China has been comparatively less affected by the global economic crisis, and it has been using this time to formulate long-term strategies and put systems in place to achieve its goals. It has been buying manufacturing units in African countries, consolidating its hold on supply of raw materials, taking fertile agricultural land on long lease, contributing $40 billion to the IMF, and trying to assert its position in global economic forums.
China has done all this and has gone a step further to use this time to rethink its old commitments and withdraw where it feels it may have erred or pushed ahead too fast, and also take corrective action where fingers are being pointed towards its participation. In its initial attempts to assist African nations, it had provided unconditional economic aid and support to many countries so that they could develop their infrastructure facilities so that their citizens could enjoy a better quality of life. At that point in time the Chinese had a single-minded commitment to growth at any cost. But times have changed and many African nations have not been able to show results of the kind China wanted to see. They remain politically risky and human rights abuse continues unabated. Hence, the rethink on the part of China to withdraw, and pursue investments in places where growth can be sustained and that too, without global criticism.
Congo and Guinea are two African countries that have seen plenty of Chinese funds flowing in for investment, as china saw enormous potential. Today also, the countries remain as unsafe and risky as ever before. Therefore, China has decided to scale back its operations in these two African nations, and keep in mind the risk percentage before making further commitments. This would in no way affect the total amount of investment China has put aside for Africa, it may only imply that China would look for other places to assign funds that were meant for these countries. Perhaps China would now prefer in invest in nations that are stable, law-abiding, and democratic in terms of leadership, to ensure the best prospects for its fifty years of investing in Africa.
Source : Suppliers Africa
