebehang Motsomotso, Dr. Femi Oloruntoba and many
friends and colleagues who contributed immensely towards the completion of this study.

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List of Acronyms
AEO Africa Economic Outlook
AIG American International Group
AU African Union
CCNPC China National Petroliam Corporation
CCP Chinese Communist Party
ESAPS Economic Structural Adjustment Policies
FDI Foreign Direct Investment
FOCAC Forum on China–Africa Cooperation
GEM Gender Empowerment Measure
GIS Government Insurance Scheme
HDI Human Development Index
ICG International Crisis Group
IFIs International Finance Institutions
IMF International Monetary Fund
LIS Labour Insurance Scheme
MDGs Millennium Development Goals
MNCs Multi-National Companies
NBS National Bureau of Statistics
NGO Non-Government Organization
OAU Organization of African Unity
PLA People’s Liberation Army
PRC People’s Republic of China
SINOPECT Chinese National Petrochemical Corporation
SOEs State Owned Enterprises
UN United Nations
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UNDP United Nations Development Programme
UNR United Nations Report
UNSC United Nations Security Council
WB World Bank
WC Washington Consensus
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CONTENTS
Declaration II
Summary III
Dedication IV
Acknowledgements V
List of Acronyms VI

CHAPTER 1: INTRODUCTION
1. Introduction 1
1.2 Problem Identification 2
1.3 Research question 4
1.4 Scope of the study 4
1.5 Limitations of the study 5
1.6 Conceptualization of relevant terms 6
1.6.1 Foreign policy and resource diplomacy 6
1.6.2 Measures of Socio–economic development 7
1.7 Significance of the Study 7
1.8 Ethical considerations 8
1.9 Organization of the study 8
1.10 Conclusion 9
CHAPTER 2: RESEARCH METHODOLOGY
2. Introduction 10
2.1 Data collection 10
2.1.1 Face-to-Face Interviews and a telephonic interview/choice of method 11
2.1.2 Secondary literature 12
2.2 Population target and sampling 13
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2.4 Pre–testing the method 14
2.5 Conclusion 14
CHAPTER 3: LITERATURE REVIEW AND THEORY
3. Introduction 16
3.1 Literature Review 17
3.1.1 Africa-China relations as negative 18
3.1.2 Africa-China relations as positive 23
3.1.3 Perspective from the South 25
3. 2 Theory 27
3.2.1 Hegemonic Stability Theory 28
3.2.2 Modernization Theory 31
3.2.3 Dependency Theory 34
3.3 Conclusion 35
CHAPTER 4: AFRICA–CHINA RELATIONS IN PERSPECTIVE
4. Introduction 37
4.1 Historical and contemporary Africa–China relations 37
4. 2 China’s foreign policy towards Africa: Continuity or Change 38
4.3 China’s economic and energy diplomacy towards Africa 44
4.4 African growth rates per regions 49
4.5 Africa–China: Varieties of Capitalism, Communism and African Renaissance 53
4.6. Is China a hegemony? 60
4.7 Prospects and Challenges of Africa–China relations 62
4.8 Conclusion 63
CHAPTER 5: SINO–NIGERIA RELATIONS: A CASE STUDY ANALYSIS
5. Introduction 64
5.1 Evolution of Sino–Nigeria relations 64
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5.2 Sino–Nigeria: Bilateral Economic Relations (1971 - 2015) 65
5.3 China’s role in the socio–economic development of Nigeria 69
5.4 Challenges and Prospects of Sino–Nigeria relations 71
5.5 Conclusion 77

CHAPTER 6: ANALYSIS OF THE STUDY AND CONCLUSION
6. Analysis of the Study 79
6.1 Conclusion 82
Bibliography 83
Appendix: Questionnaire 98
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