EU not alarmed about China in Africa

The European Union does not feel threatened by China’s economic presence in Africa, contrary to common perception, says an expert.

The EU’s basic concern is that Africa is able to benefit from the new economic interest.

Jonathan Holslag, EU expert on Contemporary China Studies when contacted for comments said the EU does not see China as a threat, although there are certain individual approaches to the issue.

“We do not see China as a threat. We have different perception to help African countries to reap economic profits.”

He explained that there are a lot of observers who feel that China is not in Africa to promote human rights and good governance.

He said the EU is concerned about how to convince China to invest more in transparency, good governance, human rights and economic management.

“This is the only way Africa can ensure that the new opportunities are translated into growth and sound welfare for its people.”

He continued, “Transparency and good governance are the most important issues in which EU and China should act extensively and more concrete plan of action.”
The European Union continues to be Africa’s biggest trading partner.

However, China’s growing demand for resources has caused international media reports suggesting that China and EU are competing for raw materials in Africa.

But Holslag discredited such assessments. He said that the EU is not so much concerned about China, arguing that economic competition between China and EU is limited basically to the energy sector.

He stressed that even in the mining branch like digging up iron, copper and cobalt and sulfur, China is not that much competition for EU companies.

According to him, China’s main competitors are other emerging markets such as India, Brazil and Russia.

“I don’t believe there is a fundamental economic competition between EU and China. Certainly, there is a kind of friction in relation to political standards.”

On how the EU should approach Africa in light of EPAs, he said it should be done with a different voice, especially, the interest of individuals on issues of agricultural barriers and subsidies to carry out straightforward negotiations.

Holslag said the first element for the EU is to be able to address the fundamental hindrances of a mature relationship with Africa that pertains basically to trade barriers and quality standards.

“It is legitimate to help African countries to overcome them and also the difficulties they experience in entering the European markets.

He added, “It is vital to become aware that we can’t play global game without investments in Africa. We should work harder to re-realize a strategic partnership with Africa.”

He cited South Africa, Kenya and Nigeria as countries that tend to export much more processed food to the EU than China.

“We need to do a lot more to make use of this complementarity. The only way we can avoid downward spiral competition with China, is that we accentuate that we develop a division of labour complementarity and ensure that the trade flows between China and EU is fair.

“It is an important factor for Africa as well to take advantage of this complementarity to make sure that growth rates in the quality and primary sector remain high.”

The EU may not be alarmed but certainly alert.

A latest report adopted by the European Parliament Development Committee on the effects of China’s growing presence in Africa, expected to be approved by the plenary vote in April points a finger at investments made by China with no strings attached in African countries ruled by oppressive regimes.

Members of European Parliament, (MEPs) say this policy helps perpetuate human rights violations.
It also highlights Beijing’s role in the spread of arms and the conditions under which natural resources are being exploited.

The report states that China should increase transparency of its national arms export control regime, namely by ensuring complete reporting on exports to the UN Registrar on Conventional Arms Exports.

“Unlike the EU, which ties its investments to respect for human rights and good governance, China makes most of its investments without laying down any particular conditions. Such investment in countries suffering from bad governance by oppressive regimes helps perpetuate human rights abuses,” say MEPs.

The report also calls on the EU to actively promote transparency regarding revenue generated by natural resources.

The Development Committee stresses that the European Parliament is willing to engage with Chinese National People’s Congress, the Pan-African Parliament and African national parliaments in a dialogue aimed at fostering sustainable development and enhancing their scrutinizing capabilities.