China-Africa summit 2024

During the ninth Forum on China-Africa Cooperation (FOCAC), Chinese President Xi Jinping pledged $51 billion in funding to African countries

What is the FOCAC?

• The China-Africa summit, officially called the Forum on China-Africa Cooperation (FOCAC), has been held every three years since 2000.
• It was established to formalize and strengthen the strategic partnership between China and African nations.
• Membership: FOCAC includes 53 African nations (excluding Eswatini) and the African Union Commission.
• Purpose and Theme: The 2024 summit, themed “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future,” focuses on bilateral talks on political and economic cooperation, with a significant emphasis on infrastructure, governance, and economic development.

Africa-China Relations

• China supported African countries' decolonization efforts in the 1950s and 1960s, establishing strong bilateral relations. The transnational Tanzania-Zambia railway, completed in 1976, was China’s first major infrastructure project in Africa.
• China’s investment in Africa: China has been Africa's largest bilateral trading partner since 2009. In 2023, Africa-China trade reached $282 billion, with China importing 20% of Africa’s exports (mainly commodities) and exporting 16% of Africa’s imports (mainly manufactured goods).
  • Beijing is also the continent’s biggest creditor. Between 2006 and 2021, it committed to investing $191bn in African countries.
• Belt and Road Initiative (BRI): Africa is a key partner in China’s BRI, aimed at enhancing cross-border economic, political, and cultural relations. China has invested over $120 billion in infrastructure for the BRI over the past decade.
• Debt Diplomacy: China has faced criticism for 'debt trap diplomacy,' where large loans for infrastructure projects lead to significant debt burdens on African nations, exemplified by Sri Lanka’s Hambantota port situation. However, China disputes these claims, attributing defaults to local mismanagement.

Impact on India

• Economic Influence: As China scales down its large-scale infrastructure investments amid its economic slowdown, there is an opportunity for India to engage more deeply with Africa. The changing dynamics could impact India’s competitive position in Africa’s infrastructure and trade sectors.
• Strategic Considerations: India might need to enhance its diplomatic and economic strategies in Africa to counterbalance China’s growing influence. This includes strategic investments, triangular development cooperation with third countries, and a greater role for
• Regional Balance: The shift in China’s focus from large projects to smaller, technologically advanced initiatives may open avenues for India to participate in different types of development projects in Africa, potentially influencing the regional balance of influence.
  • In FY23, India’s bilateral trade with Africa reached almost $100 billion. Meanwhile, China’s total trade with the continent was nearly triple this at $282 billion.
  • In term of FDI in 2021, India was last on the list, at $14 billion, while China ranked fifth at $44 billion.

PYQ

Q. Increasing interest of India in Africa has its pros and cons. Critically Examine. (2015)