China won’t begrudge India its influence in Africa

By Hu Weijia Source:Global Times Published: 2016/7/14 1:23:01

Over the past few days, many people have been keenly following the debate over one question: Can India match China's economic influence in Africa?

Indian Prime Minister Narendra Modi's recent trip to Africa has attracted a lot of attention worldwide, and some observers have labeled the visit a check against China's increasing economic influence in Africa. Commentary in The New Indian Express on Wednesday said Modi's just-concluded four-nation tour of Africa would be remembered for both its economic and political content and argued that it must also be seen in the context of China's all-out bid to woo Africa.

Indians established a presence in African markets much earlier than the Chinese, but recent years have witnessed the rapid development of economic cooperation between China and Africa, allowing China's economic presence and influence in the continent to surpass that of India to some extent. But China and Africa's economic cooperation is not exclusive. We believe that China, which is a latecomer among big powers in terms of developing economic ties with Africa, has no intention of restricting the rights of African countries to select their business partners.

Some observers now believe China and India are competing to increase their presence in the continent. But this would not necessarily be a bad thing if African countries can get some benefit from it.

According to media reports, India launched an information and communications technology (ICT) project in Africa several years ago to promote the sharing of expertise between India and African states in areas including tele-education and telemedicine. Such projects may understandably give Indian telecom firms a more favorable position over Chinese firms in obtaining relevant contracts, but China will nevertheless be pleased to see the smooth operation of such projects if they can promote the development of local economies.

Modi's visit to Africa has once again given India-Africa ties a pronounced leg up, but China has no reason to be jealous. If India's economic interaction with African countries can bring new momentum to local development, China can also benefit from such moves.

Lin Yifu, former chief economist of the World Bank, has reiterated in recent years that Africa remains a virgin land for Chinese manufacturers, who have felt trapped by the rising cost of labor in China. In this regard, we hope India can participate more actively in African countries' efforts to improve infrastructure to help the region attract more foreign investment.

India and China must abandon the mind-set of confrontation and strategic competition. In fairness, the two nations can cooperate with each other in many fields in Africa, particularly oil. India's Oil and Natural Gas Corp (ONGC) and China National Petroleum Corp (CNPC) have set a successful precedent for cooperation in a third country, and this experience can be used as a reference for deepening cooperation in Africa.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn

Posted in: Eye on The Economy

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