The China Monitor - The Centre for Chinese Studies

The China Monitor
April 2011
Photo: Wordpress.com
Photo: commons.wikimedia.org
The China Monitor
Issue 61
New Silk Roads:
African and Chinese traders in
Southern China and South Africa
April 2011
1

The China Monitor
April 2011
Contents
Editorial 3
Dr. Sven Grimm, Director,
Centre for Chinese Studies
Policy Watch 4
A New Silk Road: African Traders in South China
By Yang Yang with research assistance from: Noah Altman
Commentary 8
A Social Survey in Johannesburg
By Chen Fenglan
Briefing Round-up 12
A Round-up of the top China-Africa news from the last month
The China Forum
Recent Events at the Centre for Chinese Studies 14
Contact Us 15
A Publication of:
The Centre for Chinese Studies
Faculty of Arts and Social Sciences, Stellenbosch University
Cover Photo: Chen Fenglang
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
2

The China Monitor
April 2011
Editorial
Dear Reader,
China‟s Africa policy is often suspected to be following a „great plan‟ and
observers tend to speak of „the Chinese‟ as if everyone was following one
strategy. Trade with China is often a matter of state-to-state deals providing a
framework in which companies can operate, as highlighted in last month‟s China
Monitor. Yet, there is another side of the story that we would like to highlight this
month. The discussion on the „macro‟ element of relations is incomplete without
the „micro‟ level of individual decisions and actions.
There are general guidelines and basic policies, such as China‟s Africa policy of
2006 or the „Going Out‟ Strategy of 2001. However, many interactions are based
on individuals making use of opportunities, leading to „grassroot globalisation‟,
as our author Yang Yang calls it. These actions might be within the confines of
policies formulated in Beijing and in bi-national commissions – or they might go
beyond it. Seeing „all Chinese‟ strive for the same thing is naïve and as wrong
as the Western assumption that globalisation is simply „happening to‟ Africans.
Small trader migration is arguably one of the issues that is beyond state
command (or control) in China, too, as illustrated by the second piece, an
account of joint research between Xiamen and Stellenbosch Universities. Some
people simply grasp opportunities where they present themselves, irrespective
of whether they are induced by Beijing or whichever their capital city might be. It
is much rather a matter of personal risk calculations and entrepreneurship if
these opportunities are sought within one‟s community or beyond – at times
even in communities whose language and habit are foreign.
It is intriguing to see how similar patterns for migration are between those
African that seek opportunities in China and those Chinese that seek
opportunities in (South) Africa. On both sides, determining factors are family
bonds, loyalties to the own group, and rational considerations of where
opportunities are. It is only in the latter point that state policies come into the
picture when Africans or Chinese are taking individual decisions on their lives.
They are an obvious – if not THE most obvious – element in Sino-African
relations that needs to be researched and understood.
Yours sincerely,
Dr. Sven Grimm
Director, Centre for Chinese Studies
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
3

The China Monitor
April 2011
Policy Watch
A New Silk Road: African Traders in South China
`
By Yang Yang
The Chinese University of Hong Kong, Hong Kong
with research assistance from: Noah Altman
Florida Institute of Technology, USA
In the past decade, tens of thousands of African traders have arrived in Guangzhou,
the centre of China's “world factory” and a neighbouring city of Hong Kong. It is
estimated that in 2009 there were about 20,000 Africans living long-term in
Guangzhou and thousands of more visiting the city regularly for visits 1 . They gather
around several major wholesale markets near the old railway station in the city and
purchase Chinese manufactured goods in bulk for shipping back to West Africa.
Many traders manage to open their own shops and become middlemen in the
lucrative global business. Due to the large African population, districts of Sanyuanli
and Xiaobei have become known as “Chocolate City” and “Little Africa”.
“The DRC may still be
plagued by disease and
absolute poverty and in the
Eastern parts ravaged by
war, but its mining sector is
booming.”
“…individual traders remain
an important conduit between
buyers and producers. This is
especially true between
China and Africa.”
Having been the norm of the business model for centuries before the emergence of
the industrial revolution and economic tycoons, individual traders remain an
important conduit between buyers and producers. This is especially true between
China and Africa, where the African traders are today‟s Arabs on the new “silk road”,
with cotton or synthetic clothes in the stead of silk, and freight services in the place
of camels. The African traders in south China mainly come from Nigeria, Ghana,
Mali, Cameroon, Senegal, Kenya, and Tanzania. The majority are identified as
Nigerian Igbo, who are mainly Christians from Nigeria‟s eastern regions. The most
traded items are clothes and T-shirts, which draws parallels to the ancient Eurasian
Silk Road. In many African countries, the population of Chinese migrants is much
bigger than the African population in China, according to the author‟s informants.
Some Chinese business returnees from Africa said one could find business
opportunities everywhere on that continent. It is said that a Chinese can become a
millionaire just by bringing a soya milk machine and selling drinks in Africa. “But we
are coming to China too,” a trader said, “We bring the goods from China to Africa to
compete with the Chinese in my country.” It is becoming a cut-throat competition, in
which the traders either have to lower the selling price or trade alternative goods that
are not available in those “Chinatowns”.
China-Africa trade relations were established as the PRC government was founded.
However, from 1949 to 1977, the relationship was political and China assisted Africa
with food, money, living necessities, and military training to fight against colonialism
and hegemony 2 . After the 1978 reforms in China, more emphasis has been put on
economic cooperation: China seeks to obtain from African countries raw materials
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
4

The China Monitor
April 2011
such as crude oil, iron, cotton, and diamonds; African imports from China include
electrical appliances, textiles, machinery, and chemicals, among others 3 . It was also
after the Reform that China embraced a more liberal economy and its manufacturing
industry became increasingly privatized and deregulated. Guangzhou became
known as the “world's factory” as the private manufacturers flourished in southern
China, where cheap goods are produced en masse with low labour cost. Around the
same time, market demand in the populous regions of West Africa underwent a
rapid expansion. For instance, the Nigerian markets rely heavily on imports, earning
Nigeria a reputation as the “cargo economy”, and it is described that “ships laden
with containers dock at Nigeria‟s ports and return almost empty to their places of
origin, as Nigeria does not have much to export” 4 . The local market has been
dependent on foreign imported goods, especially from China in the last few decades.
In the 1980s and the 1990s, large numbers of African merchants were seen in the
Canton Fair in Guangzhou. The Canton Fair is the largest international trade fair in
China which happens twice every year since 1957. It is a main expo event where
Chinese-made goods are displayed and ordered for export to different corners of the
world. The African markets found their “gold mine” in the east here and their needs
could be met by inexpensive means. In the late 1990s, many more individual African
dealers travelled from Sub-Saharan countries to Guangzhou to order goods other
than fair seasons. These petty traders are different from the Canton Fair traders in
several aspects:
1. they do not own or represent for any firm back in their countries 5 , nor do
they have considerable funds for placing substantial orders;
2. instead of attending the Canton Fair held in officially built expo halls, the
petty traders gather around the old railway station where shops are sub-let
to Chinese and African migrants, who are often selling fake goods and
participate in semi-legal activities;
3. instead of getting official invitation letter to stay in China for three months,
the traders find their way to “buy” invitation letters 6 from Chinese whom they
do not even know and, if they need to, overstay their appointed stay period
to continue business;
4. instead of staying in nice starred hotels, these traders find almost free
accommodation through network or they stay at special discounted rooms in
cheap hostels;
5. instead of having guarantees such as institutional organisation and
certificate that their goods are in good condition, the traders may have
nothing more than a spoken promise or a hand-written receipt that is kept
off-book.
“The traders near the railway
station and Canton Fair
traders are at two opposite
ends, as semi-legality versus
legality, informal economy
versus formal economy.”
The traders near the railway station and Canton Fair traders are at two opposite
ends, as semi-legality versus legality, informal economy versus formal economy,
globalisation from below versus globalisation from above. It is a “globalisation from
below” where the lower strata of the society attempts to participate and benefit from
the world economy 7 . By all means, the African traders as well as the local business
partners in Guangzhou are a mobilizing force that is not only self-interested but also
symbolically grassroot globalization.
The most frequently traded clothes (Polo shirt and T-shirt) in the African market in
Guangzhou are made of cotton. The cotton agriculture is mainly located in the
northern Chinese provinces, such as Hebei, Henan, Shanxi, Shandong, Hubei,
Xinjiang and so on. The cotton farmers pick the ripe cotton and sell it to the textile
factories, which process the raw material. They developed the cotton into cotton
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
5

The China Monitor
April 2011
```
yarn and then weave the cotton yarn into cloth, which is followed by bleaching,
dyeing, and printing. The clothes factories in the Yangtze River Delta and Pearl
River Delta buy the cloth and apply various fashion designs on it and produce a
large quantity of clothes and pants. These clothes stocks are then sold through the
agencies at the wholesale markets, like Guangda. The retailers from all over China
and western African countries come to the wholesale markets and purchase bulks
of clothes of various designs. The Africans who have their own stores in
Guangzhou will then divide the bulks of clothes into even smaller shares to sell to
short-term African traders, as in the case of Sanyuanli market. The traders then
ship the goods they bought by air/sea back home, where they sell the goods in
their family-run stores or to other African local retailers.
It is risky for a trader to purchase large quantities of clothes within a short period,
because he may have no buyers at all when fashions in Africa change. Compared
to electronics and mobile phones, the clothing business is much more fickle in
terms of style. The fashion in the Sanyuanli clothing market changes on weekly
basis and sometimes even more quickly. One can simply record the different
arrangement of clothes on display on the shop fronts to understand the changing
fashions of distant Sub-Saharan markets. The clothes sold from China and the
African local fashion trends have a mutual influence on each other. A Nigerian
trader said, “I ask my brothers in Nigeria to tell me what design is popular there.
But sometimes when every trader sells certain kinds of clothes from here, it will
form a trend in Nigeria.” African shop owners in this sense are better positioned
that their Chinese competitors not only because they share a common language
with their African clients, but also because they can better understand fashion
trends back home.
It is also an art for the smart entrepreneurs to transport their resources and goods
between China and Africa. International money transfer service is operated often
by logistics companies rather than the Chinese underground banks. The logistics
firms transport money, goods, samples, and sometimes gifts for mostly African
clients. Since they are handling large sums of cash and goods and crossing the
national borders, every logistics company has to be trustworthy and they spread
networks in the area of flight and freight. They have branches in Guangzhou, Yiwu,
Hong Kong, Lagos international airport, Abidjan, Beira, Cape Town, Lome, and
many other major African ports. The containers and boxes of goods are transported
through several employees who connect to the local cargo business. Small items
such as money envelope and product samples are usually handled by many flight
attendants that these firms employ. The flight attendants are ideal for this profitable
part-time job because of their frequent international travel agenda and their free
luggage allowance. Branch employees at destination pick up the items at Chinese
airports and then sent to the clients who are supposed to receive the money.
“Family members and relatives
are often crucial human
resources to handle the goods
the traders send back to Africa.”
Family members and relatives are often crucial human resources to handle the
goods the traders send back to Africa. The main responsibilities for their family
members are to store and distribute goods in the communities. Part of the profit
margin is used to pay the relatives and expenses such as shop rent, which is easily
manageable because the living expense in West Africa is comparatively low. Many
African traders in China have shops in their home countries where they support a
network of relatives through the trade.
The African traders are street-smart petty entrepreneurs, who utilize relatively small
amounts of capital, human networks, and wisdom in dealing with local politics to
make a fortune. Better opportunities to make money are available to these Africans
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
6

The China Monitor
April 2011
since they can now travel half a world away, to China‟s “world factory” in the Pearl
River Delta and profit in the trade of cheap goods. Like small-scale carpet producers
in Nepal, garment manufacturers in Mexico and Hong Kong, small investors in
mainland China, the African traders in China can be seen as petty capitalists: they
“regularly operate in the ambiguous boundaries between capital and labour,
cooperation and exploitation, family and economy, tradition and modernity, friends
and competitors” 8 . Both in the markets of south China and back in their home
countries, the traders incorporate friends, family members, and business
connections into their entrepreneurship. Such kind of globalization from below can
also be found among the Chinese traders who are involved in the retail/wholesale
business in many African countries. The small traders in today's global market have
more opportunities to move upward than ever before.
End Notes
1 South China Morning Post (SCMP). 2009. “Guangzhou's African Bind”. 29 November,
p. 12.
2 Li, Anshan. 2008. “China‟s New Policy toward Africa.” In Robert Rotberg, ed., China
into Africa: Trade, Aid, and Influence, pp.21-48. Washington D.C.: Brookings
Institution Press.
3
Ampiah, Kweku, and Sanusha Naidu. 2008. “Introduction: Africa and China in the
Post-Cold-War Era.” In Kweku Ampiah and Snusha Naidu, eds., Crouching Tiger,
Hidden Dragon?: Africa and China, pp.3-19. Scottsville: University of KwaZulu-Natal
Press.
4
Ogunsano, Alaba. 2008. “A Tale of Two Giants: Nigeria and China”. In Kweku Ampiah
and Snusha Naidu, eds., Crouching Tiger, Hidden Dragon?: Africa and China, pp. 192-
207. Scottsville: University of KwaZulu-Natal Press.
5 The petty traders may manage small retail shops together with their families or
master, but they do not own or are employed by registered companies. As a result,
they usually purchase goods by cash rather than by credit.
Yang Yang is a Master of
Philosophy student at the
Chinese University of Hong
Kong ` and also the editor of The
Hong Kong Anthropologist. She
is currently researching on
African trading diasporas in
China.
Research assistance for this
piece provided by Noah Altman
Florida Institute of Technology,
USA
6 Travel-type visa to China only grant one month of stay, so the traders usually try to
get a business visa to stay for 3 months or even 1 year. Business visa requires the
applicants to have an invitation letter from a registered company in China. Since the
petty traders are not affiliated with any Chinese company, they usually pay agencies
who “issue” such letters.
7 For more academic references on low-end globalization, please refer to: Falk,
Richard. 1999. Predatory Globalization: A Critique. Cambridge: Polity Press, Blackwell,
and Mathews, Gordon. 2007. “Chungking Mansions: A Center of „Low-End
Globalization‟.” Ethnology 46(2):169-183.
8 Smart, Alan, and Josephine Smart. 2005. “Introduction.” In Alan Smart and
Josephine Smart, eds., Petty Capitalists and Globalization: Flexibility,
Entrepreneurship, and Economic Development, pp. 1-22. Albany: The State University
of New York Press.
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
7

The China Monitor
April 2011
Commentary
Chinatown in Johannesburg - A Social Survey 1
By Chen Fenglan
Fuzhou University, China
Johannesburg has the largest population and highest density of Chinese in South
Africa. It is estimate that there are about 300,000 Chinese migrants in South Africa,
and more than 200,000 Chinese migrants do business in Johannesburg.
The new Chinese migrants tend to sell a wide range of cheap Chinese-made textiles,
often to the lowest end of the consumer market in South Africa. The „China shop‟ will
include leather and imitation leather goods (shoes, belts, handbags); clothing (men‟s,
women‟s, and children‟s under and outerwear); scarves, shawls, hats and wigs;
sports bags and luggage; bicycles, toys and other items for babies and small
children (strollers, playpens, etc.); costume jewellery; mattresses, blankets, towels,
rugs and linoleum flooring; and small household appliances and electronic goods.
In addition to these retail China shops and businesses, several larger South African
cities have become home to Chinese wholesale traders, such as Johannesburg,
Cape Town, and Durban. The largest of these are in Johannesburg and include
China City, China Mart, Hong Kong City, African Trade Centre, and Bruma Orient
City. These form a regional shopping hub which provides goods not just for South
Africans but also to retailers and consumers in neighbouring countries (Botswana,
Lesotho, Zimbabwe, and Angola) and from across Africa.
Our research was conducted by visiting the shopping malls during work hours, and
interviewing more than 700 Chinese migrants in the field. Of these, about 200 people
refused to answer our questionnaire. Some claimed to be too busy doing business,
possibly as they thought the research was irrelevant to them. Others among those
who refused the interview obviously were lacking trust, with one of the interviewees
even asking the interviewer if she was a business spy. Generally, however, people
who accepted the questions were friendly and shared their stories about their life in
South Africa. They, however, became more hesitant to answer questions on the
number of their clients, their income, or where they live.
Earlier waves of migration – pre-2000
“Chinese migrants arrived in
South Africa at different periods,
though most of them entered
pre-2000.”
Chinese migrants arrived in South Africa at different periods, though most of them
entered pre-2000. During that time, as South Africa ended its official relationship with
Taiwan and established diplomatic ties with the People‟s Republic of China (PRC),
the Chinese state-owned enterprises that came to do business in South Africa
typically sent their staff to their operations. Most of the pre-2000 migrants from
China‟s mainland were from Beijing and Shanghai. Many of them worked in the
state-owned enterprises. At the end of their two to three years contract periods some
of these Chinese decided to stay in South Africa. Often, the reason given for staying
on in South Africa was that income in South Africa was higher than what they
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
8

The China Monitor
April 2011
received in China. Amongst those who chose to remain in South Africa, most are
educated professionals, and are now some of the most successful business people
in their communities with established extensive business networks throughout the
southern Africa region and in China. The majority of them entered into import, retail
and wholesale trading as well as manufacturing of consumer products.
Other in this early group (pre-2000) were migrants from Jiangsu and Zhejiang
provinces; two provinces that have become famous for their manufacturing capacity,
particularly in textiles, shoes, bags, and other light industrial products. Entrepreneurs
from these regions identified the business opportunities in Africa and saw South
Africa as their entry point to other neighbouring African countries. They came with
capital and other business resources and many of them had family connections to
factories in China that gave them competitive advantages to go into import,
wholesale, and distribution abroad. Many have now expanded beyond their initial
trading businesses into other local industrial fields, including mining, manufacturing,
and property development, and a few have made enough in profits to invest back
into China. In part, they were able to achieve this business success because of the
opportunities available to them at the time of South Africa‟s newly
independent/democratic status and their business connections in a rapidly
expanding Chinese manufacturing sector.
Fujian migrant community – post-2000
The post-2000 wave of Chinese migration, which continues today, is comprised
predominantly of small traders and/or peasants from Fujian province. Based on our
research it would appear that many entered the country illegally from neighbouring
African countries and subsequently applied for asylum-seeker status and work
permits. Due to their limited English, low levels of education, and their lack of
extensive business networks and social capital, they tend to run small shops in the
remote towns across South Africa.
Fujian is the author‟s hometown; and so a focus on this community during the
research came naturally. Fujian located in the south east of China; it is an area with
a history of interaction with the West since the 19th century and a much longer
practice of overseas migration, beginning with migration to South Asia before further
migration to European colonies in the Atlantic. Together with an existing emigrant
culture and strong networks with overseas Chinese, it has been estimated that over
5 million Fujianese left the province and resettled in over 160 countries over time.
Fujian province has an emigrant culture, and in this area people prefer to lend
money to those who want to go abroad, but not to those who want to do business
domestically.
“South Africa‟s opening up
process through the mid 1990s
provided tremendous
investment and business
opportunities.”
Traditionally, Fujianese emigrated to South Asia, America, Japan and Britain. But in
recent years, the pattern has changed. Traditional Western host countries continue
to implement more restrictive immigration laws and tighten control of their borders
through new surveillance technology. In South Asia, the economies‟ performances
were declining. Consequently, Fujianese sought alternative destinations, such as
Russia, Argentina and South Africa. South Africa‟s opening up process through the
mid-1990s and its renewed diplomatic relationship with the People‟s Republic of
China in 1998 provided tremendous investment and business opportunities. With its
established business and physical infrastructure and its lower threshold for entry,
South Africa has become an attractive migration destination, particularly for those
with insufficient qualifications or insufficient capital to qualify for entry to North
America, Europe, or Australia.
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
9

The China Monitor
April 2011
It is said that if a Fujianese wanted to go to America, he or she would spend more
than 400 000 RMB (approx. US$ 60 000) to go there. To enter South Africa, the
amount of 40 000 RMB (just over US$ 6000) is enough. Similarly, if a Fujian peasant
arrived at America, they might find it very difficult to do business there. Perhaps they
might work in the restaurant industry for several years, and wait for the chance to run
a small shop. But in South Africa, the perception is that there are plenty of
opportunities; if one has enough capital, one can run a shop or starts other types of
business easily. Consequently, in Fujian province especially in Fuqing city, more and
more people made the choice to immigrate to South Africa instead of other
countries.
Fujianese are the largest segment of the overseas Chinese population in South
Africa. Because many of the Fujianese lacked sufficient capital to live and operate
businesses in the more developed and expensive cities in South Africa, the vast
majority of these newest Chinese migrants have been forced out of urban,
cosmopolitan centres to the rural parts of the country. These Fujianese settled in
small towns and villages throughout the South Africa. Many of the Fujianese face a
variety of challenges: they struggle to make money, necessary to repay the loans
they took out to immigrate; they struggle to communicate in the local languages; and
they struggle with the loneliness of life in remote places. Many of them expressed
longings for “home”. If they were wealthier, they would prefer to move to
Johannesburg to do the wholesale business. The majority of those we interviewed in
Johannesburg sent their young children to live with relatives in China, and they also
send money to invest in houses in their hometown. It is questionable, how many of
them will ultimately find the resources and will to go home. Yet, building a big house
increases their – and their family‟s – reputation at home by displaying to their
communities that they have become wealthy abroad.
Push and pull factors in migration from China
As mentioned, Chinese migrants are neither homogenous nor from a single place in
China. The new migrants to South Africa differ in terms of place of origin, home
language, level of education, business experience, and capital. The timing of their
migration, in relation to what is occurring in China, in South Africa, and in the world
economy, together with their individual differences have an impact on their ability to
adapt to their adopted homes and succeed in business. South Africa has Chinese
home province associations reflecting at least two-thirds of China‟s provinces; the
largest is the Fujian Association, which claims to have 100,000 members across
southern Africa, makes up the largest proportion of Chinese migrants in South
Africa.
The vast majority of new Chinese migrants to South Africa have made personal (and
family) decisions to leave their homes in search of greener pastures and
opportunities to improve their lives and the lives of their children. Newer migrants
tend to follow paths cut by those who came earlier. The migrants from China
mainland are affected by the rise of China; the liberalization of China‟s policies; the
nature of bilateral relations between China and South Africa; the social, political and
economic circumstances in South Africa; or the media portrayals of China, the
environment in which Chinese migrants live and work.
“The migrants from China
mainland are affected by the
rise of China.”
In some villages in Fujian province, over 80% of the people have migrated over the
past three to four centuries; these areas are „characterized by a long-standing
tradition of emigration that has gained self-sustaining momentum.‟ It has become a
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
10

The China Monitor
April 2011
rite of passage for the men (and increasingly women as well) of these villages to
spend at least some time overseas. They choose to immigrate and try their luck
overseas. Young people from these areas are under social pressure to go out into
the world and return successful. Migration, then, becomes a measure of one‟s
courage, worth, and success; it has become culturally valued.
`
The growth of overseas Chinese enterprises in South Africa actually creates a
demand for labour and thus encourages, via social and economic networks, further
labour migration from China. The Chinese practice of hiring other Chinese nationals
has to do with trust rather than pure ethnicity; in other words, workers are recruited
amongst relatives or family friends who are known and trusted. Their Chinese
nationality is not the key factor. It is said that in rural South Africa, almost 80% of the
more recent Chinese migrants are from the Fuqing region of Fujian province. Many
of the Fujianese businessmen rather encourage their children to do the business
than asking them to go to college.
Despite huge risks and challenges increasing numbers of Chinese migrant are
choosing to cover long distances for various African destinations. Potential short and
medium-term financial gains appear to outweigh very real dangers and difficulties.
Areas of origin within China, types of migrant, migration patterns, and migration
paths are increasingly diverse.
Perceived challenges to Chinese migrants in South Africa
Policeman and the security problem in South Africa are the most serious problem
the Chinese business had to face. Chinese of the latest wave of migrants report bad
relation with the local police. One of the reasons is that some of the Chinese
migrants are illegal entrants to South Africa; they have not identified nor do they
have a work permit. Consequently, they became an object of extortion. Almost every
Chinese businessman interviewed has experienced extortion from Johannesburg
police. Over 90% Chinese migrants thought that police have a negative impact on
their business, including those who have received their South African
documentation.
Chen Fenglan is a researcher
from Fuzhou University, China.
She recently participated in a
joint research project between
Stellenbosch University’s Centre
for Regional and Urban
Innovation and Statistical
Exploration (CRUISE), the CCS
and Xiamen University, looking
at Chinese migrant populations
in Johannesburg
Another big challenge to Chinese migrant is the feeling or experience of insecurity.
Many of the interviewees mentioned Chinese experiences with robbery in South
Africa. More than fifty Chinese migrants were killed during armed robberies between
2007 and 2010. Some Chinese stated that “South Africa is a heaven except for the
crime”. Numerous earlier Chinese migrants have left South Africa due to security
concerns; some have returned to China while others have migrated further to
Canada, Australia, and other developed Western countries. The more recent
migrants, for their part, seem to increasingly adapt to local circumstances; some
have learnt local languages and have begun to adopt local customs. These adaptive
strategies combined with hard work might help them overcome local barriers to
economic and social success.
End Notes
1 This paper is drawn from field research undertaken by researchers from Fuzhou
University and Stellenbosch University‟s Centre for Regional and Urban Innovation
and Statistical Exploration (CRUISE), facilitated by the CCS, between December
2010 and January 2011. The social survey covered Chinese populations in various
parts of Johannesburg, namely: Cyrildene, Dragon City, China Mart, China City,
Bruma Oriental City, Omendo City and African Trade City. Researchers completed
502 questionnaires in total.
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
11

The China Monitor
April 2011
Briefing Round-Up
A Round-Up of all the top stories drawn from our Weekly Briefings over the previous month
China and Africa to deepen
cooperation on intellectual
property China's State
Administration for Industry and
Commerce and the African
Intellectual Property Organization
(OAPI) recently signed a
memorandum of cooperation and
understanding in Cameroon's capital Yaounde to
strengthen the bilateral cooperation in the field of
intellectual property. Under the memorandum of
cooperation and understanding, the two countries will
establish a basic framework for bilateral cooperation and
launch joint activities.
Sudan secures US$360 million loan to build new
dams and airport Cash-strapped Sudan secured a
US$360 million loan recently to help finance a new
airport in the capital and two dams in the east of the
country that will boost power supplies and irrigate
farmland. U.S. sanctions, dwindling foreign reserves and
a crippling debt burden of around US$38 billion, have
hampered Sudan's ability to secure external financing for
new projects.
Trade between China and
Portuguese-speaking countries
totals US$14.96 billion Trade
between China an d the eight
Portuguese-speaking countries in
the first two months of the year
totalled US$14.96 billion, which
was a year on year rise of 40%,
according to figures from China‟s Customs Bureau
published in Macau. In the period, China imported goods
from the eight Portuguese-speaking countries worth
US$10.17 billion (44% more) and exported goods worth
US$4.78 billion (31.16%), generating a trade deficit of
US$5.39 billion.
WTO official: China imports threaten Brazilian
industry as bilateral trade grows Brazil‟s growing
reliance on imported Chinese manufactured goods is
threatening producers in Latin America‟s biggest
economy, said James Bacchus, a former U.S.
congressman and World Trade Organization official.
Chinese demand for Brazilian raw materials such as iron
ore and soybeans enabled the Asian nation to overtake
the U.S. as Brazil‟s biggest trading partner in 2009.
China may double solar goal after Japan nuclear leak
China may double its target for photovoltaic power
capacity over the next five years in the wake of Japan's
nuclear crisis, the official China Securities Journal
reported on Wednesday. Citing unnamed sources, the
newspaper said the government may be looking at a new
target of having installed capacity of 10 gigawatts (GW)
of photovoltaic power by 2015, up from its existing target
of 5 GW.
Zambian study: Chinese investments boost nation's
economy Chinese Foreign Direct Investment (FDI) into
Zambia has boosted the Zambian economy and helped
create more employment for the people, argues a study
by the University of Zambia (UNZA). The study by the
School of Social Science and Research for 2007 says
the investment China has brought into Zambia has done
more good than harm as it has helped to develop the
mining sector.
Chinese bid for uranium
shares in Namibia Finance is
sought to unearth the large
uranium funds discovered in
Namibia, with partners said to
be preferably Namibian.
Nevertheless, shareholders
are also engaging in
negotiations over a bid by a Chinese company to buy up
43% of Kalahari Minerals in Extract Resources. Kalahari
Miner-als is the largest shareholder in the mine, and is
favouring the cash offer from China Guangdong Nuclear
Uranium Resources Company.
Nigeria-China trade hits US$7.76 billion Trade
between Nigeria and China has reached a historic new
high of US$7.76 billion, the Chi-nese Ambassador to
Nigeria, HE Deng Boqing stated. According to him
Nigeria has become the fourth largest trade partner and
the second largest export market of China in Africa. The
envoy spoke during a one day seminar on China-Nigeria
Trade Promotion, in Lagos.
Rise in fuel prices in China
after crude climbs to 30-
month high China raised retail
fuel prices for the second time
this year after oil‟s advance to
a 30-month high undermined
the government‟s efforts to cap
costs and cool inflation in the
world‟s second-largest economy. Prices rose by as much
as 5.8%, with gasoline increasing by US$ 76 a metric ton
and diesel by US$ 61.13, the National Development and
Reform Commission said in a statement re-cently.
Ecobank opens 'China desk' to manage Africa loans
Pan-African bank Ecobank Transnational Inc will open a
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
12

The China Monitor
April 2011
China desk next week aimed at easing the flow of
Chinese loans for African infrastructure projects, a bank
official said. The desk will be located in Accra and
include two Ecobank employees and two senior staff
from the Bank of China.
BRICS issue Sanya
Declaration The BRICS
(Brazil, Russia, India, China,
South Africa) released a
declaration at the conclusion
of their two day summit in
Hainan, China, pledging
coordination and support on a
range of issues including financial reform and an
establishment of an international reserve currency
system. The summit, chaired by Chinese President Hu
Jintao was the third meeting of BRICS leaders and the
first for South Africa since it joined the group in
December 2010.
Dangote, Sinoma in US$ 3.9 billion African cement
deal Dangote Group and Chinese firm Sinoma have
jointly entered into a US$ 3.9 billion contract set to be
executed in six African nations. The contract was signed
by the President of Dangote Group, Alhaji Aliko Dangote,
and President of Sinoma, Mr. Wu Shoufu, and will see
Dangote cement‟s output across Africa rise to about 50
million metric tonnes per annum in two and a half years.
Dangote said the move is in line with the company‟s
overall objective of boosting cement production and
supply within the African continent.
Chinese manufacturers go
local in battle for Kenya’s
consumers In a market
previously dominated by direct
imports,
Chinese
manufacturers in Kenya are
bucking the trend and setting
up local production plants in a
renewed bid to dominate Kenya‟s consumer markets.
The Chinese have established a strong presence in
Kenya‟s telecoms infrastructure, automobile, battery,
food and beverage markets in the last five years.
Chinese firm elates Zambian mine suppliers
Luanshya-based mine suppliers have praised the China
Non-Ferrous Metal Corporation‟s Luanshya Copper
Mine (CLM) for coming up with a policy to give 75% of
the contracts involving locally sourced goods to local
companies. CLM public relations officer Sydney Chileya
confirmed that Luanshya-based mine suppliers were
already enjoying the benefits of the policy.
other BRICS nations will continue to grow because of
rising Chinese domestic demand, but warned that trade
among the bloc faces uncertainty also. China's imports
from South Africa surged by 172% year-on-year in the
first quarter of 2011, while exports grew 24.1%.
Huawei reports sharp rise in profit
and reveals new details Huawei
Technologies, China‟s top
telecommunications equipment
maker, reported an impressive
increase in profits in its annual report
which released new details about
the privately held company. Huawei, which competes
with Ericsson, Nokia Siemens Networks and Chinese
rival ZTE Corporation, reported a 30% rise in last year‟s
net profit. Huawei is South African company Telkom‟s
only strategic partner for its 21NC integrated access
network, providing an access platform integrating voice,
internet protocol and video.
Chinese Yuan set to be international currency, say
analysts China is set to designate one bank in
Singapore to take on the role of clearing Yuan trades as
it gradually moves to internationalise its currency. It is
believed that either the Bank of China or the Industrial
and Commercial Bank of China will be the clearing bank,
according to analysts. Some analysts see this as a move
by China to reduce its reliance on the greenback as a
reserve currency.
Sourced from: Iol, All Africa.com; BBC, Bloomberg; Engineering News;
China Daily; Google; Wall Street Journal, Lusaka Times, Zambia Post;
Timeslive; CRI.net; Reuters; Business Week; FT.com; Afrik.com;
Xinhuanet
For more of the China
Briefings we have
collected in the last
month, please see our
Weekly Briefings,
which can be
accessed via our
website:
www.sun.ac.za/ccs
China's imports from emerging markets surge
China's imports from emerging countries, especially
South Africa and Brazil, grew dramatically in the first
quarter of the year. Analysts predict China's trade with
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
13

The China Monitor
April 2011
The China Forum - Recent Events
African scholars on China meet in Nairobi, Kenya - 28-29 March 2011
Nairobi, Kenya Photo:
Africafreak.com
CCS Director Sven Grimm participated in a conference organised by African
Research Institutions and Think Tanks (including the CSS) with the title “Toward a
New Africa-China Partnership”. The meeting comprised over 50 researchers and
intellectuals from across Africa, including representative from five South African
institutions from research and civil society. In order to strengthen research on
China-Africa cooperation, the participants decided on the creation of an African
Forum for Study and Research on China and Africa-China Relations; CCS Director
Sven Grimm is member of the Steering Committee. The communiqué of the
conference can be found on the CODESRIA website
(http://www.codesria.org/spip.php?article1283).
Association for Asian Studies (AAS) and the International Convention of Asia
Scholars (ICAS) in Honolulu, Hawaii – 31 March to 3 April 2011
CCS Research Analyst Sanne van der Lugt attended a conference organized
jointly by the AAS and ICAS in order to celebrate the 70th anniversary of the AAS.
The conference was the largest ever gathering of Asian studies scholars and
students with over 760 panels, roundtables, and workshops addressing a wide
range of topics and issues, as well as exhibits, a video program, music and theatre
performances. Sanne presented a paper on: “Triple-S development cooperation:
creating a win-win-win situation for emerging and developing countries?”
China-Africa Migration panel discussion at Wits University - 7 April 2011
On April 7 CCS Research Assistant Elizabeth Schickerling attended a panel
discussion in Johannesburg regarding China-Africa Migration: Contemporary
movement and socio economic change. The event was hosted by the African
Centre for Migration and Society of University of the Witwatersrand and Open
Society Initiative. The three panellists were journalist and author Howard French,
founder and editor of "The Zimbabwean" Wilf Mbanga and author Sanusha Naidu.
CCS launches new Policy Briefing publication – 20 April 2011
The CCS is proud to present the first edition of a new publication: Policy Briefing.
These papers are condensed reports drawn from existing CCS research studies
and reports which are designed to highlight the essential findings and
recommendations in the parent material. Policy-makers and decision-makers will
find the Policy Briefing effective, useful and insightful guides to the conclusions and
recommendations of our larger and more extensive reports.
The premier CCS Policy Briefing „The Management of Chinese Foreign Direct
Investment‟ draws from the recently published CCS Report, Assessing China’s
Role in Foreign Direct Investment in Southern Africa. Both the final report and the
Policy Briefing can be downloaded from the CCS website [here].
© Centre for Chinese Studies, Stellenbosch University; All Rights Reserved
14

The China Monitor
Editorial Team
Matthew April 2011 McDonald
Meryl Burgess
Design & Layout
Centre for Chinese
Studies
Contact Us
Centre for Chinese Studies
Stellenbosch University
T: +27 21 808 2840
F: +27 21 808 2841
E: ccsinfo@sun.ac.za
W: www.sun.ac.za/ccs
15