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China-Africa and an Economic Transformation$

Arkebe Oqubay and Justin Yifu Lin

Print publication date: 2019

Print ISBN-13: 9780198830504

Published to Oxford Scholarship Online: June 2019

DOI: 10.1093/oso/9780198830504.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 21 October 2020

(p.327) Subject Index

(p.327) Subject Index

China-Africa and an Economic Transformation
Oxford University Press
Please note that page references to Footnotes are followed by the letter ‘n’ and number of the note, Figures and Tables are indicated by f and t after the page number.
Ababa–Djibouti construction project224
Academy of International Business Officials, China108
Addax (Geneva-based oil company)182, 183
Addis Ababa Action Plan (2004–6)118
Addis Ababa Light Rail System90
‘China effect’ on4, 12, 25
and China’s think tanks112–13
Chinese firms in, conditions11
debt management concerns145–6
East Africa28, 29, 135, 295, 297
economic transformation4, 6, 12, 314–17
FOCAC initiatives, strategic approach316–18t
independence63, 64, 66
industrialization of4, 5, 12–14, 30, 81, 193, 283, 321
debates/outlooks on China–Africa economic relations84, 90, 93, 95
Ethiopia5, 89, 283, 284, 285, 287, 295, 296, 299
light manufacturing265–81
limitations and shortcomings314
integration into global value chain8
liberation movements, China’s support for8, 64
medical teams in67–8
neoliberal structural adjustment programmes132
North Africa see North Africa
petro-states and Chinese SOCs, case studies180–1
relations with Mao Zedong (1949–76)62–6
soft power, increasing76
South Africa see South Africa
struggle against colonialism and imperialism2
sub-Saharan Africa see sub-Saharan Africa (SSA)
West Africa164, 207, 210 see also specific African countries
Africa Research Centre112–13
Africa Research Office112
African Capacity-Building Foundation (ACBF), Harare158, 168
African Development Bank41n5, 168
African Growth and Opportunity Act (AGOA), US272, 280
African Union (AU)265, 311
development finance and African infrastructure development153, 168
historical context of China–Africa relations62, 74–5
institutional framework of China–Africa relations112, 119
Afro-Asian People’s Solidarity Organization (AAPSO)63
Agence Française de Développement (AfD)161
Agenda 2063320n17
Belt and Road Initiative (BRI)231–3
dispute settlement226–30
commercial agreements229–30
investment agreements228–9
trade agreements227–8
bilateral tax treaties225–6
commercial224, 229–30
cultural factors218–20
dispute settlement226–30
economic and technical cooperation agreements133
investment222–3, 228–9
substantive contents and norms220–6
trade220–2, 227–8
judicial assistance treaties225
post-colonial modern world order217–18, 220
(p.328) Agricultural Development Bank9
agricultural sector91–2
Agricultural Technical Demonstration Centres (ATDCs)91, 92–3
aid see foreign aid
Front de Libération Nationale, Chinese support for64
medical teams sent to67
recognition of PRC (1958)64
All-China Students’ Federation65
anchor firms, attracting275
borrowing by141, 143
Chinese involvement87, 242, 255
civil war (1975–2002)140, 194
Eurobond issue (2015)137
oil and gas engagements184–5
as petro-state185
risk of lending to143
skill shortages243
Anticipated Impact Measurement and Monitoring (AIMM) system158
arbitration224, 225
commercial agreements229–30
International Centre for the Settlement of Investment Disputes (ICSID), Chinese membership229
preferred means of dispute settlement229, 234
state-to-state228, 231
arms assistance68, 70, 75
small arms72, 74
Arrangement on Guidelines for Official Supported Export Credits159
Asian Infrastructure Investment Bank (AIIB)94, 161
Asian-African Conference, Bandung (1955)63
AU/NEPAD Partnership for Infrastructure Development in Africa (PIDA)156
Bandung Asian-African Conference (1955), Ten Principles63
Bangladesh25, 256
Bank of China9, 136, 137 see also People’s Bank of China (PBOC)
Banking Regulation Commission, Chinese152
Belt and Road Forum for International Cooperation152
Belt and Road Initiative (BRI), China5, 8, 19, 101, 315
Action Plan for the Harmonization of Standards along the Belt and Road (2015–17)231
development finance and African infrastructure development147, 150, 163–4, 168
global political economy (GPE) approach152–3
historical context77
and Kenya28–30, 31
launched by Xi Jinping (2013)152
summit of 2017232
Berlin Conference (1884)163
bilateral investment agreements29
bilateral investment treaties (BITs)233
Chinese222–3, 228
second-generation223, 228
bilateral tax treaties225–6
Bole Lemi (Industrial Park), Ethiopia276
bonds, renminbi-denominated137, 152
branded goods27, 275
original brand manufacturing (OBM)273
Bretton Woods system38, 162
post-Bretton Woods global economy39
BRICS Inter-bank Co-operation Mechanism154
BRICS New Development Bank (NDB)94, 154–5, 161
bridge construction140
Bui Dam, construction of143–4
Bui Hydropower144
Busan High-Level Forum of Development Effectiveness (2011)156
Cairo Regional Centre for International Commercial Arbitration (CRCICA)226
Calabar Free Trade Zone202
Cambodia273, 274
accumulation of24
‘Chinese capitals’12, 256
controls, use of51–2
dual logic of Chinese state capital254
human24, 319
and labour regimes248–50
restoration of99, 120
(p.329) ‘cascade’ concept158
cement109, 141, 193
admission to the UN (1971)66
as Africa’s strongest trading partner2, 3
aid framework106–9
Belt and Road Initiative (BRI) see Belt and Road Initiative (BRI), China
as competitive threat25–6
Cultural Revolution8, 35, 62, 66, 67, 79
economic development see Chinese economic transformation
economic rebalancing12
foreign exchange reserves, holding42
Great Leap Forward8, 62
impact on global/African infrastructure investment framework155–64
imperialism, perceptions of3–4, 175
industrialization of2, 6, 13, 25, 89, 296, 315
labour regimes, variation and shifts250–3
light manufacturing firms12
as middle-income economy20, 25, 27
Ministry of Commerce (MOFCOM) see Ministry of Commerce (MOFCOM)
National Bureau of Statistics267
neo-colonialism, perceptions of3–4, 175
non-interference principle167
oil imports173, 174t
overseas investments25
overseas lending institutions in132–7
policy buffers50
political risks within52
post-crisis historical precedents inapplicable to49–50
public entrepreneurship model10, 147, 149–50, 153
as recipient of FDI21
Sino-Soviet hostility64, 67
state–market relations149
Tiananmen Square crisis (1989)53, 69, 71
transition economy20
and United States67 see also People’s Republic of China (PRC)
China Aerospace Science and Technology Corporation (CASC)114
China Civil Engineering Construction Corporation (CCECC)194n2, 207
China Construction Bank136
China Development Bank (CDB)110, 132, 135, 140
development finance147, 148, 152, 159, 161
Institute of Development Finance152
International Development Finance Club member161
Investing in Africa Forum (IAF)162
as policy bank109, 150, 151–2
Special Fund for SME loans145
‘China effect’4, 12, 25
China Export Import Bank (Eximbank)
development finance147, 148, 159
loans from132, 134–7, 139, 143, 145
as policy bank109, 110, 150, 151
World Bank–China Exim Bank Memorandum of Understanding on Cooperation (2007)161
China Global Energy Finance database110
China Health and Retirement Longitudinal Study (CHARLS)269
China Institute of International Studies (CIIS)
Blue Book of International Situation and China’s Foreign Affairs113
China International Centre for Economic and Technical Exchanges (CICETE)106, 107
China International Economic and Trade Arbitration Commission (CIETAC)224, 226
China International Water and Electric Corporation (CWE)136
China Islamic Association65
China model311
China National Offshore Oil Corporation (CNOOC)10, 173, 181, 182, 185
China National Petroleum Corporation (CNPC)10, 173
and Sudan186, 187
‘China paradox’20
China Petroleum and Chemical Corporation (Sinopec)10, 173, 180, 182, 184–5
China–Africa Cooperative Partnership for Peace and Security74–5
China–Africa Development Fund (CAD Fund)109, 206, 293
China–Africa Fund for Industrial Cooperation94
China–Africa Infrastructure Cooperation Plan153
China–Africa Joint Business Council118
China–Africa labour encounters241–8
skill development246–7
workforce localization241–4
working conditions244–6
China–Africa Products Exhibition Centre118
China–Africa relations
asymmetrical economic ties314
China as Africa’s strongest trading partner2, 3
complementary economic partnership13–14
(p.330) coordination and friction119–21
Chinese FDI inflow, productive nature292–5
export growth and composition287–8
financing and infrastructure development293–5
import volume and structure288–9
power sector293–4
productive employment292
skills and know-how transfer292–3
trade patterns287–9
transport infrastructure294
FOCAC as formal institutionalization of117
future of310–24
‘anti-Chinese’ narratives, countering311–12
China as a source of learning315, 318–19
dynamic shifts312
economic transformation of Africa, bringing in314–15
FOCAC initiatives, strategic approach316–18t
investment in innovation and R&D320–1
new research agenda321
policy autonomy320–1
prioritizing/focusing on productive investment319
strategic approach315–19
institutional framework98–125
principles guiding relations with African and Arab countries65
strategic approach to315–19
trade see under trade
uneven nature4, 12
China–Africa Research Centre113
China–Africa Research Initiative (CARI), Johns Hopkins University’s School of Advanced International Studies110, 129, 216n4, 217n5
China–Africa trade2, 3
Ethiopian trade patterns287–9
historical context64, 68, 70, 76, 78, 79
textiles and Nigeria–Chinese trade relations195–9, 200t, 201–2 see also China–Africa relations; trade
China–DAC Study Group156
China–Egypt BRI cooperation Five-Year Plan232
China–Egypt Suez Economic and Trade Co-operation Zone232
China–Ghana BIT228
China–IMF Capacity Development Centre157–8
China–Mauritius FTA221–2
China–Tunisia BIT228
Chinese Academy of International Trade and Economic Cooperation (CAITEC)107, 113
Chinese Academy of Social Sciences (CASS)112
‘Chinese capitals’12
‘Chinese dream’ concept77, 313
Chinese economic transformation1–4, 19–21, 24, 178, 283, 313
China as large, open economy25, 26
Chinese economy as a global public good1, 37–42, 43t, 44–5, 50
directed development2
foreign investment22
global impact19, 20, 25–6
intellectual property rights (IPR) requirements20–1
market-oriented reforms20
meaning and global externalities35–57
‘open door’ policy21
poverty in China prior to2, 6, 20, 36
regional growth22, 23
size of China’s economy41
unique nature of China’s economy20
Chinese-African People’s Friendship Association65
climate change policies74
Cold War62, 63, 70
colonialism2, 177, 195, 284, 313
historical context of China–Africa relations63–5
post-colonial modern world order217–18, 220 see also imperialism
commercial agreements, infrastructure224
commercial banks/loans136–7, 148
commercial suppliers’ credits, Chinese135–6
Commission on the Economy and Climate162
commodity prices25
Commonwealth Development Corporation (CDC), UK135
Communist Party of China (CPC)53, 54n13, 63, 64, 65, 77, 286
Central Committee
Foreign Affairs Office (FAO)100, 117
general secretaries of69, 73, 76
Dialogue with World Political Parties High-level Meeting111
International Department (ID)111–12
(p.331) International Liaison Department111
Twelfth National Congress (1982)69
comparative advantage26, 39, 50
concession foreign aid loans104, 110, 134
Congo, Republic of
hydropower plant funding (1980)139
National Road No. 2. 140
oil production184
contracting and procurement157–8
commercial suppliers’ credits135–6
cycles, impact48–9
excessive growth48
export credits and tied aid159
lines of129, 130
Cultural Revolution8, 35, 62, 79
impact on Africa66, 67
currency agreements226
currency controls50
Dakar–Bamako railway138
African debt management capacity, concerns145–6
African lending, risk reduction143–4
cancelling by China143
debt finance for African infrastructure development see infrastructure development in Africa, Chinese aid
Debt Sustainability Framework165
excessive burden of, and finance sustainability299
global total debt47
international debt finance system, new activism161–4
official debt problem cases, managing159
de-industrialization199, 201, 265
Deng Xiaoping see Xiaoping, Deng
Department of Aid to Foreign Countries107
depreciation, of renminbi51–2
Development Assistance Committee (DAC), OECD104, 159
OECD/DAC Blended Finance project158
development finance and African infrastructure development
entrepreneurialism, Chinese147
global political economy (GPE) approach149–55
impact of China on global/African infrastructure investment framework155–64
infrastructure as a development priority155–6
international development finance system, China’s new activism on161–4 see also infrastructure development in Africa
development finance institution (DFI)152
digital economy165–6
Dispute Settlement Body (DSB)227
dispute settlement, economic agreements226–30
Dispute Settlement Understandings (DSU)11, 227
East Africa28, 29, 135, 295, 297
Eastern Industrial Park (EIP), Ethiopia276
econometric methods22
Economic and Commercial Counsellor (ECC)103, 104, 106, 108–9
economic and technical cooperation agreements133
Economic Community of West African States (ECOWAS)210
Economic Cooperation and Trade Zones (ECTZs)91, 92
economic geography163
economic growth/transformation
in Africa4, 6, 12, 314–17, 318t
Belt and Road Initiative (BRI)166
‘China effect’ on African economic growth4, 12
endogenous23, 47
evolutionary approach to23
export-led39, 40
FDI and trade21, 22
‘heterodox’ policies to accelerate3, 286, 295
infrastructure development296, 299
and Ministry of Foreign Affairs (MFA)103
open economy25, 26
regional, in China22, 23
research and development (R&D)22
in Sub-Saharan Africa30–1
and TFP24
and workplace encounters239–40
economic miracle, East Asia286–7
efficiency spillovers22
(p.332) Egypt
Fourth Ministerial Conference (2009)74
recognition of PRC (1956)64
trade with63
electric power/electrification136, 140, 164–5
labour regimes see labour regimes
management ethos and associated labour practices257
real wages, in manufacturing sector267
skill development246–7
variation among Chinese firms246–7
wage gap267
workforce localization241–4
working conditions244–6
workplace encounters239–40
energy sector
oil industry see oil and gas engagements
prioritizing investment in296–7
engineering, procurement and construction (EPC) projects137, 157
environmental, social and governance (ESG) standards160
Equatorial Guinea see Guinea
Ethiopia2, 12, 28
Chinese SOEs255
Eastern Industrial Park (EIP)276
Eastern Industrial Zone244–5
foreign policy285
Hawassa Industrial Park (HIP)276
imports from China, volume and structure288–9
industrial park, financing for142
and industrialization of Africa5, 89, 283, 284, 285, 287, 295, 296, 299
murders of Chinese workers in120
New York contrasted46
policy learning297
relations with China
background and context285–95
Chinese FDI inflow, productive nature292–5
committed political leadership and strong political ownership296
export growth and composition287–8
financing and infrastructure development293–5
import volume and structure288–9
long-term development vision296
political parties286
power sector293–4
prioritizing investment in infrastructure and energy296–7
productive employment292
skills and know-how transfer292–3
trade deficit289
trade patterns287–9
transport infrastructure294
road construction/repair46n8, 140
special economic zones (SEZs)292, 301
structural transformation255, 283, 284, 286, 296
successful development in post-1991 period285, 295–8
Ethiopia–Djibouti railway294
Ethiopian People’s Revolutionary Democratic Front (EPRDF)284–6, 296
Ethiopian Telecommunication Corporation294
ethnographic research254, 312
European Union (EU)25, 50, 156, 164
Everything But Arms (EBA)272
trade227, 287
exceptionalism, Chinese9, 11
African agency and context257–8
fallacy of240, 250, 252, 253
exchange rate stability50–2
Executive Bureau of International Economic Cooperation, China106, 107
export credits, and tied aid159
export processing zones (EPZs)
Export-Import Bank of China9
credit growth, excessive48
economic threats46
financial stability concerns48
global financial crisis26, 28, 46
Great Recession26, 46
infrastructure and structural transformation157
investment quality46–7
investment slowdown45–7
potential negative externalities, mitigating factors45–54
risk-taking, excessive48–9
factors of production46
factory regime248–9
fair and equitable treatment223
financial stability concerns48
(p.333) FIOCCO Group273
first-mover challenge267, 274–7
Five Principles of Peaceful Coexistence (PRC)63, 74
fixed-proportions production function46
‘flexigemony,’ defining178
‘flying geese’ model12, 253
first-mover challenge267, 274–7
light manufacturing266, 267–9, 272
origins of term267n4
underestimation of ‘flying geese’271 see also light manufacturing
Foreign Affairs Leading Small Group (FALSG)101
Foreign Affairs Office (FAO), CPC100, 117
foreign aid, Chinese
aid framework106–9
Academy for International Business Officials (AIBO)106, 108
Chinese Academy of International Trade and Economic Cooperation (CAITEC)107, 113
Department of Aid to Foreign Countries107
Department of West Asian and African Affairs103, 106–7
Economic and Commercial Counsellor (ECC)103, 104, 106, 108–9
Executive Bureau of International Economic Cooperation106, 107
concession foreign aid loans134
debt finance, for African infrastructure development147–72
Department of Aid to Foreign Countries107
development finance for infrastructure see development finance and African infrastructure development
historical context65, 67, 69, 72, 74, 75, 77
lending institutions see lending institutions, China
loans see loans, Chinese
policy banks see policy banks, China
tied aid and export credits159
zero-tariffs74, 287–8
foreign direct investment (FDI)11
China as recipient of21
and economic growth21, 22
growth of during Hu Jintao period75
impact on growth21, 22
inflow, productive nature290–5, 291f
labour regimes251
light manufacturing268, 275–6
outward2–3, 4, 19, 27–8, 78, 132, 267
quality FDI and productive capacity300
sub-Saharan Africa (SSA)240
and total factor productivity22
foreign exchange reserves42, 131
foreign exchange shortages, Africa131
foreign policy, China2, 62, 63, 100
Foreign Trade and Economic Cooperation Commission (FTEC)117
foreign-invested enterprises (FIEs)21
Forum on China–Africa Cooperation (FOCAC)9, 10, 71, 117–19, 143, 192
First Ministerial Conference, Beijing (2000)118, 193
Second Ministerial Conference, Addis Ababa (2003)73, 118
Third Ministerial Conference, Beijing (2006)73–4, 109, 118
Fourth Ministerial Conference, Egypt (2009)74, 118
Fifth Ministerial Conference, Beijing (2012)118
Sixth Ministerial Conference, South Africa (2015)76–7, 109, 118, 300
Eighth Ministerial Conference, Beijing (2018)90, 118
Action Plan149, 161
development finance and African infrastructure development147–9, 153, 158
and future of China–Africa ties310, 315
strategic approach316–18t
establishment (2000)117, 133, 153
financial pledges145
Follow-up Committee118, 119
as formal institutionalization of Sino-African relations117
Infrastructure Connectivity initiative153
results, emphasis on118–19
trade and commerce, emphasis on118–19
transforming as an effective platform300–1
triennial action plans163
Four Modernizations68, 69
Four Principles for Sino-African Economic and Technical Cooperation87
461 China–African Cooperation Framework89
fragmented authoritarianism99
free trade agreements (FTAs)221–2
free trade zones (FTZs)
Calabar Free Trade Zone202
evaluation of the operation of Chinese companies in211–12
Lekki Free Zone (LFZ)10, 193, 201, 206–9
Ogun–Guangdong Zone, Igbesa10, 209–10
Onne Oil and Gas Free Trade Zone205 see also special economic zones (SEZs)
funding gap, global financial crisis28
(p.334) Gang of Four, purge of66
General Agreement on Tariffs and Trade (GATT)221
GATT/WTO legal regime11, 233
independence (1957)63
repayment terms, Chinese finance143–4
risk of lending to143
Gleneagles Summit (2005)155
global division of labour and power (GDLP)313
global financial crisis1, 26, 28, 48
economic rebalancing following12, 46, 47
post-crisis historical precedents inapplicable to China49–50
Global Infrastructure Connectivity Alliance (GICA)162, 163
global integration2, 25, 26
global political economy (GPE) approach149–55
Belt and Road Initiative (BRI)152–3
BRICS New Development Bank (NDB)154–5
Forum on China–Africa Cooperation (FOCAC)153
policy banks, China150–2
global production networks (GPNs)247
global public goods see public goods, global
global total debt47
Global Witness160
globalization1, 2, 6–8, 30
Chinese economy as a global public good37–42, 43t, 44–5
‘global business revolution’6
‘Going Global’ strategy3, 12–13, 24, 26–8
new global economy6
Going beyond Aid (Lin and Wang)157
‘Going Global/’Going Out’ strategy3, 12–13, 139, 192
and China’s economic transformation24, 26–8
development finance and African infrastructure development147, 151–2
and future of China–Africa ties313, 315
Great Leap Forward8, 62
Great Recession26, 46, 48
Greater Nile Petroleum Corporation (GNPC)186
Group of Eight (G8)155
Group of Twenty (G20)155
Hangzhou Summit (2016)162
policy guidelines158
Seoul Development Agenda156
Task Force on Long-term Investment158
Growing Together Fund, African Development Bank153
growth, economic see economic growth/transformation
Growth & Transformation Plan (GTP I)275, 287
Chinese labour242
independence (1958)63
line of credit offered to (1960)129, 130
Ministry of Finance130
skill shortages243
Handbook of Country Risk (Sinosure)137
‘harmonious society/harmonious world’73
Hawassa Industrial Park (HIP), Ethiopia276
High-Level Panel on Infrastructure156
Highly Indebted Poor Countries (HIPC) Initiative142, 159
historical context of China–Africa relations7–8, 61–83
development finance147–8
evolution of relations7–8
Ming Dynasty61
Second Sino-Japanese War (1937–45)61
Hu Jintao period (2002 to 2012)8, 62, 73–6, 193
Huajian Industrial Holding Company273n16, 275
Huawei brand27
Hubei Province, medical teams from67
Hull Rule for expropriation223
human capital24, 319
Human Rights Watch (HRW)244
hydropower plant funding139
imperialism2, 196
future of China–Africa relations311, 313
historical context of China–Africa relations63–5, 67
neo-imperialism177, 181
‘new’175, 283 see also colonialism
Income and Capital Model Tax Convention, UN225
incremental capital-output rates (ICOR)46, 47
independence, Africa63, 64, 66
Industrial and Commercial Bank of China (ICBC)136
industrial zones142
(p.335) industrialization
of Africa4, 5, 12–14, 30, 81, 193, 321
debates/outlooks on China–Africa economic relations84, 90, 93, 95
Ethiopia5, 89, 283, 284, 285, 287, 295, 296, 299
light manufacturing265–81
limitations and shortcomings314
of China2, 6, 13, 25, 89, 296, 315
and de-industrialization199, 201, 265
early phases246, 256
fostering by China85, 89–91
and investment319
latecomers44, 247
and low wages/cheap labour246, 247
promises of255
transport infrastructure31
zone strategy10–11, 213
Infrastructure Consortium for Africa (ICA)154, 155, 156
infrastructure development in Africa319
cement factories141
Chinese aid
commercial agreements224
debt finance147–72
debt management concerns145–6
export credits and tied aid159
and international debt finance system161–4
loans9, 138–42
official debt problem cases, managing159
‘off-take’ arrangements144
public vs private investment158
zero-interest loans130–3, 141, 143
Chinese approach156–61
cocoa security144
connectivity infrastructure, shared platforms for167–8
connectivity/geospatial dimension omitted163
contracting and procurement157–8
as a development priority155–6
electric power140, 164–5
global political economy (GPE) approach149–55
Belt and Road Initiative (BRI)152–3
BRICS New Development Bank (NDB)154–5
Forum on China–Africa Cooperation (FOCAC)153
policy banks, China136, 150–2
and growth137–8
human and corporate capacities and competitiveness159–60
hydropower plant funding139
impact of China on global/African infrastructure investment framework138, 155–64
Infrastructure Connectivity initiative153
innovation and technology, proposition regarding162–3
prioritizing investment in296–7
railway construction8, 67, 69, 138–9, 140
road construction/repair140
shared platforms for connectivity infrastructure167–8
and structural transformation157
sugar refineries141
digital economy and leapfrogging165–6
electrification and demography164–5
transport31, 294
Institute for Capacity Development158, 168
Institute of New Structural Economics (INSE)267, 269
Institute of West Asian and African Studies112
institutional framework of China–Africa relations98–125
China’s aid framework106–9
Academy for International Business Officials (AIBO)106, 108
Chinese Academy of International Trade and Economic Cooperation (CAITEC)107, 113
Department of Aid to Foreign Countries107
Department of West Asian and African Affairs103, 106–7
Economic and Commercial Counsellor (ECC)103, 104, 106, 108–9
Executive Bureau of International Economic Cooperation106, 107
China’s provinces116–17
Communist Party of China (CPC), International Department111–12
(p.336) Forum on China–Africa Cooperation (FOCAC) see Forum on China–Africa Cooperation (FOCAC)
institutional rivalry between MFA and MOFCOM105–6
liberalization, effects of98–100
Ministry of Commerce (MOFCOM)103–5
Ministry of Foreign Affairs (MFA)101–3
policy banks, China109–10, 136, 150–2
policy drivers100–6
state-owned enterprises (SOEs)114–16
think tanks and Africa112–13
intellectual property rights (IPR) requirements20–1
interest rates131
International Centre for the Settlement of Investment Disputes (ICSID), Chinese membership229
international development finance148
and Chinese activism161–4
International Development Finance Club161
International Federation of Consulting Engineers (FIDIC)224
International Finance Corporation (IFC)279, 293
international financial institutions (IFIs)131, 142
international knowledge spillovers23
International Task Force on Global Public Goods37, 38n3
international trade agreements11
International Working Group (IWG) on Export Credits159
‘intra-industry’ trade26
Investing in Africa Forum (IAF)162
‘cascade’ concept158
Chinese state vs global private312
impact of China on global/African infrastructure investment framework138, 155–64
and industrialization319
in infrastructure and energy, prioritizing296–7
in innovation and R&D320–1
productive, prioritizing/focusing on319
public vs private158
investment agreements222–3
Japan6, 313
Second Sino-Japanese War (1937–45)61
Jiabao, Wen55n15
Jiang Zemin period (1989 to 2002)8, 54n13, 71–3, 118, 285
‘Joint Communiqué of the Leaders Roundtable of the Belt and Road Forum for International Cooperation’ (2016)166
Joint Ethiopia–China Commission (JECC)285–6
joint ventures (JVs)23–4, 292
judicial assistance treaties225
Belt and Road Initiative (BRI)28–30
Chinese investment in28
Chinese management and training in29–30
infrastructure development19, 29
non-hiring of local managers29–30
Keqiang, Li89, 101, 153
know-how, positive spillover of21
international, spillovers of23
light manufacturing300, 302
limited knowledge transfer impact300
narrowing of gaps302
labour process theory248
labour regimes11, 248–53
and capitalism248–50
case studies253–7
disorganized despotism251
factory regime248–9
hukou (household residential) system251
JIT systems252
state intervention252
variation and shifts, in China250–3 see also employment
diplomatic relations with193
Lagos–Kano railway140
Lekki Free Zone (LFZ)10, 193, 201, 206–9
Social Economic Rights Action Centre (SERAC)206
Latin America25
‘Leapfrogging as the Key to Africa’s Development’ report (CDB/WB)162
least-developed countries (LDCs)273
Lekki Free Zone (LFZ)10, 193, 201, 206–9
China–Africa Lekki Investment Company206
Lekki Free Zone Development Company206
Master Land Use Plan206
lending institutions, China132–7
commercial banks/loans136–7, 148
(p.337) commercial suppliers’ credits135–6
Leontief production function46
Lesotho, medical teams sent to67
ratios, of policy banks152
Li Peng69, 71
liberal capitalism99
liberalization, effects of98–100
Libyan crisis (2011)137
light manufacturing12
anchor firms, attracting275
excessive debt burden and finance sustainability299
limited knowledge transfer impact300
persistent trade imbalances299
quality FDI and productive capacity300
demand factors267
development agencies279
first-mover challenge267, 274–7
‘flying geese’ model12, 266, 267–9, 272
and industrialization of Africa265–81
information asymmetry274
business climate, improving301
narrowing knowledge and cultural gaps302
transforming FOCAC as an effective platform300–1
pilot survey (2017)269–74
policy recommendations277–80
real wages267
relocation of Chinese manufacturing, scale of268, 272
special economic zones (SEZs)276, 278, 279
under development in Africa275 see also manufacturing
loans, Chinese129–46
and African infrastructure9, 138–41
concession foreign aid104, 110, 134
economic and technical cooperation agreements133
to Egypt63
historical context130–2
industrial zones142
lines of credit130
loan books148
manufacturing, agro-industry and value-added production141–2
official development assistance (ODA)134
overseas lending institutions in China132–7
risky business
African debt management capacity, concerns145–6
debt relief142–3
risk reduction in African lending143–4
special economic zones (SEZs)142
and structural transformation137–46
three- and five-term syndicated136
zero-interest130–3, 141, 143
local government financing vehicles (LGFVs)151
localization, workforce241–4, 255
foreign direct investment (FDI)243
variation in rates of243–4
longue durée36
low-wage economies39
McKinsey surveys/reports4n4, 242, 243, 267, 300
macroeconomic policies47
Mali, sugar project141
and Chinese loans141–2
manufactured goods, Nigeria197
new Chinese manufacturing firms291f
original design manufacturing (ODM)272
relocation of Chinese manufacturing, scale of268, 272
Mao Zedong8, 61–2, 79, 86, 131, 313
relations with Africa (1949–76)62–6
Three Worlds Theory67
market-oriented reforms20
Masai tribe29
McKinsey Global Institute analysis166
medical teams67–8
methodological nationalism250, 254, 257
Ming Dynasty61
Ministry of Commerce (MOFCOM)100, 113, 195, 267, 285
Department of West Asian and African Affairs103, 106–7
institutional framework of China–Africa relations103–5
institutional rivalry between MFA and MOFCOM105–6
loans, Chinese132, 133–4
Ministry of Finance and Economic Development (MOFED)285
(p.338) Ministry of Foreign Affairs (MFA)100–3
Africa Desk101
institutional rivalry between MFA and MOFCOM105–6
as ‘Ministry of Protests’101
mixed-methods research257
modernization, economic69, 70 see also Four Modernizations
independence (1956)63
recognition of PRC (1958)64
most-favoured nation (MFN) treatment221, 221n32, 223
Mozambique, Agricultural Technical Demonstration Centre93
multilateral development banks (MDBs)152, 155, 161
multilateralism312, 313
multinational corporations (MNCs)26, 28
Western oil MNCs177–8, 180–1, 182, 184
mutual benefit principle (South–South)156
Nairobi–Mombasa rail project224
National Bureau of Statistics, China267
National Development and Reform Commission (NDRC)108
national institutionalism254
National People’s Congress (NPC)101, 108
National Petroleum Company (CNPC), China87
national public goods38n3
National Road No. 2, Congo140
national treatment (NT)221
modified form223
nationalism313 see also methodological nationalism
neoclassical model, Solow-type46
neoliberalism99, 131, 132
new economic geography163
New Structural Economics (NSE)267, 277
New York Convention (1958)229
Abacha dictatorship (1993–8)194
Chinese companies locating to194–5
Chinese investment in192–215
‘Chinese textile imperialism’196
Commercial Agriculture Credit Scheme203
dependence upon oil10
export processing zones (EPZs)204–5
free trade zones10–11
kidnappings in120
Lagos–Kano railway140
‘Look East’ policy194
manufactured goods197
memorandum of understanding (MOU) with China (2006)194
National Cotton, Textile and Garment Policy203
National Industrial Revolution Plan (NIRP)203
new government measures202–4
Nigeria Export Processing Zone Authority (NEPZA)204
Nigeria Investment Promotion Commission (NIPC)203
oil and gas engagements181–4
oil exports, dependence on197
overview of Nigerian and Chinese linkages193–5
Power and Aviation Intervention Fund203
presidential visits to China194
Real Sector Support Facility (RSSF)203
ruling elite183
Small and Medium-Scale Enterprises Credit Guarantee Scheme203
special economic zones (SEZs) in192–3, 206–10, 212
strategic partnership with China194
textiles and Nigeria–Chinese trade relations195–9, 201–2
imports199, 200t, 201
modern history of textiles196
Textile Intervention Fund203
Vision 20:2020202
Nigerian Investment Promotion Council (NIPC)195
Nigerian National Petroleum Corporation (NNPC)181
Niger/Niger Delta
Addax’s UDELE 3 oil well in182
counter-insurgency efforts194
repayment terms, Chinese finance143–4
Nkrumah, Kwame (President)66
Non-Aligned Movement (NAM)85, 313
non-discrimination principle223
North Africa68, 71, 135, 242
arms aid72, 75, 78
Nyerere, Julius88
Obama, Barack159
visit to China (2009)36
official development assistance (ODA)134
official policy frameworks98
Ogun–Guangdong Zone, Igbesa10, 206–10
oil and gas engagements106, 173–91
(p.339) agency of state and non-state actors178
China’s expanding relations with African petro-states175, 176
China’s oil imports173, 174t, 175
concept approach to China–Africa oil relations177–9
interplay between state and elite agency178–9
oil-for-infrastructure deals181, 182, 184, 188
Shell–ONGC Videsh deal184
state oil corporations (SOCs), Chinese173, 176–9, 183, 184
and African petro-states, case studies180–1
Western MNCs177–8, 180–1, 182, 184
Oil and Natural Gas Corporation Videsh (OVL), India184, 186
oil corporations, Chinese10
oil multinational corporations (OMNCs)173
oil price shocks (1973 and 1979)38–9, 131
One Belt, One Road (OBOR) initiative231, 234
‘One China’ policy8, 73, 111, 132
Onne Oil and Gas Free Trade Zone205
‘open door’ policy21
open economy25, 26
Organisation of African Unity (OAU)85
Organisation of Economic Cooperation and Development (OECD)
Development Assistance Committee (DAC)104, 159
OECD/DAC Blended Finance project158
Model Tax Convention225
original brand manufacturing (OBM)273
original design manufacturing (ODM)272, 273, 274
Overseas Development Institute (ODI)267, 269
Overseas Private Investment Corporation (OPIC), US135
ozone layer37
Paris Club of creditor countries159
parks, industrial142, 276, 301
parole evidence rule218
patent applications20–1
peacekeeping operations, UN72, 73, 75, 187
Pearl River Delta (PRD)267, 272
People’s Bank of China (PBOC)130, 131, 152 see also Bank of China
People’s Liberation Army Navy (PLAN)75
People’s Liberation Army (PLA)104
People’s Republic of China (PRC)
Five Principles of Peaceful Coexistence63, 74
historical relations with Africa61–2, 63
recognition64, 70
UN Security Council bid64 see also China
PetroChina180, 181
Petrodar Operating Oil Company (PDOC)186
petroleum imports72–3
Petroleum Industry Bill (PIB)182
Petroleum Industry Governance Bill (PIGB)182
Phillips-Van Heusen Corporation (PVH)276
policy banks, China
development finance and African infrastructure development150–2, 159
institutional framework of China–Africa relations109–10
loans and African structural transformation136
policy drivers100–6
Politburo Standing Committee (PBSC)100
poverty in China, prior to economic transformation2, 6, 20, 36
pragmatism2, 12
and policy flexibility298
‘pragmatic cheerleaders’175, 283–4
preferential loans134
preferential trade9
privatization245, 295
procurement and contracting157–8
profitability principles91
Programme for Accelerated and Sustained Development to End Poverty (PASDEP)287
provinces, China116–17
public entrepreneurship model, China10, 147, 149–50, 153
public goods, global
Chinese economy as1, 37–42, 43t, 44–5, 50
collective defence as38
International Task Force on Global Public Goods37, 38
national public goods38n3
structural transformation39
public–private sector partnerships (PPPs)91, 158
Qian Qichen71
Qing Dynasty195
Quotations of Chairman Mao66
(p.340) railway construction29
Ababa–Djibouti rail project224
Addis Ababa Light Rail System90
Dakar–Bamako line138
Ethiopia–Djibouti railway294
Nairobi–Mombasa rail project224
standard-gauge railway (SGR)140
Tazara Railway (Tanzania–Zambia)8, 67, 69, 86, 138–9, 140, 207
Reagan, Ronald131
rebalancing, economic12, 46, 47
‘red cap’ enterprises22
regional trade agreements (RTAs)221n32
regression analysis49
Regulations on Outbound Investment and Business Activities (2017)160
renminbi (RMB, official Chinese currency)
bonds137, 152
exchange rate strategy50–2
Republic of China (ROC)61, 132
replacement by PRC on the Security Council64, 66 see also Taiwan
research and development (R&D)22–3
investment in320–1
Reserve Bank, South Africa136
risk-taking, excessive48–9
road construction/repair140
scholarships76, 78
Second Sino-Japanese War (1937–45)61
Shangkun, Yang71
Sierra Leone, hydropower plant funding (1986)139
Sino-African relations see China–Africa relations
Sino-Ethiopian Agreement for Trade, Economic and Technological Cooperation (1996)221n33
Sinosure136, 137
skill development246–7
small- and medium-sized enterprises (SMEs)23
Special Loan Facility for African SMEs94
SOAS University of London, research247n10, 255–6
Social Economic Rights Action Centre (SERAC), Lagos206
Solow-type neoclassical model46
Sonangol (Angolan SOC)184–5
South Africa41, 92, 195, 227, 245
Chinese loans and African structural transformation135, 138
Chinese taxation225n54
historical official relations with China61, 62
Sixth Ministerial Conference (2015)76–7, 109, 118, 300
tax treaty with China230, 231
South Korea6, 286
Soviet Union, Chinese hostility to64, 67
special economic zones (SEZs)9, 10, 142, 151
in Ethiopia292, 301
light manufacturing276, 278, 279
Special Loan Facility for African SMEs94
international knowledge23
positive, of technology and know-how21, 29, 30
research and development (R&D)23
technology21, 22
Sri Lanka25, 256
Standard Bank, South Africa136
State Council, China101, 105, 106, 110, 115
Foreign Aid Training Centres approved by108
‘Visions and Actions’ statement of principles and cooperation (2015)152
State International Development Cooperation Agency (SIDCA)94, 108
state oil corporations (SOCs), Chinese173, 176–8, 183, 184
and African petro-states, case studies180–1
in Sudan186
State-owned Assets Supervision and Administration Commission of the State Council (SASAC)115
state-owned enterprises (SOEs)10, 26, 110, 150
borrowing from Chinese lenders139–40, 155
Chinese labour240, 243
farms and factories141
institutional framework of China–Africa relations114–16, 120
labour regimes251, 255
States and Markets (Strange)149
structural adjustment programmes132, 210
labour market deregulation and privatization following245
(p.341) structural transformation285, 320
in Africa4, 6–7, 9, 12, 14, 239, 267
and Chinese finance129, 130, 157
Ethiopia255, 283, 284, 286, 296
and future of China–Africa ties312, 319, 321
in China1, 6, 89, 157, 211
economic12, 267, 268, 277, 278, 280, 314
and infrastructure157 see also loans, Chinese
sub-Saharan Africa (SSA)2, 19, 28, 165, 186, 212
foreign direct investment (FDI)240
historical context of China–Africa relations75, 78
light manufacturing and African industrialization265, 266, 273, 274
special economic zones (SEZs)192–3
Chinese involvement87
independence (1956)63
oil and gas engagements186–7
railway construction140
Suez crisis (1956)63
sugar refineries141
Sun Yat Sen61
Sustainable Development Goals (SDGs)28, 265
Taiwan6, 8, 67, 194, 286 see also Republic of China (ROC)
Friendship Textile Factor141
Tazara Railway (Tanzania–Zambia)8, 67, 69, 138–9, 140
bilateral tax treaties225–6
treaties with African states220–1
China–South Africa tax treaty230, 231
Tazara Railway (Tanzania–Zambia)8, 67, 69, 86, 207
funding138–9, 140, 142–3
global public goods39
spillovers21, 22
technology transfers21
Ethiopia, Chinese relations with294–5
funding for140–1
Ten Principles, Bandung Asian-African Conference63
terms-of-trade shock25
textiles and Nigeria–Chinese trade relations195–9, 200t, 201–2
cotton textiles195–6
imports199, 200t, 201
modern history of textiles196
Textile Intervention Fund203
Thatcher, Margaret131
think tanks, China112–13
‘Three Networks and Industrialization Projects’89–90
Tiananmen Square crisis (1989)53, 69, 71
Tillerson, Rex311
time-series models49
total factor productivity (TFP)20–2
and economic growth24
township and village enterprises (TVEs)22
and economic growth21
with Egypt63
international trade agreements11
persistent imbalances299
preferential9 see also China–Africa trade
training courses76
Transition Assistance Group, UN72
transnational corporations (TCs)254
transnational corporations-joint ventures (TNCs-JVs)250
transport infrastructure31, 294
trilateral cooperation platform153
Tunisia, independence (1956)63
twinning assistance116n1
Two Whatevers policy68
United Nations
admission of China to (1971)66
Economic Commission for Africa168
Income and Capital Model Tax Convention225
peacekeeping operations72, 73, 75, 187
Transition Assistance Group72
United Nations Development Programme (UNDP)107
United Nations Industrial Development Organization (UNIDO)107
United Nigeria Textiles Ltd (UNT)196
United States
African Growth and Opportunity Act (AGOA)272, 280
and China67
Federal Reserve49–50
government debt, Chinese holding of42, 44
International Development Finance Corporation168
Overseas Private Investment Corporation (OPIC)135
(p.342) Vietnam273, 274
Washington Consensus99
water supply projects139, 140–1
West Africa164, 207
Economic Community of West African States (ECOWAS)210
‘win-win’ principle156, 166, 314
oil and gas engagements177–8, 183
workers, reallocation of24
workforce localization see localization, workforce
working conditions244–6
workplace encounters
China–Africa labour encounters241–8
and economic transformation239–40
World Bank41, 245
biannual Economic Pulse reports155
and development finance158, 159, 162
Light Manufacturing in Africa project275
World Bank–China Exim Bank Memorandum of Understanding on Cooperation (2007)161
World Bank Group (WBG)158
World Economic Forum, Davos (2017)50n12
World Trade Organization (WTO)
Appellate Body227
Chinese accession (2001)20–1, 87, 139, 227
Chinese and African member states221
dispute settlement system226–30
commercial agreements229–30
Dispute Settlement Body (DSB)227
Dispute Settlement Understandings (DSU)11, 227
investment agreements228–9
trade agreements227–8
GATT/WTO legal regime11, 233
and loans132
most-favoured nation (MFN) treatment221, 221n32, 223
national treatment (NT)221, 223
quotas, elimination of221
tariff reduction on imports221
trade agreements220
transparency of trade-related domestic laws221
Xi Jinping (Chinese leader from 2012)8, 76–9, 93, 101, 159, 298, 313
BRI launched by (2013)152
general secretary of the CPC Central Committee76
Governance of China7n8
as President109
‘Xi Jinping Thought’77
Xiaoping, Deng35–6, 62, 99, 319
domestic reform era (1978–92)2, 68–70, 86
general secretary of the CPC Central Committee69
Xiaotao, Wang108
Xinguang International Group consortium210
Yangtze River Delta (YRD)267
Yi, Wang44n6, 102
anti-Chinese riots in120
copper belt86
labour regimes254
mines244, 245–6
zero-interest loans130–3, 141, 143
zero-tariffs74, 287–8
Zhao Ziyang (1980–87)69
Zhejiang province, high-tech industries in23
Zheng He naval fleet61
Zhou Enlai (Chinese Premier 1949–76)63, 64–5, 69, 101
visit to Africa (1963–4)85–6
infrastructure development, Chinese finance137, 141, 142, 145
Iron and Steel Corporation137, 141
presidential visits71, 76
risk of lending to143