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Home Economy And Business

Impact of China on EU Development Policy toward Africa: Navigating Shifting Power Dynamics and Competition

BY Christopher Burke

by NewsOnline Nigeria
November 26, 2023
in Economy And Business, Top Stories
0
Impact of China on EU Development Policy toward Africa

Final preparations are underway for the EU-China Summit to be held in Beijing 7-8 December 2023.  European Commission President Ursula von der Leyen and European Council President Charles Michel will travel to China to participate in a meeting with Chinese President Xi Jinping chaired by Chinese Premier Li Qiang.  The summit will be the first of this nature in four years and follows a series of high level meetings between Brussels and Beijing in recent months.

 

Internal discussions on the recalibration of the European Union’s (EU’s) relations with China were initially sparked, in part, by Beijing’s close relationship with Moscow and Russia’s ongoing aggression against Ukraine.  The Asian giant’s remarkable ascent on the world stage has established Beijing as a major global power and has already had a profound impact on Brussels including the EU’s development policy toward Africa.

 

The European Union maintains significant economic and political interests in Africa.  The EU accounts for 43 percent of all global aid valued at €70.2 billion in 2021.  Over 70 percent of this development assistance is disseminated to Africa through the EU budget for development cooperation.  Aimed at sustainable development, poverty reduction, good governance, peace and stability, the EU’s assistance takes various forms, such as investment grants, technical support, concessional loans, and guarantees, to safeguard member states’ interests and maintain influence across Africa.

 

Brussels seeks to promote trade and economic cooperation through initiatives such as the Economic Partnership Agreements (EPAs) and supports African countries to achieve the Sustainable Development Goals (SDGs) with a focus on poverty eradication, education, healthcare, gender equality, agriculture, infrastructure and renewable energy.  The EU engages in conflict prevention, peace building, and security cooperation by supporting peacekeeping missions, mediation efforts, and regional stability initiatives. It places a strong emphasis on good governance, human rights, and democracy, strengthening institutions, combating corruption, safeguarding human rights, and fostering free and fair elections.

 

Guided by the Belt and Road Initiative (BRI) launched by Chinese President Xi Jinping in 2013, China’s trade and investment provides countries across Africa with an alternative model of governance and pathway for development.  Beijing provides new avenues for growth and economic cooperation just at the time many traditional development partners are reducing overseas development assistance. This has given African nations greater levels of agency to shape their own development trajectories.

 

China’s approach to Africa has diverged from the traditional Western model of development assistance. While Western rhetoric focuses on the promotion of human rights, rule of law and democratic principles; Beijing’s engagement prioritizes economic development and stability. China’s emphases on infrastructure development and resource extraction resonates well with many cash-strapped African nations that see it as a viable pathway to achieve their own development objectives.

 

The goods, services and technologies brought to Africa from China are usually more “appropriate” for the local environment. Chinese products are considerably cheaper.  Construction techniques and practices, for example, are usually more low-tech and relatively easier for Africans to manage and maintain, as opposed to the more sophisticated and capital-intensive equipment used by Western companies.  Furthermore, Chinese firms are generally more coordinated, often with the assistance of their government, and better positioned to provide competitive prices to penetrate and secure markets

 

European policies continue to focus on support to EU business enterprises, access to markets and extracting value from former colonies while maintaining a semblance of stability; however, the rhetoric of its development policy are couched in terms of human rights, rule of law and democratic principles in support for liberal values. Beijing’s authoritarianism and perceptions of China’s contradictory approach to the continent provides a source and influence the EU’s engagement with China.

 

Beijing is now perceived as both a cooperation partner and a competitor within the EU’s policy framework.  Competition, as retired senior EU representative Christian Manahl suggests, is inherent in political and economic systems, driving innovation, growth and progress.  China’s emergence as a formidable competitor in international trade and its strengthening influence in the Global South cannot be ignored. Nevertheless, Beijing’s cooperation remains crucial in areas such as multilateral issues and climate change, where global collaboration is essential for meaningful progress.

 

Portuguese academic Luis Mah at ISCTE- University Institute of Lisbon suggests China has had a significant impact on the scale and form of EU development assistance to Africa where both powers seek influence and access to markets and resources.  The rise of China is indicative of broader shifts in global power dynamics. The EU’s attempts to maintain relevance in a changing world order face serious challenges as production capacities shift to Asia awash with financial resources. The EU’s traditional power base continues to be eroded.  This necessitates a recalibration of its approach to development policy. The ability to influence and shape global development initiatives requires adjustments to new realities and recognition of China’s increasing role.

 

Navigating the competition, cooperation and strategic rivalry with China to simultaneously provide fair competition, protect the interests of its member states and maintain stability poses significant challenges to the EU.  The geopolitical landscape, influenced by China’s partnership with Russia further complicates the EU’s approach. To remain relevant and effective, the EU must reassess its development policy and acknowledge the shifting power dynamics and the economic realities of a changing world.

 

Christopher Burke is the managing director of WMC Africa, a communications and advisory agency in Kampala, Uganda.  He has over 25 years’ experience working on a broad range of issues in development, governance, communications and peace-building in Asia and Africa.  

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