Assessment 3, write the tpic 2: The rise and role of China – Analyse the implications of China’s rise for Africa or the Pacific Islands

The Rise and Role of China
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China has established itself as the hub or rather the pinnacle of the global supply chain. It is heavily involved in the manufacture of various essential commodities that are in high demand in different countries. China continues to take advantage of the huge untapped emerging markets particularly in developing and underdeveloped nations in the African continent to further its ambitious plans. Through effective market research, China has understood the great potential in Africa and has created a competitive advantage by offering cheap products. Consequently, China has built a strong presence and continues to strengthen its position in Africa by providing some of the governments with loans to finance different investment projects. Nonetheless, there are critics who vehemently oppose China’s heavy involvement in the region. They note that China is taking advantage of the people by offering cheap substandard products. They further share that China is plunging most of the African nations deep in debt. The research paper purposes to extensively examine the rise and growing influence of China in the African continent with a key focus on the implications.
Background of the Rise of China and its Growing Influence in the African Continent
The Rise of China as a Global Economic Powerhouse
The 21st century continues to see China grow immensely economically not only within its borders but also internationally and in far end regions in continents such as Africa. The growth is a significant improvement from the anguish and suffering that characterized the Asian nation during the 20th century. The region that was once renowned for human rights violations continues to witness a huge turn around. According to Smith (2019), “The same China that’s famous for its human rights violations is the China that lifted more than 800 million people out of poverty as per capita GDP rose from $89 in 1960 to roughly $10,000 today”. Similarly, the living conditions in China have improved greatly and this is reflected by a rise in life expectancy from 43 years in 1960 to about 80 years today (Smith, 2019). From figure 1 below, China’s remarkable economic success is evidenced by the upward trajectory of the country’s GDP.
The GDP particularly rose by 9.5% annually from 1978 to 2018 and which in other words doubled every eight years. This mainly resulted because of the open-door policy instituted by Deng in 1979. The initiative opened up the nation and allowed it to stray away from the conservative attributes that hampered its effective trade in the global market. The move also served as the first step in propelling China into a global economic powerhouse (Rogoff, 2020). The great Asian nation has since gone on to establish itself at the center of the global supply chain. It has engaged in the manufacture of different essential products that are in high demand around the world.
Some of the factors that explain China’s rise as an economic powerhouse include labor supply, favorable political system/ strong leadership, free market economics, inclination towards exports, private enterprises, economic diversification, raw materials, population growth and globalization. China is vastly endowed in terms of natural resources with reserves of natural gas and oil found in and around the region. The dense population also provides labor to the industries in the area that spur economic growth. China has since done away with the authoritarian political regime and consequently, has embraced a free market economic system. The Chinese government’s planned economy mechanism that is characterized by five-year plans has also spurred the growth of the Asian nation. Furthermore, China’s move to go global in the form of increased foreign direct investments has also fueled economic prosperity (Jafrani, 2020). Particularly, China continues to invest heavily in the different countries in Africa and which has been largely untapped for centuries.
China’s Growing Influence in the African Continent
To cement and strengthen its position, China has initiated and put in place different measures including extensive ventures in various countries in the African continent. The move has been instigated by the fact that Africa is herald as being one of the final locations of the 4th industrial revolution. McElhinny (2016) reaffirms that position and shares “Africa has become the fastest urbanizing region of the world, with rural migrants moving into cities a clip that has even surpassed that of China and India, as the continent becomes one of the final frontiers of the forth industrial revolution”. China has evidently predicted the potential that exists in and around Africa. It is estimated that Africa’s population that currently stands at about 1.1 billion people is slated to double by the year 2050 (Feng & Pilling, 2019). It is also expected that over 100 cities in Africa will have more than 1 million people by the year 2025. For instance, the population growth for the city of Lagos, Nigeria currently stands at 77 people every hour. The International Monetary Fund (IMF) recently identified Africa as the second fastest growing continent that will soon have an economy of about $5 trillion (Feng & Pilling, 2019). Based on these statistics, the economic opportunities in the region in the coming years are unprecedented. China has taken a central position in that regard.
Several reasons have been proposed as to why China continues to invest and increase its presence in Africa. To begin with and which is also the primary reason is its quest for raw materials. China purposes to benefit from the rich abundance of natural resources in Africa with the likes of minerals and oil being the top priorities (Jacques, 2018). Secondly, China also bolsters its presence in Africa in efforts to strengthen and cement its position as global economic powerhouse. China fully understands that the key to continuous economic growth is to have not only an abundance of food and natural resources but also a wide market for manufactured and exported products. On this breadth, China spearheaded the establishment of the One Belt One Road initiative. From Ikenberry (2008) perspective, “China's "One Belt One Road" is an elaborate economic development plan to improve cooperation and trade among approximately 78 countries spanning Asia, Africa, and Europe”. Thirdly, there is also an aspect of political motivation behind China’s growing influence in Africa. Economic analysts have shared that China seeks to improve its geopolitical influence with the move.
China not only stands out but is also a central and key player in the push for complete urbanization in Africa. This is witnessed by the increasing number of Chinese companies and institutions with Chinese funding overseeing different infrastructure initiatives in the region. Figure 2 below shows a banner of one these Chinese companies involved in building and construction in Addis Ababa, Ethiopia. Chatzky & McBride (2020) reaffirm the above position and shares “Right now you could say that any big project in African cities that is higher than three floors or roads that are longer than three kilometers are most likely being built and engineered by the Chinese”. The above statement showcases and highlights the extent of China’s investment and involvement in Africa.
The high number of Chinese investments in Africa makes the Asian nation the continent’s biggest trade partner. The Sino-African trade partnership for instance, exceeds $200 billion annually (DW.COM, 2020). Reports indicate that there are more than 10000 Chinese firms operating in Africa. The value these businesses have brought into the continent since 2005 is reported to exceed $2 trillion. These extensive Chinese ventures have fostered Africa to eclipse Asia and is currently the number one destination for overseas construction contracts. In this regard, an infrastructure development fund worth $1 billion known as Belt and Road Africa was announced recently (Chatzky & McBride, 2020). Previously in 2018, China had allocated an African aid package worth $60 billion.
It is vital to note that China’s focus on investing on different infrastructure developments in Africa stems from the fact that doing so will significantly help to open up the region and improve the livelihoods of the people. As such, China has made efforts to bridge the infrastructure gap in Africa through the construction of ro...