MR EBIEDE, TONYE MARCLINT MAIR 2018

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EXPLORING CHINESE AID AND NIGERIA-CHINA: RELATIONS 1999-2015

BY

EBIEDE, TONYE MARCLINT

A THESIS SUBMITTED TO THE SCHOOL OF HUMANITIES AND SOCIAL

SCIENCE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

MASTERS DEGREE IN INTERNATIONAL RELATIONS

UNITED STATES INTERNATIONAL UNIVERSITY – AFRICA

SUMMER 2017
DECLARATION

I, undersigned, declare that this is my original work and has not been submitted to any other
college, or university other than the United States International University- Africa for
academic credit.

Signed: _______________________________ Date: ____________________

Ebiede, Tonye Marclint (ID.NO: 646957)


Research Student

This thesis has been presented for examination with my approval as the appointed supervisor

Signed: _________________________________ Date: ____________________


Dr. Richard Bosire
Supervisor.

Signed: _________________________________ Date: _____________________


Dr. Tom L.S Onditi
Dean, School of Humanities and Social Sciences.

Signed: _________________________________ Date: _____________________


Ambassador Prof. Ruthie Rono.
Deputy Vice Chancellor Academic Affairs.

ii
DEDICATION

To the OMNISCIENCE whose glory cannot be shared with any man.

iii
ACKNOWLEDGEMENTS

This thesis could not have been accomplished without the help, contributions, and support of

some families, lecturers, as well as colleagues.

At the foremost, I would like to thank God Almighty for his grace throughout my graduate

studies and thesis writing research process. I thank him for providing for me with strength

and creativity needed to make this study a reality.

Secondly, I wish to express my sincere abundant gratitude to my parents Mr. and Mrs.

Clinton Ebiede, though I have been away from home for long, you have continued to

encourage and support me through prayers, motivation, and finance. Thank you for

continuing the conversation with me and encouraging me throughout my life to pursue those

situations which will give me something to say instead of just something to talk about.

To my brother and teacher, Tarila Marclint Ebiede you are my biggest critic and biggest

supporter, you have believed in me against all the odds, your continued support towards my

academic success and career growth is overwhelming. I sincerely appreciate your support and

guidance financially and morally for me to achieve my goals. May God Almighty bless you

in your endeavors. To the rest of my brothers and Sisters who have always believed in me,

may the Almighty God bless you.

To Dr. Richard Bosire, a man of encouragement and critique. I am grateful for his

supervision, guidance, support and brilliant suggestions on the content and structure of this

thesis. I also appreciate the panel readers, Dr. Oscar, Professor Simeon Sungi and Dr. Elijah

Munyi for their critiques and support during my thesis defense.

To my Pastor, Victory Ahuaza and members of the World International Sacred Peace

Movement-Kenya branch I thank God, I met you all and for your encouragement, assistance

iv
and prayers in times of trouble. May God, bless you. Thanks to my friends and fellow

students, most especially Emmanuel Tabi Ebot, Guy Fineman, Gathoni Kimani, Sara Chan

and Ahmed Mohammed Bulle I appreciate the fun we shared and strength we gave each other

when the journey got tough. It helped to know that I was not running the race alone.

v
ABSTRACT

This work set out to analyze the nature and impact of Chinese aid on Nigeria-China relations.
It was also carried out to explore the extent which Chinese aid influences foreign policy and
trade relations between Nigeria and China.

The study sample is Nigeria as they are high recipients of Chinese aid and soft loans in Sub-
Sahara Africa. Data was collected from secondary sources such as journal articles, book
chapters, memos and government official reports. Descriptive statistics was adopted in forms
of tables, charts, graphs and bar charts which were utilized to describe the trend of the result.
Hence, the research methodology is a mixed method, using both qualitative and quantitative
methods and relying on secondary data collection.

Theoretically, the thesis is based on interdependence theory. It helps to explore Chinese aid
and Nigeria-China relations in three perspectives. The first is promotion and means to secure
strategic geographical interest, secondly is in exchange of resources, and lastly to a market
for Chinese goods in Nigeria. The study affirms the secretive nature of data on Chinese aid to
recipient countries, although, the amount of Chinese aid is growing in countries with mineral
resources in Africa.

The impact of Chinese assistance on trade and economy also seems to have more negative
than positive on trade with Nigeria and Sub-Sahara Africa countries. The study concludes
that interdependence between China and Nigeria is growing domestically as both sides need
each other for long-term strategic interrelations markets despite the imbalances.

vi
TABLE OF CONTENTS

DECLARATION......................................................................................................................ii

DEDICATION........................................................................................................................ iii

ACKNOWLEDGEMENTS ................................................................................................... iv

ABSTRACT ............................................................................................................................. vi

LIST OF TABLES ................................................................................................................... x

LIST OF ABBREVIATIONS ................................................................................................ xi

CHAPTER ONE ...................................................................................................................... 1

INTRODUCTION.................................................................................................................... 1

1.1. Background of Study....................................................................................................... 1

1.2 Statement of Problem ....................................................................................................... 4

1.3 Research Objectives ......................................................................................................... 5

1.4 Research Questions .......................................................................................................... 5

1.5 Hypothesis ........................................................................................................................ 5

1.6 Significance ...................................................................................................................... 5

1.7. Definitions of Terms ....................................................................................................... 6

1.8. Scope and Limitations ..................................................................................................... 7

CHAPTER TWO ..................................................................................................................... 8

LITERATURE REVIEW ....................................................................................................... 8

2.0 Introduction ...................................................................................................................... 8

2.1. Conceptual Analysis of Aid ............................................................................................ 8

2.2. Historical Background of Aid ......................................................................................... 9

2.3. Origin of Chinese aid in Africa ..................................................................................... 10

2.4. Nature of Chinese aid to Nigeria ................................................................................... 13

2.5. Chinese aid to the Educational sector ........................................................................... 14

vii
2.6. Economic nature of Chinese aid.................................................................................... 16

2.6. China’s technological and infrastructural aid to Nigeria .............................................. 17

2.7. Theoretical Framework ................................................................................................. 19

2.8. Summary ....................................................................................................................... 22

CHAPTER THREE ............................................................................................................... 23

METHODOLOGY ................................................................................................................ 23

3.0 Introduction .................................................................................................................... 23

3.1. Research Design ............................................................................................................ 23

3.2. Study Area and Population ............................................................................................ 23

3.3. Data Collection .............................................................................................................. 23

3.4. Data Analysis. ............................................................................................................... 24

CHAPTER FOUR .................................................................................................................. 25

FINDINGS AND ANALYTICAL DISCUSSION ............................................................... 25

4.0. Introduction ................................................................................................................... 25

4.1 Findings .......................................................................................................................... 25

4.2. Chinese Foreign Policy on aid towards Africa ............................................................. 26

4.3. China-Nigeria trade relations ........................................................................................ 30

4.4. The forum on China-Africa Relations ........................................................................... 35

4.5. Focac and Aid to Africa ................................................................................................ 36

4.6. The Forum on China-Africa Cooperation (focac) I and Aid to Africa ......................... 39

4.7. Chinese Foreign Policy on Aid. .................................................................................... 40

4.8 China-Africa Policy Objectives ..................................................................................... 48

4.9 Nigeria-China Foreign Policy Relations (1999-2015) ................................................... 48

4.10 Summary ...................................................................................................................... 54

viii
CHAPTER FIVE ................................................................................................................... 55

SUMMARY, CONCLUSIONS, RECOMMENDATION .................................................. 55

5.0. Introduction ................................................................................................................... 55

5.1 Conclusion...................................................................................................................... 58

5.2 Recommendations .......................................................................................................... 59

REFERENCES ........................................................................................................................ 62

ix
LIST OF TABLES

Table 1: The first 13 Africa countries to have received Chinese Aid after the Bandung
Conference ............................................................................................................................... 27
Table 2: List of Countries receiving Chinese Aid After 1970 visit of Chinese Premier Zhong.
28
Table 3: China’s imported crude oil by region 1995-2006(%) ................................................ 29
Table 4: Analysis of Chinese official visits to Africa: From 1980s-2010 ............................... 30
Table 5: Export and Import Trade Between Nigeria and China in USD millions ................... 31
Table 6 Sectoral distribution of Chinese aid ............................................................................ 33
Table 7: Africa-China trade deficit in USD ............................................................................. 35
Table 8: some commercial deals of China’s three largest oil companies in Africa: Nigeria ... 38
Table 9: Donor spending on Africa as a percentage of total international aid ........................ 45
Table 10: Chinese aid Features and Periodization ................................................................... 46
Table 11: Major Chinese Companies in Nigeria...................................................................... 50
Table 12: signed agreements and mou between china-nigeria from 2001-
2006……………………………………………………………………………………51
Table 13: Analysis of Nigeria Federal Visits to China: 1999-2015......................................... 52

x
LIST OF ABBREVIATIONS

CCEC China Civil Engineering Construction Corporation


DAC Developmental Assistance Committee
DOFA Department of Foreign Aid
DPRK Democratic People’s Republic of Korea
EXIMBANK Export-Import Bank
FAO Food Agricultural Organization
FDI Foreign Direct Investment
FOCAC Forum on China-Africa Cooperation
IMF International Monetary Fund
MOF Ministry of Finance
MOFCOM Ministry of Commerce
MOFA Ministry of Foreign Affairs
MOFHE Ministry of Health and Education
MOU Memorandum of Understanding
NMA Non-Aligned Movement
NIGCOMSAT-1 Nigeria Communication Satellite- One
ODA Official Development Assistance
OECD Organization for Economic Cooperation and Development
PRC Peoples Republic of China
SSA Sub-Sahara Africa
UN United Nations
US United States
UNSC United Nations Security Council
USD United States Dollar
WB World Bank

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CHAPTER ONE

INTRODUCTION

1.1. Background of Study

China’s growing involvement in Africa regarding aid, trade, and foreign relations has

drawn intense scrutiny from traditional donors (Deborah, 2011; Lyman, 2005). This has led

to the question of whether Chinese Aid and collaboration leads to development benefits for

countries in Africa (Margret and Zheng, 2001). Although China-Africa relations have

recently come under scrutiny, China’s involvements with Africa dates back to the early days

of the independence movements in the 1960s and before (Patrick, 2013; Alaba, 2010).

However, the present level of Chinese involvement in Africa is taking different dimension

(Princeton, 2006). Sino-Africa relationship has grown noticeably over the last five decades

and this period is categorized into three separate periods within this time frame (Judith, 2006;

Alden, 2008).

The first phase was the establishment of diplomatic relations between China and African

states as they gained independence. The second is the period when China was given a

permanent seat and replace Taiwan in the United Nations Security Council (UNSC) in 1971

is the second phase. The third stage is the post-Maoist period and the liberation and growth

experience in the Chinese economy (Judith, 2006). Since the 1950’s, China-Africa relations

were largely influenced by China’s aspiration for international recognition and political or

international alliances against the capitalist movements. Before this, Africa was of little

significance (Judith, 2006).

China's foreign assistance to countries in Africa started in the 1950's (Zheng, 2016;

Deborah, 2011) and had grown to be the largest developing country to providing aid (Zheng,

2016; Naohiro and Yukinori, 2014). Aid from China to countries in Africa has rapidly

1
expanded because of china’s remarkable economic growth (Nahorio and Yukinori, 2014).

China’s Foreign Aid began in 1950 when China provided aid to neighboring countries such

as Democratic Republic of Korea (DPRK) and Vietnam. However, it was in 1956 when

China began to give aid to countries in Africa (White Paper, 2011; Marek 2012, 2010;

Deborah, 2008).

In the early 1950’s and 1960’s China viewed Africa as an insignificant partner in

international politics, while most African states (including Nigeria) inside this period

additionally saw China as a neutral state (Utomi, 2008). Countries in Africa, such as Nigeria,

did little to foster business or even foreign and diplomatic relations with Asian Countries

(Utomi, 2008). However, Lyman (2005) asserts that things have changed. China has shown

interest in extractive industries and particularly in oil. With Angola and Nigeria being the

largest producers of oil in Africa, both countries have witnessed increasing Chinese presence,

and Nigeria’s market is open to Chinese goods (Margret and Zheng 2011; Lyman, 2005).

In July 2005 China and Nigeria signed 800 million dollars’ crude oil sales agreement

setting the motion of an annual purchase by China of 30, 000 barrels a day for five years

(Lyman, 2005). China's Foreign Ministry spokesperson, Jiang Yus explains that “Chinese aid

to Africa has been a means to enhance foreign policy relations between China and recipient

states” (Armstrong, 2013). This statement clearly depicts the main reason for this research

thesis. It captures not just the intent of the research thesis, but it has fueled contentious

academic debates and deliberations with scholars, media and international political circles on

the increasing nature of China's developmental aid to Africa.

This growth is, therefore, the reason behind this increase in China's aid as well as the

impact of these aid on recipient states with a case study Nigeria. This research work intends

to explore China's growing assistance in Nigeria as an instrument of interstate foreign policy

2
and trade behavior towards one another. The international attention China has given to Africa

regarding its foreign policy goals is part of the agenda of Chinese political leadership. It is

claimed that China has affected Africa in aid amounting to about $44 billion dollars over the

past five decades (Wenran, 2008).

Bilateral China-Nigeria relations is evolving faster and having significant impacts on more

people and the country foreign relations (Margaret and Zheng, 2011). The Asian giant and

world's most populous country with a population of about 1.32 billion (Brandon, 2007),

meets the African giant and Africa most populated country. With a population of about 170

million (Bamgbese, 2009). With aims to become one of the world's top 20 economies

(Margaret and Zheng, 2011). Nigeria relations with China have grown in the last decade from

the limited and intermittent contact that marked the immediate post-independence era to an

increasingly complex and expensive engagement (Utomi, 2008). The relationship between

the two ‘giants’ People's Republic of China (PRC) and The Federal Republic of Nigeria

formally established diplomatic relations with China in February 1971 (Margaret and Zheng,

2011).

Likely, as a result of growing frustration with conditionality associated with aid from

western donors, Nigeria relationship with China increased in the year 2003 as there was a dire

need for improved infrastructure and economic development under the democratic

government of Olusegun Obasanjo (Margaret and Zheng, 2011). There are several kinds of

literature on Chines aid to Africa and its growing relationship with Nigeria in various sectors

(Shelton 2001. Rupp, 2008). The study used available data that examines the impact of

Chinese aid flow to Nigeria within the period of study and look at how it has had effects on

Sino-Nigeria relationship.

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1.2 Statement of Problem

This research is about the role of Chinese development aid, within the recipient country

using Nigeria as a case study. In as much as Chinese aid has increased as noted by Rupp

(2008), African states should ensure the use of China's aid to grow relations with China to

work to their advantage.

The problems that foreign aid has brought forth have had a significant impact on how

states conduct their foreign policies and interstates relations. This is because foreign aid

assistance could be used as a tool to conduct inter-state diplomatic and foreign policy

behavior especially for developing countries and Africa at large. China’s official

development aid (ODA) is most likely to influence countries foreign policies and relations.

Hence, the study seeks to understand the role of Chinses aid on its relations with Nigeria.

Nigeria, like most other African states; is faced with rising debt and the economy rely

heavily on foreign Aid and large revenue of oil production and exploration. Since

independence on October 1st, 1960, Nigeria has received a significant amount of foreign aid

and development assistance from western donors and several international agencies.

However, in the last two decades, China has increased its foreign development assistance to

Nigeria; thus, it is to this point the study seeks to find out if this has improved China-Nigeria

relations. Chinese aid seems to be the new beacon of hope for potential development partners

such as Nigeria. The last two decades have seen a considerable increase in these relations; a

situation primarily due to the donor non-interference policy held by China and the Asian

countries in general.

Like every other aid donor, China uses foreign aid to advance their foreign policy interests

(Axel, Dreher and Fuchs, 2011). China claims to maintain non-imposing political views,

ideas or principles when giving aid to recipient countries. However, being cautious of neo-

colonialism and imperialism one needs to understand how this aid flows and support China-

4
Nigeria relations, using available data to map out the change in the relationship and increased

Chinese aid into Nigeria, and knowing how Nigeria's foreign policy and relations towards

China has changed in the period of 1999-2015. Hence, how do these increased aid flows from

China to Nigeria influence foreign policy relations between Nigeria and China?

The gap of the study is how aid has influenced Nigeria and China relationship?

Alternatively, has it had no effect at all on the relationship between China and Nigeria? All

these questions continue to be the central position in the debate on China-Nigeria relations.

1.3 Research Objectives


1.To assess the historical origins of China's aid to Africa: Nigeria

2.To explore the nature of Chinese aid flow to Nigeria

3.To analyze the impact of Chinese aid on Nigeria-China Relations

4.To examine other factors that explain Nigeria-China relations.

1.4 Research Questions


1. What is the history of Chinese aid to Nigeria?

2. What is the nature of Chinese aid flow to Nigeria?

3. What is the impact of Chinese aid on Nigeria-China Relations?

4. What other factors explain Nigeria-China relations?

1.5 Hypothesis
Chinese aid influence China-Nigeria relations.

1.6 Significance
Previous studies on China’s aid have largely focused on Africa on a general context and

mainly from traditional donor’s authors, who have tried to understand the mask behind the

increase of China’s aid to Africa and in so doing China’s developmental assistance has faced

severe criticism from most western authors. China’s aid is depicted by this study as an

independent variable that influences Nigeria China foreign and trade relations since 1999

when Nigeria became a democratic country.

5
The debate, for some time now has been on whether Chinese aid is personalized with the

intention of exploiting African natural resources in the guise of developmental assistance.

However, this research seeks to bring balance and objectivity on the subject matter by

presenting available data showing the distinct phases of Chinese aid to the continent

regarding foreign policy, trade, to name but these.

To fully understand the significance of China’s aid to China-Nigeria relations or as an

actor influencing the relationship between the two states, the existing scholarly gap on

foreign policy and aid needs to be addressed. China aids in Africa has continuously increased

and to an extent exercise some level of influence in relations with recipient state. This study,

therefore, attempts to provide information aimed at assisting policymakers and scholars to

take a more active role in understanding the role of China’s aid as an influencing factor in

recipient state policies and relations towards China.

This study could be of benefit to the Nigeria parliament, ministry of foreign affairs,

ministry of finance and policy makers, and could help students understand the effectiveness

of Chinese aid on China-Nigeria relations. Hence, to provide a vivid understanding of

Chinese aid as a tool to improve states relationship. Also, China’s developmental assistance

as a growing phenomenon that is likely to influence recipient states relationship may be

useful to other researchers and scholars in the field of international relations and international

political economy. Hence, providing a stepping stone for further study and research on

Chinese aid and its relationship with recipient states.

1.7. Definitions of Terms

1.7.1. Foreign Aid: Developmental aid as referred to by Jerker et al., (1997) is a global

phenomenon that originated from the post-cold war period, and it encompasses several

institutions both bilateral as well as multilateral, solely employ in giving aid to poor and

developing nations. Maurits Van Der Veen (2011) gave an earnest and idealistic definition of

6
aid, stating that it is an innovation introduced by the politics of modern age into the practice

of foreign policy. In this study, Foreign aid is a bilateral and multilateral act of donating in

cash or kind to countries what they deem needed in other to achieve a particular foreign

policy relations and objectives.

1.7.2. Foreign Policy: foreign policy as defined by Ryan et al., (2012), can be divided into

two aspects. The first aspect is to understand the meaning of foreign which as described by

Ryan et al. (2012) is meant to apply policy toward the world outside states geographical

boundaries, secondly policy is a set of rules officially implemented by states in other to guide

their relationship with other countries. Using this definition in this study. foreign policy will

be described as a set of rules by states or actors to pursue an interest outside its boundaries.

1.8. Scope and Limitations


One significant limitation would be time and space since this study must be finalized within a

period of context and limited to a certain length. This thesis will be restricted since not all

aspect of China’s aid to Africa can be covered. Rather, the research is limited to China’s

developmental assistance and relationship with Nigeria.

The research thesis recognizes some essential weaknesses. It will concentrate on the period of

1999-2015, the period Chinese foreign policy strategy to Africa changed from ideological

liking to a talk of key partnership and necessary development motivation. This research

maintains the following noteworthy limitations. It concentrated from 1999 when China re-

drew its association with Nigeria on a popularity based stage of administration.

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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
As already clearly established the study of Chinese aid and its growing relationship with

Nigeria within the period of study is an integral aspect of the research as it underpins the very

fabric of China’s interest in Nigeria vis a versa Nigeria Interest in China. It is against this

background that various authors have added their opinions and analysis of growing Chinese

aid and the Africa States relationship. This study samples some of these scholars and their

debates. This chapter presents literature reviewed and theoretical framework in line with the

research objectives. It discusses the history of China’s foreign aid and the key objectives of

China’s aid to Africa; the Nature of China’s aid to Africa and Nigeria. The impact of China’s

aid on Nigeria-China relations; and other factors that explain China-Nigeria relations.

In reaction to the statement; it is to state that though there is clearly quite a lot of literature

on aid in Africa (Easterly, 2008, Roger, 1987; Roger, 2007; Jerker, et all, 1997; Brautigham,

2008, 2011. 2012; Leslie and Rachel, 2004). They tend to focus on Western Donors and those

of OECD Development assistance committee (DAC), except for Deborah Brautighan (2008,

2009, 2011, 2012) of which some of her publications has tended to study the influx of

China’s aid into Africa. However, for clarification purpose, it should be noted that the

Chinese are not members or part of the DAC.

2.1. Conceptual Analysis of Aid


Aid as a concept has been dominated by developed countries of the west either

through bilateral and multilateral agreement, administered by the International Monetary

Fund (IMF), World Bank, and United Nations (UN). Over the years, the OECD development

assistance committee (DAC), which is used by the west to facilitate aid to developing

8
countries, in the process of adopting changes regarding their approach; however, they began

to experience new rising aid donor power with competition from emerging economies.

China fueled by decades of economic growth and with interest to expand International

activities, by offering loans for infrastructure development and trade flexibility to countries in

Africa. Without conditionalities towards good governance and transparency as always

requested and guided by Western donor agencies such as IMF and world bank aid and loans

(Aibanga & Brokow, 2010).

China’s aid to Africa has and continue to spark contentious debates and discussions within

scholars and students of international relations and other social sciences. This is seen mostly

as a partial explanation, which is through the various comments postulated by political realist

or oppositionist of China’s aid to Africa who conceptualizes growing China’s aid and

relationship as an “old wine in a new bottle” with a “made in China” (Jean-Pierre, 2010).

2.2. Historical Background of Aid


The various names and terms used to identify aid varied, as various scholars have

different conceptual explanations. Some call it foreign aid (Stephen, 2008), others preferably

called it International assistance, and to some International development cooperation

(Degnbol-Martinussen and Engberg-Pedersen, 1999). Nevertheless, whatever normative term

used to label Aid, it is a subject that is complex and fragmented (Peter, 1997).

The historical arguments behind the development of Aid as a concept in International

Relations can be traced back to the period of the 1950s. Degnbol-Martinussen and Engberg-

Pedersen, (1999) posit that developmental assistance as a concept originated with the idea of

USA foreign Minister George C. Marshall in 1947 to give enormous aid to European states in

other to reconstruct them economically after world war II, basically what is known as the

“Marshall Plan.” Stephen Browne (2006) acknowledge the origin mentioned above postulate

9
that development assistance began with the famous heady words from former US President

Harry Truman which he states that;

More than half of the people of the world are living in conditions approaching misery.

Their food is inadequate, they are victims of disease, and their economic life is primitive and

stagnant. Their poverty is a handicap and a threat both to them and to more prosperous areas.

For the first time in history, humanity possesses the knowledge and skill to relieve the

suffering of these people (Browne, 2006). Jerker et all (1997) further clarifies developmental

assistance or aid as a global phenomenon of the post-war era, which has grown and has given

rise to several multilateral and bilateral institutions with the sole purpose to deliver aid to

developing countries.

The motives for giving and receiving aid or developmental assistance varies from

states to states and from actors to actors. Over the years from the inception of aid the motives

have significantly Changed (Degnbol-Martinussen and Engberg-Pedersen, 1999). Using the

Marshal plan the reasons of aid tends to be based on national security and commercial

considerations, as this was central in the foreign policy of the US in the 1950s to 2000’s.

Nevertheless, after the era of 1950’s the motives behind aid changed, as the emphasis was

placed by the US government and other western donor as an obligation to help countries

develop economically.

2.3. Origin of Chinese aid in Africa


Aid and developmental assistance is a phenomenon that was born out of world war II.

Which has attained a dynamic growth and led to the rise of states and development

institutions that are either bilateral or multilateral (Carlos & Nicolas, 2010; Jerker, Gloria, &

Nicolas, 1997; Joanna, 2001; Roger, 2007). This Philosophy of aid and development

assistance was later applied to other parts of the world from Latin America to Africa and Asia

(Carlos & Nicolas, 2010). Sub-Sahara Africa (SSA) which currently receives the highest

10
share of official development assistance (Carlos & Nicolas, 2010) has been related to the

colonial relationship with donor states (Roger, 2007; Carlos & Nicolas 2010). Aid flows to

African countries ideally began in 1960’s when the most state in Africa was granted

Independence (Roger, 2007). However, in 1970’s, aid flow to Africa states increased because

of the emergence of multilateral and Scandinavian aid donors (Carlos & Nicolas).

Efem N, Ubi (2014) explains how some emerging economy like China began to

challenge the current International and traditional aid donors by giving out an enormous

amount of aid, both in cash and in kind to Africa countries. Ubi (2010) emphasizes that China

share the same history of oppression and underdevelopment with Africa, hence China

deemed itself to be of better position to vitally assist Africa after about three decades of

economic growth; as this will help Africa to emulate Chinese experience in growth,

development, and poverty reduction (Efem, 2014).

Then again, Tan-Mullins et al. (2010) observe the historical events of China as an

emerging donor to Africa. By Stating that, China and other developing aid donors in Africa

wander into active aid dating as far back as the period of the cold war time frame and past

(Tan-Mullins et al., 2010). Besides, rising aid donors in Africa, for example, China emerged

in 1980's and 1990's regardless of DAC domination of Aid Giving, depicting this increase in

consent to McMicheal (2000) as an ideological and geopolitical move (Tan-Mullins et al.).

Giorgia & Marco (2014) on the other hand categorize China’s aid giving in Africa

into three perspectives, the authors observe that China cannot be classified as a “new” or an

“emerging” aid donor (Girogia & Marco, 2014). Given that it had started aid giving to Africa

and other parts of developed countries since Maoist Period (Girogia & Marco, 2014;

Deborah, 2011; Naohiro and Yukori, 2014). Before that era, China’s aid enters its second

face with little growth in 1970’s (Girogia & Marco, 2014) and its final and present stage

evolved in 1990’s when China’s aid to Africa and other developed countries grow beyond

11
political motivations. To more strategic ones placing emphasis on the achievement of mutual

economic benefits (Girogia & Marco, 2014). To an extent, these three epochs of Chinese aid

to Africa and rest of the world provide a platform that shows the evolution and origin of

Chinese Aid to Africa. This gives an insight on the evolutionary process that has engulfed

Chinese as an aid donor state.

Kristian & Comte (2010) argues in support of the above, stating that; China is not new

to foreign aid, but rather it is re-emerging rather than emerging. Africa countries have been

beneficiaries of Chinese aid for almost 50 years (Kristian & Comte, 2010) and with this,

Chinese relationship has experienced gradual change from ideological promotion to the use

of economic policy tools to pursue foreign policy agenda’s (Kristian & Comte, 2010).

In 2006, China declared that year to be “The Year of Africa” (Kenneth, 2013) and

which China it went on to Published the popular “China African Policy” which china’s aid to

Africa was one of the objectives pursued by the China-African Policy (Kenneth, 2013).

Agubamah (2014) view Nigeria and China relations on a bilateral and general periscope

stating that Nigeria first had diplomatic contact with China in 1960 upon attainment of

independence.

Diplomatic ties were officially established in 1971 between the two countries when China

was admitted into the United Nations Security Council (Xiaoyn 2008). However, Chinese aid

to Nigeria experienced a change and growth in 2002 under former President Olusegun

Obasanjo administration; it was mostly bilateral aid which was given by China to Nigeria to

improve the economic and social development in Nigeria which eventually contributed to

boosting the relationship between China and Nigeria. Annually, from the period of 2002

Chinese aid to Nigeria was estimated about sixteen million USD (Xiaoyn, 2008). However,

data on Chinese foreign aid to Nigeria is quite difficult to put a figure on because of the fact

that China does not release complete data on its aid to countries; this as a result of the fact

12
that China government posit that released data on Chinese aid to countries could lead to other

countries asking for more and likely to affect policy making in China.

Data from China’s aid statics and that which is in scholarly literature on foreign aid do not

correspond in any way as most of the data are based on assumptions on trade, foreign direct

investment (FDI) all categorized as aid. In reaction to this, some scholars (David, 2008; Lum

et al., 2009) argued that China’s aid is inflated by the government of China. However, it still

does not cover the fact that China’s foreign aid is driven primarily by the need for natural

resources and diplomatic objectives which this paper intends to focus.

2.4. Nature of Chinese aid to Nigeria


The concept and nature of China’s aid generally to Africa has been dynamic over the

past three decades (Brautighan, 2011). Aid to the continent has been increasing and

expanding to various developmental sectors of the continent. Chinese aid has been given to

support the economic, educational, technological, and infrastructural sectors in Nigeria for

over a decade.

Aid or international development assistance describes a donation given to developing

countries by wealthy nations so that the former can meet the primary needs of their citizens

(Paula, 1998). This explanation is to a considerable extent simple but inaccurate, as aid is not

just for developing countries, and does not necessarily meet developmental needs of the

recipient countries; it also has economic, diplomatic, and political strings attached. To China,

its developmental assistance is more of an economic system that enables a larger means of

investment, development and forester trade deals between countries.

The first phase of Chinese aid was in 1979-1994 and was categorized with financial grants

and interest-free loans. Furthermore, 1979 to 1994 was the second phase of Chinese aid.

Unlike the first step, it was categorized with economic considerations, purchasing equipment

set for construction of infrastructural projects, and technical assistance. Lastly, the current

13
phase of Chinese aid span from 1995 to 2004 and was categorized with interest-free loans,

co-operation and joint ventures projects and increased financial grants.

2.5. Chinese aid to the Educational sector


Xianyun (2006) argues that Chinese aid regarding education to Africa has been

consistently expanding, in various scope and methods; and it is based on the multilateral

system. Educational funding from China to Africa is increasing in numbers as the numbers of

Africans benefiting from Chinese scholarship over the years has grown. China to an extent

fulfilled Aid duties to African educational system, yet despite everything, it needs detailed

facts and statics on the official factual investigation on its aid financing information because

there are little data to evaluate this claim. China's aid to Africa education has been

expanding, and the responsibilities are executed than expected (Wan, 2015).

Further to that, researching on China’s educational Aid to Africa, Kenneth King

(2013) notes that, China thou have an African policy. However, its policy on education has

not been clear or separate but rather part of education, science, culture, health, and social

aspects. To this end, ratification of China’s aid to the educational sector in Africa might not

be clear, but the Chinese government has given its full support to Africa human resources

development and education. Moreover, in China’s foreign Aid to both Africa and Asian

countries, the funds for education is spent in building schools, providing teaching

equipment’s and materials, dispatching teachers, training educators and interns and offering

scholarships to students from developing countries (Kenneth, 2013).

In reaction to that, it is to state that the number of Chinese Confucius institutions in

Africa has increased all over the continent, this raises the question if the demand for The

Mandarin language in Africa is because of increasing Chinese educational Aid and

scholarship to study and research in China? Alternatively, is it just a means to import the

14
Chinese language into Africa? Alternatively, rather is it the already influence of Chinese aid

in the educational sector?

Educational aid regarding scholarship and vocational training or research from China

has increased, and this package includes higher education, vocational training, Chinese

language instruction (Confucius) in developing countries, construction of schools and

partnership with multilateral organizations such as the EXIM bank (James, 2015).

The Forum on China-Africa Cooperation (FOCAC) has planned to increase the

number of educational beneficiaries from Africa studying in China with assistant from the

Chinese government. With the changes that come in the new millennium and China renewing

its commitment to engage Africa, especially in search of raw materials and mineral resources

as a fuel to its economic growth, more and more Africa students have reported to have

arrived in China on Chinese government scholarships (Adams, 2014).

China-Africa educational cooperation historically is characterized by three phases. The

beginning phase started with when diplomatic relations between China and African countries

such as Kenya, Egypt, Uganda and Cameroon in 1956; with about 24 exchange students

traveling to the East side (Hannusch, 2012: 492). Implementation was the characteristics of

the second phase which fall under the period of 1970’s – 1980’s. Moreover, with the number

of exchange students increasing to about 4,570 Africans by the end of 1996 (Ferdjani, 2012).

Beyond this, at the dawn of 2000 Chinese began providing educational equipment,

building research laborites all over the continent. The dawn of new millennium is the third

phase which started with the “declaration of 2000” which serve as a programmer that

facilitated China-Africa Co-operation regarding economic and social growth which King

(2013) has clearly verify as part of human resources development and education.

15
2.6. Economic nature of Chinese aid
Still, in the context of the pervasive nature of China’s aid, Wioletta Nowak (2015) further

outlines that based on “White papers on China’s Foreign Aid” which is primarily distributed

to countries in Africa, Latin America, Asia and the Pacific. The development assistance is

characteristically combined with investments and trade initiatives. The core rationales and

driving force behind China aid program to Africa are mostly economic and strategic

objectives (Nowak, 2015). In 1994, China’s foreign aid policy launched the “Grand Plan of

Trade and Economic Cooperation” (GP-TEC). Which was flange by the then Minister of

Foreign Trade and Economic Cooperation Wun-Yi, in association with the EXIM Bank

(Nowak, 2015).

Dubosse (2010) further points out that China’s economic developmental assistance to

Africa changed in 2006 with the formulation of China African Policy Paper. Economically,

issues of trade, investment, finance, agriculture, infrastructure, natural resources, tourism,

debt reduction, debt relief, investment and multilateral cooperation were the core focused on

China’s economic aid to Africa (Dubbose, 2010). Economically in trade, China has vowed to

open its market which was ranging at 190 to over 440 zero-rated products from African

countries, by so doing it will establish cooperation, and funding ten special agriculture skills

centers (Dubosse, 2010).

In reaction to this Bankole & Adewunyi (2008) affirms this by pointing out that China-

Nigeria trade volumes have tripled in the period of five years (2002-2007) ranging from

US$1.1 to US$4.3 billion, as at 2008 it was total at US$7.3 billion (Munyi, 2009: 8). Further

to this, China has double aid assistance as earlier mentioned with statics showing that as at

2009 US$3 billion was given to African countries as preferential loans, and US$2 billion was

again given out as preferential buyers; US$5 billion was rated to Forester African China

development Fund, and cancellation of debt owed (Dubosse, 2010). This financial

investment has been accompanied by a deepening of diplomatic and political relationships


16
with various African countries as Kossi Ayengbo (2015) try to explain China strategic

relationship five years before independence to be little, at Independence increasing and five

years after Independence increased in Africa countries.

Specifically, Bankole & Adewunyi (2008) observes that: traditional development partners

and aid donors of Nigeria are mainly from Europe and Americas (U.S.A. and Canada) which

have long dominated trade, investment regarding FDI and grants such as financial and

technical aid to Nigeria. This relationship tends to be debatable if such has in any significant

assist the country in its quest for development. To many, the relationship is exploitative with

facts showing the pattern of trade and FDI flow and inflow into the country since oil and gas

sector dominates Nigeria exports tune of about 98% and FDI inflows to the oil and gas

industry accounted for just 40% (Bankole & Adewunyi, 2008).

China-Nigeria relationship thou date back to as far back as three decades, however, with

emerging contemporary trends of development there is a need for a careful and detailed

analysis of this growing Chinas relationship to Nigeria by looking at the investment and trade

that are aid motivated. Moreover, to what extent is Chinese aid and trade deals not

exploitative to Nigeria for natural resources.

Bankole & Adewunyi (2008) further notes that every diplomatic trip since 2002 between

Nigeria and China was followed by the signing of agreements and MOU to promote cordial

relationship. Technical assistance in the military, education, and health, and technological

sectors of Nigeria have been received. For example, an aid of 46 million Yuan to Nigeria for

purchases of anti-malaria medicines and training of Nigerian health personnel on malaria

control and prevention was granted by China (Bankole & Adewunyi, 2008).

2.6. China’s technological and infrastructural aid to Nigeria


Sino-Nigeria relationship continue to grow as a broad aspect of technical and

infrastructural development projects are over time contracted to Chinese, especially from the

17
era of Olusegun Obasanjo administration which ended military rule in Nigeria and began

democratic governance in the country (Utomi, 2008). Still, in the context of china’s

technological and infrastructural aid to Nigeria, Pat Utomi (2008) further relates Chinese

developmental aid to Nigeria to be linked with interest in Nigeria petroleum sector.

Nevertheless, Sino developmental assistance to Nigeria has strengthened infrastructural

growth and revive several infrastructural sectors in Nigeria.

In 2005, as explained by Utomi (2008), China was involved in a tripartite agreement

with FAO in line to fight hunger and poverty in developing countries. The agreement signed

was estimating about 50 million dollars (FAO REPORT, 2013) which will support countries

in creating a food system and a strong agricultural growth chain of which Nigeria is already

benefiting. About 400 Chinese experts to help with food production and water conservation

in the country has been deployed to the country after the agreement was signed (Utomi,

2008).

Notwithstanding the advancement of the agricultural part, a few MOU in the most

recent couple of years has brought about a few Chinese organizations, in such sectors such as

power, street and rail transportation, and media communications. The organizations that have

entered the Nigerian market to take a shot at these important activities incorporate ZTE

Company, Alcatel-Shangai-Bell, China Putian and well known Chinese civil engineering

construction company (CCECC).

Against the historical backdrop of technological backwardness in Nigeria and Africa at

large, Chukwu Oknokwo (2015) observed the significant role of space technology to rapid

and sustainable socio-economic development. Okonkwo (2015) has gone further to outline

the satellite program in Nigeria of which the NigComSat-1 which was launch in 2004 was led

by Chinese Engineer and qualified Nigerian Engineers. Moreover, to date, China has assisted

in building and launching several other satellites for Nigeria. In examining this, it is to state

18
that China’s space program and technological assistance is utter to pursue national security,

economic and diplomatic interest and relationship. However, it has recorded little success

technologically and more economically.

2.7. Theoretical Framework


Several theories can be linked to the objectives of this research and the effectiveness

of aid in interstates relation. Ranging from classical realism, dependency, constructivism,

idealism and Geopolitics. This study applies interdependence theory, as advanced by

Keohane and Nye (2001) are renowned for their support towards interdependence theory.

2.7.1 Interdependence Theory

Interdependence theory was first propounded by Thibaut and Kelly (1959) to analyze

how states or people represent and consider situations of interdependence in respect to

choosing among potential courses of action. Keohane and Nye (2001) argue that we live in an

era that is dominated by interdependence since interdependence theory considers foreign aid

as a significant fact of human activity which is as result of globalization. The fact that this

work assumes that China’s foreign aid to Africa is increasingly causing an interdependence

and influence in China-Nigeria relations. Interdependence as a theory is broad and complex

and postulated in the early 1970s. Interdependence is defined as a “mutual dependence”

between two beings. The core assumptions of interdependence theory are

I. It is considering states interdependence on outcomes namely nature and extent

to which co-acting countries or groups are dependent on each other to attain

the desired results.

II. Relationships in interdependence theory are not always balanced. Hence it is

most likely to be asymmetrical relationship.

This study will adopt Keohane and Nye (1997) depiction of interdependence theory as

a situation whereby states or international actors are conditions by external events in a mutual

19
relation with another state. This was adopted because it is linked to the objectives of the

study. Interdependence theory is very broad with many assumptions that are likely to underlie

the variants (Clarke, 2006) and related to the objectives of the research work.

The theory is also associated with scholars such as Grieco & Gelpi (2001), Hagre, et

al. (2009) and Masterson (2009). As a concept that can be used as a general theoretical

perspective on International Relations and analyze an economic aspect and political relations

of a given principal international actor to a less dominant actor in international relations. Paul

Clark (2006) equates that interdependence theory is necessary to explain international

relations research to understand both economic relationships as a means of formulating States

foreign policy relations. Hence, since Chinese Aid relations to Nigeria involve economic and

international relations as explained by the paper, this study takes the interdependence theory

as a theoretical framework to analyze China-Nigeria aid relations.

Keohane and Nye’s (2001) general ideology of independence theory is well

applicable to the aid situation of China-Nigeria relations as an interdependent relation, in that

this concept assumes that people, states, and institutions depend on each other to survive and

achieve their foreign policy objectives. In the study of international relations interdependence

as an analytical concept refers to situations characterized by reciprocal effects between

countries or actors in different states.

Keohane and Nye’s (2001) argues that the term interdependence cannot be limited to

only a situation of mutual benefit since they intend to avoid the sterile argument that limited

usefulness of the terms to some specific school of thoughts such as modernist. In this context,

refereeing to China-Nigeria relations, Enuka (2011) points out that the two relating actors

possess what each other desperately needs. This “desperation for what each other needs”

creates the core assumptions and imperative for interdependence. This means both China and

Nigeria has something necessary and desired by one another, hence China as an emerging

20
and growing aid donor-initiated a fast-growing aid relationship with states in Africa which in

turns paybacks regarding resources and favors in the international system especially at United

Nations.

To further clarify this argument, economically, China and Nigeria relations over time

show that both states put in whatever is necessary for terms of resources and funds as a

driving force of their dealings hence supporting the argument of interdependence theory.

With the fact that both Nigeria and China have resources needed and ready to offer one

another as a concession to Forester relationship has shown the relevance and applicability of

interdependence theory in analyzing China’s aid vice a visa its relationship with Nigeria.

In Contrast, it is necessary to note that, the reciprocal relationship must not be

balanced. Though described as mutually dependent on each other, this paper does not

conclude or assume that interdependence theory is an evenly balanced relationship. Keohane

and Nye (1997) used a logical example to explain a likely unbalanced situation; whereby for

example China may be dependent on Nigeria with interest on oil and Nigeria maybe

depending on China on funding and soft loans.

In other to make a clear understanding and in-depth analysis in the theoretical analysis of

Chinese aid relations to Nigeria, one theory cannot perfectly explain the findings and debates

surrounding this concept. However, this study adopts interdependence theory because it

explains the objectives of the research.

2.8. Summary
This aspect of the thesis has review relevant literature so far that sheds light on

China’s aid and Nigeria-China relations. Most of the literature examine the general role and

reasons of China’s aid to Africa. Which has to try to fill in the gap of this research on how

China’s aid has influence Africa; foreign policy behavior or states trade relation towards each

other. In the Nigeria context, there are several reasons which to show that China’s aid is an

21
involving participatory or influence of Nigeria ties with China, of which some few examples

were in the literature review to explore to prove this point. The role of China’s aid as an

influencing factor in Nigeria-China relations will be outlined in the analytical aspect of this

paper.

22
CHAPTER THREE

METHODOLOGY

3.0 Introduction
This chapter discusses the research methods adopted in this study. It discusses the

research design, study area and population, sampling techniques, data collection, and data

analysis techniques. There are various methods of collecting data geared towards assessing

Chinas Aid and its relationship with Nigeria for the past fifteen years.

3.1. Research Design


For this study, a qualitative and quantitative method of data collection is used. Hence, the

research design will be a mixed design. Qualitative data were obtained from secondary

sources linked to Chinese aid and Nigeria-China relations within 1999-2015. This involved

reviewing of among other studies and materials that will include China’s aid to Africa,

Memorandum of Understanding, Trade deals and documents, Chinese white paper and

Chinese paper on African policy.

3.2. Study Area and Population


The study will be conducted in Nairobi, Kenya and will focus on Nigeria from the period

of 1999-2015. The work used Secondary data collection hence the study population include

Journal articles, books, media reports and statistics derived from studies conducted by authors

on China’s aid such as Deborah Brautighan, And data from the Official Chinese white paper

and the website of some ministry and institution such as Nigeria Ministry of Finance, Central

Bank of Nigeria (CBN) and Ministry of foreign affairs.

3.3. Data Collection


The thesis is dependent on secondary data to answer the research questions. On one

end of the continuum are the official Chinese government publications, which are highly

promotional in nature and use grand narratives to describe Chinese international engagement.

23
The Chinese government’s white paper on Chinese Africa Policy, for example, reads as

follows: “China and Africa have all along sympathized with and supported each other in the

struggle for national liberation and forged a profound friendship” (People’s Republic of

China, 2006: Part II). Other sources of secondary data include; journal articles, books,

published materials on governments reports, memorandum of understanding, budgets, loan

and aid reports, trade deals and book chapters.

3.4. Data Analysis.


This study relies on descriptive statistics by using direct and organized analyses for data

collected. This includes correlations graphs, aid figures, loans, trade graphs and finance

reports. This technique is mostly used in case analysis where the researcher seeks collection

data in hope to construct proper meaning from the data. Hence, the study used descriptive

statistics in providing linear and organized analyses for data collected.

3.5. Chapter Summary

This is the research methodology chapter of the study. The study uses a mixed research

design of both quantitative and qualitative methods. The study is conducted in Nairobi,

Kenya. Study population shall include academic journal articles, publications, books, media

reports and statistics derived from studies conducted by respected authors in the field of

international relations. Secondary data has been collected from relevant sources and the data

obtained analysed through content analysis and descriptive statistics.

24
CHAPTER FOUR

FINDINGS AND ANALYTICAL DISCUSSION

4.0. Introduction
This section is about empirical analysis and assessment of the impact of China’s aid

towards foreign relations in the lights of trade, foreign policy behaviors, and developmental

sectors. The section first will address and present the various findings and data’s by the

objectives and questions of the study, the general concerns and perceptions raised are in

relations to objectives one and two as regards the increased and nature of Chinese aid to

Africa and Nigeria. Moreover, that of objective three and four as relating to the impact of

Chinese aid on Nigeria China relations and other factors that explain Nigeria China relations.

4.1 Findings
Zeleza (2014: 3) depicts China-Africa relations as one of the fastest growing and

exciting relationship in the 21st century. He further states that the relationship between China

and Africa has been received with debate and enthusiasm of which some scholars and policy

makers either condemn or celebrate (Zeleza, 2008, 15; 2014; 3). To this point, China-Africa

relations and policies have sparked a lot of controversial debates and especially on economic,

trade and foreign direct Investment (FDI) in Africa which has been increasingly causing

much to be said about it not being transparent and efficient.

Because Chinese aid to Africa is said not to be in line with the rules of aid giving and

data are not released. Nevertheless, Sub-Saharan Africa (SSA) alone as a region receives one

of the highest shares of Aid and Official Development Assistance (ODA) within the period of

2000-2007 (Carlos and Nicolas, 2010). Foreign assistance in Africa has had several multiple

and contrary effects. It has either shaped or de-shaped state formation and state-society

relations, contribute to regional geopolitics, infrastructure and molded and driven policies.

25
This chapter will give a critical analysis of Chinese foreign policy on aid towards

Africa, by exploring first the context of the Chinese white paper which is a critical working

document in China’s aid policy; and understanding the roles of Various multilateral and

bilateral Chinese Institutions to promote Aid and Foreign Policy relations in Africa.

In as much as Chinese aid is growing, its growing foreign relations with developing

countries most especially Africa is also an important pillar of China-Africa relations. Chinese

aid has been described to be based on the principle of mutuality (Xinghui, 2011). Moreover,

like other countries, China uses foreign aid as a tool to serve its foreign policy goals and

domestic demands. Moreover, as Xinghui Zhang (2011) argues that china’s foreign aid is

more than a part of its foreign policy goals but also a means to facilitate relationship to suit its

internal affairs.

4.2. Chinese Foreign Policy on aid towards Africa


In a period of six decades’ history of PRC, China-Africa relations has experienced a

progressive stance from war to revolution to peace and development. China-Africa Policy has

been changing within the period of the 1960s to contemporary times focusing on political

relations, backed by generous economic assistance to emphasize both political and economic

cooperation. Hence, changes from its economic and reforms policies, no emphasis on

communist ideology, revision of foreign policy towards rationality, and rapid economic

growth and increasing energy dependence all characterized the phase of China-Africa

relations.

Suisheng Zhao (2013) depicts China phenomenal growth in global politics to its

foreign policy behavior. China Foreign Policy towards Africa has been an evolutionary

process from the formation of new China to contemporary China. Contemporary China-

Africa Policy began in 1955 (Looy,2006.5). The beginning of China-Africa Policy began

with the Bandung Conference of 1955 (Looy,2006.2). As posited by Jing Men and Benjamin

26
Barton (2011) the conference was held to enhance economic and cultural operation and

promote anti-imperialist and anti-colonial struggle.

The Bandung Conference of 1955 was described to be a success. The Premier of

China in 1963; Premier Zhou embark on his first visit to about ten nation tour in Africa. The

visit was to pursue key eight principles that will guide China-Africa relations (Jing and

Benjamin, 2011). This principle was based on Economic and Technical aid, which in 1970

this motive prompt an increase of Chinese Aid project in Africa (Jing and Benjamin, 2011).

This principle became the driving force to China relations with African countries as some

African aid recipients increased after the premier visit to Africa in 1963; See the table 1 and 2

below.

Table 1: The first 13 Africa countries to have received Chinese Aid after the Bandung
Conference
COUNTRIES DATE OF FIRST AID AMOUNT (US MILLION
DOLLARS)
Algeria 1958 105
Egypt 1958 193
Ghana 1961 81
Mali 1961 148
Somalia 1963 220
Tanzania 1964 534
Kenya 1964 91
Burundi 1964 125
CAR 1964 56
Congo 1964 203
Uganda 1965 77
Mauritania 1967 239
Zambia 1967 372
Sources: Brautigam Deborah, 1998, Chinese Aid and African Development, pp 45.

27
Table 2: List of Countries receiving Chinese Aid After 1970 visit of Chinese Premier
Zhong.
Countries Date of first aid agreement Amount (US$ million)
Sudan 1970 230
Equatorial Guinea 1971 18.7
Ethiopia 1971 155
Guinea 1971 161
Sierra Leone 1971 94
Togo 1972 77
Tunisia 1972 97
Benin 1972 72
Mauritius 1972 48
Nigeria 1972 3
Rwanda 1972 56
Burkina Faso 1973 92
Cameroon 1973 124
Chad 1973 77
Senegal 1973 108
Niger 1974 64.7
Gabon 1975 26
The Gambia 1975 36
Guinea-Bissau 1975 18
Mozambique 1975 116
Sao Tome 1975 12
Botswana 1976 19.4
Comoros 1976 10.3
Morocco 1976 32
Cape Verde 1977 17.6
Liberia 1977 37.4
Seychelles 1978 8.1
Djibouti 1979 12.9
Source: Brautigam Deborah, 1998, Chinese Aid and African Development, pp 45-46.

28
1982 mark an end to the Premier Zhou Enlai led China-Africa policy, Zhao Ziyang

Second Chinese Premier visit Africa, giving an endorsement on China-Africa relations and

the importance of Africa-China relationship at the center of global politics. New principles

were announced with the coming of a new Chinese Premier; this principle was based on

“equality and mutual benefit, practical result, and joint development.” In the wakes of 1990s

as China economic growth continue its demand for raw materials and energy, economic and

trade relations with Africa became strengthen and necessary. Hence, China-Africa relations

move from the sector of political partnership to economic and trade relations (Jing and

Benjamin, 2011).

In 2000, the Forum on China-Africa Cooperation (FOCAC) marked a new beginning

for Bejing and Africa. As it focuses on the issue of assistance, economic development, trade,

investment and political partnerships. Moreover, Under this network, China and African

representatives meet once every three years to renew and explore various means to improve

China-Africa relations.

Table 3: China’s imported crude oil by region 1995-2006(%)


Regions 1995 2000 2003 2006
Middle East 46 53.6 51.3 45
Africa 11 24.0 24.4 32
Asia-Pacific 41 15.0 15.3 8

Others 2 6.7 9.4 15

Sources: Lai, 2007, ‘China’s Oil Diplomacy: Is It a Global Security Threat?’, P522,
cited from Yearbook of China’s Economic Foreign Relations and Trade, 2002, 2003;
Zhao, 2007, China-US Oil Rivalry in Africa.

In understanding China-Africa relations, it has become a very noticeable and

important feature of high-profile visits to Chinese Premier and Africa head of states. Jing and

29
Benjamin (2011) narratively highlight the visit of Chinese Premier to Africa from the time of

Premier Zhou Enlai to President Ping contemporary times. See Table 4.

Table 4: Analysis of Chinese official visits to Africa: From 1980s-2010


VISIT TYPES PRESIDENTS PREMIERS FOREIGN COMMERCE

MINISTER MINISTER

STATE 21 8 18 19

WORKING - - - 5

OFFICIAL - 9 44 11

OTHER 1 - 4 2

Source: Readings from Tom-Jack, Pamela I. "The Evolving Geopolitical Relations of


Nigeria and China: What is the impact of the Nigeria-China trade and direct
investment in the Nigerian economy?" (2016).

The Table above clearly indicates that China attaches immense importance in pursuing

good relations with the African continent. Nevertheless, Chinese Visits to Africa over the

years has been reciprocal by African Leaders. As Jing and Benjamin (2011) that from the

period of the late 1950s, not less than fifty African heads of States and about twenty heads of

government have visited China. Statistically, not less than two hundred times has Africa

heads of States and government visited China (Jing and Benjamin, 2011; Tian, 2005). As

China-Africa relations continue to grow and state visits increased, trade relations also grew

rapidly.

4.3. China-Nigeria trade relations


Economic and trade ties between China and Nigeria has seen China adopting active

measures to expand bilateral trade relations. Chinese companies over the years have been

encouraged by Chinese government to invest in Africa and developed cooperation with

African development sectors in areas such as finance, agriculture, infrastructure, energy and

30
tourism (Zhiyue, 2011). The increase in trade relations is another Sector that showed the

growth in China-Nigeria relations, Although this increase is not a balanced increased as

depicted by the theory used in this research. From Table 5 and the figure 1 below it shows

how China trade import to Nigeria has been increasing and Nigeria export to China has been

unstable hence causing an imbalance in trade despite increased.

Table 5: Export and Import Trade Between Nigeria and China in USD millions

Year Exports to China China Exports to Trade volume


Nigeria
2000 292.9 563.3 860
2001 227.4 917.2 1,114.60
2002 121.3 1,047.10 1,168.40
2003 71.1 1,787.50 1,859.2
2004 462.6 1,719.30 2,181.90
2005 527.1 2,305.30 2,832.40
2006 280 2,855.70 3,133.50
2008 509.9 6,758.10 7, 268.00
2009 897 5,476.00 6,373,50
2010 962.5 6,737.50 7,700
(Source: Tom-Jack, Pamela I. "The Evolving Geopolitical Relations of Nigeria and China:
What is the impact of the Nigeria-China trade and direct investment on the Nigerian
economy?" (2016).

31
Figure 1: Nigeria-China Bilateral trade statistics

Source: Tom-Jack, Pamela I. "The Evolving Geopolitical Relations of Nigeria and


China: What is the impact of the Nigeria-China trade and direct investment in the
Nigerian economy?" (2016).

The above table depicts the trade surplus and imbalances as describe by Munyi (2015)

between China and Nigeria to have been in more favorable terms towards China having an

increasing proportion. This unbalanced export and import trade has existed for a long time till

date. As depicted by Jing and Benjamin (2011), China-Africa relations has been growing

rapidly during the reform era of 1979 in China. They further prove this by stating further that

from 1979 trade relations between China and Africa was at US$817 million, and as at 1989, it

grew to US$1,166.6 million to reach a US$6,480 million in 1999. On getting to the twentieth

century, it ascended to US$10 billion in 2000 alone, as at 2005 and 2008 it increased to a

significant figure of US$40 billion and US$106.8 billion respectively (Jing and Benjamin,

2011)

32
Zeleza.(2015) argued that Africa trade with China has increased despite global

stagnation for a decade. He further states with the fact that China-Africa trade relations

regarding growth are staggering. Giving the statistics from 1992 he states that China trade

with Africa grows from US$ 2.4 billion in 1992 to US$ 10 billion in 2000, Trae further grew

to US$ 41 billion in 2005 and as at 2010, it was at US$ 128.5 billion and almost US$ 200

billion dollars. With this figure, as at 2010, China overtook U.S as Africa largest trading

partner in 2009, and in 2015 it was projected that China would overtake the European Union

as Africa’s largest trading bloc and with trade expected to reach a staggering 385 billion

dollars (Zeleza, 2015).

Table 6 Sectoral distribution of Chinese aid


NO Sector ODA LIKE Sector FDI

1 Health 25.0% Manufacturing 26.8%


2 Unallocated/ Unspecified 13.0% Construction 18.0%
3 Government and Civil Society 12.1% Wholesale and 17.1%
retail
4 Education 10.0% Mining and 12.0%
Quarrying
5 Agriculture, Forestry, and 6.5% Professional 7.7%
Fishing Scientific and
Technical
Activities
6 Transport and storage 5.1% Agriculture, 6.6 %
forestry, and
fishing
7 Emergency response 4.3% Real Estate 3.0%
Activities
8 Other social infrastructure and 4.0% Electricity, 2.0%
services gas, steam and
air
conditioning
9 Action relating debt 3.6% Administrative 1.7%
and support
services
activities
10 Communications 3.6% Transportation 1.6%
and Storage
Source: Information of FDI projects is from MOFCOM. Information of ODA-like
projects is from Aid Data

33
Furthermore, China trade relationship with Africa is rapidly leading to expanded

activities and influence in Africa natural resources (Li and Abdulkadir, 2013; Cyril, 2008).

China’s rapid influence economic influence and penetration into Africa’s economic market

and mineral fields are mostly related to old and growing trade, energy, aid, and strategic

interests in Africa (Cyril, 2000; Wenping, 2006; Taylor, 2006; Alden, 2007). This influences

in Africa mineral resources has been faced with many reproaches and raises many questions

on the nexus between China’s increasing aid, trade and bilateral relations and Africa mineral

resources.

Zelleza (2008, 8) argues that China’s policy to Africa is not only driven by oil and

other resources but also the strategic importance of the African continent, which lies in three

considerations, with economic factors and diplomatic issues standing alongside the resource

imperative. He furthers argues that since China and African countries are still developing

areas, political cooperation in international affairs is necessary as well as important to secure

their shared interests (Zelleza, 2008, 13), Brooks and Shin (2006:1) argues in agreement to

Paul Zelleza (2008:8) that the growing influence of China in Africa mineral resources is to

dominate Western political and economic influence; and positioning China at same time.

Deborah Brautigam (2011:110), states that despite criticism faced by China

involvement in Africa natural resources and growing trade and commerce relations, it goes

through coordination and approval from Ministry of Commerce as the interest of China is

also in mind, also considering various diplomatic and foreign policy views as aid and every

other that follows such as trade and mineral imports is for policy objectives, and not just to

make money.

China is not a newcomer in Africa and its relations with Africa has been growing, and

as many Scholars have claimed that recent Chinese activities are because of China’s interest

34
in Africa natural resources, however, it tends to be different if one follows the evolution that

has helped us understand the growing relationship between China and Africa. Elijah Nyanga

Munyi (2011:5) outline a pragmatic policy on dealing with China beyond praise or criticism;

he further argues that quite some several African countries suffer huge trade surplus and

deficits while engaging with China as shown in table 7 below.

Regarding the case of Trade surplus with Nigeria, this is due to economic differences

in structures of Nigeria and China. For China, its economy is a manufacturing-dependent

economy while Nigeria economy is oil and aid dependent economy

Table 7: Africa-China trade deficit in USD


Country Trade deficit with China
Egypt US$4.5 billion
South Africa US$2.1 billion
Kenya US$892.5 billion
Cameroon US$75 million
Nigeria US$52 million
Mauritius US34 million
Zimbabwe US$189 million
Source: Elijah Munyi Nyanja (2011) Embracing the Dragon: African Policy

Responses for Engaging China and Enhancing Regional Integration.

4.4. The Forum on China-Africa Relations


Forum on China-Africa Cooperation (FOCAC) was proposed in October 1999 at the

request of African countries and jointly set up the following year 2000 around October.

Through this forum, China-Africa has built a strong relationship over the years. The forum

has served to cancel the debt, facilitate an expansion of the market for the participant and a

create a channel for positive engagement (Gart and Farhana, 2008). The objective of this

section is to understand the FOCAC and analyze how it has contributed to trade, aid, Sino-

African relations and building joint development.

35
From the formation of FOCAC, there have been four different forums which were held

after every three years, from 2000 FOCAC held in Beijing to the 2003 FOCAC conference in

Addis-Ababa and 2006 FOCAC conference in Beijing with the last FOCAC conference held

in Cairo in 2009. From each one of this conference held in Africa or China has ended up

with resolutions, commitment towards trade and bilateral relations, and policies adopted. It

should be noted that the FOCAC forum is a new element in China’s African diplomacy.

Hence, Sino-African Interaction has a long and intricate history.

As explained by Garth Shelton and Farhana Park (2008) Chines President Jiang Jemin

visits Africa in 1996 paved the way for FOCAC forum. The May 1996 visit to six African

countries had a “five-point proposal” to serve as a medium to foster a long-term and stable

China-Africa relationship which is built on cooperation and interaction. Subsequently, this

severed as the key points in the first FOCAC conference in Beijing and second FOCAC

conference in Addis-Ababa. Linked to this research thesis, it is to state that Jiang 1996 visit to

Africa is the framework that led to the evolution of a new diplomatic relationship with

Nigeria.

4.5. Focac and Aid to Africa


With regards to the fact that the 2000 FOCAC meeting showed China as an attractive

partner for Africa in the sectors of trade and development. Garth and Farahana (2008) argues

that FOCAC thou clearly showed China as a collaborative external actor but not an

interventionist actor, it supports the fact that the FOCAC paved the way for a new wave and

levels of Chinese aid to Africa. The Center for Chinese Studies policy briefing of 2012,

clearly explains in agreement to Garth Shelton and Farhana Park (2008) that the FOCAC

meeting in 2000 was agreed on a three-year action plan.

Which is to boost trade and Investment between China and Africa, canceling African

countries debts to China; and increasing developmental aid to invest in Africa (Center for

36
Chinese Studies, 2012). China’s aid to Africa increased to an estimate US$ 5.5 billion dollars

within the period of 2000 to 2007; after the first and second FOCAC conference in Beijing

and Addis-Ababa respectively (Garth and Farhana, 2008).

The provision of Aid to Africa has produced positive development and diplomatic

results in several Africa countries. In Nigeria for example, China has been involved in road

construction; construction key federal and states government roads. Nigeria government to an

extent consider China to be highly responsive as Chinese construction companies such as

China civil engineering construction company (CCEC) is preferred and took over building

works from famous Julius Berger German Nigeria base company. Also, in other countries

such as Ethiopia China has been actively involved in construction and developmental needs.

Figure2: Chinese aid and investment in Africa

Source: Information of FDI projects is from MOFCOM. Information of


ODA-like projects are from AidData

Regarding China’s influence in mineral resources, after the emergence of FOCAC

forum, Chinese oil companies have in the last decade become a competitive actor in African

37
oil sector, putting up a market competition for longtime western oil companies. As Cyril Obi

(2008) note from Patey (2007:997-1016), that China’s strategies for winning oil in Africa

include: investing in countries where western companies have lost ground, or have been

forced to withdraw because of the domestic policies of either their host government or from

their home government, Sudan justify this statement, where the exit of western oil companies

and sanctions from Western government paved the way for the China National Petroleum

Corporation (CNPC) to buy about 40% of Sudan’s oil, notably Sudan Africa’s third largest

oil producer.

Table 8: some commercial deals of China’s three largest oil companies in Africa:
Nigeria
Since 1996, CNPC has controlled a 40% stake in the Greater Nile Petroleum
Operating Company in Sudan; in 2003, CNPC purchased oil refineries in
Algeria for 350 million USD and signed an exploration deal fro oil in two
blocks; in 2004, CNPC invested 1 million USD in an oil and gas exploration
project in Mauritania; in 2006, CNPC and Sinopec teamed up to exploit newly
CNPC
discovered drilling rights to an oil field in Sudan in a deal worth about 600
million USD.

In 2002, Sinopec signed a contract for 525 million USD to develop oil field in
Algeria; in 2004, Sinopec signed a technical evaluation deal for three onshore
oilfields in Gabon to supply China with crude oil; in 2005, Sinopec purchased a
27% stake in an oil field off the coast of Nigeria; in 2006, Sinopec entered into a
joint venture partnership with a local oil company to build an oil refinery in
Sinopec
Angola; in 2006, Sinopec was constructing a 1,500km pipeline to Port Sudan.

In 2005, CNOOC paid 2.3 billion dollars for a stake in the Akpo offshore oil and
gas field in Nigeria; In 2006, CNOOC signed a production-sharing contract in
Equatorial Guinea; and bought a 45% stake in a Nigeria oil and gas field for 2.3
CNOOC billion USD; also in 2006, CNOOC was allowed to explore in six blocks
covering 44500 square miles in Kenya;

Sources: Naidu & Davies, ‘China Fuels its Future with Africa’s Riches’; Scott-
Meuser, ‘Fuelling Development: China and Africa’; Meidan Michal, China’s Africa
Policy: Business Now, Politics Later.

Regarding oil investment in Nigeria and China as an actor in Nigeria oil fields, Cyril

(2008: 5) and Taylor (2007:63) depicts that in late 2004, China’s oil company (SINOPEC)

38
signed two key agreement with Nigeria oil sector; Nigerian National Petroleum Corporation

(NNPC). The first agreement was to assist in the development of five exploration wells, the

second to develop some major oil fields (specifically Okono and Okpoho oil fields).

In addition to this Cyril Obi (2008) notes that in same year petrol China signed an

agreement with the NNPC for petroleum supply of 30,000 barrels of oil to China daily for the

next five years. As china-Nigeria relations improved, two years after the first signing China

had a “big break” with the China National Offshore Corporation (CNOOC) signed a US$

2.27 billion deal that secure 45 percent of Nigerian oil and gas field, and US$60 million deal

that gave China a license to explore in the oil-rich Niger Delta (Cyril, 2008: 424).

With these findings, it suggests that China is not just a catalyst in the scramble for Africa

mineral resources but rather positioning itself strategically and competing with western

companies for mineral resources and trade partnership in Africa. China is seen to be only in

Africa to extract resources; Thou resources might be the main aim or objective of China in

Africa and its relationship with Africa this, however, might be true, but it makes no

difference as Deborah Brautighan states in her Chautauqua Institution public lecture titled

“China in Africa Think Again” states that the Chinese didn’t create this situation it was what

they met when their relationship as their relationship with Africa grew.

4.6. The Forum on China-Africa Cooperation (FOCAC) I and Aid to Africa


In October 2000, President Jiang Zemin addressed the opening ceremony of the ministerial

conference of the China–Africa Cooperation Forum held in Beijing. He suggested that China

and Africa should make a concerted effort to establish a new international political and

economic order. This would be advanced by:

I. Strengthening solidarity and actively promoting South-South cooperation.

II. Enhancing dialogue and improving North-South relations.

III. Taking part in international affairs based on equality and in an enterprising spirit.

39
IV. Establishing a new long-term stable partnership of equality and mutual benefit.

Thus, from its inception, FOCAC was grounded in a broader South-South cooperation

framework, offering Africa a new avenue for a pursuit of its political and economic

objectives. FOCAC was designed as a platform to strengthen and consolidate Sino-African

relations. By the end of the first FOCAC forum, China had provided economic and

developmental aid in one form or another to almost every African country and was involved

in over 800 development construction projects.

The first FOCAC meeting was focused on developing a common perspective for dealing

with post-war international system and solidification of China-Africa trade and investments

links. Four workshops were held along with the conference that addresses China-Africa trade

investment, reform experiences of China and Africa, poverty eradication and sustainable

development, and cooperation on education, science, technology and health (Garth Shelton

and Farhana Park 2008).

4.7. Chinese Foreign Policy on Aid.


With the increase in China-Africa relations, and especially with the growth in

development assistance, trade and economic assistance Chinese government has granted to

Africa countries. There is also an increasing interest and international concerns about China

foreign policy on aid, especially towards Africa. China's foreign policy on aid and

developmental assistance has always placed emphasis on infrastructure something many aid

Africa countries lack and also non-interference (Hu, 2010). According to the Chinese white

paper Chinas, foreign policy on aid is characteristically different to suit both China and

recipient’s countries (China White paper, 2011:44).

Nevertheless, China’s foreign policy on aid has been evolving from the 1960s and is based

on eight guiding principles. Also, the Asian-African Conference of the Non-Aligned

Movement (NMA) in Bandung set the pace for Chinese relations with other developing

40
countries. The core five principle principles according to the Chinese White Paper (2011) and

Schuller & Jari (2011) to be on peaceful co-existence are presented as follows.

I. Infrastructural development: As described by Hu Wenping (2010) that Chinese aid

placed emphasis on Infrastructure, The Chinese White Paper on foreign policy on aid

confirms this statement by stating that Chinese aid unremittingly assists developing

countries in building up their development capacity. Hence China has made

developmental boost such as local personnel and technical forces as part of its aid to

recipient countries; this is to lay a foundation for development in future terms and

embarked on the road to self-reliance and independent development (Chinese White

Paper, 2011).

II. Equality. Mutual respect and Common Development: Adhering to equality, mutual

benefit and joint development has been a key policy of Chinas foreign policy on aid.

China maintains stands that foreign policy is a mutual assistance to recipient countries.

III. No Political Conditions: Hu Wenping (2010) clearly states that Chinese aid does

maintain the principles of non-interference, and China’s White Paper (2011) clearly

explains that China does not impose political conditions and upholds the concept and

five principles of peaceful coexistence while giving aid (Chinese White Paper, 2011).

This is in respect to the fact that despite growing Chinese aid, PRC respects recipient’s

countries right to choose their developmental models that are suitable to its actual

conditions

IV. Realistic Conditions: Chinese Foreign Policy and white paper on Foreign Aid

emphasize on being realistic for the best. China foreign aid is provided by being at the

reach of its abilities and national conditions and channel aid to recipient countries

needs and development (Chinese White Paper, 2011).

41
V. Attention to reforms and Innovation: Foreign policy on aid in PRC is to provide

development to both domestic and international situations. The idea behind this

according to Deborah Brautighan (2011) and Chines White paper (2011) is to facilitate

innovations in the field of foreign aid, and reforms several management mechanisms

so as to improve its foreign aid work to recipient’s countries.

Andrei R. Deleanu (2015:3) states that the main trait of Chinese aid is that economic

assistance and cooperation from China is linked to development assistance, he further states

that to understand Chinese foreign aid policies and evolution it is necessary to understand the

institutional framework of Chinese aid and how China achieve foreign aid goals (Andrei,

2015:3). As explained by Andrei R. Deleanu (2015:3-12) in understanding the principles and

financial means of China’s foreign aid it is necessary to analyze the foreign aid system and its

institutional structures of China’s foreign aid system.

The organizational structure of China’s foreign aid is complex and different from

OECD members, Chinese foreign aid is structured in a top-down management system that

involves various ministries and institutions (Andrei, 2015:8). The organizational structure of

Chinese aid is different from that of many aid giving countries especially OECD members.

The functions of the Chinese foreign aid institutional framework are to provide an official

duty breakdown and analysis on the flow of aid to recipient’s countries. See the figure below

to understand the institutional hierarchy of Chinese aid.

The chart of Chinese aid depicts the state council at the top of decision making. Zhang

and Song (2012:8) further analyses the role of state council to be very crucial in the decision

making of aid disbursement stating that budgets, cash grants, above US$ 1.5 billion and aid

project above US$12.5 million are subject to political sensitization and approval by the state

council. The Ministry of Commerce (MOFCOM), Ministry of Finance (MOF) and the

42
Ministry of Foreign Affairs (MFA) China Export-Import Bank (Exim Bank) and Department

of Foreign Aid (DFA) reports directly to the state's Council. Although, every ministry is

under the jurisdictions and reports to the Ministry of Commerce.

Deborah Brautigam (2009, 2010:5) debunks the idea that China aid system does not

have a central agency, she claims that it is an organized system run by the department of

foreign Aid (DFA) under the Ministry of Commerce (MOFCOM), and in cooperation with

the Ministry of Foreign Affairs (MFA). She further depicts that the Department of Foreign

Aid operates Chinas program on grant, zero interest loans on aid, Youth Volunteer program

and technical assistance. Chinas-export and Import Bank (Exim bank) administers China’s

concessional foreign aid loan program using subsidies from the foreign aid budget to soften

terms on concessional loans from Beijing (Brautighan, 2010).

Figure 3: Organizational Chart of Chinese foreign aid management

Sources: text readings on Sarah Lengauer “China’s foreign aid Policy: Motives and Methods:
center for east and west economics studies, 2012: pp 1-40.

43
Zhang Qingmin and Song Wei (2012:2-8) asserts that Beijing has made a concerted

effort to expand its foreign policy towards developing countries in general and focusing more

towards Africa. The foundation of China’s policy towards Africa, in general, began with

Premier Zhou Enlai China’s first premier and foreign affair minister at the Asian-African

Conference in Bandung 1955 (Zhang and Song, 2012:2). After the Bandung Conference, the

rules of foreign aid which is also known as the Eight Principles for Economic Aid and

Technical Cooperation was introduced, and they are still essential in China’s foreign aid

policy today. In ephemeral, they are.

I. Equality and mutual benefit of donor and recipient country must be ensured.

II. non‐Interference in internal affairs and respect for the state sovereignty of the

recipient country by not attaching any conditions to aid.

III. Interest-free or low-interest loans dispensed.

IV. Self-reliance of the recipient country.

V. Support projects that yield results and increase the capital revenue of recipient’s

countries.

VI. Development projects are carried out with Chinese Equipment.

VII. Technological assistance and training of workers locally are provided.

VIII. Chinese aid implementers to submit to local standard of living of recipient’s

countries.

Shuaihua Cheng (2012:1-5) states that China economic system or foreign aid policy

was first only focused on DPRK, Vietnam and several African countries who shared identical

political stands. Moreover, its aid was mainly material assistance and was limited. The

second stage of China’s policy concentrated on reforms and the opening of campaigns, hence

the economy was liberalized and new market mechanisms introduced. Assistance was

44
strengthened to least developed countries (LDC), and the long-term effects of aid were

focused on partnership and diplomatic relationship (Shuaihua, 2012: 8).

Furthermore, Shuaihua Cheng (2012:1-5) further explains that Chinese aid in its third

stage focused on a pattern, the first pattern was diversification of the sources and means of

funding which was used as a market-based funding to activate economic collaboration

between China and recipient Countries. This action was a means to utilize joint ventures and

cooperative projects and issued low-interest loans using the Export-Import Bank of China

(Exim Bank). Also, greater importance was attached to capacity building through the

increased on technical training and increased aid using the FOCAC

Table 9: Donor spending on Africa as a percentage of total international aid


Estimated aid to Africa Estimated aid to Africa as a

percentage of total international

aid

2005

China $2,7 billion 26%

2005

Japan $2,01 billion 15,3%

United Kingdom $3,05 billion 28,4%

United States $3,90 billion 14%

Source: Gill Bates, et.al Assessing China’s Growing Influence in Africa, China Security,

Vol.3, No. 3, Summer 2007, p. 12.

45
Table 10: Chinese aid Features and Periodization
PERIOD DOMESTIC POLITICAL FEATURES OF CHINA AID
ECONOMY POLICY
First stage (1950-1977) Headstrong communist political- Vietnam, DPRK, Africa Material
economic system; Own assistance
difficulties of political isolation
and economic shortage

Second stage (1978-1991) Reform and opening-up Strengthened assistance to LDCs;


Paid more attention to economic
and long-term effects of aid
projects; Provided aid in more
diversified and flexible ways
(such as managing aid projects on
behalf
of recipient countries, lease
management, and joint ventures).

Third stage The transition from planned 1, Diversified the sources and
(1992-2003) economy to the socialist market means of funding. (Foreign Aid
economy. Fund for Joint Ventures and
Cooperative Projects; and low-
interest loans via the Export-
Import Bank of China).
2, Attached greater importance to
the capacity building via scaling
up technical training. (Forum on
China-Africa Cooperation,
FOCAC)

Current stage Rapid economic growth and 1, increased financial resources


(2004-DATE) enhanced national economic for international aid, with average
strength. 29.4% annual growth;2, arranged
aid projects through multilateral
and regional levels in addition to
traditional bilateral.
SOURCE: Shuaihua Cheng (2012) China’s International Aid Policy

46
4.8 China-Africa Policy Objectives
Beijing foreign policy objectives have been focused on strengthening and developing a

friendly partnership with all developing countries, most especially with African nations after

it was admitted into United Nations Security Council (UNSC). Garth Shelton and Fahana

Paruk (2012) argues that the core guiding factors of China’s relationship with Africa were

laid in the foundation of the late premier Zhou Enlai 1960s visit and the 1980s propose four

principles on economic and mutual benefit. These principles which have always encompass

foreign aid has been guiding Chinas Sino-African relationship.

In all of this growing relationship and increasing aid to Africa from Beijing, many have

argued that Chinese government has made enormous contributions on aid to Africa and its

policy towards China has been an evolving process. Deborah Brautighan and Jyhjong Hwang

(2016:8-13) explains this by stating that the Christian Science Monitor depicts China’s aid to

Africa as at 2006 to be three times the total development aid given by rich countries. This

would have made it $90 billion in just that year.

In 2015, the Economist’s corporate network highlighted that Chinese policy banks had

pledged to provide about US$1 trillion over the next decade or so in Africa. Both were

clearly off track by order of magnitude, but it is significant that neither the authors nor the

editors questioned these sums (Brautighan and Jyhjong,2016:8-13). Chines aid to Africa is

difficult to be measure, but the fact that it is increasing is what cannot be denied. See

appendix I.

4.9 Nigeria-China Foreign Policy Relations (1999-2015)


Abiodun Alao (2010:3) discuss the central determinants of Nigeria foreign policy on

return to democracy, he states that the civilian government that assumed power In May

1999recognised the necessity to redirect Nigeria’s foreign policy. Its first step in achieving

this was to aggressively search for friends, especially among Countries responsible for

47
influencing global affairs and shaping international economic diplomacy. Nigeria realized

that its primary influence lay in the West African sub-region, where it had been the dominant

actor, and in the rest of Africa where, alongside South Africa, it had become a major player.

However, Nigeria also recognized that its ability to play this regional and continental role

was largely dependent on its relations with the global powers.

Discussions on the effectiveness of Chinese aid on policy implementation and foreign

policy relations has focused on Africa because it has received one of the greatest amounts of

aid globally on per capita basis of any world region and, one of the most constant receivers of

Chinas aid for the past two decades. Following the establishment of diplomatic ties in 1971

(Utomi, 2008; Rindap, 2012: 18-30), Jeffrey Herbst and Charles Soludo (2000) argued that

aid is not a vital component of Nigeria’s political economy because of three reasons. First,

the fact that donors have been biased against countries with large populations has been a

scenario working against getting aid in Nigeria as the most populous African country,

secondly; the idea that Nigeria has an extravagant oil wealth cause aid donors to assume that

Nigeria do not need aid. Moreover, due to the rate of corruption and utter difficult in working

in Nigeria has discouraged many aid donors and agencies in working in Nigeria.

Pat Utomi (2008) classify Nigeria relations with China to have grown in the last decade

from a limited ground to an intermittent contact, this has marked the immediate post-

independence era to an increasingly complex and expensive engagement. Gregor Muthembu

Salter (2009:4) correlate Utomi idea on the complexity of China-Nigeria relations. He argues

that the relationship between Nigeria and China is paradoxical and complex and not

straightforward. The relationship is what former Nigeria diplomat and scholar Alaba

Ogunsanwo describes as a tale of two giants. Nigeria relationship with China began with a

six-man economic delegation led by Adebayo Adedeji in 1972 August (Rindap, 2012: 18-30),

this delegation led to the signing of economic and technical cooperation which includes trade,

48
and developmental assistance was signed (Rindap,2012:18-30, Ogunsanwo, 2008:192). China

and Nigeria became deeply involved in a relationship.

Nevertheless, the relationship varied in several sectors and dimensions, and the main focus

was on trade from china’s perspectives and infrastructural development from a Nigerian

perspective. This relationship grew as Gregory Muthemb (2009:4) depicted that Nigeria as at

2009 became one of the Chinas top trading partners alongside Angola and Sudan.

Also in Nigeria, infrastructural construction and contracts increased as major

developmental projects on telecommunication, roads, hospitals, schools and Educational

centers was contracted to Chinese Companies. Chinese Company presences increased in

numbers and size. Nigerian-Chinese Chamber of Commerce was formed in 1994, and this

eventually led to China Civil Engineering Construction to win a Construction contract of

about US$ 529 million on railway and renovation system, this was during Late president

Sanni Abacha era.

Trade Volume between Nigeria and China also increased from a US$ 178 million in 1996 to

US$ 1.44 billion in 2001. This further increased to US$ 1.169 billion in 2002, US$ 1.86

billion in 200, US$ 2 billion by 2004 and US$ 2.83 billion in 2007. This made China be one

of Nigeria top trading partners and with about 30 companies in Nigeria (Abiodun2013:16).

These companies are involved in the construction, oil and gas, technology, service and

education sectors of the Nigerian economy.

49
Table 11: Major Chinese Companies in Nigeria

Companies Sector of activities Assets (USD billion Employees Investment in Nigeria


Sinopec Oil and gas 152.80 373375 Blocks 0ML 64, 66, 29% stake and
operating rights to block 2, Nigeria-Sao
Tome Joint Development Zone
CNPC Oil and gas 470.80 1.67 Licenses for OPL 471, 721, 732, 298
million
(80 000
foreigners)
SEPCO Electric Power 38.60 19756 Papalanto Power Plant
Construction
CCECC Construction 2.17 70000 Rehabilitation of Plan to-Lagos
expressway, Athlete’s village, Ikot
Akpaden-Okoroette road, Lekki Free
Trade Zone
CSCEC Construction, 58.90 121500 Refinery
real estate
CNOON Offshore oil 13.8 21000
45%interest in offshore exploitation
and gas license, OML 130
Sinoma Cement 2.9 9000 In collaboration with Nigeria Dangote
Engineering Group for cement production line EPC
project in 2008
CGC Construction 0.30 - Kebbi Airport. Water supply project in
Gombe, Sakke Dam
Huawei Telecom 25.00 51000 Network, handsets
ZTE Telecom 13.00 85232 CDMA, handsets
SOURCES: Egbula, Margret, & Zheng, Qhing. (2011). West African Challenges -China and
Nigeria: A Powerful South-South Alliance. Sahel and West Africa, 5.

The diplomatic ties grew stronger between both countries in 1995 to 1999 when the

Sani Abacha government diplomatically took steps to bring Nigeria closer to China in what

was describe as “the look east foreign policy” because of sanctions from United Sates and its

Western allies as a result of human right abuses (Rindap, 2015:21). The diplomatic tie grew

stronger when in 1999 and 2001, former President Olusegun Obasanjo Visited China about

four times (Abua, 2004), This visit yield number of trade, economic, technical, scientific,

technological and investment agreement and assistance. In the strength of these political

bonds has been revealed by deeper China-Nigeria cooperation at the United Nations (UN). In

50
2015, China endorsed Nigeria’s bid to become a permanent member of the UN Security

Council, citing Nigeria’s status as a “leading developing country. (Samuel Ramani, 2016)”

Table 12: Signed Agreements and Memoir random of Understanding Between


China-Nigeria from 2001-2006
Type of Agreements Year
Agreement on Trade, Investments Promotion, and Protection 2001
Agreement for the avoidance of double taxation and Prevention of Fiscal 2002
Evasion on Tax and Income
Agreement on Consular Affairs 2002
Agreement on Cooperation on strengthening management of Narcotic Drugs, 2002
Psychotropic Substances and diversion precursor chemical
Agreement on Tourist Cooperation 2002
Strategic Partnership Agreement 2005
A Memorandum of Understanding on Investment Cooperation between the 2006
Federal Ministry of Commerce of Nigeria and Ministry of Commerce India
Economic Cooperation Agreement between Nigeria and Xinguan International 2006
Group of China
SOURCES: Egbula, Margret., & Zheng, Qhing. (2011). West African Challenges -
China and Nigeria: A Powerful South-South Alliance. Sahel And West Africa. 5.

President Hu Jinato visited Nigeria for two days, this two visit Udeala (2010:66)

describe as a visit to consolidate bilateral and diplomatic relations between two countries,

turns out to be true as at the end of the visit a Memorandum of Understanding (MOU) on

petroleum cooperation was signed (see Cyril I, Obi; 2000, 2008). This agreement provided a

gateway for Chinese Investment in the Nigerian Oil Industry, as part of the agreements,

drilling license was granted to China in exchange for Investment US4billion in oil and

infrastructural development project. (Udeala, 2010:66; Cyril, 2000, 2008). Tom Jack Pamela

(2016) describes Nigeria-China Policy under President Obasanjo administration as “oil for

infrastructure.” This clearly explains the idea of oil for Nigeria’s development. The

presidential visit became a means to secure mutual support and developmental assistance

between Nigeria and China, within the period of study.

51
Table 13: Analysis of Nigeria Federal Visits to China: 1999-2015
VISIT TYPES PRESIDENTS FEDERAL FOREIGN COMMERCE
MINISTERS MINISTER MINISTER
STATE 4 1 1 -
WORKING - - - 1
OFFICIAL 2 - - -
OTHER 1 - - -
SOURCES: Readings from Egbula, M., & Zheng, Q. (2011). West African Challenges -
China and Nigeria: A Powerful South-South Alliance. Sahel And West Africa. 5.

Late President Umaru Musa Yar’Adua visited China ones in February 2008, and

eventually both countries agreed to a strategic partnership in power and energy and transport

infrastructure, other financial agreement include US$500 million concessional projects loan

from China to Nigeria and US$4.2 million for hospital construction in Abuja; Nigeria (Okeke

2008:4-6; Rindap2015:15). The relationship between Nigeria China dwindle under Yar’dua

as there was only one state presidential visit and many contracts signed under Obasanjo was

cancel and audited.

Former President Goodluck administration revives the relationship between Nigeria and

China, as energy contracts worth over US$ 10 billion was invested and contracted to Chinese

companies, the contract rejuvenation of the rail system in Nigeria was awarded to Chinese

companies in 2010, and it was worth US$ 2 billion. Obasanjo records more foreign policy

agreements and relationship than his successors. The late President Yar’Adua, who

succeeded Obasanjo in 2007 and Goodluck Jonathan, who in turn succeeded Yar’Adua.

In 2010, Did not embark on as many foreign trips as Obasanjo.

4.10 Summary
In this chapter, Foreign aid as a key instrument to pursue a trade, and the diplomatic

relationship was address in the context of Africa. In China, foreign policy objectives. An

overview of events such as FOCAC and its significance on aid to Africa and increasing

52
bilateral relations. What has been derived from this chapter by assessing the increasing aid

patterns of China to Nigeria; Africa is that Chinas aid is huge to Africa, but it is hard to be

measured. Apart from investment, trade and monetary fund from China to Africa and Nigeria

if one sticks with the Eurocentric idea of aid, Chinese aid is quite small compared to other

countries. All the same, Aid from China to Africa either it is bilateral loans, FDI, and the

infrastructural project is posited to be diplomacy and politics, and it is not all about mineral

resources.

Also, the chapter contextualized Nigeria relationship with China, and from findings, it is

to state that it is to state that the relationship between Nigeria and China has evolved from the

different political administration and has become a significance in world politics. An analysis

of presidential visits from both countries was carried out to justified the increase in a

relationship and foreign aid between both countries. The Sino-Nigerian relationship

according to Toyin Falola is laden with both an opportunity and a challenge.

53
CHAPTER FIVE

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

5.0. Summary: Introduction


This study focused on Chinese foreign aid to Nigeria and how it influences Nigeria-China

relation from 1999-2015. Moreover, in this study, the research objectives first are to

understand how aid from China to various sectors such as economic, trade, education,

technology, and security has influence foreign policy behavior between Nigeria and China.

Chapter two of this research gave a historical analysis of Chinese aid to Africa and an

overview of the evolution of China- Africa relations broadly. In particular, the essences of

this chapter which includes a literature review and theoretical framework was to explain the

evolutionary process of Sino-Africa relations and narrowed to Nigeria economic, educational,

technological and infrastructural sector, and how it has shaped relations between China and

Nigeria.

Chapter four examined data on how foreign aid has increased over the years from China

and its impact on China-Nigeria relation. The analysis of data collected was to explain on

how foreign aid and interstate relations are tied together. Data analyzed shows that the

formation of FOCAC has contributed to this hypothesis to a considerable extent. The core

interest of this chapter was to examine Chinese aid and bilateral relations activities as the sole

core factor of increasing foreign policy objectives to favor China from an African perspective

and to favor Africa from a Chinese viewpoint. Besides this, China has developed an African

foreign policy based on aid, development and increased strategic relations since the Bandung

Conference.

The aspect of the Chinas relations to Africa that covers both the history of China relations

and aid to Africa; Nigeria. Had some key aspect that was identified. First, the end of Colonial

rule in Africa and within the period of the 1950s to 1960s was the period China-Africa

54
relations began to develop. Secondly, Chinese aid to Africa did not start in the 1980s or

1990s as many as accredited that period to be the when Chinese aid started claiming it to be

as a solidarity or appreciation after they replace Taiwan in UNSC with the help of African

states.

Hence, before this claim aid and economic relations to Africa from China has existed

during Colonial struggle and 1960s the year of independence. Although it was limited to a

selected few of which Nigeria was not among at this first stage. Nevertheless, aid was used as

the core means to developed relationship with Africa and open a wider door for other Africa

countries with China. Zheng (2007:5) gave an emphasis on China relations with African

Countries. Arguing that China relations with Africa be still the most important and reliable

part of China’s foreign relations with developing countries.

Most Significantly, several events and official, unofficial and presidential visits indicated a

shift and growth in Chinas foreign policy and an increase in foreign aid as a tool of foreign

policy objectives. Regarding events, as at the evolution of FOCAC, from its inception in

2000, the FOCAC meeting with China led to a reaffirmed commitment to maintain the level

of ODA and investment flows to Africa in the wake of financial crisis and call for

development in Africa. FOCAC has a key influence in creating a means for aid to Africa

countries in various sectors and promote states relations.

In line with the trends and debates derived from China’s foreign policy on aid and patterns

of aid from 1999-2015. Aid from China has evolved and has been primarily directed to

African countries. In the 1960s Chinese aid went to countries such as Algeria, Egypt, Ghana,

Mali, Somalia, Tanzania, Kenya, Burundi, Uganda, and Zambia. Moreover, over the years it

grows to other countries such as Angola, Nigeria, South Africa, Kenya and South Africa.

These countries are not just rich in Mineral resources that are claimed to be vital to China

interest and growing aid to Africa but also, they are strategically located countries.

55
Thou Chinese aid is not transparent, and they insist on not publishing figures on aid

country by country, content by content various figures has been put in place by reputable

media house and research institutions. Some groups or institutions tend to relate any donation

of a fund that connects States government to be called or classified as aid. What some of

these figures reflects are figures put together by a media report, and they do not distinguish

between different kind of Chinese aid activities. Apart from investments, trade, the

commercial fund from China to Africa. If one sticks with Eurocentric idea and concept of aid

Chinese aid is then likely to be quite insignificant compared to other countries.

Secondly, Chinese aid is sometimes considered vast because of their Export Agency

(Exim-bank). What the Chinese Exim-bank does is to finance projects and look for marketers

for goods. Exim bank finance projects of Chines Business and contractors.

5.1 Conclusion
The aim of this study was to analyze the nature of China-Nigeria relationship using

foreign aid. The thesis argued that contemporary aid relationship between China and Nigeria

be based on enormous opportunities to promote good relationship among both states.

Although the study acknowledges its limitation, especially about the size and complexity

surrounding Chinese aid and interest in Nigeria, the flexibility of the method used in the

analytical procedure and justifying the data, enabled this research to achieve its goals.

There is no doubt that the rise of China as an aid donor has impacted on its relationship

with Nigeria both negatively and positively. This thesis rightly observes that China

engagement with African countries over the last few years has significantly altered Africa

countries dependency on Western aid donors and created a competitive market in Africa.

Furthermore, the Chinese aid relation is increasingly impacting Africa’s human resource by

providing medical personnel and scholarships. Only during the academic years of 2010 and

2011, China provided 5,710 government scholarships (FOCAC: 2011). As professor Calstous

56
Juma (2010) points out, in addition to the increasing of the number of African students in

Chinese universities, the Chinese government focused on strengthening the continent's

scientific infrastructure by launching a postdoctoral programme for Africans who each will

return home with scientific equipment worth $22,000 (The Economist: 15 Feb. 2010). Such

support in the development of human capital will further accelerate the overall growth of

African countries.

Theoretically, according to Keohane & Nye, one aspect of interdependency is that it

involves reciprocal effects of the transaction (Enuka: 2011). However, as interdependence is

not always regarding situations of evenly balanced mutual dependence, the asymmetries

independence will most likely provide sources of influence for actors in their dealings with

one another (Keohane & Nye: 2001: 9). Moreover, in the case of foreign aid, being a donor

already creates an influence, and this is understood by both the recipients and the donor.

In this case, while some aid recipients are cautious of the cost-benefit of the relationship

and strive to seal a beneficial deal, others make less effort for varied reasons; it can be

inability, corruption, or may be forced to remain loyal to the donor’s interest, or for some

other reasons. Considering the disadvantages in relations in the findings, the theoretical

assumptions on Interdependence, which state that mutual balances of interdependency as a

theory matters as mutual relations does not necessarily bring a balance in interstates relations.

It, therefore, means that China-Nigeria relation is not necessarily balanced and can be easily

manipulated by either state most especially the more potent. Hence interdependence

relationship with China could cost more even while benefitting.

The fact that China uses foreign aid as an instrumental to support its companies operating

in Nigeria. Chinese aid and trade activities intersect, and this has become a challenge to some

African countries such as Nigeria. China's foreign aid has economic dimensions, and China

57
provides a trade-packed aid. Hypothetically, with the findings of this study. China-Nigeria

relations goes beyond Chinese aid; it is a relationship that has grown not just because of

Chinese aid but trade, FDI, and interest in mineral resources.

5.2 Recommendations
The rise of China as an emerging aid donor regarding loans, trade and commercial

investments in Nigeria has continued to shape the political economy and relations between

the two countries. With Nigeria interest to attained economic growth, China is one of the

countries Nigeria can partner with as a result of Chinese economic growth. This research

paper has examined the impact of Chinese aid on Sino-Nigeria relations. Hence, from the

literature review the conclusion this paper draws that aid is likely to influence Nigeria

relations with China. Nevertheless, the thesis recommends the following.

First, Nigeria should develop a Chinese foreign policy document to have a clear foreign

policy objectives towards China and control Chinese trade imbalances between China and

Nigeria export and import trade market, it can be emphasize that China exploits the lacuna in

policy framework in Nigeria to its advantage. However, it is valid to argue that it is the

responsibility of the Nigerian government to evolve policies that will ensure its engagement

with China is in line with its national goals and aspiration. Therefore, it becomes evident that

China is not the problem but the Nigerian government which is yet to evolve a requisite

regulatory framework that will ensure mutuality and a win-win in its engagement with China.

Secondly, from observation of data considering the flow of cash from China into Nigeria

economy it could be corruption and lack of accountable institutional framework and

bureaucracy is one of the reasons Nigeria depends heavily on aid especially from China.

Also, the dire need for development and control dependency from western companies turned

Nigeria government towards China. However, Nigeria government should ensure how it can

control Chinses goods flooding its market.

58
Nigeria’s priority lies in developing the capacity to manage its policies toward China's

engagement better. Nigeria needs to realize that China’s engagement gives it a unique

opportunity to significantly expand its development and articulate a comprehensive strategy

that addresses its long-term needs. The Nigerian government should avoid short-term fixes

and front-loaded deals with the Chinese and move beyond arrangements that focus solely on

the petroleum sector. High commodity prices are only a temporary vehicle that can be

utilized to drive Nigeria’s economy into a more economically diversified state, the exact

mechanism for sustained growth. Furthermore, The Nigerian government should encourage

Chinese MNCs to make more investments in major sectors. This can correct the trade

imbalance and create more opportunities in the job market for Nigerians.

Nigeria should focus on how China’s engagement in Africa fits into the broader picture of

international engagement. In particular, Nigeria has an opportunity to diversify its

development by balancing Western assistance with that of China but needs to understand

better how each type of aid can be beneficial, and to what sectors, to implement a successful

strategy. For instance, China’s experience as a more disciplined society has the potential to

curb corruption in Nigeria, while the United States’ commitment to human rights and

transparency restrain an abuse of power. In summary, China is in no doubt a good economic

partner for Nigeria, given the fact that they provide aid and have a strategic economic

partnership, but it comes at a cost for Nigeria.

59
Appendix I: Estimates of Chinese Aid

Source Period Amount Region Methods


MOFCOM 1950-2009. $41.4 billion (1950- World Including grants, interest-
2010-2012 2009) $13.7 billion free loans, and
(2010-2012) concessional loans

OECD DAC 2010-2012 $8.5 billion World Annual Fiscal Yearbooks


AidData 2000-2011 $73 billion Africa Projects based on ODA-
(Strange et al. like, OOF-like, and vague
2015) official finance categories

JICA (Kitano 2010-2012 $14.2 billion Africa, Southeast Foreign aid and
and Harada Asia, and Latin government-sponsored
2015 ) America investment activities
(FAGIA)

Rand (Wolf et 2001-2011 $671.1 billion (from Africa, Latin Foreign aid and
al. 2009 ) $1.7 billion in 2001 America, the government-sponsored
to $189.3 billion in The Middle East, investment activities
2011 South Asia, (FAGIA)
Central Asia, and
East Asia

Bräutigam 2007 $3 billion Africa Aggregate foreign aid


(2009) expenditures, debt relief,
and gross disbursement of
concessional loans by
China Eximbank

SOURCE: Brautigam, Deborah, and Jyhjong Hwang (2016). Eastern Promises New Data
on Chinese Loans in Africa, 2000 to 2014. No. 4. CARI Working Paper.

60
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