The China Monitor - The Centre for Chinese Studies

The China MonitorIssue 30China, Africa and the globalfood crisisJune 2008

The China MonitorJune 2008ContentsEditorial 3Dr Martyn J. Davies, Executive Director,Centre for Chinese StudiesPolicy Watch 4Can China Help Push for a Green Revolution in Africa?Luís Mah and Sylvia CroeseCommentary 7Grain Issues and Inflation in Modern ChinaProf. Wen Tiejun, Dr. Liu Huaiyu, Dr. Li Chenjie, Renmin University, BeijingCommentary 10African AgricultureStephanie Hanson, Council on Foreign RelationsBook Review 16China’s New Role in Africa and the South. A search for a new perspectiveBy Dorothy Grace Guerrero and Firoze Manji (eds)Johanna Jansson, Analyst, Centre for Chinese StudiesBusiness Briefs 18A round-up of China’s business news from the past monthChina & Africa 22News briefs highlighting Chinese relations with AfricaThe China Forum 25Recent eventsContact Us 28A Publication of:The Centre for Chinese StudiesFaculty of Arts, University of Stellenbosch© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.2

The China MonitorJune 2008Editorial"Agflation" - rising food inflation - is the new danger to the poor in thedeveloping world. Coupled with the growing demand for biofuels in thedeveloped world that are produced from consumable crops, food inflation willinflict enormous damage in many African countries and perhaps the poor inChina as well.Food inflation in China is currently running at roughly 20% whilst core inflationstands at 1.7%. The last time China faced such a situation was in the mid-tolate1980's, a major contributor to social unrest that unfolded in Beijing in mid-1989. But this time it's different. The Chinese middle class has emerged andcan now afford to absorb the rising food prices. This is very unlike thesituation two decades ago when food took up a far larger proportion of theChinese consumer's salary - perhaps 50%. The purchasing power of the nowsizeable Chinese middle class will counteract the fallout of domestic foodinflation. However, the seventy-odd million poor urban Chinese are most atrisk. The government will most likely respond by providing this group with foodsubsidies in various forms.Being a more regulated economy, Beijing possesses more instruments thanAfrican states with which to deal with the rising economic crisis resulting fromfood inflation. Being "market fundamentalists" in their economic managementpolicies, African governments enjoy no such advantages and are far morevulnerable as a result.Dr Martyn J. DaviesExecutive Director, Centre for Chinese Studies© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.3

The China MonitorJune 2008Policy WatchCan China Help Push for a Green Revolution inAfrica?By Luís Mah and Sylvia CroeseThe recent UN Food and Agriculture Organization Summit in Rome concludedwith the adoption of a Declaration calling on the international community’scollective action to increase aid for developing countries, in particular the leastdeveloped countries and those that have been most negatively affected byhigh food prices.“There is an urgent need to help developing countries and countries intransition expand agriculture and food production, and to increase investmentin agriculture, agribusiness and rural development, from both public and privatesources”, according to the Declaration. This was no more than a recognition ofthe food crisis we are currently facing. Yet, it has also opened the door for apotential long-term goal in Africa: a new green revolution.Tackling the global food crisisThere is an urgent need tohelp developing countriesand countries in transitionexpand agriculture and foodproduction, and to increaseinvestment in agriculture,agribusiness and ruraldevelopment.Robert Zoellick, the president of the World Bank, probably helped triggered thisdebate when, on the eve of the Summit, he offered in the Financial Times (30May 2008) several proposals to tackle the global food crisis. Among them wasthe need for seeds and fertilizers especially for smallholders, the doubling ofthe yearly budget of the Consultative Group on International AgriculturalResearch (CGIAR) and more investment in agribusiness to “tap the privatesector’s ability to work across the value chain”.While recognising that to improve agriculture productivity there needs to bestrong investment, the truth is that this emerges after two decades in whichthere has been a significant fall in aid and public expenditure in agriculture.The share of development aid for agriculture decreased from 17% in the early1980s to around 3% in 2005, with a decline of 35% in the same period for Sub-Saharan Africa.On the other side, and according to figures from the International Food PolicyResearch Institute, in 17 African countries the percentage of public expenditureon the sector fell from 6.5% to 4.5% during the same period. This is a figurewell below the 10% commitment made by the heads of state of Africa.4© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.

The China MonitorJune 2008In the past three months, there have been new pledges of money and theWorld Bank and the United Nations International Fund for AgriculturalDevelopment (IFAD) are regarded as the likely main lenders. And it is here thatChina could help make a difference by scaling up the bilateral and multilateralfunds available for boosting agricultural production in Africa.By tapping into her vastforeign reserves, Chinacould invest in the immenseagricultural potentialities inAfrica and help push for anew green revolution on thecontinent.By tapping into her vast foreign reserves, China could invest in the immenseagricultural potentialities in Africa and help push for a new green revolution onthe continent that could respond to the needs of the local population. Thisaction could also open opportunities to secure food supplies as China facespressure to address the changing dietary habits of wealthier Chinese. Chinahas about 40% of the world’s farmers but just 9% of the world’s arable land.Recent news reports have revealed that for some Chinese scholars the way forthe country to guarantee its food security and reduce exposure to a volatileglobal food market relies on Chinese domestic companies expandingagricultural production abroad. Whether or not this might be a solution, as aresponsible nation in the international community, it would be importantant thatwhatever investment China bets in Africa’s agriculture would focus onsustainable management of land, soil and water and the respect for the rightsand aspirations of poor and indigenous communities, particularly women. Therecent decision by China’s US$ 200 billion sovereign wealth fund ChinaInvestment Corp to become a socially responsible investor by avoidingindustries such as gambling, tobacco and arms manufacturing is a sign thatChinese investors care about their impact in the world.Boosting African agricultural productivityWhile there are no perfect models for action, two cases to boost Africanagricultural productivity on two different levels might be of interest to China andits possible role in contributing to the improvement of the continent’sagricultural productivity.Nyeleni2007.orgIn terms of increasing food yields within small-landowners, the case of Malawi,a landlocked, crowded and one of the poorest countries in the world has beenattracting the attention of the international community. A government subsidyscheme giving small-landowners vouchers to buy seeds and fertilizers helpedto double the harvest between 2004-2005 and 2005-2006, though it remains tobe seen if these subsidy schemes are sustainable. The United Kingdom’sDepartment for International Development is supporting the scheme despitebeing cautious about replicating it.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.5

The China MonitorJune 2008Another initiative to increase production has recently been announced by theJapan International Cooperation Agency (JICA) during the 4th TokyoInternational Conference on African Development (TICAD IV), which took placeat the end of May. The plan aims to double rice production on the Africancontinent within 10 years, from around 14 million today to 28 million tons.It is now up to China todecide whether or not itcan help push for a newgreen revolution in Africa.A major component of the programme is to cooperate more closely andcoordinate existing projects, such as the NEPAD Comprehensive AfricaAgriculture Development Programme (CAADP) initiative. For several years,JICA has already been involved in helping to develop a strain of rice calledNERICA which is particularly suited to harsh African conditions, and canproduce significantly higher yields, as well as 25% greater protein content.That programme will continue to develop new strains and expand thedistribution of seeds to farmers and governments. Other activities will includethe introduction of better farming techniques, increased research andeducation, better extension facilities, upgrading run-down irrigation systems,expanding cultivated areas, upgrading quality controls and marketing, andassisting women rice producers.wordpress.comIn terms of agri-business, Brazil’s Agricultural Research Corporation(Embrapa) has just opened an office in Accra, Ghana. As one of the leadingresearch institutions in tropical agriculture, Embrapa’s office in Accra isexpected to become a regional base to share Brazil’s knowledge on tropicalagriculture with the African continent. The office will train local technicians,offer technical assistance, undertake research on local needs and will look forinternational partners to cooperate in its initiatives. The research will be carriedout in Brazil by Embrapa’s 38 research units and will send their findings backto Ghana.Luís Mah has a PhD in DevelopmentStudies from the London School ofEconomics and a MA in PoliticalScience from Yonsei University(Korea). He is currently heading acampaign promoting the MillenniumDevelopment Goals in Portugal, butwrites this piece in his personalcapacity.It is now up to China to decide whether or not it can help push for a new greenrevolution in Africa.Sylvia Croese is an Analyst at theCentre for Chinese Studies.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.6

The China MonitorJune 2008CommentaryGrain Issues and Inflation in Modern ChinaBy Prof. Wen Tiejun, Dr. Liu Huaiyu, Dr. Li ChenjieIn China, a country that has0.1 hectare of agrarian landper capita and where 60%of the population arepeasants living in relativelyisolated rural areas, foodsecurity is of immenseimportance.2008 has thus far brought a mounting global food crisis as well as globalagflation and inflation. This has given rise to extensive research worldwide onissues of food security and global economic development. In China, a countrythat has 0.1 hectare of agrarian land per capita and where 60% of thepopulation are peasants living in relatively isolated rural areas, food security isof immense importance.Food security issues during the state industrialisation periodAmong developing countries with populations of over 100 million such as India,Bangladesh and Mexico, China was the first to set up a system of family tenantmanagement. The system, known as “families’ land rights of equal distributioninside the villages”, came about in the first half of the 20 th century. However, asagricultural economies of scale lost importance and the tenure system wasabandoned, China developed a shortage of grain. Even though small farmers’average production increased per capita in the 1950s and rural agriculturalproduction was sufficient in terms of subsistence during this period, it was notenough in the face of urbanisation and industrialisation that pushed up demandimmensely.The Chinese process of industrialisation was led by the state. The necessarycapital accumulation was made possible as reforms in the agricultural sectorresulted in the creation of a surplus. This significant internal capitalaccumulation process made China’s trajectory of industrialisation uniquecompared to that of western countries.The macro-economic impact on food supplyIn the 1980s, after a series of rural economic reforms of the family tenantmanagement system, rural agricultural issues lost priority as the Chinesegovernment increasingly focused on industrialisation. Currently, rural China ischaracterised by small-scale farming. Over the last 10 years, food output hasbeen increasing along with rapid macro-economic growth and a steadilyincreasing population.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.7

The China MonitorJune 2008Since 1949, food output has been fluctuating every year, which is normal for acountry as vast as China.Getty ImagesYear Price index of grain(1978=100) inflation rate(1/1000)1978 100.61980 97.6 601985 101.9 931990 93.2 311991 105.5 341992 117.9 641993 112.8 1471994 1 122.2 2411995 117.1 1711996 101.3 831997 91.4 281998 99.5 -81999 99.4 -142000 91.5 42001 102.3 72002 99.9 82003 102.3 122004 123.1 392005 101.5 182006 102.4 15The above graphs indicate that fluctuations in food output arise after unusuallylarge macro-economic fluctuations, such as in 1994 when China experiencedextremely high inflation rates. Following the foundation of the People’sRepublic of China, an increase in the population was coupled with rising foodoutput.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.8

The China MonitorJune 2008However, faster urbanisation and farmer income enhancement complicated themonitoring of changes in patterns of food stockpiling in farmer households,which represents 20% of commercialised food. The lack of exact data on theamount of stockpiled food can subsequently impact the food market whenprices change.Getty ImagesDuring times of rapid economic development or inflation, the government islikely to launch macro-control policies which often result in decreasing pricesand insufficient supply. Discrepancy between the agricultural production periodand subsequent output supply is a result of the effects of macro-economicpolicies and the macro-economic period. Therefore, soaring food prices are theconsequence of abnormal macro-economic fluctuations and inflation, not theother way around.Special features of food supply and consumption in ChinaDiscrepancy between theagricultural productionperiod and subsequentoutput supply is a result ofthe effects of macroeconomicpolicies and themacro-economic period.Following the implementation of the family tenant management system,agricultural production and distribution started to take place in more than 200million small farmer households. This led to a constant average food output ofabout 350 kg per capita, or 450 kg per farmer, which constitutes 60% of totalfood production in China. Only 40% of this output reaches the market, which isthe part that will respond to price policies and macro-economic fluctuations.As China is still in the process of urbanisation, around 60% of the population isstill living in the rural areas with self-sustaining grain consumption. Hence,when considering China’s food security system, it is important to note that itconcerns only 40% of the population; those living in urban areas. Also, it is theannual food commercialisation ratio that should be taken into account, not theannual food output.Thus, the country’s food security system is very different from the West andChina should promote national stockpiling as a complement to market-drivenfood supply.Prof. Wen Tiejun is Professorand Dean of the School ofAgriculture & RuralDevelopment at RenminUniversity of China.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.9

The China MonitorJune 2008CommentaryAfrican AgricultureBy Stephanie HansonCereal yields for sub-Saharan African farmershave declined or stagnatedsince the 1970s, and nowstand at roughly one-third ofthose in South Asia,according to the WorldBank.Global food prices have skyrocketed in the past year, sparking riots in 2008 incities from Egypt to Haiti. Rising prices pose a particular threat in sub-Saharan Africa, where conflicts and drought exacerbate the affects of highprices. Though sub-Saharan Africa has the potential to become an agriculturepowerhouse, crop yields for much of the region are a fraction of those in therest of the world. Agronomists say the continent needs to drastically increaseits agriculture productivity, and recommend a range of options—from highyieldseeds to fertilizer to improved infrastructure—to spur an agriculturalrevolution in Africa. The region’s economic development may depend on sucha revolution, experts say, but it will require strong support from individualAfrican governments.History of Agricultural ProductionRoughly 65% of sub-Saharan Africa’s population relies on subsistencefarming. The typical farmer in the region, however, is a woman with nofertilizer, no high-yield seeds, no irrigation, and no medication for her animals.Sub-Saharan Africa adds less than 10 kilograms of fertilizer per hectare ofland; in comparison, Asia employs 144 kilograms, according to the Food andAgriculture Organization (FAO). Cereal yields for sub-Saharan Africanfarmers have declined or stagnated since the 1970s, and now stand atroughly one-third of those in South Asia, according to the World Bank. In thelate 1960s, most sub-Saharan countries were net food exporters; as of 2002,sub-Saharan Africa imported 19 million tons of food a year.Experts blame several factors for the region's poor agricultural performanceover the past three decades. First, sub-Saharan Africa's challengingenvironmental conditions make agriculture production difficult, particularly forsmall-scale farmers. Soil quality is poor in many areas, droughts are frequent,and infrastructure for transporting goods to market is limited. Unlike Asia,where a significant fraction of land is irrigated, 96% of arable land in sub-Saharan Africa depends on rainfall. The diversity of the region’s agroecologies—from soil to climate to type of crop produced—also complicatesmatters. Whereas rice and wheat are Asia’s two staple crops, sub-SaharanAfrica has eight major food staples, according to the World Bank’s© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.10

The China MonitorJune 2008World Development Report 2008.The World Bank was thelargest single donor tosub-Saharan Africanagriculture between1990 and 2005, but astudy conducted by thebank strongly criticizedits agriculture strategy.Compounding these natural hurdles, foreign aid to the sector has declinedsignificantly since the 1970s. Just 4% of current development aid to the entirecontinent goes to agriculture investment. USAID, the U.S. developmentagency, has cut its agricultural aid by 75% in the past two decades.According to Jane Harrigan, an agriculture economist at the University ofLondon, beginning in the 1980s there was a "very clear shift away fromproductive sectors like agriculture and infrastructure and trade toward socialsectors such as health, education, and governance." She now sees earlysigns of aid flows shifting back toward agriculture.The World Bank was the largest single donor to sub-Saharan Africanagriculture between 1990 and 2005, but an October 2007 study conducted bythe Bank strongly criticized its agriculture strategy. The bank’s policy adviceproduced results that “have fallen short of expectations because of weakpolitical support and insufficient appreciation of reality on the ground, amongother things,” the study determined.Role of Sub-Saharan GovernmentsThe region's governments did not devote enough funding to agriculture fromthe 1980s onward. While many countries prioritized expanding foodproduction in the 1970s, national government funding on agricultural sciencefell by 27% on the continent between 1981 and 2000 (in the rest of thedeveloping world, it rose by 30% during the same period). Many governmentscurrently allocate less than 1 percent of their national budgets to the sector.Some experts attribute this drop in funding to austere macroeconomicprograms imposed by lenders such as the International Monetary Fund thatprecipitated budget cuts in the mid-1980s. Others say the decrease hasideological roots. “Over the last twenty-five years, anyone who advocatespublic-sector investment in more agriculture science gets attacked from boththe left and right,” says Robert Paarlberg, a political scientist at WellesleyCollege and author of Starved for Science: How Biotechnology Is Being KeptOut of Africa. “Between those two attacks, there is not much room in thecentre to promote what has worked in Asia and, earlier, in the United Statesand Europe.”© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.11

The China MonitorJune 2008Another line of thinking holds that Africa’s food crisis stems not from lack ofstate-led efforts to improve agricultural output, but from the episodic nature ofsuch efforts. As Hans Holmen of Linkoping University in Sweden writes in TheAfrican Food Crisis: Lessons from the Asian Green Revolution, countries suchas Zimbabwe, Kenya, and Nigeria launched efforts at agricultural reform in the1970s and 1980s, but these attempts failed because funding was notsustained.Some experts suggestthat African governmentshave resisted fundingagriculture programsbecause they havebecome too dependenton international food aid.Some experts suggest that African governments have resisted fundingagriculture programs because they have become too dependent oninternational food aid. Mafa Chipeta, a Malawian who heads the Food andAgriculture Organization's subregional office in Ethiopia, says "Africa needs tobe offended at the idea of a grown-up continent being fed by others that haveno obligation to do so." Instead, he says, African governments continue todemonstrate unwillingness to pay for agriculture development and insteadexpect the World Food Program to send them assistance.Learning from Asia's 'Green Revolution'Agronomists agree that sub-Saharan Africa would benefit from the techniquesthat spurred agricultural reform in South Asia in the 1970s. The RockefellerFoundation, which partnered with governments in Asia and Latin America toprecipitate the original "Green Revolution," suggests that a similar system ofreforms in Africa will be more challenging, but the components are similar:• developing high-yield crops;• training experts in agriculture science;• increasing government commitment to agriculture;• building agriculture markets."Our emphasis is on raising productivity of smaller farmers," says Joe DeVries,Director of the Rockefeller Foundation's program on Africa’s Seed Systems. "Itisn't anything that fancy about our program. We are really just trying to do thebasics: breed new varieties of crops that are higher yielding and locallyadapted." Through the Alliance for a Green Revolution in Africa (AGRA), apartnership between Rockefeller and the Gates Foundation that is chaired byformer UN Secretary-General Kofi Annan, DeVries is funding local plantbreedingteams to come up with new crop varieties based on feedback fromlocal farmers. AGRA works in thirteen countries in sub-Saharan Africa, withplans to scale up to twenty.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.12

The China MonitorJune 2008Pedro A. Sanchez, Director of the tropical agriculture program at ColumbiaUniversity's Earth Institute, says "AGRA is well-respected by Africangovernments and they are just getting started. They certainly have the ear ofthe governments and they are hiring top-notch African scientists." But someexperts say the alliance may lack the resources for large-scale implementation.It began in 2006 with a US$ 150 million grant, and the Gates Foundationpledged an additional US$ 164 million in January 2008. Policymakers andeconomists suggest, however, that the continent requires billions of dollars peryear in agriculture investment. The 2002 Comprehensive Africa AgricultureDevelopment Program, drafted by a group of African government officials andinternational experts, calls for US$ 251 billion in irrigation, infrastructure,education, and market investment between 2002 and 2015. The program sayshalf of this funding should come from African governments, with the rest frominternational donors.Public-sectorinvestments thatimprove efficiency ofagriculture markets arealso necessary.In July 2003, members of the African Union agreed to devote at least 10% oftheir government budgets to agriculture programmes over the next five years.So far only Rwanda and Zambia have actually executed the plan. Top-levelleadership is "absolutely essential" to the development and funding of effectiveagriculture policies, says the University of London's Harrigan. For instance,individual countries need robust research programs for the development ofnew seed varieties. "Agriculture is not like medicine. You can't have abreakthrough in New Jersey and make it available to people all over Africa,"says Paarlberg. The private sector will not fund such programs because theytake at least five years to yield results, DeVries says.Public-sector investments that improve the efficiency of agriculture markets arealso necessary. According to the World Bank's World Development Report2008, "Markets will not work without addressing the massive infrastructuredeficit." Rural roads to link farmers to towns are a pressing need, the banksays, as are coordinated infrastructure development across countries andregulatory reforms that combat customs corruption.Case Study: MalawiSome economists and policymakers recommend that sub-Saharan Africa'sgovernments subsidize their farmers directly. In the past year, Malawi hasattracted attention for its decision to ignore the free-market policy prescriptionsof international donors and initiate a fertilizer-subsidy programme.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.13

The China MonitorJune 2008Its past three years of crop yields have been significantly higher, leading manyagronomists to recommend that other countries adopt programmes modelledon Malawi's. In 2006, maize production in the country doubled; in 2007, italmost tripled. The country exported over 300,000 tons of maize to Zimbabwelast year. "This is the solution and the time to strike is now, when food pricesare high," says Columbia University's Sanchez.The policy debate overMalawi reflects anunresolved conflictbetween those who favourstate intervention in theagriculture sector andthose championing freemarkets.But critics say Malawi's policies have weakened its private agriculture sector,particularly its agribusiness dealers. And free traders see subsidies as a shorttermfix. "A season or two of bad weather could recast Malawi's policy as aheavy fiscal burden which the country has to carry because its farmers, whomake up most of the country's voters, now view big subsidies as a right ratherthan a last resort," writes the Economist.Some academics suggest the money Malawi spends on subsidies should bespent on long-term investments such as infrastructure, research, and marketdevelopment. But developed countries such as the United States andmembers of the European Union have a long-standing system of farmsubsidies. "If we can justify subsidizing a farmer in the EU that earns US$50,000 per year, surely we can justify subsidizing a farmer in Africa that makesUS$ 100 a year," says the FAO's Chipea.Facing an Unknown Future with Cautious OptimismThe policy debate over Malawi reflects an unresolved conflict between thosewho favour state intervention in the agriculture sector and those championingfree markets. Both camps, however, are optimistic about the long-termsprospects for upping agricultural yields in Africa. In May 2008, Kofi Annanpredicted that within five to ten years, the food production of African farmersshould be doubled or tripled. Other experts, such as the University of London'sHarrigan, suggest that a ten- to twenty-year time frame is more realistic. "Onceyou have technology, it takes farmers a long time to have confidence to adoptthe technology. Simultaneously, you need market development," she says.No quick fix exists to address the serious talent shortage, either. DeVries saysit's necessary to train many more African scientists—plant breeders, soilscientists, and agriculture economists—to carry out local research. Toaccomplish training, technology development, and market strengthening, theregion's governments will need long-term assistance from international donors.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.14

The China MonitorJune 2008Experts are cautiously optimistic about the World Bank's pledge to doubleagriculture aid to the continent. "It was good for them to bite the bullet and say,'We weren't doing things right,'" says Sanchez. But economists such asHarrigan warn that it's unclear how much state involvement donors like theWorld Bank will encourage. For instance, the World Bank doesn't fund fertilizersubsidies.Experts offer a mixture of other near-term policy suggestions. Soliciting adviceand assistance from individual Asian governments could also benefit sub-Saharan Africa. Paarlberg suggests that the Indian and Chinese governmentscould offer technical assistance to the region's governments. "They haveenormous credibility in terms of using agricultural science to increaseproductivity," he says. Other experts note that reforming the USA aid programto allow food to be purchased within Africa, instead of shipped from the UnitedStates, would eliminate one important market distortion in many Africancountries. While many nongovernmental organizations and policymakerssuggest that the region would profit tremendously from the reduction orremoval of EU and USA trade subsidies, economists are less hopeful. BecauseAsian countries currently have a competitive advantage in agriculture, theywould likely reap more of the benefits of such policy changes than would sub-Saharan Africa.Stephanie Hanson is aNews Editor at theCouncil on ForeignRelations.This article can also be viewed at the Council on Foreign Relations website:http://www.cfr.org/publication/16352/© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.15

The China MonitorJune 2008Book ReviewChina’s New Role in Africa and the SouthA search for a new perspectiveBy Dorothy Grace Guerrero and Firoze Manji (eds)By Johanna JanssonChina’s New Role in Africa and the South is a collection of essays emanatingfrom a conference held in May 2007 on the sidelines of the AfricanDevelopment Bank meeting in Shanghai, China. Fifteen articles elaborate on acomprehensive range of topics relating to China and its relations with theglobal economy and the South. The authors – scholars and NGO stakeholders– provide thought-provoking arguments from a wide array of perspectives.There are three broad themes that are generally reflected on in this volume.The introductory theme broadly contextualises China’s role globally: namelywithin multilateral institutions and in relation to civil society. The second themediscusses China’s South-South relations outside the ambit of Africa. Finally thethird theme brings into focus the China in Africa discourse. Whereas thesethemes are clearly distinguishable, the structure of the book would have beenbetter complemented if it was developed in a more coherent manner. Inaddition the variance in length of the individual chapters made the structure ofthe book and the analysis of the various themes uneven.Nonetheless, some essays are comprehensive. Certainly the chapter by BarrySautman and Yan Hairong’s provides a compelling argument regardingChina’s role as a capable benevolent partner to African countries vis-à-vistraditional Western powers. With particular reference to the United States theauthors contextualise the criticism usually directed towards China and arguethat a similar amount of critique, if not more, can be directed towards thepractices of Western countries on the African continent. At times controversial,the chapter represents a refreshing contribution to the debate.Alexandre de Freitas Barbosa’s contribution touches on what is becoming anincreasingly parallel topic of interest in China’s South-South engagement:Sino-Latin American relations. In the chapter Barbosa focuses mainly onpatterns of trade between the two. Similar trends and patterns can be observedbetween Latin America and China as between China and Africa. A discerningdifference, however, is to be found in how each is interpreted and the headlinenews they make in Western dominated press agencies on the implications thiswill have for the respective region.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.16

The China MonitorJune 2008Walden Bello brings important background perspectives to the volume as heanalyses the roots of the global crisis of overproduction in the globalmanufacturing sector. He notes that transnational companies overinvesting inChina, domestic Chinese industry and American consumers each formessential parts of the oversupply that is currently affecting the world’s markets,not least in Africa.The volume contains greatvariation regarding how thecontributors have appliedtheir arguments: some arecritical towards China,others are relativelyflattering and many explorethe topic from a moreimpartial point of view.Keeping in line with Bello’s argument Luk Tak Chuen draws attention to thefact that China is not acting in a vacuum within the international community. Onthe contrary, many other countries are active in Africa within the context of theneoliberal global economy. For example, India has important interests andprojects in Africa, Japan announced in May this year that it would double itslow interest loans to Africa, not to mention the economic interests of the UnitedStates and the European Union on the continent.The importance of African and Chinese civil society is discussed in severalcontributions. Ali Askouri discusses African civil society in relation to China’sactivities on the continent, Fu Tao assesses the current state of civil society inChina and Peter Bosshard concludes by arguing for the necessity of civilsociety in the era of the global political economy.Johanna Jansson is an Analystat the Centre for ChineseStudiesAll things considered, the book represents a useful source of information andmakes a valuable contribution to the debate and the burgeoning literature onChina-Africa relations in two ways. Firstly, it discusses China’s global role inthe South through a broadened outlook, highlighting that China de facto isengaging not just with Africa, but with Asia, Latin America, InternationalFinancial Institutions (IFIs), the WTO and the UN. Secondly, and mostimportant in terms of the volume’s search for a new perspective, is the diversityof origin amongst the contributors; China, Africa, the “West” as well as othercountries of the South. As a result, the volume contains great variationregarding how the contributors have applied their arguments: some are criticaltowards China, others are relatively flattering and many explore the topic froma more impartial point of view. The book thus sheds light on the fact thatChina’s engagement with Africa is a more decidedly multifaceted issue. Assuch, the volume indeed provides important new perspectives on this emergingissue within international relations.Business BriefsFull reference:Grace Guerrero, Dorothy and Manji, Firoze (eds) (2008). China’s New Role inAfrica and the South. A search for a new perspective. Cape Town, Nairobi andOxford: Fahamu and Focus on the Global South. ISBN: 978-1-906387-26-6.A PDF version of the book can be downloaded at www.fahamu.org© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.17

The China MonitorJune 2008Business BriefsThe Business Briefs section summarises key events regarding China’s economy during the month of June.China May copper imports forecast above 100,000tons China's refined copper imports, the world'sbiggest, may have topped 100,000 metric tons in Mayfor a seventh straight month even as high pricesdeterred buying and the economy showed signs ofslowing, traders and analysts said. China imported127,977 tons of refined copper in April, up from126,421 tons in March, according to revised dataissued by the Beijing-based customs office. Copperprices in London have rallied 18% this year, asdemand from China and supply disruptions helped toshrink global stockpiles by more than a third. China'smanufacturing growth slowed last month, raisingconcern that use of the metal for wires and pipes maydecline.France, Germany, Italy, Japan, Russia and the UnitedStates - will hold their annual summit from July 7-9 inthe northern Japanese resort of Toyako. Hu visitedJapan last month in only the second trip ever to Tokyoby a Chinese head of state.Major Chinese business delegation visits Israel A110-strong business delegation from Shanghai was inIsrael this month. The visit coincided with the China(Shanghai) Economic & Trade Cooperation Exhibitionin Tel Aviv, which in turn was part of Shanghai Week inIsrael, held to mark the 15 th anniversary of the sistercityrelationship between Shanghai and Haifa.Alongside the exhibition was a forum for match-makingbetween Israeli and Shanghai companies.ADB funding energy efficiencyprogram in South China The AsianDevelopment Bank (ADB) is funding apilot program in China's southernGuangdong province to bring energy-efficienttechnology to major power consumers. Under theEnergy Efficiency and Environment ImprovementInvestment Program, ADB is providing a US$ 100million multi-tranche loan to the heavily-industrializedprovince, the multilateral development institution saidin a press release.China confirms attendance at G8 summit China hasconfirmed that President Hu Jintao will take part in anextended summit of the Group of Eight major industrialnations, a Japanese official said.Chinese Foreign Minister Yang Jiechi, in Tokyo fortalks with his Japanese and South Koreancounterparts, confirmed to Japan for the first time thatHu would attend. The Group of Eight - Britain, Canada,Thai Banpu to buy rest ofChina coal miner BanpuBANP.BK, Thailand's biggestcoal miner, has said it plansto spend US$ 420 million for a remaining 78.40%stake in a Chinese coal miner. The acquisition byBanpu's wholly-owned unit, BP OverseasDevelopment Co Ltd, would take its stake to 100% inAsian American Coal Inc (AACI), the company said ina statement.China Energy Recovery completes two majorwaste heat recovery systems in China and signscontracts for twoadditional systems foroverseas expansionChina Energy Recovery Inc. announced completion ofconstruction of two major waste heat recovery systemsin China. The two just-completed systems in China arecapable of generating approximately 14 MW of© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.18

The China MonitorJune 2008electricity and 26.8 MW of directly usable heat energythrough the capture and harnessing of waste-heat. Thecompany also announced the signing of contracts fortwo additional systems to be built in Malaysia and theCongo.China builds plant to turn coalinto barrels of oil With oilprices at historic highs, China ismoving full steam ahead with atreehugger.comcontroversial process to turn itsvast coal reserves into barrels of oil. Known as coal-toliquid(CTL), the United States, Australia and India areamong those countries looking at CTL technology, butare constrained by environmental concerns associatedwith the process which releases excessive amounts ofcarbon gases into the atmosphere and consumeshuge amounts of water. But China, which lacks thepowerful environmental lobbyists that might stymie anywide scale initiative elsewhere, is building a majorcomplex on the grasslands of Inner Mongolia.Chinese official: Governmentand business to seek waysto promote women'sdevelopment Governmentsshould cooperate with business communities toovercome the difficulties that hurt "the employment,education and welfare of women and their all-rounddevelopment in the long-term", Chinese vice ministerof commerce said before the opening of the GlobalSummit of Women that convened from 5 to 7 June inHanoi, Vietnam. China sent one of the biggestdelegations to the summit that seeks practicalsolutions and strategies to enhance women's role andcovers issues like women's health and economicopportunities.China National Gold Buys a Stake in Jinshan GoldMines China National Gold Corp. (China Gold), thelargest state-owned gold producing enterprise inChina, purchased Ivanhoe Mines' 42% stake inJinshan Gold Mines, a Canadian-based miner. Jinshanis currently ramping up its Chang Shan Hao heapleach mine in China's Inner Mongolia region to fullproduction capacity of 3.7 t/a (120,000 oz/year) ofgold. The deal with Ivanhoe is worth C$ 217.7 million.This represents a 10% premium above Jinshan'sshare price. Upon completion of the deal, China Goldwill become Jinshan's largest shareholder andeffectively control Jinshan.US and China firms sign whopping US$ 13.6 billiondollar deals American and Chinese firms signed dealsworth US$ 13.6 billion dollars ahead of the two-dayUS-China cabinet-level "strategic economic dialogue"(SED) meeting that could formally endorse talks for abilateral investment treaty. China said the agreementswere part of plans by Chinese companies to increaseimports from the trade deficit-ridden United States.Thirty-five deals worth US$ 8.3 billion dollars weresigned by high-tech, manufacturing andtelecommunication companies at the US Chamber ofCommerce in Washington, the Chinese governmentsaid in a statement. In St Louis, companies from thetwo nations signed contracts valued at US$ 5.32 billiondollars for the purchase of soybeans as well aschemical, telecommunication and electromechanicalproducts, the statement said.China pledges to continue supporting AfghanistanChinese Foreign Minister Yang Jiechi has said that theChinese governmentand people wouldcontinue to support thereconstruction efforts ofxinhuanet.comAfghanistan, on thesideline of an international donors' conference for thewar-torn Asian nation. China decided to provide RMB© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.19

The China MonitorJune 200850 million for Afghanistan to fund its reconstructionefforts.has a 45% stake in the Akpo oil project in Nigeria,operated by Total.Tata Communications toacquire 50% in Chinesefirm Telecom solutionsprovider Tata Communications has said it wouldacquire a 50% stake in China EnterpriseCommunications (CEC) for an undisclosed amount.Tata Communications International Pte, a whollyownedsubsidiary of Tata Communications, has signedthe equity joint venture agreement with theshareholders of CEC for acquiring a 50% stake. Thereach complements Tata Communications' VirtualPrivate Network (VPN) presence in 120 Indian citiesand 19 other major business capitals in North America,Europe and Asia.Asian powers vow to cooperate on North Koreaand Africa East Asian powers Japan, China andSouth Korea this month vowed cooperation on endingNorth Korea's nuclear drive and aiding Africa as theirforeign ministers held rare joint talks. The foreignministers confirmed that leaders of the three countries,whose relations have often been uneasy, would cometo Japan in September for a first-of-a-kind three-waysummit. With killer quakes in China and Japanovershadowing the talks, the ministers also agreed onjoining hands in disaster management.Total to sell 1 million tonnes LNG toChina from 2010 French oil and gasgroup Total has signed a deal to sell upto one million tonnes of liquefied naturalgas (LNG) per year from 2010 to China NationalOffshore Oil Corporation (CNOOC), the group hassaid. The deal is part of a wider MOU signed betweenthe two companies to boost cooperation in upstreamand downstream areas and new energies. CNOOC“China’s Hawaii” targetsinternational tourists Witha tropical climate andunspoilt, palm-fringedbeaches, Hainan has all the ingredients to becomeone of Asia's top tourist resorts. Top resorts areopening in droves. The island is planning to broaden avisa exemption scheme, opening duty-free shops,improving infrastructure, building airports, expandingair links and promoting foreign language studies."Tourism is the industry in Hainan with the mostdistinguished features, the most potential and the mostcompetitiveness," vice governor Chen Cheng said latelast month unveiling a strategic blueprint fordevelopment.Trade between China and Portuguese-speakingcountries rises 80.3% between January and April2008 Trade between China and Portuguese-speakingcountries rose 80.3% in the first four months of theyear against the same period in 2007. Chinese importsby Portuguese-speaking countries rose 84%, to US$14.55 billion, whilst exports rose 72.5%, to US$ 6.59billion. Brazil remains China’s biggest partner, Angolacontinues in second place, Portugal is third, followedby Mozambique, Cape Verde, Guinea Bissau, EastTimor and Sao Tome and Principe. China and thePortuguese-speaking countries set a target of US$ 50billion in overall trade by 2009.Pakistan sends IPI pipelinejoining proposal to ChinaPakistan has sent a formalproposal asking China to jointhe US$ 7.4 billion Iran-findchina.netindiatimes.comPakistan-India (IPI) gas pipeline deal if India pulls outof the project by the end of June. A senior official in thePetroleum Ministry said that President Pervez© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.20

The China MonitorJune 2008Musharraf had tried to convince his Chinesecounterpart Hu Jintao to join the gas pipeline projectduring his recent visit to China. The Chinesegovernment has subsequently submitted a preliminaryreport to the Pakistani government seeking moreinformation on the pipeline project. The official saidthat Pakistan had also asked the Chinese governmentto conduct a detailed feasibility study of the gaspipeline project. There has been no progress on thepipeline project since a dialogue was held betweenPakistan and India in Islamabad in April.Energy Co, the biggest oil refiner in the Republic ofKorea (ROK), to construct an ethylene project inWuhan, capital of the central Hubei Province. Aframework agreement was signed by both companiesduring ROK President Lee Myung-bak's visit to Beijing.According to the agreement, Sinopec and SK will signthe contract for joint investment this year. SK will holda 35% stake in the project, which has an estimatedinvestment of more than US$ 2.01 billion. The projectwill be the largest investment the country has made inChina.China and US list electricity, transportation asfocus of energy co-op China and the United Stateshave identified five areas as priorities under a 10-yearframework on energy and environment protectioncooperation, a Chinese official has said. China and theUnited States reached consensus on a 10-yearframework of energy and environmental protection atthe previous Strategic Economic Dialogue (SED) lastDecember. The two sides were expected to sign anagreement on the framework after this SED.China Telecom to buy CDMAbusiness at US$ 16 billion -restructuring details revealed Lastmonth, three Chinese ministriesofficially announced restructuring plans for the sixmajor telcoms. Under the framework agreement withChina Unicom, China Telecom will pay US$ 15.9billion in total, US$ 9.6 billion to acquire the CDMAnetwork (core networks, wireless networks, VASplatforms etc) and US$ 6.3billion in cash for theacquisition of subscribers and operations. On thesame day, China Unicom announced the details of itsmerger with China Netcom, in an all-share deal with avalue of US$ 24 billion.cnpc.com.cnChina and Korea signMyanmar energyexploration dealChina NationalPetroleum Corporation(CNPC), the stateownedparent of listed PetroChina, and Korea'sDaewoo International Corp plan to explore for oil orgas in Myanmar together. Myanmar has at least 90trillion cubic feet of gas reserves and 3.2 billion barrelsof recoverable crude oil reserves in 19 onshore and 3major offshore fields.China-South Asia Business Forum commencesThe 3rd China-South Asia Business Forum was held inKunming, Yunnan province, China this month with anobjective to further enhance cooperation between theSouth Asian region and China. The Forum will befollowed by the Kunming import and exportcommodities fair, being organised by China Council forthe Promotion of International Trade (CCPIT).Sourced from: Bloomberg, Xinhua, Macau Daily, Globes, Reuters,Business Wire, Mining Engineering, Press Trust of India, Macauhub,Daily Times, AFP, ovum.com, China Daily.Sinopec to build ethylene joint venture with SKEnergy China Petroleum and Chemical Corporation(Sinopec) has announced it plans to tie up with SK© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.21

The China MonitorJune 2008China and AfricaThe latest updates on China’s involvement on the African continent.Africa draws investment worldwide Worldwideinvestments in Africa are increasing at a pace of 25%with US$ 400 million in foreign capital inflow annually.Africa is attracting investment from developed countriesbut also developing giants such as China, India, theRepublic of Korea, Malaysia, and the United ArabEmirates. At the same time African economic powerssuch as South Africa, Nigeria, Botswana, Algeria andEgypt are also competing for market shares. In additionto China and India, Japan has declared it will increase itsdevelopment aid to Africa to US$ 1.9 billion by 2012.Cape Verde: Around 2,000 businesspeople havetaken part in trade meetings between China andPortuguese-speaking countries A meeting ofbusinesspeople for Economic and Trade Cooperationbetween China and Portuguese-speaking countries washeld in Cape Verde between 28 and 30 May. 250businesspeople were present, four cooperation protocolswere signed and 195 contact meetings were held. Inprevious meetings, held in Portugal, Angola andMozambique, 1,600 businesspeople from China and thePortuguese-speaking countries attended.China Africa fund eyesover 100 projects TheUS$ 1 billion Chinesegovernment fund set up by the China Development Bankin June 2007 to promote investment in Africa hasidentified more than 100 potential projects in which toinvest. According to Chi Jianxin, chief executive of theChina Africa Development Fund the fund wasconsidering direct investment of between US$ 5 millionand US$ 50 million per project with an investmenthorizon of about 10 years.China quake may hold upEskom’s new plant Delivery ofequipment from China for Eskom's power stations couldbe delayed by the earthquake that hit the country lastmonth. Eskom's chief executive has said the earthquakein China could have an effect on suppliers to its first newcoal fired station in Limpopo called Medupi.China woes Nigeria over coal-for-power generationMr. Zhao Shouhe, the General Manager of the ChineseMining Investment Company was in Abuja this month totalk with the Federal Government about the developmentof seven coal fields. Mr. Shouhe, asserted that thecompany was ready to partner with the FederalGovernment to develop Coal for Power generation in thecountry. The Minister observed that Nigeria’s cooperationwith the company from China would be a very goodpartnership in developing the mining sector.East Africa: EADB Receives Credit From China TheEast African Development Bank (EADB) has received aUS$ 30 million line of credit from China DevelopmentBank in an effort to promote economic growth anddevelopment. It is the first time CDB is extending thiskind of credit to East Africa. The funds, according toEADB, will benefit enterprises engaged in productiveeconomic activities in Uganda, Kenya and Tanzania.South Africa seeks Chineseinvestment in industrial zoneSouth Africa hopes to wooChinese companies to invest in itsCoega industrial zone as a delegation visited China thismonth to meet potential investors. Officials from theCoega Development Corporation (CDC), which runs theindustrial zone, would visit Chinese vehicle and motor© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.22

The China MonitorJune 2008manufacturers, iron and steel companies, machine andequipment manufacturers and a pharmaceuticalcompany. Since October 2006, some Chinese firms havesought rights to establish industrial parks within the11,000-hectare Coega industrial development zone,which is linked to a deepwater port. Located on the eastcoast of South Africa, the zone has purpose-builtinfrastructure, information and communications facilities,and is located near the car manufacturing hub of PortElizabeth.China wins US$5bn Niger oilcontract China National Petroleum Corp (CNPC) haswon a US$ 5 billion deal to develop oil reserves ineastern Niger in the latest major Chinese investment tosecure energy resources in Africa. CNPC’s Agademproduction sharing agreement extends China’s role insub-Saharan Africa’s booming oil sector, calling this a“win-win” contract to benefit both China and Niger.Portugal, China and Africa: Joint ventures withChinese firms in Africa on cardsPortugal and China could begin joint business andinvestment projects in Africa next year using the MacaubasedChina-Lusophone trade forum to coordinate theventures, Portugal's state secretary for foreign affairs,João Gomes Cravinho, said. Joint Sino-Portugueseventures, particularly in infrastructure projects, could getunderway from 2009-2010.mutual understanding and friendly relationship betweenChina and Africa."Malawi: Karonga-Chitipa road to start with 13km,says China “Recognising the importance of the road,China has decided to start off with the 13 kilometreswhose designs have been completed”, said ChineseAmbassador to Malawi Lin Songtian. He said hisgovernment felt that it could not wait until the wholeprocess of bidding and designing was completed butwould start works by engaging Chinese contractors thatare closer to Malawi and can easily reach the site. Twocontractors have been identified – one in Tanzania andanother in Mozambique – one of whom would kick-startthe construction this month. Songtian assured Malawiansthat the works would be completed within two years aspromised by the Chinese government.Mozambique: Chinesecontractor finishes work onbridge over Incomáti riverat the end of the monthThe construction of thebridge over the Incomáti river in the Moamba district, 60kilometres northwest of Maputo, is due to be concludedon the 30 th of June, the director-general of theMozambique National Roads Administration (ANE) said.If work continued at its current rate, China HennanInternational Cooperation Group (Chico), could deliverthe bridge within the agreed schedule.Journalists urged to strengthen China-Africarelations The Chinese Government has urged Africanjournalists to play a critical role in promoting existinginternational co-operation between China and Africancountries. China Foreign Affairs counsellor, Mrs WangKey, said media practitioners were key players instrengthening the bilateral relationship between Chinaand African countries. She encouraged Africanjournalists to “contribute to the enhancement of theNigeria: Ogun government andChinese consortium partneron Free Trade Zone The Nigeria Export ProcessingZone Authority (NEPZA) has given a joint venturebetween the Ogun State government and the ChinaAfrican Investment Company, the final seal of approval torun the affairs of the Ogun Guangdong Free Trade Zone,OGFTZ, in Igbesa.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.23

The China MonitorJune 2008YRPG approved to sell 19 medicines in NigeriaYangtze River Pharmaceutical Group (YRPG), a largescalenationwide pharmaceutical group and one of thekey enterprises in China, has won preliminary permissionto sell 19 medicines in Nigeria, according to thecompany's statement. Currently, three of its medicineshave successfully registered in the Nigerianpharmaceutical market and won approval to be sold inthe market.Sasol and China Shenhua to buildcoal-to-oil projects South Africa’sSasol Ltd., the world's largest maker ofoil from coal has said that it expected tostart operating two large-sized coal-tooilprojects in China in 2016, jointly with the country's topcoal producer Shenhua Group Corporation Ltd. Situatedin Northwest China's Ningxia Autonomous Region andShaanxi Province, the two projects are each designed tobe capable of producing about 80,000 barrels per day, or3.4 million tons per year, of diesel oil, jet fuel, naphtha,and liquefied petroleum gas.Russian and Chinese oil firms jostle for OgoniRussian oil giant, Gazprom, is among several foreigncompanies jostling to replace Royal Dutch Shell inOgoniland following the Federal Government's decisionto award the oil fields to another company. ManyChinese companies have also indicated interest in the oilfields, which hold proven reserves of over 10 trillion cubicmetres of gas - one of the world's largest. Any newcompany that gets the oil fields is expected to beginproduction within a year.Hits plans US$ 500m investment inDar mobile market New mobile phoneoperator Hits Tanzania Ltd plans toinvest US$ 500 million in its countrywidecoverage within 13 months. The firm has already signeda US$ 180 million deal with its strategic partner HuaweiTechnologies of China to set up its network in thenigerianmuse.comcountry. The two partners have started work on thenetwork infrastructure as well as on construction worksfor the mobile switching centre and the firm’sheadquarters in Dar es Salaam. Hits becomes the sixthmobile phone operator to enter Tanzania after CeltelTanzania, Vodacom Tanzania, Tigo Tanzania, ZantelTanzania and the Tanzania TelecommunicationsCompany.Zimbabwean Vice-President hails China-ZimRelations The Zimbabwean government is committed tofostering a strong working relationship with China inagricultural development, Vice-President Joice Mujuruhas said after meeting a highpowereddelegation from theChina National Machinery andEquipment Company inHarare. The company wascontracted to provide services to the Ministries ofAgriculture, Agriculture Engineering, Mechanisation,Irrigation and Water Resources and InfrastructuralDevelopment as part of a US$ 20 million contract signedbetween the two governments in 2006.China helps Nigeria develop communicationtechnology China will help Nigeria and the Africancontinent at large to substantially improve theircommunication technology, said the Chineseambassador to Nigeria, Xu Jianguo in a meeting withNigerian Communication Satellite Ltd. Nigeria's firstcommunications satellite NIGCOMSAT-1 wassuccessfully launched from China's Xichang SatelliteLaunch Centre in 2007. Nigeria is expected to improve itscommunication quality, including Internet services, withinone or two months, and is actively working with itsChinese partners to prepare NIGCOMSAT-2 andNIGCOMSAT-3.Sourced from: Chinaview, Macauhub, Reuters, Business Report,Vanguard, All Africa, Business Day, The Portugal News, Alibaba News,Trading Markets, The East African, Xinhua.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.24

The China MonitorJune 2008The China Forum - Recent EventsSpecial Edition of Review of African Political Economy (ROAPE):The ‘New’ Face of China-Africa Co-operationSanusha Naidu, research fellow at CCS, was a guest editor with Marcus Powerand Giles Mohan for ROAPE’s special edition on ‘The ‘New’ Face of China-Africa Co-operation’, Vol. 35, No. 115, (March 2008). Dr. Martyn Davies, CCSExecutive Director, and Ms Lucy Corkin, CCS Projects Director, were amongstthe contributors to the special edition. For more information about this issue,visit www.roape.org‘Linking Zhejiang’, Zhejiang province – 22-27 th MayFrom 22-27 May, CCS Projects Director, Lucy Corkin, participated in the‘Linking Zhejiang’ programme. The group of international sinologists, as guestsof the Zhejiang Provincial Government, toured several important cultural andcommercial cities in Zhejiang province, such as Hangzhou, Yiwu, Jinhua,Quzhou.‘Building Bridges: China's Growing Role as Infrastructure Financier forAfrica’, Tunis, Tunisia – 3-5 th JuneVivien Foster, a lead economist at the World Bank, presented a report titled:‘Building Bridges: China's Growing Role as Infrastructure Financier for Africa’at the Public-Private Infrastructure Advisory Facility (PPIAF) 9th Workshop andAnnual Meeting in Tunis. Christopher Burke, Research Fellow at CCS,participated as a discussant at the event. The report will soon be available onthe PPIAF website: www.ppiaf.orgWorld Bank ABCDE Conference in Cape Town, South Africa – 9-11 th JuneThis year’s World Bank ABCDE Conference was held in Cape Town with'People, Politics & Globalization' as its overarching theme. The CCS hosted asession on ‘The role of China in financing Africa's development’. Lucy Corkin,chaired the session in which Stephen L. Muyakwa, Chairperson, Civil SocietyTrade Network of Zambia (CSTNZ), Philip Idro, Former Ugandan Ambassadorto China, and Prof. Luís Brites Pereira, Deputy Director of the Centre forGlobalisation and Governance at the Nova University of Lisbon in Portugal,participated.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.25

The China MonitorJune 2008International Programs Meeting, Revenue Watch Institute (RWI),New York – 9-13 th JuneChristopher Burke participated in the International Programs Meeting held byRevenue Watch Institute (RWI) in New York. The meeting focused ontransparency in international extractive industries. Participants evaluatedRWI's work and helped to identify future strategies.China and the West: Strategic Competition in Africa, London – 11 JuneThe CCS and the Africa Asia Centre at The School of Oriental and AfricanStudies, University of London, organised a presentation by Dr Martyn Davies,Executive Director of the CCS, entitled ‘China and the West: StrategicCompetition in Africa’.Drivers of China's FDI in Africa: How specific?, Cape Town – 12 JuneThe CCS organised a presentation by Prof. Luís Brites Pereira and JoseLopes, entitled ‘Drivers of China's FDI in Africa: How specific?’, hosted by theWestern Cape Investment and Trade Promotion Agency (WESGRO).Launch of ‘Crouching Tiger, Hidden Dragon? Africa and China’, CapeTown Book Fair – 14 June‘Crouching Tiger, Hidden Dragon? Africa and China’, edited by Kweku Ampiahand Sanusha Naidu, research fellow at CCS was launched at the Cape TownBook Fair 2008. Published by UKZN Press and commissioned by the Centrefor Conflict Resolution (CCR) based in Cape Town the volume emerges from aconference hosted by CCR in September 2007 with the same title. The launchfeatured a panel discussion by four of the contributors to the book: Dr.Adekeye Adebajo (Executive Director, CCR), Dr. Garth Le Pere (ExecutiveDirector, Institute for Global Dialogue), Ms. Lucy Corkin, and Sanusha Naidu,who debated salient issues concerning the African perspective on Africa’sengagement with China. For more information on purchasing the book pleaseemail: books@ukzn.ac.za (South Africa), mail@isbs.com (US & Canada) orvisit www.europangroup.com (UK & Europe).Chinese-African Relations Today, Stellenbosch – 18 JuneDr Henning Melber, Executive Director of The Dag Hammarskjöld Foundation,Sweden, visited the CCS and presented a paper titled ‘Chinese-AfricanRelations Today’ at Stellenbosch University on 18 th June.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.26

Review of 10-years of South Africa-China relations, Pretoria – 19 JuneOn 19 June, Lucy Corkin and Hannah Edinger, Economist at CCS, attended aworkshop organised by the South African Department of Foreign Affairsreviewing the celebrations of 10 years of diplomatic relations between Chinaand South Africa.‘Darfur: Peace and Development’ Conference, Beijing – 26-27 th JuneSanusha Naidu attended an international conference entitled: ‘Darfur: Peaceand Development’, hosted by the China Institute of International Studies. Theconference was aimed at providing an opportunity and platform to debate theDarfur issue, take stock of latest developments and find common areas ofcollaboration towards a peaceful resolution and settlement of the crisis.

The China MonitorJune 2008Editorial TeamSylvia CroeseJohanna JanssonHayley HermanFrancine PoletRachel LaribeeDesign & LayoutJacobie MullerContact UsCentre for Chinese Studies Centre for Chinese StudiesUniversity of StellenboschJohannesburg OfficeT +27 21 808 2840 T +27 11 728 1509F +27 21 808 2841 F +27 11 728 0373E ccsinfo@sun.ac.zaE ccsinfo@sun.ac.zaW www.ccs.org.zaW www.ccs.org.za© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved.28