When China Rules the World

Figure 37. Rapid growth of China’s trade with Africa.

Figure 38. Foreign direct investors in sub-Saharan Africa.

Oil now accounts for over half of African exports to China, [1046] with Angola having replaced Saudi Arabia as the country’s largest single oil provider, supplying 15 per cent of all its oil imports. [1047] China has oil interests in Algeria, Angola, Chad, Sudan, Equatorial Guinea, Congo and Nigeria, including substantial exploration rights, notably in Angola, Sudan and Nigeria. Sudan exports half of its oil to China, representing 5 per cent of the latter’s total oil needs. [1048] Already over 31 per cent of all China’s oil imports come from Africa and that is set to rise with the purchase of significant stakes in Nigeria’s delta region. [1049] Over the past decade, China’s imports in all the major primary commodity categories, except ores and metals, grew much more rapidly from Africa than from the rest of the world. Africa now accounts for a massive 20 per cent of China’s total timber imports. [1050] China has overtaken the UK to become Africa’s third most important trading partner after the United States and France, though Africa still accounts for only 3 per cent of total Chinese trade. [1051] While the value of US-Africa trade in 2006 was $71.1 billion, China-Africa trade is rapidly closing the gap at $50.5 billion. [1052] With 800 China-financed projects, valued at around $1.25 billion in 2005 – before the 2006 conference – Chinese investment in Africa still accounts for only around 1 per cent of total foreign investments in Africa, but future projections suggest that China will very soon become one of the three top investors in the continent after France and the UK. [1053] It seems only a matter of time before China becomes Africa’s largest trading partner and its biggest source of foreign investment, probably by a wide margin, though India may one day emerge as a serious competitor.