Foreign Direct Investment in Natural Resource Industries in Africa ...

the Chinese style collaborative approach, rapid infrastructure improvement, and “resource-
backed” loans with no Western types of conditions.
Chinese style collaborative approach. A Tanzanian government official (TZ official #1)
observed that the Chinese government prefers to sit down and hold discussions with the
Tanzanian government in seeking mutual cooperative partnerships. The Chinese government’s
goal is to find practical and feasible solutions to launch projects as early as possible and achieve
quick results that can benefit the Tanzanian people as soon as possible. Another Tanzanian
government official (TZ official #2) and a Chinese government official (CN official #1) also
observed how the Chinese government pays attention to mutual trust and win-win relationships
when dealing with not only Tanzania but also countries in war zones. The Chinese government
helps the African governments to identify their needs and then the means to achieve their goals.
Rapid infrastructure improvement. TZ Official #2 compared Chinese funding programs
with those from the World Bank and IMF and concluded that the advantage of the Chinese
funding program is that it can help African countries to improve infrastructure systems within a
short time period. As observed by CN Official #2, “We know the root causes of poverty in
developing countries. As such, our first hand experience puts us in a better comparative
advantage to critically address issues here.” Infrastructure improvement is certainly an important
area where China can transfer its domestic experience and knowledge.
"Resource-backed" loans with no Western types of conditions. China provides resource-
backed loans (i.e., African countries can use resources as a guarantee for loans) for infrastructure
project in countries like Tanzania that have poor infrastructure systems. Unlike Western
countries which often tie aids with conditions (e.g., good governance, elections, reforms, etc),
China does not impose conditions on loans. Indeed, the Chinese government follows closely its
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