China’s investment in Africa has increased since its entrance in the World Trade Organization in 2001. As a result, China’s government undertook huge commercial agreements with many African countries. These trades allowed African governments access to the enormous Chinese market and provide their territories with gigantic infrastructures. Particularly, the Democratic Republic of Congo, who has some of the richest resources in Sub-Saharan Africa, represents a long-lasting geopolitical ally in the region. Above all, China’s powerful enterprises and other Sino-stakeholders have been paving the way for Congo’s growth and trade opportunities. This reports shows that China embodies an important opportunity for Congo’s future.

1. Sino-Congolese relations:
Jorge Núñez de Arenas -December 2012
A win-win policy?
China’s investment in Africa has increased
Investments since its entrance in the World Trade
Organization in 2001. As a result, China’s
government undertook huge commercial
Trade agreements with many African countries.
Africa These trades allowed African governments
access to the enormousChinese market and
provide their territories withgigantic
infrastructures. Particularly, the Democratic
Republic of Congo, who has some of the
richest resources in Sub-Saharan Africa,
represents a long-lasting geopolitical ally in
Congo the region. Above all, China’s powerful
China enterprises and other Sino-stakeholders have
been paving the way for Congo’s growth and
trade opportunities. This reports shows that
China embodies an important opportunity for
Congo’s future.
This article has been prepared
for:
www.linkedin.com/in/jorgenunezarenas
E- Magazinewww.scoop.it/t/chinese-trends
@GEEorgx -0-

2. Jorge Núñez de Arenas -December 2012
Sino-Congolese relations: a win-win policy?
This article serves as a good example of Chinese investments in the emerging countries.
Nowadays, Chinese role might transform the way countries face 21st challenges. Democratic
Republic of Congo (DRC) short case study could help organizations to understand what are
the pros and cons of Chinese presence not only in Africa, but in Asia, (ex-soviet countries)
and in Latin America. However, future in-depth studies could be useful tomake sense of the
Chinese interactions and exchanges among nations. In addition, this research is aimed at
providing better understanding of the recent problems, focusing on DRC and the
repercussions of Chinese landing on their territory.
Introduction:
Last Forum on China-Africa Cooperation celebrated in Beijing (July 2012) ended with a
historic great deal. China decided to fund African countries for the three forthcoming years up
$20.000 i through infrastructures and investment. At first sight, it seems like might result
probably just immense figures but, what are the real implications?
Since China’s WTO entry in 2001, a new opportunity to make profit propelled China to take
advantage of African diverse natural resources and install their enterprises on African ground.
As far as DRC is concerned, first talks with China began in 1960 as Congolese independence
was reached. In the current context, RDC epitomizes the “exchange model” based on
exchanging aid and investments for natural reserves monopoly or partly the control of the
extraction of raw materials
Extraordinary investment: the contract of the century:
China has not ignored DRC. The enquiry is, might they? Should not The People’s Republic of
China (PRC) keep an eye on this Middle African country? The answer is not simple, but we
could get close to the problem by mentioning two regional characteristics: firstly, the
geopolitical situation of DRC, which is placed on the core of Africa; secondly, the resource
potential wealth for China’s industrial factories and technological centers. Particularly, Congo
is the 5th leading producer of tungsten and 6th of tin and holds 5% of the world’s copper and
50% of cobalt. What is more, DRC keeps an estimated 80% of all known coltan ii that, when
refined as tantalum, is a crucial component of computers, personal electronics, and the
world’s 5.6 billion mobile phones. Under these circumstances, it is clear that not only China
needs DRC but PRC really requires DRC potential to deal with present demands. In fact, they
tried to get the most of DRC supplies. In 2008, a multimillion investment agreement was
signed by Sino-Congolese authorities. The amount reached a massive $9billion dollars
financed and loaned by the Export-Import Bank (Exim Bank) in exchange for roads, rail
systems, transportation routes and the rehabilitation of the mining sectoriii. What will China
receive in return? The concession to exploit RDC’s copper and cobalt field for almost three
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3. Jorge Núñez de Arenas -December 2012
decades, (Cardenal & Araujo; 2011:116)iv and the certainty to secure their future high-tech
development.
Does it mean China is betting for emerging economies? Is there anything fishy going on? We
must await see the outcome to prove it in the long-term because Sicomines, the concessionary
enterprise running the project, put on the table $6000 billion dollars, however, the benefits of
copper and cobalt concession would peak up to $40.000-$120.000 billion dollarsv. On that
context, the rational election choice approach may be useful. Rational action in terms of
benefits maximization may explain China’s interests. China would select the best possible
means to achieve their goals vi through money in return to natural resources. Collective
Chinese policy-makers count on unpredictable events, but think rationally and foresee the
irregular flows of money indeed.
Trade figures: debt relief and local industries:
What about China’s trade? On June 30th 2010 the Paris Club comprised of nineteen permanent
countries took a debt relief of 90% of the RDC government debt, allowing RDC to
presumably get rid of the vicious circle of poor countries. Wouldn’t it be better to say that the
real RDC independence began from 2010 onwards? In the graph below it illustrates how
powerful China is, not only in spending but tactically playing as the best commercial partner
in RDC, ahead of former Belgian colony.
Trade Nosis. 2012
Those Sino-Congolese economic relationships constitute what it is called in Political
Economy path dependence, that is,DRC accepts thatthe costs of these Chinese relations
accumulate over timevii and mark future possibilities. Nevertheless, is China the key to DRC
development? Congolese government representatives largely argue that China is engaging the
DRC with a new approach built on principles of mutual understanding exemplified on the
program Five Building Sites viii . However,what is the perception held by Congolese civil
society? The prevailing Congolese concern is that China pays their workers considerably less
than Western firms ix . Moreover, it is common that China’s consortiums bring its own
workforce instead of calling for native inhabitants, which has an impact on local industries.
Conclusion:
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4. Jorge Núñez de Arenas -December 2012
On the one hand, China’s investments and trade have transformed DRC scenario rapidly. Hit
by a civil war, (1998-2003) foreign aid and investment have been crucial for RDC economic
expansion, while Congolese annual percentage growth rate has progressively increased; 6.9%
in 2011.x For all these reasons, China’s presence on the territory has been bringing about lots
of opportunities.
On the other hand, China’s commercial relationships with RDC have negative impacts on
their territory. The compensations for China’s presence in DRC are noteworthy. Local power
can be in danger and DRC could face a loss of political and economic sovereignty.
Our hypothesis has been partially validated. China embodies a chance for growth, although it
imposes Chinese characteristics in its businesses. As we have examined, DRC partnership
with China has doubled-edged consequences; both positive and negative.
New thinking in China’s foreign policy can be summed up by the creative involvement
concept. It advocates more imaginative methods of mediation and ingenious thinking in the
face of modern dilemmas and challengesxi. Can it be accomplished? The thing is that the long-
term outlook for China’s role in the DRC and African countries is uncertain. Will the Sino-
Congolese agreements be the cornerstone of RDC future? Will it totally be a win-win
geopolitical policy? More research is needed to understand the ongoing trends.
References:
i
ABC. M.Díez. Pablo. China concede 16.000 millones de euros a África a cambio de recursos
naturales. Online: http://goo.gl/Hby3g (Visited: November 26th, 2012).
ii
Foreign Policy Association. Deal of the century: Will Chinese investment save Congo? July 18th
2012 Online Resource: http://goo.gl/lHEDL /(Visited: November 26th, 2012).
iii
This contract had to be reduced by International Monetary Fund and World Bank. Wenran, Jiang.
The Jamestown Foundation. Chinese Inroads in DR Congo: A Chinese "Marshall Plan" or Business?
Online: http://goo.gl/Zbxlv (Visited: November 26th, 2012).
iv
Cardenal, Juan Pablo; Araújo, Heriberto. La silenciosa conquista China. Crítica. 2011, page 116.
v
Ibídem. La silenciosa conquista China. 119.
vi
Marsh, David; Stoker, Gerry. Theory and Methods in Political Science. Palgrave Macmillan.2002.
Page 51.
vii
C. Boas Taylor. The composite-standard model of path dependence. Journal of Theoretical Politics.
19, page 37. Online: http://goo.gl/pK8Up (Visited: November 26th, 2012).
viii
Joseph Kabila Webpage. Online: http://goo.gl/BPtrB (Visited: November 26th, 2012).The five
building sites: infrastructures, job creation, water and electricity supply, healthcare and education is
the paradigmatic program, example of China’s policy in DRC.
ix
Jansson, Johana. Patterns of Chinese Investment, Aid and Trade in Central Africa (Cameroon, the
DRC and Gabon) Centre for Chinese Studies, University of Stellenbosch. 2009
x
The World Bank. Economic Policy & External Debt Indicators. 2011. Online: http://goo.gl/DBpmx
(Visited: November 26th, 2012).
xi
Leonard, Mark. China 3.0. European Council of Foreign Relations. November 2012. Online:
http://goo.gl/JuUFe (Visited: November 26th, 2012).
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