EU and China Race for African Resources

Pius Utomi Ekpei/AFP/Getty Images

EU and China Race for African Resources

China is rapidly moving in on Europe’s long-time trading partner: Africa. Brussels is more than worried.

The European Union is attempting to head off China in the race for Africa’s resources, according to a Business Day report. Europe has long enjoyed a healthy trading partnership with the continent, but commerce between Africa and China is growing and now exceeds $58.2 billion.

“The EU wants to launch moves to shore up Europe’s access to Africa’s abundant energy supplies while offering EU help in modernizing the continent’s own energy sector,” Business Day wrote (June 28). The report continued, “The ultimate goal is to position Europe better in the quest for energy and other vital resources also sought by a booming China.” With a growing economy to feed and overtaxed natural resources of its own, China is reaching more and more into Europe’s proverbial backyard.

“There’s a lot of criticism that China is undermining our policies and assistance in Africa,” one EU official said. “They do not want to harm us, but they promote their national interests.” Europe is currently Africa’s largest trading partner, but China’s startling growth on the African continent has many Europeans worried that more of Africa’s resources may be headed east instead of north.

The Chinese government recently allocated a $1 billion fund to help businesses move into Africa. The fund reportedly could eventually swell to almost $5 billion. China has also provided no-strings-attached loans to aid its influence in Africa. While Europe generally attaches conditions such as a good human rights record and democracy to its money, Beijing evidently views corruption and human rights issues as little hindrance to robust trade partnerships.

According to a European Commission policy paper published June 27, “If the EU wants to remain a privileged partner and make the most of its relations with Africa, it must be willing to reinforce, and in some areas reinvent, the current relationship.” Europe, the paper said, needs a “political partnership of equals” with African nations. Lisbon will host talks between the EU and the African Union in December.

Africa is just one area where the European Union and an Eastern power are at loggerheads; expect more direct competition to come. For more analysis on the scramble for natural resources, read “The Battleground.”