CHINA/TAIWAN-AFRICA: Beijing Bristles as Taipei Wins Another Ally

By IPS Correspondents Reprint | | Print |

Rajiv Chandra

BEIJING, Jan 11 1996 (IPS) - Thirty years ago, China dispensed hefty aid packages to African countries as it tried to counter the influence of its then rival, the former Soviet Union.

Today, Beijing is presenting few presents to Africa and instead promotes trade and soft loans to win friends on the African continent.

That policy may yet come under review, though, as China’s current rival, Taiwan makes steady inroads in Africa and threatens the long-standing diplomatic supremacy on the continent that Beijing has taken for granted.

Earlier this month, Taiwan flexed its economic clout and persuaded Senegal to resume diplomatic ties after more than two decades, another victory in its crusade to escape the international isolation imposed by China.

Although China is emerging as an economic superpower, tiny Taiwan is ranked as the 19th largest economy in the world and holds the second highest level of foreign reserves after Japan.

China has regarded Taiwan as a breakaway province since the Communist victory on the mainland in 1949 and has long successfully blocked the island’s efforts to win a place on the world state and possibly regain its seat in the United Nations.

The two governments, which both favour reunification but on different terms, has sought closer trade and investment ties but have been at odds since Taiwanese President Lee Teng-hui’s private trip to the United States last June.

China retaliated with missile launches and military exercises off Taiwan’s coast in a bid to intimidate the island and cut off quasi- official negotiations with Taiwan.

Senegal’s decision brings to 31 the number of countries recognising Taipei and the tenth African country to shift allegiance to the island, the second in six months. Last July, Gambia, also recognised Taiwan.

Senegal broke ties with Taiwan in 1964 but relations were resumed in 1969. In 1971, it broke ties with Taiwan again to recognise Beijing. This time, the African country was wooed back into Taiwan’s fold with pledges to assist with economic development, especially new oil discoveries in the south.

“This establishment of diplomatic ties marks a significant development in our pursuit of pragmatic diplomacy,” said Taiwanese Foreign Minister Fredrick Chien after signing a communique with Senegal Foreign Minister Moustapha Niasse.

“So far, we still maintain diplomatic ties with the People’s Republic of China, but the ties did not stop our determination to establish ties,” with Taiwan, said Niasse.

However, in response, China said Tuesday that it had severed relations with Senegal, calling the African country’s switch to Taiwan “erroneous”.

Angered by the diplomatic change-over to Taiwan, China also this month reasserted plans to beef up assistance to Africa through trade and soft loans, not direct aid. This will be done through Chinese investment in joint ventures or wholly owned Chinese factories assembling home appliances, cars, trucks, small tractors and consumer goods.

“This is to help recipient African countries utilise Chinese government soft loans quickly and effectively so that they will sense the remolded policy is really superior to the old way,” said Shi Weisan, director-general of West Asia and Africa in the Ministry of Foreign Trade and Economic Cooperation.

In contrast to its Soviet rival which channeled military assistance to revolutionary groups on the African continent, China for almost four decades provided aid to 49 African countries in farming, fishing, textiles, energy, transportation, broadcasting, education, health, handicrafts and sports.

Such aid programmes, including the 412 million dollar Tazara Railroad in Tanzania and Zambia, peaked during the first half of the 1970s but then declined after the death of Chairman Mao Zedong in 1976.

Then in the 1980s, China began to shift to trade, and last August, decided to take stock of its foreign aid policy in Africa because many aid projects had become mired in mismanagement and lack of funds and were near collapse.

A new African policy was announced under which traditional grants will be converted into government-subsidised loans to set up new joint ventures. Aid projects converted into the new type of funding would become Chinese-held companies and give China tighter management and control over the projects.

Last summer, economic czar Zhu Rongji visited six southern and eastern African countries to promote joint ventures.

Reflecting the new trend, Sino-African trade through October, 1995 jumped by to 3.17 billion dollars — a 64.2 per cent increase when compared to the corresponding period the previous year. Chinese exports through last October totalled 1.92 billion dollars. Total trade in 1994 was 2.64 billion dollars.

Like Taiwan, China is also trying to expand into natural resources such as mining, logging and fishing. Both overpopulated countries are short in resources and hope to develop new sources in Africa.

“What’s crucial is for Chinese traders to adapt to the specialties in doing business in Africa and stop despising the market there,” said Shi, the trade official, urging Chinese companies to form consortia to lower costs.

Like Taiwan, China is also trying to expand into natural resources such as mining, logging and fishing. Both overpopulated countries are short in resources and hope to develop new sources in Africa.

The competition between China and Taiwan is most intense in South Africa which has long had relations with Taiwan when both countries were economic pariahs. China, however, long supported now President Nelson Mandela during his imprisonment under white rule.

Searching for a way out of the quandary, Mandela has urged recognition of both Beijing and Taipei. However, Beijing will have none of it, as it opposed past attempts at dual recognition by Burkina Faso, Grenada and Nicaragua.