Rajpriya Gautam

A new report provides an unprecedented view into Chinese loan contracts with dozens of governments throughout the Global South. Researchers from AidData, the Kiel Institute, and the Center for Global Development analyzed 100 contracts between Chinese state-owned entities and government borrowers in 24 countries and then compared the terms of those contracts with those of other bilateral, multilateral and commercial creditors. China’s lending practices are notoriously opaque and until now very few people other than key principals involved in the actual loans have had the opportunity to review these contracts in detail so as to better understand the specific legal terms and how they’re structured. What the research team discovered is that China is “a muscular and commercially-savvy lender” who employs contract terms that are in many ways quite similar to those of other international creditors. However, they did note a number of key differences that highlight how China structures its d...

China is steadily pulling back the reins on its lending practices in Africa, according to  a new report published on Monday by the China-Africa Research Initiative (CARI) at Johns Hopkins University . Researchers Deborah Brautigam and Kevin Acker found that Chinese loans to African public sector borrowers fell again in 2019 to $7.7 billion, down 30% from the year before. And that is a significant decrease when measured against the $28 billion that China lent in 2016. CARI’s new figures about what’s happening in Africa echo similar findings made by researchers at Boston University’s Global Development Policy Center last year that showed an equally dramatic plunge in total lending by China’s two policy banks, the China Development Bank and the China Exim Bank.  In that case, lending amounts went from $75 billion in 2016 to just $4 billion in 2019 .  While the amounts have declined markedly and the way that the Chinese are lending in Africa is rapidly evolving (e.g. less r...

One of the key findings in CARI’s newest report on Chinese lending patterns in Africa revealed a major shift in who Chinese creditors are lending money to and for how much. The once enormous resource for infrastructure loans extended to countries like Angola and Zambia have given way to much more modest financing packages in places like Ghana and South Africa. It’s also notable how Chinese lending in Africa has diversified beyond just the traditional resource extraction hubs to also include countries like Ivory Coast and Egypt. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Connect with leading professionals on the China- Africa Experts Network. You've reached your free monthly article limit. Subscribe today for unlimited access. SUBSCRIBE: $15 per month SUBSCRIBE: $149 per year -17% Savings The post Who China Lends Money to in Africa and How Much They Pr...

United Nations Secretary-General Antonio Guterres issued a dark warning on Monday that too little had been done to resolve the burgeoning debt crisis in developing countries what has been so far is “too limited in scope and too late.” Guterres told the Financial Times that because only six countries last year defaulted on their debts that it provided an “illusion” of stability and a “misperception of the seriousness of the situation.” The Secretary-General’s comments come as the world body launched a new set of proposals on Monday to help low and middle-income countries cope with the rapidly escalating debt costs. The new plans support the International Monetary Fund’s issuance of $650 billion of Special Drawing Rights that will provide countries in Africa with an estimated $30 billion of liquidity. Read t he full story on the Financial Times website. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shapi...

U.S. Senate Majority Whip Dick Durbin  published a press release on Monday  that touted a new bipartisan bill that aims to increase U.S. exports to Africa. The “Increasing American Jobs through Greater Exports to Africa Act” is ostensibly about America’s steadily declining trade volume with the continent but you wouldn’t know that from reading the press release that was far more focused on how to “counter malign efforts by China.” In fact, China was mentioned 11 times in the short 1.5-page press release, nearly matching the 14 references that former National Security Advisor John Bolton made about China in the  2019 speech at the Heritage Foundation  when he launched the Prosper Africa strategy. Every Quote From a Senator in the Press Release Included the Words “China” or “Chinese” BEN CARDIN (D-MD):  “As African countries seek to grow their economies, the United States can and should enlarge its trading partnerships for mutual benefit. This bill would stren...

Acclaimed China economist, Peking University professor, and Carnegie Senior Fellow  Michael Pettis  posted  a 7-part Twitter thread on Tuesday  where he reflected on the new data published by the China-Africa Research Initiative at Johns Hopkins University that shows a dramatic cutback in Chinese overseas lending to African governments. The following is a full, unedited transcript of his posts on Twitter: The lesson here was always more about ordinary incompetence than debt-trap diplomacy. One of the big problems with development-country lending — and especially from inexperienced lenders — is how dangerously pro-cyclical it always is. Another problem is how easy it has always seemed to countries that are first “going out” into development lending — e.g. the U.S. in the 1920s, the USSR in the 1950s, OPEC in the 1970s, Japan in the 1980s, China in the 2000s, etc. In the early stages of the lending, when underlying conditions were good and commodity prices ris...

Nigeria’s outspoken Transportation Minister Rotimi Amaechi accused lawmakers in the House of Representatives of being “selfish” for launching a probe into a 2018 Chinese loan agreement. Representatives erroneously thought that the waiver of a sovereign immunity clause in the loan contract meant that the country’s sovereignty would be compromised, when in fact that is not the case. Rotimi, in turn, said the whole affair had damaged the country’s reputation in the eyes of the Chinese and suggested that now loans for future railway projects are in jeopardy: “The loan for Ibadan to Kano (standard gauge railway), up till now we haven’t gotten approval. And at the point (when sovereignty clause controversy) happened, we were just on the verge of getting approval. (The Chinese) withdrew. They’re asking more questions. “That’s where we are; we’re talking to them. They’ve promised to give us the loan, but at least it’s held us back since June till now. We’ve done seven months. If they had g...

China appears willing to pay higher financial and environmental costs if it means ending its dependence on Australian commodities including iron ore and coal. China has been steadily diversifying its sourcing of key commodities that it once depended on Australia to provide, even if new suppliers in places like South Africa and Guinea don’t offer the same benefits.  China-Australia ties have deteriorated considerably over the past year  due to a number of factors including Huawei, China’s territorial claims in the South China Sea, and Canberra’s call for an independent investigation into the origin of COVID-19.   China has responded furiously, blocking imports of a number of Australian products ranging from wine to wheat to coal. Now, China’s looking to other parts of the world to replace Australian suppliers and several African countries are well-positioned to benefit. SOUTH AFRICA : China is importing more coal from South Africa even though South African co...

Zimbabwe took delivery on Tuesday of a huge shipment of more than a million doses of COVID-19 vaccine  that it purchased from China. In making the announcement on Twitter, Chinese ambassador Guo Shaochun acknowledged some of the vaccine production and distribution problems at home . Despite the huge demand for vaccines at home, we are doing our best to support Zimbabwe's fight against COVID19 because we are all- weather friends&we keep our promise to ensure the accessibility& affordability of the vaccines, particularly for developing countries. @edmnangagwa https://t.co/kL33uhUm20 — Chinese Ambassador to Zimbabwe (@China_Amb_Zim) March 30, 2021 Other Chinese Vaccine and Medical Aid Headlines From Across Africa: ETHIOPIA:  Health Minister Lia Tadesse took delivery on Tuesday of 300,000 doses of COVID-19 vaccine donated by the Chinese government.  (@LIA_TADESSE) NIGER:   After getting vaccinated on Monday, Prime Minister Brigi Rafini annou...

Conservative commentators and media in the United States all seem to think that China’s newly signed 25-year strategic cooperation agreement with Iran is a game-changer and marks the emergence of a new anti-democratic power axis. But pretty much everyone else isn’t quite so sure. In fact, a lot of observers suspect that the agreement is really just an MoU, given that it contains no measurable targets, and is more aspirational than immediate in scope. Latest Commentary and Analysis on the China-Iran Agreement: AN “ASPIRATIONAL DOCUMENT”:  “There may be less than meets the eye in the agreement, at least in its current form. Bill Figueroa, a researcher specializing in China-Iran relations, argued in a Twitter thread that the agreement was ‘not a big deal.’ Instead, it’s ‘an aspirational document’ that ‘provides no methods for enforcement, measurable goals, or specific programs.'”   (THE DIPLOMAT) NO FIRM NUMBERS:  “Although the deal has been touted as being w...

Chinese vaccine deliveries to Africa appear to have picked up pace with shipments going to more countries over the past week, according to the latest tracking map produced by CGTN. In all, the government  claims more than 260 million Chinese vaccines  have been distributed worldwide through March 28th. Click here to view a larger version of the map. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Connect with leading professionals on the China- Africa Experts Network. You've reached your free monthly article limit. Subscribe today for unlimited access. SUBSCRIBE: $15 per month SUBSCRIBE: $149 per year -17% Savings The post Chinese Vaccine Shipments to Africa Pick Up As Beijing Reports 260 Million Doses Delivered Worldwide appeared first on The China Africa Project . source https://chinaafricaproject.com/2021/03/29/chinese-vaccine-shipments-to-a...

Chinese Foreign Minister Wang Yi closed out his Persian Gulf tour on Sunday with a major announcement that the United Arab Emirates would become the first country outside of China to manufacture the widely-distributed Sinopharm COVID-19 vaccine, making the UAE the first country in the region to build vaccine production capacity. The new factory will be based in Abu Dhabi as part of a joint venture between Sinopharm and the Abu Dhabi-based technology company Group 42. Once it’s fully operational, the new facility will produce up to 200 million doses a year. Production is expected to begin in April.  (REUTERS) Chinese Vaccine Headlines From Across Africa: SOUTH AFRICA : Chinese ambassador Chen Xiaodong announced on Twitter that Beijing stands ready “to provide COVID-19 vaccines to South Africa as long as there is a need” and assuming Chinese jabs are approved by regulatory authorities.  (@AMBCHENXIAODONG) ANGOLA:  Angolan Health Minister Silvia Lutucuta took deli...

Chinese Foreign Minister Wang Yi returned home on Sunday after wrapping up a five-day, six-nation tour of the Persian Gulf and Turkey. Wang’s visit highlighted the growing importance that Beijing now assigns to its diplomatic ties in the broader MENA arena and its aspirations to play a larger role in regional diplomacy.  One of the key themes of the tour, albeit largely unspoken, was China’s efforts to build a new coalition against the United States and Europe. This was most visible in Iran, not surprisingly, but was also an undercurrent in Saudi Arabia and Turkey. Both countries face increasingly strained ties with the West. Key Themes From Wang Yi’s Tour of the Persian Gulf and Turkey XINJIANG:  Wang took China’s message on Xinjiang to some of the world’s most influential Muslim countries as part of an effort to push back against critics in the U.S. and Europe who accuse Beijing of mass internment of its minority Uyghur population. In both Saudi Arabia, home of the ...

Chinese Foreign Minister Wang Yi kicked off a week-long six-nation tour of the Persian Gulf and Turkey on Wednesday with a stop in Riyadh, where he met with his Saudi Arabian counterpart Prince Faisal bin Farhan. Relations between the two countries have warmed considerably in recent years as China has shifted large portions of oil buying from Africa to Saudi Arabia and other Persian Gulf states. Saudi Arabia, in fact, is now China’s largest oil supplier and was consistently among the top three suppliers last year. But as China’s presence in the Middle East becomes more prominent and Saudi Arabia becomes increasingly estranged from the United States, the geopolitical dimension of the Sino-Saudi relationship is rapidly becoming much more important. Both countries appear to have a shared objection to what they perceive as U.S. and European interference over human rights issues. Wang picked up on this theme when he raised the Xinjiang issue with the prince, who in turn reportedly ex...

China  donated a batch of medical supplies (not vaccines though) to the United Nations Economic Commission in Africa  in what now appears to be part of a larger effort to provide critical pandemic relief to United Nations organizations and other multilateral institutions. Earlier this month,  Beijing donated 300,000 doses of COVID-19 vaccines to the UN  for peacekeeping troops around the world. Also,  China provided an unknown quantity of Sinopharm jabs  to the staff at the Arab League Secretariat in Cairo. Today’s China Vaccine Headlines in Africa: SOUTH AFRICA:  China’s Sinovac has committed to supplying South Africa with five million doses of its CoronaVac vaccine. The vaccine is currently awaiting approval for emergency use from the country’s pharmaceutical regulator, SAHPRA.  (BUSINESS INSIDER) SUDAN:  Sudan will receive its first shipment of 250,000 doses of the Chinese Sinopharm COVID-19 vaccine on Friday, state news agency S...

The list of countries receiving Chinese vaccines around the world is large and growing but it’s still not clear what criteria China uses to distribute vaccines to some countries over others. Two Czech researchers at the Association for International Affairs in Prague used open-source information to track Chinese vaccine donations around the world and tried to discern the motivations behind China’s distribution strategy from the data. Key Highlights From Ivana Karásková and Veronika Blablová Report on “The Logic of China’s Vaccine Diplomacy” FREE SAMPLES WORKED : “Provision of a “free sample” often resulted in the recipient country’s interest in the purchase of the vaccine, this time in millions of doses. EQUAL TREATMENT: “China [does not] treat its customers equally. Some countries received vaccines in the form of donations, while others purchased them or were offered a loan to buy them – an alternative aimed primarily at the Latin American and Caribbean countries...

There are just five years left before the demand for cobalt, a critical metal used to make the batteries in electric vehicles, is going to outstrip the known supply of this strategically vital resource.  And with 60-70% of the world’s cobalt reserves located in the Democratic Republic of the Congo , access to those mines is going to be critical, given the rapid transition to a post-carbon economy that’s underway in the U.S., China, and Europe. China has the upper hand  at present, given that  Chinese companies control an estimated 40% of the cobalt output in the DRC  and, more importantly, dominates the processing market that automakers around the world depend on. Cobalt continues to trade at multi-year highs  in part because China embarked on  a 5,000 ton stockpiling program last year. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Connect with l...

Organizers of the annual Africa’s Business Heroes prize sent out an announcement on Wednesday that the online portal to apply for the competition will open on Monday.  In the past, just last year in fact, this same announcement had Jack Ma all over it. But not this year. In fact, there’s no indication whatsoever that Ma founded the competition and that’s even supported by his foundation or Alibaba. It’s as if he’s just… disappeared. Read the full announcement sent by the Africa’s Heroes Awards organizers. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Connect with leading professionals on the China- Africa Experts Network. You've reached your free monthly article limit. Subscribe today for unlimited access. SUBSCRIBE: $15 per month SUBSCRIBE: $149 per year -17% Savings The post Someone is Notably Absent From This Year’s Alibaba-Backed Africa’s Business He...

A group of scholars at the Council on Foreign Relations in New York  published a critical report today  that attributes U.S. “inaction” and “withdrawal” for creating a vacuum in the international arena that China filled with its Belt and Road Initiative.  The authors detailed how cutbacks in U.S. spending on development assistance, 5G technology, and infrastructure development around the world provided Beijing with an opening that it took full advantage of.  But the authors are also very clear in their recommendation as to how the U.S. government should respond to the formidable challenge that the BRI now presents the United States. “The United States cannot and should not respond to BRI symmetrically, attempting to match China dollar for dollar or project for project,” they said. Instead, Washington should “leverage core U.S. strengths, including cutting-edge technologies, world-class companies, deep pools of capital, a history of international leadership, a tradit...

The International Monetary Fund may issue new Special Drawing Rights (SDR) that would provide $650 billion to its members, the bulk of which is intended to go to the world’s poorest countries to help mitigate the impact of the ongoing economic downturn. The SDRs are allocated to each country based on their share of the fund but most wealthier countries have promised to contribute their portion to a sort of mutual fund that would be used to support developing countries. IMF Managing Director Kristalina Georgieva said on Tuesday the new SDRs may be available sometime in June.  (BLOOMBERG) SUGGESTED READING: Barron’s :  A New Global Plan to Help Struggling Countries Misses the Mark  by Leslie Lipschitz and Susan Schadler Project Syndicate:   When Special Drawing Rights Aren’t So Special  by Gyude S. Moore and Hannah Ryder Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-...

Zimbabwean President Emmerson Mnangagwa will head to the resort city of Victoria Falls tomorrow to receive his first injection of a COVID-19 vaccine produced by Sinovac and kick off the second phase of the country’s national vaccination drive.  Last week,  Zimbabwe took delivery of a batch of 344,000 doses of Chinese-made vaccines  that included a mix of purchased and donated jabs.  (THE ZIMBABWE MAIL) Other Chinese Vaccine Headlines From Around the World: AFRICA:  President Ali Bongo received his first injection of a Sinopharm COVID-19 vaccination on Monday in Libreville. Gabon received a consignment of 100,000 doses from China earlier this month.  (GABON REVIEW) MENA:  Following the announcement of a possible delay of the Oxford/AstraZeneca COVID-19 vaccine from the Serum Insite of India (SII), Morocco is set to receive 2 million doses of the Sinopharm vaccine on March 30.  (MOROCCO WORLD NEWS) AMERICAS:   Chile took delivery of ...

Talks between China and Egypt to launch a new manufacturing facility have reportedly reached “an advanced stage.” The planned facility will produce COVID-19 vaccines made by China’s Sinovac Biotech Ltd, according to Egyptian Health Minister Hala Zayed. At a press conference on Monday with Chinese ambassador Liao Liqiang, the minister said she hopes the two sides will be able to finalize an agreement before the end of the month. Once operational, assuming the deal is signed, the new facility would produce jabs under license from Sinovac (not an IP waiver) for distribution in Egypt, Africa, and portions of the Arab world. Sinovac has a similar production arrangement already up and running in  Brazil . Read m ore on the story on the Reuters website. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Connect with leading professionals on the China- Africa Experts Netw...

With oil and gas demand in the U.S. and Europe expected to fall dramatically in the years ahead as both regions embrace a post-carbon economy, two of the world’s largest energy exporters, Qatar and Saudi Arabia, are now looking to China to fill the void. Ministers and corporate leaders from both countries are placing huge long-term bets on supplying China with vast amounts of oil and gas for decades to come: QATAR:  The state-owned Qatar Petroleum signed its first long-term deal to supply natural gas to China. The state-owned Qatar Petroleum signed a deal on Monday to supply Sinopec, also a state-owned company, with 2 million tons of liquified natural gas per year.  (OIL & GAS MIDDLE EAST) SAUDI ARABIA:  The head of Saudi Aramco, the world’s largest oil company, said that ensuring China’s energy security for the next 50 years will be the company’s top priority. Amin Nasser made the comments on Monday at a meeting of the China Development Forum. Saudi Arabia is no...

Opinion leaders in 12 French and Arabic speaking African countries look less favorably upon France and China, according to the findings of the third annual survey conducted by the French Council of Investors in Africa (CIAN), an independent business association. China fell 9 points this past year to 22% overall and France slipped to seventh place overall among those foreign countries with the best overall image. The survey’s director Mohamed El Kalchi noted that the U.S. and Germany, who both topped the poll, did not seem to suffer any reputational damage in the 12 countries polled over their mishandling of the COVID-19 pandemic last year. Read the full survey on the CIAN website (in French). Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Connect with leading professionals on the China- Africa Experts Network. You've reached your free monthly article limit. Subscri...

The popular perception of China’s steadily growing presence in Africa has long been viewed with skepticism among France’s political, media, and academic elites who have historically regarded the continent, particularly francophone countries, as a traditional sphere of influence. Most analysis and media coverage on the issue tends to frame Chinese engagement in Africa in a rather negative perspective. That was on full display this week when many of France’s largest news publications including  Le Monde ,  Le Point  and  La Tribune  among others all  re-published an article by Thierry Vircoulon , coordinator of the Observatory for Central and Southern Africa at the French Institute of International Relations (IFRI). The article was riddled with inaccuracies including references to widespread African indebtedness to China (not true as only a handful of African countries have large Chinese debt portfolios), suggesting “millions” of Chinese have migrated ...