Friday, November 7, 2014

The Spectre of Global China

Ching Kwan Lee 

New Left Review 89, September-October 2014

After three decades of sustained growth China, an economic powerhouse of continental proportions, is becoming choked by bottlenecks: overcapacity, falling profits, surplus capital, shrinking demand in traditional export markets and scarcity of raw materials. These imbalances have driven Chinese firms and citizens overseas in search of new opportunities, encouraged by Beijing’s ‘going out’ policy. Their presence in Africa has drawn a vast amount of attention, despite the fact that the prc only accounts for a tiny fraction of foreign direct investment there—4 per cent for 2000–10, compared to 84 per cent for the Atlantic powers. [1] In the ensuing rhetorical battle, the Western media has created the spectre of a ‘global China’ launching a new scramble for Africa, while Beijing for its part claims simply to be encouraging South–South cooperation, free of hegemonic aspirations or World Bank-style conditions. These seemingly opposed positions, however, share the implicit assumption that Chinese investment is qualitatively different from conventional foreign investment. What, if any, is the peculiarity of Chinese capital in Africa? What are the consequences of China’s presence, and what prospects does it offer for African development?

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