Even More Chinese Investment in Africa

Xi announces another US$60 billion for African countries

At the start of the Forum on China-Africa Cooperation in Beijing yesterday, Chinese President Xi Jinping pledged another US$60 billion to African countries to build major infrastructure projects, such as roads, railways, ports, pipelines and other links.

It's a whopping large amount adding to Africa's indebtedness to the Middle Kingdom, and Xi doesn't mind -- he's even willing to write off previous debts to get access to the African countries' natural resources.

From 2000 to 2014, China loaned US$86 billion. What's another US$60 billion?

The China-Africa Cooperation forum is on now in Beijing

With governments weak without much capital, this heavy investment from China is a godsend, but at what price politically, economically and socially? The Chinese are flooding African countries with cheap Chinese made goods, bringing in thousands of mainlanders looking to make money, but also giving Beijing much more political clout.

A decade ago the Chinese were proud of being able to "help" Africa, but now critics at home aren't so sure giving away US$60 billion to the continent is the best use of the money.

"You should first raise your own children," one online commenter wrote. "My God, there have been so many natural and man-made casualties recently, can you please take a look at our low-income people?"

Another exclaimed, "US$60 billion is money that we earned! Tell me who is causing the suffering of China's everyday people?"

Sounds like first-world complaints are already sprouting in China.

Infrastructure projects like highways have been built in Africa

State media were quick to defend the investment, saying how the money benefited both China and Africa, that Africa had large amounts of natural resources such as crude oil, manganese and copper. China is also Africa's largest trading partner, surprise surprise.

The People's Daily insisted China's aid did not have any political preconditions, and that many African countries have consistently reciprocated by helping China.

If you were given billions of dollars, the least you could do is give the donor what they wanted... which is why some accuse China of "neo-colonialism", or "cheque-book diplomacy".

In any event, with the on-going trade war with the United States, and the Chinese economy slowing down, Beijing-based economics professor Hu Xingdou thinks the generous loan should have been more carefully considered.

"Trade numbers and industrial revenues are going down, and most Chinese still cannot afford proper medical care or education," he said. "There are many critically ill Chinese who cannot do anything but wait for death, so skepticism online is quite natural... Aid to Africa is necessary but needs to be done within China's capabilities."

Silk Road: Lanzhou

Taken from our bus, there are many terraced hillsides in Gansu province

Our Silk Road tour started in Lanzhou, the capital city of Gansu province. It is home to 6.3 million people, of which 3.7 million people live in Lanzhou. That's probably because there are seven ethnic groups who live here, including Tibetans, Hui, Dongxiang, Mongolians and Kazak, as well as Han Chinese.

What you first notice about the province is that it's very mountainous. While Lanzhou is situated on the upper reaches of the Yellow River, not everyone has access to water, and so hardy crops are grown, such as corn, millet, and dates. When we rode along the highway we could see terraced fields on hilly areas -- they were in such remote locations, but if there are terraces, there are people.

Two sheep taking a ride on the highway...

Historically and geographically Lanzhou was an important strategic point along the Silk Road leading to the west towards Xinjiang and Eastern Europe, and east towards Xian. And during the Sino-Japanese war, the Lanzhou corridor was crucial to the Communists in transporting Soviet supplies to Xian. It was so well protected that the Japanese were not able to take Lanzhou. 

In ancient times, the Great Wall was also extended to Yumen to protect Lanzhou, and we got to see this place a few days into our trip.

Today's modern Silk Road still considers Gansu province an important one -- geographically it is right in the middle of China, and so all transport links go through here.

However, not all the roads are paved smooth, nor efficient. Some highways were single-lane traffic, which mean waiting until the opposite lane was clear before passing trucks carrying cars, fuel, equipment, sheep and pigs.

As a result our tour guide would never give us a definitive number on how many hours we would be on the road because if there was a traffic jam, or single-lane traffic, it could slow us down immensely and he wanted to manage our expectations.

Periodically we would encounter toll areas where security officers would come on board to check us and our passports. One time one officer looked long and hard at us before he finally advised us all to wear our seat belts.

Facing north, the Qilian mountains in the distance

Nevertheless, it was pretty amazing to see so many trucks on the road, but perhaps it was the only way to get goods to remote areas that were not necessarily near the railroad system. It makes you appreciate North American and European highway systems so much more!