Discussion Papers (Centre for Chinese Studies)
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- ItemA 21st century scramble : South Africa, China and the Rare Earth Metals Industry(Stellenbosch University. Centre for Chinese Studies, 2012-03) Jepson, Nicholas; Grimm, Sven; McDonald, MatthewThe paper analyses the peculiar structure of the rare earth elements (REE) industry, a sector dominated by China, and the global implications of current upheavals within the sector, especially as they concern South Africa’s (re)emerging rare earths production. REEs are a hitherto obscure group of metals that have now assumed global significance. They are especially critical to modern high-strength magnets and constitute vital inputs for a growing range of mass consumer, ‘green’ technology and military applications. It is important to understand that REEs altogether comprise 17 different metals which, although found together in various combinations, differ in relative abundance and breadth of possible applications. There are therefore large variations in prices and criticality of supply between the different elements. The Chinese rare earths industry has secured a 97% share of upstream production by means of aggressive pricing, backed by state support and technology transfer. Beijing is now attempting to consolidate the industry, crack down on illegal mining and restrict and enforce export and production quotas. Official explanations stress renewed concern for environmental issues and the protection of scarce resources from over-exploitation. Also significant, however, is a policy of deliberately using export restrictions to leverage non-Chinese prices, in order to induce foreign downstream producers to relocate production to China. This process is beginning; although there are also two other forms of international response. First, there is demand destruction either through increased efficiency in REE usage, substitution or recycling of rare earths. Secondly – and most widely known – are attempts to restart REE supply chains outside China. South Africa is in the forefront of these efforts through two, globally significant, extractive projects. The refurbished Steenkampskraal thorium and REE mine may be the first non-Chinese new producer to come online, in 2012–2013. The Zandkopsdrift development in Northern Cape is less advanced, but is among the largest prospective new REE mines. Both are joint ventures between Western junior mining companies and East Asian parastatals, respectively from China and Korea. Significant environmental risks seem inherent in the extraction and separation of REEs, especially from thorium waste, although apparently this has not reached the public consciousness in the areas immediately around the South African mines. If these dangers can be avoided or minimised, the new rare earths mines could make a small but significant positive developmental impact at local as well as national level.
- ItemThe challenge in conservation of biodiversity : regulation of National Parks in China and South Africa in comparison(Stellenbosch University. Centre for Chinese Studies, 2012-05) Burgess, MerylDue to the increasing depletion and extinction of the world’s biodiversity, it has become a vital process among the global community to protect the environment and safeguard natural habitats and thousands of species. In developing countries like China and South Africa, factors like the growth and development of urban and rural spaces, industrialisation, high population growth and agriculture activities have added extra pressures to the countries’ biodiversity and natural environment. For this reason, there has been an increase in the number of protected areas established, especially national parks, that are firstly established to protect biodiversity and secondly, established for education and recreation. China, known as one of the “17 megadiverse” countries in the world, is home to a large percentage of the world’s biodiversity. Due to factors such as development, industrialisation as well as a high population growth in recent decades, much of the country’s biodiversity has been harmed or threatened. Similar to China, South Africa has some of the richest biodiversity in the world, also threatened by both natural causes and human-made factors. For this reason, protected areas such as nature reserves, botanical gardens, scenic landscapes, historical areas and national parks have increasingly been established. Although China has an established nature reserve system as well as regulation thereof, the national park system in China is in its early developing phase, with national parks only having been established in one province. South Africa on the other hand has an older and established national park system, with 22 national parks regulated and managed around the country by SANParks as well as the Department of Environmental Affairs. Because national parks are considered public spaces, they have been regulated, in order to properly protect and manage the parks and the species within them. This study looks at the way China and South Africa have attempted to regulate and manage national parks. Regulation and management of parks are important as parks need to uphold the laws and policy on biodiversity conservation and environmental protection. This study thus looks at how national parks have come to do this in two countries with very rich biodiversity, high tourist numbers and development taking place, in some instances at a rapid pace.
- ItemChina as Africa’s ambiguous ally – why China has a responsibility for Africa’s development(Stellenbosch University. Centre for Chinese Studies, 2011-06) Grimm, SvenThis paper explores the changing nature of Chinese-African relations in the early 21st century and, in a second step, assesses Chinese responsibilities for African development. Sino-African relations have profoundly changed in character as a consequence of economic policy shifts in China, coming with readjustments in Chinese foreign policy. China is an emerging world power – and increasingly an important partner to African states. The Asian engagement in Africa is not new, and we have seen a small wave of literature on Chinese engagement already in the mid-1970s to early 1980s. Chinese government engagement in Africa is a constant feature since the days of Mao Zedong. Yet, China‟s engagement with Africa with regard to trade, investments, assistance, and – not least – diplomatic activities has been increasing tremendously since 2000. Sino-African relations are becoming more important in their own right, but also as a consequence of the global rise of China. The recent global economic crisis has arguably further accelerated the already rapid change in economic weights in the world, making the shift towards Asia more pronounced. China‟s relationship with Africa is unequal, whatever the rhetoric around it. China is currently the second biggest economy in the world and it is likely to become even stronger, gaining (or regain, in a historical perspective) global economic weight within the next decade or so. One emerging economy, China, is in need of resources and markets as well as political backing for its peaceful global rise on the one side. And on the other side, we find 49 African states with rather small and often fragile economies engaging with China and other external powers. The stark inequality in economic and political weights results in Chinese responsibilities for African development, this paper argues, which is distinct from tutelage or undue interference. While China emphasises its very distinctness from „traditional donors‟ – not least so as this is arguably a cornerstone in its „soft power‟ in Africa – some challenges are, in fact, arising to African economies or societies from China‟s very size. Action as well as inaction in Chinese international and domestic policies will have consequences for development in other parts of the world, not least in Africa. Research on Chinese-African relations is thus quickly becoming similar to the research on other great powers‟ relations with Africa, even if China is both, a great power and a developing country. This paper provides an overview what we know about effects of Chinese engagement on Africa. The diversity of the African setting in mind, this paper will refer to individual cases as examples, aspiring to provide an overview without unduly generalising. The paper aspires to cast a light on aspects where China‟s rise impacts on African development and which we do currently not know enough about. How immediate or intermediate are the effects of Chinese engagement? Which actors do we have to take into account when we speak of "China" as one entity – and who exactly in China has to take responsibilities for African development? The paper explores the state of debate on direct and indirect effects of China‟s global rise on African states and aims at identifying areas of responsibilities for China and for African governments. In conclusion, it casts a light on the policy requirements for African states in their engagement with external powers and gives indications of a research agenda on China‟s growing global reach.
- ItemChina goes global in Egypt : a special economic zone in Suez(Stellenbosch University, Centre for Chinese Studes, 2013-02) Scott, EmmaThis Discussion Paper examines China's economic and technological zone in Suez, Egypt, in view of the Go Global policy. In order to establish a comparative framework for examining whether the Suez Economic & Trade Co-operation Zone was modelled in line with China's Special Economic Zones (SEZs), this paper maps out the key features of the Tianjin Economic-Technological Development Area (TEDA), as Tianjin Investment Holdings was the partner appointed by the Chinese government to develop the Suez zone. Not only does the paper find support for this argument, but also finds evidence to state that the Chinese government has been involved in shaping Egypt's special economic zones projects from the very beginning. The findings also show that the aims of Go Global policy are being realised through the Suez zone. The zone has potential; however, there exist a number of pitfalls of which China should be weary including over-expenditure and Egypt's domestic politics. A surprising finding was that TEDA is set to become a bigger and more important actor in China's Africa strategy, where Egypt is only the beginning.
- ItemChina-Africa joint research and exchange programme : Forum on China Africa Co-operation (FOCAC)(2014-10) Vhumbunu, Clayton H.The paper identifies and analyses the main vectors of China’s accelerated development including economic, governmental, cultural, educational, infrastructural, technological, and agricultural reforms, examining how these serve as models of poverty eradication, the work draws ideas for the acceleration of development in Africa. It presents a holistic overview from which applicable lessons can be drawn. The paper acknowledges the fact that China is a unitary state with more than 1.3 billion people, whilst on the other hand, Africa, despite a general consensus to reduce poverty, is a continent with now over one billion people spanning 55 fragmented economies. What lessons can be drawn from the development experience in China to accelerate the African integration agenda? The paper argues that China’s success today is largely due to the nurturing of a visionary and dedicated leadership system based on an orderly succession system; capable and competent bureaucracy; effective policy planning and co-ordination; and policy discipline. In recommendation, the paper suggest that Africa strengthens and broadens regional policy planning and co-ordination mechanisms taking into consideration the global political economy context and the continent’s psycho-social structure. This research was undertaken for Southern African Research and Documentation Centre (SARDC), www.sardc.net, Knowledge for Development Institute for China Africa Studies in Southern Africa (ICASSA).
- ItemA Chinese perspective on South Africa as an emerging power : global, regional and bilateral implications(Stellenbosch University. Centre for Chinese Studies, 2011-12) Niu, HaibinThe active international profile of South Africa has attacted China’s increasing interests to cooperate with it at both regional and global levels as well as bilateral level. Globally, both countries share responsibilities to maintain international peace and security, deal with climate change, promote Africa’s development, and reform major international institutions. Regionally, both are major players which have big influence on Africa’s peace and development. The bilateral relationship between China and South Africa will have more and more strategic influence given its increasingly regional and global implications.
- ItemChinese presence in real estate in South Africa and Mauritius(2016) Cowaloosur, HonitaThe proliferating Chinese presence in the foreign real estate business is a pertinent subject of debate the world over. Australia, New Zealand, the United Kingdom and several other countries, fear that Chinese interest in property acquisition in their respective countries is leading to inflated house prices. In the midst of these trends set by the Ultra High Net Worth Individuals (UHNWI) from China, African countries are now emerging as prospective destinations for large numbers of empowered Chinese middle class home-buyers. South Africa and Mauritius distinguish themselves as two of the preferred destinations of this segment. As foreign property ownership mushrooms in the two countries, evaluations indicate that the countries fail in adequately regulating these investments to match their existing socio-economic, environmental and political contexts.
- ItemChinese-led SEZs in Africa are they a driving force of China's soft power(Stellenbosch University, Centre for Chinese Studies, 2013-02) Yejoo, KimThis Discussion Paper focuses on Chinese Special Economic Zones as a possible expansion of soft power in Africa. The Chinese government has aspirations to promote development on the African continent, and works according to successful own experiences, amongst which feature the Shenzhen Special Economic Zone and other such experiments. While a success of the SEZs in Africa might contribute to helping establish China’s soft power in Africa, continuous commitment by both China and the host countries is necessary for this to happen. Even though the Chinese government’s unprecedented support and the high-profile politician’s visits have been successful in gaining the support from African governments and elites in terms of the establishment of SEZs, it will take longer to convince the local people since soft power is socially constructed through interaction among various agents. Most of the SEZs are still under construction and have not started operations yet. This prolonged process as well as labour-related issues such as lack of respect for basic workers’ rights, alleged violation of minimum wage legislation, and complaints about poor working conditions have resulted in resentment of local population.
- ItemClimate change risk and response : droughts as extreme weather events in China(Stellenbosch University, Centre for Chinese Studies, 2012-10) Esterhuyse, HarrieClimate change is leading to an increase in extreme weather events globally. Different communities and different ecosystems are impacted in various ways by these events. It is important to understand what the different vulnerabilities and exposures are for different regions, so as to be better prepared to mitigate and adapt to reduce extreme weather event risk. This fifth CCS Discussion Paper for 2012 evaluates the extreme weather event risk of two drought hit areas in China. This study, indirectly, also illuminates some ways in which developing countries, especially relevant in the China–Africa relationship, can learn from each other; both from successes and mistakes.
- ItemCompeting for development : the European Union and China in Ethiopia(Stellenbosch University. Centre for Chinese Studies, 2011-11) Hackenesch, Christine; Grimm, Sven; McDonald, Matthew; Ethiopia -- Politics and government -- 1991-In European development policy circles, China’s Africa policy has spurred a lively debate about the motives, instruments and effects thereof. The paper assesses the ‘competitive pressure’ that China’s growing presence in Africa exerts on the European development policy regime, and on European development policy to Ethiopia. Ethiopia is one of the most important countries in Chinese, as well as European, cooperation with Africa. For the EU, Ethiopia is the largest aid recipient in Africa. For China, in contrast, Ethiopia is not primarily an aid recipient but an important economic and political ally in its new Africa policy. The paper argues that Chinese financial flows to Ethiopia are largely complementary to European aid, providing the Ethiopian government with resources much needed to implement its ambitious development strategy. However, China has emerged also as an alternative partner to the Ethiopian government, providing alternative development templates and an alternative approach to discuss about economic and political reforms. Chinese engagement in Ethiopia thereby sheds light on the gap between European rhetoric and policy practice, pressuring the EU to make more efforts to reform its development policy system.
- ItemDevelopment in the Xinjiang Uyghur autonomous region : spatial transformation and the construction of difference in Western China(Stellenbosch University, Centre for Chinese Studies, 2012-03) Anthony, RossThe third CCS Discussion Paper for 2012 offers an ethnographic description and analysis of a recent development project in one of the central Uyghur neighbourhoods in the regional capital of Urumqi. In the past two decades, China’s Xinjiang Uyghur Autonomous Region has been the recipient of several large-scale development projects which have occurred in conjunction with market-orientated mechanisms introduced to help foster growth. Because such measures have been introduced in conjunction with the large-scale migration of Han Chinese to this traditionally non-Han region, critics have argued that such measures merely assist a process of “internal colonialism”. The territory, occupied primarily by Uyghurs, a Turkic Muslim ethnic group, has a considerable history of resistance to Beijing rule. Thus, the recent economic development of the region has been viewed by scholars, not to mention many Uyghurs, as Beijing’s attempt to consolidate the Chinese presence in the region.
- ItemDoes China plan and evaluate foreign aid projects like traditional donors(Stellenbosch University, Centre for Chinese Studies, 2013-12) Cabria, NicolaThis Discussion Paper focuses on a relatively less analysed question regarding the Chinese foreign aid system. Firstly I examine the basic features of the planning and evaluation system of the Development Assistance Committee members of the Organisation for Economic Cooperation and Development. This study is useful as it provides a basis for comparison in order to be able to explore the methodologies and features pertaining to the planning and evaluation systems of the Chinese. I start this exploration path by analysing the principles that form the foundation of Chinese foreign aid and compare them with those of traditional donors. This comparison gives us an idea of the strong cultural, political and economical differences that exist between the traditional donors and China. Moreover I define the identity of the two main aid channels, and survey the main planning and assessing features connected to them. For both aid channels I analyse the design and evaluation system separately, observing the presence or lack of information about actors, methodologies, features and criteria. To better present the results of this research, and to make easier comparisons of similarities and differences, the results disclosure is made, where possible, through illustrative graphs and explicative tables.
- ItemEconomic repercussions of the Look East Policy in Zimbabwe(2016) Tukić, Nuša; Tombindo, FelixIn 2003, Zimbabwe formally announced the Look East Policy (LEP) in the face of economic sanctions by the West. This, coupled with the Forum on China Africa Cooperation (FOCAC) of 2000, has strengthened trade and bi-lateral investments between Zimbabwe and China. China is increasingly involved in Zimbabwe’s agriculture, mining, construction and tourism industries. There is also an influx of Chinese entrepreneurs in Zimbabwe’s retail industry. The repercussions of the LEP have been mixed. In this policy brief, we critically engage with three sectors: agriculture, mining and the informal sector; in order to provide an overview of the effects that LEP has had on Zimbabwe focusing on the period 2010-2016. We also propound some recommendations for more positive outcomes in the future.
- ItemEmbracing the dragon : African policy responses for engaging China and enhancing regional integration(Stellenbosch University. Centre for Chinese Studies, 2011-09) Munyi, Elijah Nyaga; Grimm, Sven; McDonald, MatthewNotwithstanding extensive analysis on the pros and cons of Chinese-African involvement, there has not been much in development of a collective African policy framework for economic engagement with China. This paper seeks to shift focus from the debate on the pros and cons of Chinese – Africa relations to arguing that time is auspicious for Africa to develop common policy measures to manage China and making provisional policy proposals on how to do that. The paper’s argument is twofold; first, an incipient African disenchantment over China [as outlined in the post-FOCAC 2009 AU report] provides a prod to coalesce an African ‘Chinese policy’ to manage China-Africa relations. Secondly, if widely adopted, an African ‘Chinese policy’ would not only refine a coordinated continental response to China but would also enhance consolidate regional convergence in key policy areas in Africa. This paper proposes pragmatic policies for embracing China – beyond praise or criticism.
- ItemLive, talk, faces : an analysis of CCTVs adaption to the African media market(Stellenbosch University, Centre for Chinese Studies, 2014-05) Wekesa, Bob; Zhang, Yanqiu; Sven Grimm; Jones, Indiana; Esterhuyse, HarrieThis paper is part of the ongoing China Africa Reporting Project based at University of the Witwatersrand University’s department of journalism which is committed to understanding China-Africa relations from a media narratives and engagements perspective. Views expressed are those of the authors.
- ItemNavigating The Gulf : China’s balancing strategy(2014-12) Mandira, BagwandeenDue to China’s growing energy needs that stem from its unrelenting economic development, Beijing stresses the importance of maintaining a continuous supply of energy - particularly oil - to maintain its impressive economic growth. However, seeing as China’s domestic resources are unable to satisfy its projected future oil demands, the Chinese realise that, barring significant domestic oil discoveries, their dependency on oil imports - particularly from the Middle East - will continue to increase. Of particular importance to the Chinese is the Persian Gulf as it contains a large share of the world’s proven oil reserves. China has thus sought to improve relations with Persian Gulf nations such as Iran. However, Iran’s pursuit to obtain nuclear capabilities has implicated China in Iranian-American tensions. Although China has sought to steer clear of becoming embroiled in the Iranian nuclear situation due to its improved standing in the Gulf, Beijing has unavoidably become a significant actor in the diplomatic brinkmanship regarding Iran’s nuclear situation. By means of a literature review, this paper posits that China’s response to Iran’s nuclear ambitions essentially mirrors its overall diplomatic strategy towards the Middle East; a strategy of pragmatically balancing its own relationship with the US whilst simultaneously advancing profitable geo-economic relations with oil rich Gulf nations.
- ItemPolitical risk factors : what Chinese companies need to assess when investing in Africa(Stellenbosch University, Centre for Chinese Studies, 2013-09) Du Toit, GerdaSecurity and profitability objectives are becoming more relevant for Chinese firms as they expand their business operations on the African continent, where the political environment often exposes the firms to high political risk. Political risk analysis is increasingly important as a way of identifying, assessing and addressing the issue of political risk. This study explores the political risk factors that may influence the operations of Chinese firms operating in Africa. Economic development, social development, political instability, corruption and political violence are host country factors that may shape the African political environment and foreign business firms’ exposure to political risk. Company-specific factors may have a negative or positive impact on the exposure of Chinese firms to the host country’s political risk environment in Africa. Firstly, the size, ownership and the relationship of the firm with the home government may influence a firm’s bargaining power in a host country. Large and diversified firms, especially Chinese state-owned enterprises in strategic sectors generally have more bargaining power than small firms. Secondly, company resources such as capital, experience and technical expertise may give a company a competitive advantage over other firms, especially when the host country lack in these areas. Thirdly, the political behaviour of firms such as partnership formation with the government may be beneficial to business operations. However, in unstable countries this may pose a risk to Chinese firms being targeted or losing contracts in cases of regime change. Fourthly, the more the country is economically dependent on the company or the home country, the more bargaining power the company has and it is less likely that the government would intervene. African countries may become more and more economically dependent on China as China-African trade relations expand and Chinese concessional loans become more relevant to African countries. Fifth, a firm’s reputational risk may be influenced by firm culture, its response to corporate social responsibility, environmental concerns and labour issues. Chinese firms generally have the reputation of having a more top-down business culture and not integrating corporate social responsibility, environmental concerns and labour issues into their business operations. Lastly, because an international business firm may be associated with its home country, the home-host country government relations may influence the firm’s political risk exposure. While this association may have negative consequences for Chinese firms in some cases, China’s increasing involvement in African diplomatic relations, peacekeeping missions and association with the African Union may add to China’s image in Africa as a responsible power sensitive to African security.
- ItemState-directed multi-national enterprises and transnational governance : Chinese investments in Africa, corporate responsibility and sustainability norms(Stellenbosch University, Centre for Chinese Studies, 2014-01) Cisse, Daoude; Grimm, Sven; Nolke, AndreasAfrica clearly needs foreign investments for its development. But such investments in extractive industries and hydropower projects should not cause ecological degradation and threaten the livelihoods of many Africans. Sustainability comprises economic, social and environmental dimensions and is thus a broad concept, rather describing a balancing act and a process of continuous improvement than an achievable target. The emphasis of this paper is on the environmental dimension of sustainability and how it sits with the other dimensions, particularly in Chinese investments in African states. The discussion is embedded into the general context of the rise of non-triad multinational enterprises and its implications for transnational regulation.
- ItemStrengthening Africa-China relations : a perspective from Botswana(Stellenbosch University, Centre for Chinese Studies, 2013-11) Youngman, FrankThis paper is a preliminary consideration of issues relating to the relationship between Botswana and China. There is little existing research on the subject and the paper seeks to develop the basis for further conceptual analysis and empirical study. It provides a country-level exploration of Africa-China relations and how they might be strengthened. The paper addresses three general questions on Africa-China relations in the context of Botswana, namely: What are the different dimensions of Africa-China relations? What are the issues currently facing Africa-China relations? What specific measures can be taken to strengthen Africa-China relations? Firstly, the paper identifies the different dimensions of relations between Africa and China so that the multi-faceted and complex nature of these relations is emphasized. The next section considers the historical development of Botswana-China relations, after which an assessment is made of the issues present in the current situation. On the basis of this analysis, possible measures to strengthen relations are examined. A case study is provided of the role of the University of Botswana in promoting Botswana-China relations. In conclusion, it is proposed that empirical research on the topic is necessary. This paper was initially presented at the Third Meeting of the China-Africa Think Tanks Forum in Beijing in October 2013. It should be noted that the sequence ‘Africa-China’ is used deliberately to emphasize that an Africa-centred perspective has been taken. Furthermore, the paper relies predominantly on African and Chinese writers and sources in order to circumvent the problem of the over-reliance on Western analysts in the study of Africa-China relations.
- ItemA study on the employment effect of Chinese investment in South Africa(Stellenbosch University, Centre for Chinese Studes, 2013-10) HUANG, Meibo; REN, PeiqiangThe employment effect of Chinese investment in Africa has always been questioned by the international observers. Therefore, in order to investigate the suspicions from international observers, this paper uses a survey of the investment of 16 Chinese enterprises in Johannesburg, South Africa (South Africa) to analyse their possible employment effect in South Africa. From the survey, we found these Chinese investments brought about job increment to the local people, alleviating employment pressure, including many local low-skilled or unskilled labour. On the other hand, we argue, South Africa’s strict labour laws, its powerful labour unions, as well as the international orientation of Chinese enterprises in South Africa ensure the employment quality of Chinese enterprises will meet the host country’s legal requirements. As a result, the assumptions of international observers concerning the employment effect of China's investment in Africa are untenable as far as South Africa is concerned. Finally, the paper argues that the improvement of investment environment in South Africa is a prerequisite for further expanding the employment effect of Chinese firms.