China in Africa: Building capacity, not dumping overcapacity

Editor's note: Some Western countries, particularly the U.S., accuse China of using the Belt and Road Initiative to "dump" its excess capacity in Africa. However, unlike the West's historical exploitation and neglect of Africa's needs, China supports Africa's industrialization with high-quality production capacity and promotes sustainable growth. China-Africa cooperation is giving a huge boost to Africa's economic development. CGTN's new series "China-Africa Cooperation: Debunking Western Myths" aims to put the record straight. This is the fourth episode in the series.

"To feed the bottomless appetite of capitalism, China needed to find new consumers."

"Where does China have its eyes set on now? Africa."

"Some said, China approaches a small, impoverished nation, usually in Africa, with an offer it can't refuse."

But what's the truth behind these criticisms of China?

In 2000, with the first Forum on China-Africa Cooperation taking place in Beijing, a new era in China-Africa relations was opened. Since then, their cooperation has been catapulted to a new level. China has partnered with Africa and launched a huge infrastructure boom across the continent. However, not everyone is happy, especially some in the West. Those who have their own ulterior purposes claim China's investment is far from altruistic; that in fact, China is using Africa as the dumping ground for its extra industrial capacity. 

But is China dumping its production capacity to Africa?

Africa is home to more than 1.5 billion people, 43 percent of which lack access to electricity. But Africa has also abundant renewable resources.

Salifou K. Coulibaly, General secretary of Ivorian-Chinese Center for Research and Development, said: "Actually, most of the Africans need investment in energy. Most of the African countries need to diversify the source of energy."

When huge needs and enormous potential collide, China softens the blow. The Itimpi solar power station in Zambia is a good example. With an annual capacity of 130 GWh, the power station, designed and built by a Chinese company, will cater to Zambia's industries. 

Hakainde Hichilema, Zambia's president emphasized its significance: "…that's the one that will help us to supply to the industrial sector, such as the mines, and obviously, the agriculture, for the irrigation farming that we are talking about."

Besides, during the construction, over 1,200 locals have been trained to provide skilled workers for new energy projects.

Since the start of the Belt and Road Initiative in 2013, China has committed itself to helping improve partner countries' industrial capacity. Currently, there are more than 3,500 Chinese enterprises operating in Africa. By 2023, China has helped build more than 50 industrial parks in Africa. These gigantic centers for manufacturing and logistics have spurred growth in their host countries and led many to believe that Africa could well be the world's next manufacturing factory.

Former Consultant of McKinsey & Company Irene Yuan Sun said:"I've now talked to more than 50 Chinese entrepreneurs in Africa. One really common sentence I hear is this is just like my hometown 30 years ago. This next place for global manufacturing may very well be Africa."

The Eastern Industry Zone (EIZ) is a good example. This cooperation project with China was Ethiopia's first industrial park. It houses nearly 150 companies, which in turn provide about 23,000 jobs.

Ambachew Gebreyes, an employee working in EIZ said: "I used to work in a small garage with poor payment. Here I am enjoying a better salary, three times what I used to earn." Another employee from Purewood Pulp Paper & Packaging Plc in EIZ said: "This factory is unique in our country. It has the most advanced equipment and Chinese are teaching their technology to us, to Africa."

Driven by industrial parks, Ethiopia's GDP remained at a growth rate of above eight percent between 2010 and 2020.

This is how China cooperates with African countries. What about the West? For centuries, the West has regarded Africa as a source of raw materials, disrupting Africa's value addition. Their negative impacts are so profound that even after independence, many African countries struggle to catch up with industrialization. Today, the development of this continent is still overlooked by Western countries.

Gyude Moore, Senior policy fellow of Center for Global Development (CGD) said: "It seems as if the U.S. response in Africa was not driven by Africans' needs, but by a need to respond to what China was doing in Africa."

"When the U.S. leaders visit Africa, they talk about China, but when Chinese officials visit Africa, they talk about trade and development." - echoes one internet user.

China plays a leading role in the global new energy sector, and is now expanding its reach into the African market in advanced green technologies. China's Gotion High-Tech and the Moroccan government  have recently signed an agreement to establish the country's first electric vehicle battery gigafactory.

Moroccan official Mohcine Jazlaoui said: "This agreement is very important as it completes the value chain which we are building on batteries for electric vehicles."

Through such cooperation projects, Chinese manufacturers have introduced domestic technologies to Africa and shared their experience, contributing to Africa's industrial progress.

You see? That's the difference. China doesn't use Africa for geopolitical purposes, nor as the recipient of so-called China's industrial overcapacity. China is partnering with Africa to boost its traditional industry capacity by introducing new and high-tech know-how and building future-oriented green projects to achieve a win-win result.

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