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QZ: China in Africa: One Belt One Road May 15, 2017

Posted by OromianEconomist in Africa, Africa and debt, Africa Rising, China in Africa, Uncategorized.
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Odaa OromooOromianEconomistChinaAfrica

 



There’s one drawback to the project observers are calling China’s Marshall Plan. The One Belt One Road initiative, marketed as a modern-day recreation of the ancient Silk Road trading route, is about gaining access to new markets for Chinese goods. (Soft power and finding work for Chinese construction companies are important factors too.)

In this way, One Belt, One Road is similar to Britain’s colonial trade routes, used to take natural resources from its outposts as well as ship finished goods back to its colonial subjects, Eric Olander and Cobus van Staden at the China Africa podcast have observed.

African countries are already flooded with Chinese products. Chinese exports to African countries reached $103 billion in 2015, a figure that is likely much higher because of underreporting and smuggled goods. African countries are exporting far less to China than they’re importing. After years of falling commodity prices, now only 10 out of 53 sub-Saharan African countries have a trade surplus with China, according to 2015 data.–  qz.com



China’s campaign to build a massive network of land and sea links connecting Asia, Europe, the Middle East, and Africa is expected to benefit the African countries along the route. Chinese companies will spend at least $1 trillion on roads, ports, and other updates to infrastructure in more than 60 countries that make up the…

via There’s one major pitfall for African countries along China’s new Silk Road — Quartz



 

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