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China Inc’s Africa Involvement

February 23, 2011 |  5:30:00  |  McCombs School of Business Legacy Room, CBA 3.202

On February 23, 2011, The Strauss Center’s Climate Change and African Political Stability program and UT’s McCombs School of Business welcomed Walter Kansteiner, former U.S. Assistant Secretary of State for African Affairs and founding Principal of the The Scowcroft Group, to discuss China’s involvement in Africa.

Strauss Center Distinguished Scholar, Ambassador Gregory Engle (ret.), introduced Mr. Kansteiner.

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Mr. Kansteiner began his presentation by discussing what he called the “Àúroller coaster’ historical relationship between China and Africa, as China’s engagement ebbed and flowed due to ideological motivations.  He commented on China’s increased involvement due to business interests in the early 2000s”a trend that has increased over the years with greater trade and commercial projects driven by China’s need for natural resources from Africa, including copper, cobalt, coal, and oil.

To put China’s growing involvement in Africa into perspective, Mr. Kansteiner highlighted the growth in trade between the two countries, which increased from $3 billion in 1995 to $120 billion in 2009.  He commented that China is Africa’s largest trading partner and, beyond the traditional resources of oil and mines, China is looking to Africa as to help supply agricultural food security, to provide a market for Chinese construction and engineering companies, and to provide a market for banking and financial services.

Mr. Kansteiner observed that the Africans were seeing economic growth and increased infrastructure in many cases due to Chinese involvement, but that the cost was still up for debate.  He cited the use of Chinese laborers and resources on projects instead of local laborers and goods, Chinese clear-cutting of the forests in some parts of Africa, and Chinese support for undemocratic leaders as some areas of concern.

In closing, Mr. Kansteiner stressed that it will take a few years to ascertain if China’s involvement is good for Africa, as it is a changing picture that will continue to evolve.

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Mr. Kansteiner fielded a number of questions from the audience, including questions regarding China’s actions around strategic mineral supplies, the U.S. Africa Command, foreign trade zones in Africa, China’s perspective on the Sudan referendum, and whether China’s ownership of assets in Africa is moving from long-term leases to actual ownership.

Walter Kansteiner is founding Principal of The Scowcroft Group.  He formerly served as U.S. Assistant Secretary of State for African Affairs, where he was responsible for U.S. foreign policy in Africa.  He was also the President’s personal representative to the G8 Africa Process.  He previously served as the Director of African Affairs on the National Security Council staff and as the Africa specialist on the Secretary of State’s Policy Planning staff.  He is a member of the Council on Foreign Relations, chairs the congressionally mandated Africa Policy Advisory Panel and serves on various boards in the U.S. And Africa.

Watch the full presentation below:

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