Chinese merchant migrants in Africa: new trend in Sino-African relations

By Sam Blay
0 Comment(s)Print E-mail China.org.cn, October 23, 2016
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On a recent flight to Africa, I sat next to two Chinese ladies. After exchanging a few pleasantries, I learned they are both from Shaanxi Province, and they were travelling to join their partners in West Africa - one operating a Chinese restaurant, the other prospecting for gold.

There is an emerging Chinese "merchant migrant" population in Africa; my two fellow passengers were part of this trend, and an increasingly important element in Sino-African relations.

Africa has been hosting Chinese citizens for decades. However, earlier generations of Chinese nationals normally went to Africa on government-sponsored projects, leaving after these were completed.

Recent Chinese arrivals are unique for two main reasons. First, most enter as private citizens; second, they promote private business ventures. In fact, they are gradually taking the place of Lebanese and Indian merchant migrants of previous generations in Africa.

By some estimates, there are now more than a million Chinese citizens in Africa, which can be attributed to several "push and pull" factors.

Firstly, changes in Chinese emigration policies make it relatively easy for Chinese nationals to undertake private travel. Secondly, lack of well-paying jobs in rural China makes foreign ventures an attractive option. Hence, most new migrants are from rural areas and usually with relatively low education.

Then, there are the "pull factors." Most sub-Saharan African countries have ineffective immigration policies as well as endemic government corruption ministries. This results in high levels of illegal immigration and unlawful entry into the labor markets.

Finally, for most Chinese merchant migrants, the start-up business costs are relatively low, and actually require little education. The standard practice is to go into the retail or wholesale fields handling of low-cost Chinese goods, Chinese restaurants or Chinese traditional medicine clinics.

Chinese merchant migrants in Africa have a unique advantage over earlier European, American, Indian and Lebanese migrants. Being mostly from rural areas, they have proved highly adaptable in Africa, displaying abilities to live and do business sometimes in remote, rough and inhospitable conditions.

Paradoxically, this is also their greatest disadvantage. Being able to adapt, merchant migrants frequently find themselves clashing with local merchants who often cannot compete with the "China shops" with direct access to Chinese manufacturers. This has led to increased anti-Chinese sentiments, even violent crimes against them.

As more Chinese merchant migrants succeed, some have also become very adept in exploiting the high levels of corruption that are all too common in African countries.

Across sub-Saharan Africa, some Chinese merchant migrants have been accused of maintaining poor and unsafe labor standards, environmental vandalism, dispossessing powerless landholders and flouting local laws through bribes to local officials. This has led to significant backlash against them.

In 2011, for instance, the "Chinese question" became an issue in the Zambian elections. In 2013, Ghana expelled 4,500 Chinese for illegal mining. In more recent times, there have been protests against Chinese businesses in Tanzania, Malawi, Namibia and Senegal.

Between 2001 and 2010, the Export-Import Bank of China extended $67.2 billion in loans to sub-Saharan Africa. This figure was $12.5 billion more than that offered by the World Bank. In December 2015, President Xi Jinping offered a staggering $60 billion loan and aid package to Africa.

In spite of the clear significance to recipient countries, that is not what the ordinary person sees on the streets in sub-Saharan Africa. To the ordinary African, China is an enigma. They find it hard to understand what the Chinese migrants want.

In the process, most Africans do not associate China with the significant loans and impressive infrastructure aid programs. They associate China with the merchant migrants who live and trade in their communities. Hence, Chinese merchant migrants have unwittingly become unofficial ambassadors for China in Africa, and they have an excellent potential to enhance Sino-African relations.

However, the reality of international "human relations" is that people's perceptions of foreign countries very often reflects dealings with their nationals, unrelated to official programs. The result is that in the case of Africa, tensions between Chinese merchant migrants and local communities have the potential to overshadow the positive impact of Chinese official programs.

Chinese merchant migrants bring important benefits to both Africa and China. They have shown that they can reach and touch Africa beyond the official aid programs.

For China to build on its impressive programs in Africa, it might help to do a commercial and political risk assessment of the rise of Chinese merchant migration to Africa with a view to harnessing its potential benefits for Sino-African relations.

Professor Sam Blay is a senior Australian law academic. He is currently Professor and Deputy Principal, Top Education Institute in Sydney and Professor at the Sydney City School of Law. He is a member of the South China International Economic Arbitration and Trade.

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.

 

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