China’s provisions of foreign assistance to underdeveloped countries raise questions as to their ulterior motives. While providing more easily accessible loans to countries like Africa, Pakistan, and Angola, they also seem to be extremely vague as to the conditions of those loans (loan terms, repayment conditions, etc). Along with this, they also require that the goods and services purchased with the use of these loans, is done so through state-controlled companies elected by Chinese officials. However information pertaining to these project costs is also unclear. While there are definite results stemming from the aid provided, the obscurity surrounding the details of their foreign aid policies remains questionable.
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By: Allison Zamora
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The rapid increase of Chinese investment in Africa has raised questions about the motive. First of all, let's look at some facts. China has one fifth of the world population and it only has 7% of world's cultivable land. China's economy has been growing in an astonishing rate (double digits of GDP for many years in the last decade), that makes China in huge demand on the resources such as oil, timber and minerals, etc. Where can they get these resources? Obviously Africa is one of the primary resources now.
Chinese leaders have been paying attention to Africa for many years. The top Chinese leaders have visited many African countries since Mao era. That at least has shown a consistency of their policy towards Africa. I believe that the investments in Africa from China are for the mutual benefits. Because of the Chinese financial aid and other effort, Africa’s infrastructure is being built in a rapid rate. Will that benefit African people? Absolutely!! Has China received what they need? Of course. One important economic principle is that "Trade makes everyone better off". As to the byproduct of a long term heavy investment, that remains to be seen. As for now, we do not need to worry about the motive of Chinese investment in Africa.
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