China increasing presence in sub-saharan africa Dissertation

China increasing presence in sub-saharan africa - Dissertation Example China despite having high population (over 1 billion people) compared to numerous states globally, the state continues to exhibit a remarkable economic improvement each year (Bloomberg 2010). This is due to its insistence on economic investment not only inside the state but also globally whereby China attains incomparable benefits in return. Some of these benefits/returns to the China embrace available market for their exports, raw materials, imports and even oil. The latter commodity (oil) is almost getting exhausted in the states which China used to rely on besides the US developing political interests in these regions with the intention of dominating the states (Middle East states), hence yielding to stiff competition. Relationship between China and Sub Saharan African region that has yielded to current strong involvement between the two sides is mutually beneficial. This implies the involved parties regardless of their varying economic grounds, maximally benefit from each though due to China’s high demand for raw materials it ended up initiating the move. This is evident from the China’s numerous economic activities evident in SSA region contrary to those of the western states that had initially and up to date invested in Africa (Kaplinsky, McCormick, and Morris 2007). Hence, exhibiting China is out to compete with its rivals (Europe and US) though the tactic is not political as witnessed with US seeming to dominate the other region. China in its quest to attain and ensure cordial relationship with SSA region, embarked on heavy investing that will not only guarantee present benefits but also the future (Kaplinsky, McCormick, and Morris 2007). Hence, being prudent in their actions especially in shunning the areas that have for long maintained a high reputation of rich oil reserves, though currently are undergoing depletion (Broadman 2007). This has prompted China to focus on developing SSA region via establishing and supporting varied key proje cts. Most of these projects encompass those, which for long superpower states (west and US) evaded or heightened their bids especially when negotiating about terms once they finance them. Hence, prompting China to use this opportunity to offer interest-free loans meant for varied states’ projects in this region to back and fund their projects. For instance, this is evident in Libreville where China gave $2 billion and an additional of $6 million loan in return for timber (Ministry of Foreign Affairs, and PRC.2000). This is among numerous interventions and incidences regarding trade, which China has involved itself by concentrating on ensuring cordial relationship with SSA region besides constant flow of raw materials for their home industries. The inception of china’s interest in SSA region started with the tour of President Hu Jintao who ended up entering into various agreements with the key SSA states, for instance, Algerian and Gabon regimes. His core intention enco mpassed seeking constant suppliers of oil for his states. Consequently, this prompted china to finanncing oil exploration projects after signing an agreement with Omar Bongo in Lbreville (China Monitor 2006). In addition, Sinopec and Total-Gabon company made an agreement where the latter was to export 1Millions tons of oil to china (China Monitor 2006). This prompted China to give a loan of 420 Million euro meant to develop Zarzaitine oil field, which was after signing agreement in 2002 (China Monitor 20