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CHINA’S
INCREASING INTEREST IN AFRICA: IMPLICATIONS FOR NIGERIA’S NATIONAL DEVELOPMENT
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
The most widely accepted approach to
the study of why nations relate with one another is the theory of realism (T.
Dunne 2009:56). Realism as a theory of international relation is based on the
idea that nations only relate with one another for self interest (national
interest) and the desire for one nation to dominate the other (hegemony).2
However, another school of thought sees
the essence of international relations in another perspective. This school of
thought postulate the desire of nations to relate on the basis of common
interest and the need for common development.3 This school of thought is based
on the theory of liberalism and idealism.4 This theory stated there is the need for nations to relate with
one another and this kind of relationship is meant to foster national
development.5
2. Additionally, it is expedient to note that
nations relate generally for different reasons. There can be diplomatic
relations based on politics, economic, social, and military reasons.6 The
more economic viable nations
depend heavily on the less
economic viable nations to suceed.7 It is however sad to note that most
developing countries of the world especially countries of Africa are consuming nations. Although most natural
resources of the world lies within this territory, the lack of a technological
base and other deplorable state of infrastructure has bedeviled their
industrial capacity for manufacturing.8 They
depend highly on importations of products manufactured from more
industrialized and developed nations. Likewise, the developed nations of the
world depend on the less developed nations for natural resources for their
industries. All pointed towards the need for interdependence for attainment of
national development. According to the Karen Mingst, national development
encompasses the whole structure of nation’s developmental capacity which has
economic development as its fulcrum.9
3. The most powerful nations that control the
world’s military and economic strength are called the great powers. The great powers
include the United States, Great Britain, Russia, France, Germany, Japan and China. These countries
are most influential in the world’s
politics and economics of international relations.10 China, with a population
of 1.3 billion people as at 2007, is the most populous country in the world.11
It has risen to become second largest economy in the world. She is a rising power and a permanent member
of the United Nations Security Council, with far-reaching ambitions. In contrast to China, Africa is a continent
of 58 countries which are among the world smallest and poorest, and China has
relations with many of them.12 This
relationship is due to the interest that China has in the countries.
4. The quest for political and economic
dominance among states occupies the international political system. For the past decade, the Chinese economy has
been expanding with enormous energy resources, hence China has now set its
sight on Africa.13 China’s interest in
Africa is not new. In the 1960s and
1970s, Beijing’s interest centered on building ideological solidarity with
other underdeveloped nations to advance Chinese-style Communism and to repel
western Imperialism. Following the cold
war, Chinese interests evolved into more pragmatic pursuit such as trade, investment,
and energy.14
5. China’s increasing domestics energy
demand, combined with declining domestic petroleum and insufficient coal
output, has spurred her to pursue stable overseas energy sources. In 2007,
China’s net oil imports amounted to 3.2 million barrels per day or 48% of its
total consumption. In 2009, its daily
import requirement reached 10.7 million
barrels which was 75% of consumption.15
The oil and natural gas production in Asia is not growing fast enough to
meet Chinese demand, and a large portion of Middle East oil and gas production
is normally allocated to the US and European markets.16 therefore, China must look elsewhere for a
new energy source.
6. Currently an estimated 25% of China’s
total oil requirements come from Africa
and China has placed high priority on maintaining strong ties with her African
energy suppliers through investment, high-level visits and strict policy of
non-interference in internal affairs of their suppliers.17 In January 2006,
Foreign Minister Li Zhaoxing toured six African nations which are Cape Verde,
Senegal, Mali, Liberia, Libya and Nigeria.
The visit was to strengthening
China’s interest in Africa. After the
tour, China’s African Policy was released as an official Chinese government
paper aimed at promoting economic and political cooperation as well as joint
energy development without interfering in each other’s internal affairs.18 Non interference in the internal affairs of
other countries is a good posture.
7. Consequently, the era of sole dependency
on western countries like the USA, Britain, France and Germany by African
countries is fast gradually coming to an end. Year after year China’s bilateral
and multilateral cooperation with African countries is increasing. China today
is the Africa’s second-biggest trading partner after the US.16 From Nigeria’s
railway and oil exploration contracts to Ghana’s billion dollars transport
contracts and Angola’s oil deals, China has gradually taken over most economic
trade centres of Africa. In Kenya, China is leading as expected in foreign
investments with lucrative infrastructures, telecoms and defence contracts.17
Nearly all areas of the Kenyan economy have
attracted considerable interest from the Chinese investors. As reported,
China has taken control of major infrastructure projects with an estimated 60
percent market share.18 Road construction, airports, water systems, power
generation, housing and hospitals are all under the Chinese.19
8. Nigeria
is one of China’s biggest markets. In
July 2007, the Chinese government signed an 800 million dollars crude oil sales
agreement with Nigeria in the following 5 years, china was expected to purchase
30,000 barrels of crude oil daily from Nigeria.
China won licenses to operate four oil blocs in Nigeria as part of
incentives to build a hydro power station.
China also launched Nigeria’s first space satellite.19 The satellite
launch has further strengthen china’s relationship with Nigeria. The impact of
Chinese trade cooperation in Nigeria has
been outstanding. The oil sector, whose exploration over the years has
been dominated by the western world, is gradually shifting towards the Chinese
market. This was evident in 2009 when Nigeria’s NNPC signed an agreement with
Sinopec a Chinese company to develop Oil Mining Lease (OML) 64 and 66, located
in the waters of the Niger Delta.20 Another area of the influence of Chinese in
the Nigerian economy is the power sector and the transport sector which have
been the bane of Nigeria’s economic development.
9. Apart
from the participation of the Chinese in the Nigeria economic development
another notable influence of the Chinese is their increasing population in
Nigeria. Chinese population has increased
from 8,300 in 1993 to 45000 in 2009.21 Chinese nationals have over 30 solely
owned companies or joint ventures in Nigeria.22 Nigeria’s China town evolved as
mere trading settlement however in recent times it has metamorphosed into a
large Chinese settlement where most of the settlers are Chinese and most of the
shops are owned by them.23 There are 2 important perspectives to China’s
interests in Africa in general and Nigeria in particular. These are
exploitation without accompanied sustainable national development
as explained by the theory of realism. The other perspective is
opportunity with sustainable national development as explained by the theory of
liberalism. The Chinese increasing interest in Africa in general and Nigeria in
particular is therefore an issue to be considered. This is in order to take
advantage of the benefits of these relations as it affects the national
development of Nigeria.
STATEMENT OF
PROBLEM
10. Chinese economy has gradually grown to
become not only a major economy in the world but also one of the most
influential economies. Its influence in Africa has been quite enormous and
strategic with its contributory role to infrastructural development. China’s
increasing interest in Nigeria has also been
outstanding in the last 20 years. Currently China is seriously competing with western countries
in term of investment in different sectors of Nigerian. Consequently, There is
the need to analyse the increasing interest of the China in the Nigerian
economy. This is to avoid a possible neorealist attitude or resource
exploitation which characterized the interest of the Western countries in
Africa. Furthermore, It is expedient to
make sure that the Nigeria economy benefits considerably from this bilateral
relations. Based on the foregoing, this study seeks to give answers to the
following questions.
a. How has the Chinese increasing presence
in Africa affected the Nigeria?
b. What are the implications of the
increasing interest of China to the national development of Nigeria?
c. What are the challenges facing the
China-Nigeria bilateral relationship for Nigeria’s national development?
c. What are the possible strategies and
policies to be adopted to help enhance this relationship for Nigeria’s national
development.
OBJECTIVES
OF THE STUDY
8. The objectives of this study are:
a. To analyse the increasing interest of
China in Nigeria.
b. To
highlight the implication of the increasing interest of China in
Nigeria.
c. To examine the challenges to an efficient
bilateral relationship between China and Nigeria with regards to Nigeria’s
national development.
d. To proffer strategies for a better
bilateral relationship between Nigeria and China for Nigeria’s national
development.
SIGNIFICANCE
OF THE STUDY
9. The study is expected to benefit the
ministry of foreign affairs in its efforts of pursuing a mutually beneficial
foreign relationship with China towards enhancing Nigeria’s national
development. it would also benefit the
private sector, MDAs as well as other
polices maker within Nigerian government. The study will also contribute
immensely to the existing body of knowledge on international relations as it
relates to national development.
10 It is hoped that the study will add to the
existing but limited literatures on the issue of China’s bilateral relation
with Nigeria and its implication to Nigeria’s national development. It will
finally provide materials for future studies on this topic.
SCOPE OF THE
STUDY
11. The concept of international relations is
quite broad and contains many theories with different perspective. This paper
will only cover the theories of Realism
and Idealism/Liberalism. In as much as China’s interest in Africa has been
notable some years back before the beginning of the millennium, this study will
only cover the period from the year 2000 to 2010. This is the period when Chinese made notable impact on the Nigeria’s economy.
12. Therefore , this study will utilize extensively, relevant data from the year 2000 to 2010. There could
however be references made to literatures earlier than the said dates especially
on the concept of international relations and national development.
LIMITATIONS
OF THE STUDY
17. This research work was impaired by some
limitations. A major limitation was the use of secondary data to analyse the
concepts of international relations as it relates to national development.
Although, the data used was from reputable sources, the authenticity of their
findings might not be insulated from bias.
18. The concepts of international relations and
national development are intangible. Hence, the empirical testing of both
concepts was relatively impossible. However, these did not affect the quality
of research carried out and the outcomes of the findings.
RESEARCH
HYPOTHESIS
19. The significant growth of China’s economy
and its increasing interest in Africa is a matter of concern. Especially has it
relates to the influence of emerging
economies and their relationship with developing nations. In this case China
and Nigeria. This relationship on one
perspective is based upon the common interest of nations for collective and
national development as postulated by the theory of idealism and liberalism.
Nigeria therefore seeks to gain in many ways in this bilateral relationship.
Some of the areas where this relationship has impacted on Nigeria’s development
are infrastructural development, science and technology, bilateral trade and
many more.
20. However, it is necessary to consider this
relationship with a view to identifying its adverse effects on Nigerian national development. This is as
postulated by the theory of realism.
Consequently, this study seeks to point out what Nigerian government
could do about this adverse effects to
derive optimum benefit for her national development.
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