China Seeks to Strengthen Ties with Africa Ahead of Export Curbs

This week, China will host a summit of 50 African nations in Beijing, urging them to increase their imports of Chinese goods. This push comes as Western restrictions on Chinese exports, particularly electric vehicles and solar panels, are set to take effect.

In exchange for enhanced trade, China is likely to offer further loans and investment pledges to African countries.

Expectations from African Leaders:

Representatives from numerous African nations will arrive in the Chinese capital for this triannual event, seeking tangible answers regarding China’s previous commitments.

Many leaders will demand clarity on the unfulfilled promise made during the last summit 2021, which included plans for China to purchase $300 billion worth of goods from Africa.

Additionally, they will want reassurances on the status of Chinese-funded infrastructure projects, including a railway intended to connect the greater East African region.

Shifts in China-Africa Relations:

According to Eric Olander, co-founder of the China-Global South Project, “The prize will go to those countries that have carefully studied China’s changes and aligned their proposals with China’s new slimmed-down priorities.”

However, this may pose a significant challenge for many African nations, given the continent’s generally low level of understanding regarding China’s evolving policy priorities.

Changing Investment Strategies:

As Africa’s largest two-way lender, investor, and trade partner, China is shifting away from funding large-scale infrastructure projects.

Instead, it focuses on selling advanced and green technologies that Chinese firms have heavily invested in.

With Western restrictions looming, China prioritizes exporting electric vehicles and solar panels while looking to establish overseas production bases in emerging markets.

Adjustments in Loan Conditions:

China has begun revising the conditions for its loans to Africa, allocating more funds for solar farms, electric vehicle plants, and 5G Wi-Fi facilities.

In contrast, financing for traditional infrastructure projects, such as bridges, ports, and railways, has been significantly reduced.

Data from Boston University’s Global Development Policy Centre shows that China extended only 13 loans worth $4.2 billion to eight African states and two regional banks last year, with approximately $500 million designated for hydropower and solar initiatives.