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Recommendations for U.S. Policy China in Africa

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Presentation on theme: "Recommendations for U.S. Policy China in Africa"— Presentation transcript:

1 Recommendations for U.S. Policy China in Africa
Marykitt Haugen

2 U.S. - China Interests compared Recommendations
Agenda Puzzle China’s Africa Policy U.S. Africa Policy U.S. - China Interests compared Recommendations

3 US Interests US/China competition to secure access to resources?
Should the US care that China is securing resources and building relationships with countries in Africa? US/China competition to secure access to resources? Secure supply vs. free market What about Chinese methods and its non-interference position? Responsible member of international community Environmental concerns How can the US deal with a geopolitics driven market vs. global free market? Who do these strategies help/hurt in the short-term/long-term? Spur U.S. innovation to mitigate risks? Opportunity for US/EU/China cooperation? Development Environment 3 10/13/09

4 China’s Africa Policy Sincerity, friendship and equality.
China adheres to the Five Principles of Peaceful Coexistence, respects African countries' independent choice of the road of development and supports African countries' efforts to grow stronger through unity. Mutual benefit, reciprocity and common prosperity. China supports African countries' endeavor for economic development and nation building, carries out cooperation in various forms in the economic and social development, and promotes common prosperity of China and Africa. Mutual support and close coordination. China will strengthen cooperation with Africa in the UN and other multilateral systems by supporting each other's just demand and reasonable propositions and continue to appeal to the international community to give more attention to questions concerning peace and development in Africa. Learning from each other and seeking common development. China and Africa will learn from and draw upon each other's experience in governance and development, strengthen exchange and cooperation in education, science, culture and health. Supporting African countries' efforts to enhance capacity building, China will work together with Africa in the exploration of the road of sustainable development. The one China principle. The political foundation for the establishment and development of China's relations with African countries and regional organizations.

5 Five Pillars of US-Africa Strategy
U.S.’s Africa Policy Five Pillars of US-Africa Strategy Support for democracy and the strengthening of democratic institutions on the continent, including free, fair, and transparent elections. Supporting African economic growth and development. African Growth and Opportunity Act (AGOA)  Conflict prevention, mitigation, and resolution. Supporting Presidential initiatives such as the Power Africa, Trade Africa, Global Health Initiative, Feed the Future, and the Global Climate Change Initiative. Working with African nations on transnational issues such as drug smuggling, money laundering, illicit arms, and trafficking in persons. On August 9 – 13, 2013, the United States partnered with Ethiopia to host the 2013 U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum in Addis Ababa. Similar to the Forum on China-Africa Cooperation (FOCAC)-2000 16 Billion over 5 years to double Africa electricity. The U.S. government pledged $7 billion, while the private sector will chip in with an additional $9 billion over a period of five years.

6 China’s Interests in Africa
Chinese FDI in Africa Share: Nigeria, Angola, South Africa Opposing: Sudan SudanOther political issues like Taiwan come in to play but will not be discussed due to focus on course topic.

7 China’s Energy Interests
China imports from Africa are 66 percent oil and 30 percent minerals/metals. US imports from Africa are 89 percent oil.

8 U.S. Interests Other political issues come in to play but will not be discussed due to focus on course topic.

9 Perspective

10 Shared Energy Interest
US Oil imports declining over last few years. The United States has identified Nigeria and Angola as strategic partners, along with South Africa. How and when will President Obama engage the leaders in Abuja and Luanda in a substantive manner? Ethiopia is another important American partner deserving attention. The United States has been one of Algeria's single largest markets for crude oil for almost a decade, but U.S. crude oil imports from the Algeria have substantially declined in the last five years. The United States imported about 120,000 bbl/d of crude oil from Algeria in 2012, which is down from its peak of 443,000 bbl/d in The growth in light crude oil production in the United States has contributed to this decline. (EIA country report)

11 Recommendations for U.S. Policy
Define specific national security issues that will create confrontation. Directly linked to supporting entities that support Al Shabbab, Boko Haram Others – How far is the US willing to go with human rights abuse? Where it is economically beneficial or in our national interest, continue to encourage U.S. investments in African countries. African Growth and Opportunity Act (AGOA) / Power Africa Initiative Responsible competition will create a more efficient market and allow African countries to receive market driven terms. (Niger example) Mitigate risk for U.S. companies in key countries through bilateral investment treaties (BITs) and double tax treaties (DTTs) Continue to partner with African countries and regional organizations to enhance market efficiency, environmental use, and human rights. Encourage China’s investment in Africa. Investments by the U.S., China, and the EU can help the African market to develop and raise poverty conditions. Economic interests and relationships vary—not the Cold War Part Deux. China is willing to provide their companies with risk mitigation, U.S. is not currently. China is currently willing and able to take greater risk Infrastructure projects help everyone The U.S. has nine BITs and four DTT s in Africa (three of each in North Africa) far fewer than its major economic competitors, including China. Despite its rhetoric that Africa is “open for business,” the U.S. government has actually made next to no effort to give American investors legal protection there. (Norht AF=Egypt, Morocco and Tunisia) with the United States.  BTIs with small and seemingly random group consisting of Cameroon, the two Congos, Mozambique, Rwanda, and Senegal. With the partial exception of Cameroon, and to some extent Rwanda, none of these countries is even English-speaking. France has 11 BITs with sub-Saharan Africa, and 26 DTTs (conventions fiscales). The U.K. has 15 BITs and 17 DTTs (not including air-transport tax agreements). Germany has a whopping 36 BITs. The Netherlands has 20, and even little Belgium has nine. Meanwhile, China, the heavyweight challenger to U.S. interests in Africa, gives its investors the protection of 11 BITs. 

12 Africa: it’s a continent
Questions?


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