© Said El Mansour Cherkaoui – 9/11/2024
Introduction – China-Africa Cooperation – FOCAC
This is a presentation of the relationship of China with Africa depicting several years of interactions that had been developed through indirect and direct investments and technical support provided to the African States by Chinese companies and engineers.
China has mastered the means and ways to offer services to African governments by becoming the model for the construction of large products that include infrastructure, urbanization, rehabilitation of regions and areas for the development of new logistical and transportation systems, and the distribution of energy, water, and other sources to supply cities and rural zones, including agriculture, building new offices and modernization of administrative and governmental offices.
In parallel to the modernization, the African States need, China has provided the financial leverage and resources for such projects. These complementary drives toward financing and realizing the projects gave China the upper hand in demonstrating its abilities to initiate, develop, and achieve the project without any interference or support from other nations. This kind of prominence has also made China to be trusted as the provider of services that will be completed in good condition with good standing. Read more here:
Forum on China–Africa Cooperation – FOCAC
TRI CONSULTING KYOTO TRI CK USA – Said El Mansour Cherkaoui – Originally published on November 6, 2019, and updated on August 16, 2024 © Said El Mansour Cherkaoui Introduction This is a presentation of the relationship of China with Africa depicting several years of interactions that had been developed through indirect and direct investments and technical support provided to the African States by Chinese companies and … Continue reading
Angola Model and China Quest for Oil and the Shift of China From Southwest Africa to the Middle East
Concerns are growing in the US and other countries regarding economic cooperation between China and Africa including the so-called “debt trap,” in which China increases its influence by extending excessive loans to developing countries. Angola and Angola Model is frequently used as a case of such debt trap based on the extraction of natural resources or supply of energetic and strategic minerals by African nations in exchange for loans provided by China State and Financial Institutions.
Angola’s long-running financial relationship with China has been built on a simple equation: Angola would repay its growing Chinese debt with oil. This strategy became known as the Angola Model.
Since 2002, Angola has borrowed more than $45 billion from China, more than half of that going into its energy sector. More than a decade ago, Angola was China’s No. 2 source of crude oil. China receives nearly 72% of Angola’s oil exports, making it Angola’s largest oil importer.
According to a report from the Carnegie Endowment for International Peace: “In 2010, Angola was the world’s second-largest exporter of oil to China, after Saudi Arabia. But it has fallen down the list as Beijing has increasingly turned to the Arab states of the Gulf Cooperation Council, Russia, and other Asian countries.
In the early 2000s, Angola received US$42.6 billion from Chinese lenders, more than a quarter of China’s total lending to African countries between 2000 and 2020, which made it the largest recipient of Chinese loans in all of Africa. The School of Advanced International Studies-China Africa Research Initiative (SAIS-CARI), estimates that Angola was the top recipient of Chinese infrastructure loans, with US$ 43 billion worth of loan commitments, between 2000 and 2018.
However, the beginning of the end when between 2019 and 2023, Angola’s oil production fell 22% from 1.42 million barrels per day to 1.1 million barrels per day. The subsequent drop in business is straining Angola’s ability to keep up with its Chinese debt. As oil revenues have declined, by 2023, Angola had been bumped to number eight on this ranking of oil suppliers to China.” China receives nearly 72% of Angola’s oil exports, making it Angola’s largest oil importer. However, the recent drop in business is straining Angola’s ability to keep up with its Chinese debt. Since 2002, Angola has borrowed more than $45 billion from China, more than half of that going into its energy sector, according to Boston University.
Angola still owes Chinese lenders $17 billion. Chinese loans constitute about 40% of Angola’s total debt. Overall, debt payments consume about half of Angola’s national budget every year, placing it among African countries most vulnerable to a potential debt crisis, according to international credit rating agency S&P Global.
As oil revenues have declined, Angola has been forced to cover interest payments on its debt by tapping into a Chinese-held $1.5 billion escrow fund that was mandated as part of its loans. As China Buys Less Oil, as China has begun importing less oil from Angola and other African nations and more from Russia, the Persian Gulf, and Asia, Angola Struggles To Repay Debt.
Chinese lenders gave Angola a three-year reprieve on loan payments that ended in 2023 — just as Angola’s economy took a downturn. As oil revenues have declined, Angola has been forced to cover interest payments on its debt by tapping into a Chinese-held $1.5 billion escrow fund that was mandated as part of its loans. This year’s debt payment to Chinese leaders is estimated at $10.1 billion.
Angola recently left OPEC, the cartel of oil-producing countries, after a dispute over quotas. Angolan authorities hope that step will encourage more direct investment by China and other countries in its oil sector. In the meantime, the country’s leaders are trying to diversify their economy to reduce the impact of fluctuating oil prices.
This shift has been driven, in part, by African countries’ lack of investment in new oilfields and infrastructure. Aging equipment and shrinking oilfields make the continent’s oil producers, including Angola, less reliable as exporters, according to researchers with the Carnegie Endowment for International Peace.
Zambia’s Bad Credit Bet for China, Good Mining Gamble for the West
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When the Missionaries arrived, the Africans had the Land and the Missionaries had the Bible. They taught us how to pray with our eyes closed. When we opened them, they had the land and we had the Bible. – Jomo Kenyatta
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In the present article, we will emphasize the reasons for the setback experienced by the restructuring and rescheduling of Zambia’s External Debt and how even with the twist of events and alliances other projects such as the Liboto Corridor Project can become a double edge sword with 2 sharp sides and even to be transformed in the Sword of Damocles put on the top of the Zambia Head.
In the case of Lobito investment, China holds the primary role, and in Central Africa and Sahel, Russia with the military power making Africa more tuned toward a nationalistic approach for its development and using colonialism and neo-colonialism as the reason for changing the rulers by new military militants instead the legation of the western countries.
Lobito Investment:
The Lobito Atlantic Railway project, covering Angola, the Democratic Republic of Congo (DRC), and Zambia, is a significant infrastructure initiative. Led by the United States, the project aims to enhance logistical infrastructure in southern Africa. However, Chinese state-owned enterprises and private companies already dominate critical mineral supply chains (such as copper and cobalt) needed for electric vehicle components.
And there are countries with worrying amounts of Chinese debt. In Djibouti, China holds 77% of the national debt, while Zambia’s $6.4 billion in Chinese loans represents the lion’s share of its commitments. A spokesperson for China’s Ministry of Foreign Affairs (MOFA) told CNN via email that China has paid “high attention” to the African debt situation, and is dedicated to “sustainable development.”
United States – Angola: Rejevunating Courting Relationship
| Press Release: Corporate Council on Africa announces Angola as host of the 2025 U.S.-Africa Business Summit Washington, D.C. – September 6, 2024 – The Corporate Council on Africa (CCA) has the high honor of announcing that the Government of the Republic of Angola will host the 17th U.S.-Africa Business Summit in 2025 in the city of Luanda, Angola. Following a meeting of CCA leadership with His Excellency João Lourenço, President of the Republic of Angola during the May 2024 U.S.-Africa Business Summit in Dallas, Texas, a Memorandum of Understanding (MOA) was developed and was signed today in Washington, DC by H.E. Mr. Agostinho Van-Dunem, Ambassador of the Republic of Angola to the United States and Ms. Florizelle (Florie) Liser, President and CEO of CCA to officially mark this important collaboration. The U.S.-Africa Business Summit is recognized as one of the most important business platforms that annually brings together African Heads of State and key Ministers, U.S. Cabinet officials and heads of major agencies, and CEOs and senior executives of U.S. and African companies to foster investment, trade, and commercial collaboration. The 2025 Summit marks a significant milestone as Angola celebrates the 50th anniversary of its national independence and assumes the Chairmanship of the African Union (AU). Thus, co-organizing and hosting the U.S.-Africa Business Summit during such a momentous year underscores Angola’s firm commitment to promoting a new phase in as well as strengthening economic ties between Africa and the United States. Angola’s selection as the host country is a testament to its remarkable progress and potential as a key player in the African economy. The Summit will showcase Angola’s diverse industries but will be continental in focus highlighting business and investment opportunities across the African continent in a range of sectors from energy and infrastructure to agriculture and technology, creative economy, manufacturing to digital economy and health.”We are delighted to bring the U.S.-Africa Business Summit to Angola in the Summer of 2025,” said Florie Liser, President and CEO of the Corporate Council on Africa. “This year’s Summit promises to be a landmark event, highlighting not only Angola’s economic potential and strategic importance as a leader in Africa, but recognizing the African continent’s increasing importance as a strategic economic, trade, and business partner of the U.S. Government and private sector.” The 2025 Summit will be a crucial opportunity to identify effective and sustainable solutions to diversify the African economy and to increase trade, investment, and business in sectors with a high impact on the lives of African and American people, enterprises, workers, and consumers. Participants will engage in high-level discussions on the critical issues and challenges, key sectors, and opportunities impacting the U.S.-Africa trade and investment relationship as well as sign deals and advance new business ventures and commercial partnerships that will drive economic growth and development both in the United States and Africa. The 2025 U.S.-Africa Business Summit is expected to attract over 1,500 attendees, including African Heads of State, senior U.S. Government officials, CEOs, investors, and entrepreneurs. The event will feature plenary sessions, panel discussions, investment pitch sessions, networking opportunities, and an exhibition showcasing innovative products and services. |
China and the Middle East’s Economic Weight in the Balance of Multipolarism
The turning point for the loss of acceptance of the United States in the Arab World was the impact of October 7, 2023, which is a reminder of October 1973 and the shaking relation of the West in the Arab World. The recent decline in the United States’ standing in the Arab Middle East and China’s growing influence indeed have significant implications. A new public opinion survey reveals that Arab citizens’ views of the United States have sharply declined due to its support for Israel during the conflict in Gaza. China, surprisingly, emerges as the main beneficiary in the region.
Jun 11, 2024 — … United States, too. Because of the war in Gaza, Arab public opinion has turned sharply against Israel’s staunchest ally, the United States a …
China’s gains in the Middle East erupted from capitalizing on the Gaza War, reaping diplomatic rewards with minimal investment. China’s humanitarian aid, high-level visits, and rhetorical support for the Palestinians are paying off. China’s benefits extend beyond the Middle East to Southeast Asia. Public approval of the U.S. among Muslim-majority populations in Southeast Asia has also fallen sharply and Gaza has become the focus for now. Global perceptions of the U.S. used to be considered by U.S. political decision-makers, but today’s intense political polarization hinders such concerns.
According to the Western side of the stories on the Middle East, the longer the Gaza conflict persists, the more China’s standing grows in the Middle East and the Global South. In this complex geopolitical landscape, the balance of power is shifting, and China is strategically leveraging opportunities.
China’s Road to Ryad Passes by the Belt and Road Initiative
The New Silk Road is a collection of infrastructure and investment projects that connect China to other parts of the world. The BRI is made up of two parts: the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
The Silk Road Economic Belt is a network of roads, railways, and pipelines that connects China to Europe, Central Asia, Russia, South Asia, and Southeast Asia. The 21st Century Maritime Silk Road is a network of sea routes that connects China to Southeast Asia, South Asia, the Middle East, Eastern Africa, the South Pacific, and Europe.
Chinese premier to promote development strategies alignment, enhance ties with Saudi Arabia
Updated: September 11, 2024 13:48 Xinhua
China as Pelerin – Pilgrim in the Land of the Prophets: The Middle East
RIYADH, Sept. 11 — Chinese Premier Li Qiang arrived here Tuesday for the Fourth Meeting of the High-Level Chinese-Saudi Joint Committee and an official visit to Saudi Arabia at the invitation of Saudi Crown Prince and Prime Minister Mohammed bin Salman Al Saud.
Upon arriving at Riyadh’s King Khalid International Airport, Li expressed his hope for both sides to further strengthen the alignment of their development strategies and elevate bilateral ties to a higher level.
Jon Alterman testified before the U.S.-China Economic and Security Review Commission about China’s diplomatic engagement with the Middle East and the country’s efforts to shape a new world order.
China Seeks Strategic Partnership in the Middle East
China’s growing influence in the Middle East is a significant geopolitical development. Its economic ties, energy security interests, and diplomatic engagement have deepened in recent years.
Key Aspects of China’s Middle East Policy
China is a major importer of oil and gas from the region, and its economic investments through initiatives like the Belt and Road Initiative (BRI) have expanded significantly.
The Middle East remains a crucial energy source for all Western economies and China is positioning itself in the same time, ensuring its economic growth and development.
Key Points from Jon B. Alterman’s Testimony on China and the Middle East – Watch Full Testimony
https://www.csis.org/analysis/china-and-middle-east
China’s Growing Influence in the Middle East
China is a major trading partner and investor in the region, particularly in Saudi Arabia and the UAE. The Middle East is a crucial source of energy for China, and its relationship with Saudi Arabia is primarily driven by energy interests.
China seeks to position itself as a strategic partner to Middle Eastern countries, offering an alternative to the United States.
Saudi Arabia has opted not to renew its 50-year petrodollar agreement with the United States, which expired on June 9, 2024.
The move allows Saudi Arabia to sell oil in multiple currencies, including the Chinese RMB, euro, yen and yuan, potentially accelerating the global shift away from the US dollar.
Saudi Arabia’s decision to sell oil in multiple currencies, including the Chinese RMB, euro, yen and yuan, signals a sea change in the dynamics of global energy trade.
The move challenges the US dollar’s long-standing dominance in the oil market, reflecting Saudi Arabia’s growing economic ties with China and Russia.
🔸️The Newsweek article “Sphere of Influence” discusses Saudi Arabia’s expanding influence in the Middle East and its global impact. It highlights how Saudi Arabia uses its economic and political power to promote regional stability and its global standing.
🔸️The article emphasizes Saudi Arabia’s balanced diplomacy, strong relationships with Moscow and Beijing, and its role in shaping regional and international geopolitics. It also covers strategies for building alliances and enhancing its influence in major international issues.
🔸️The article sheds light on how Saudi Arabia addresses regional and international challenges to achieve its strategic goals and its growing role in global affairs.
China Puzzled by U.S. Trade Economics and Politics System, Trade-wise, The four years witnessed escalating trade tensions culminating in a trade war and sanctions on Chinese technology companies. Since Biden’s election, political and business stakeholders have been paying close attention to the direction of the new White House administration’s policy toward China … Continue Reading
China Exports to Russia and Multipolarity of the World
Collage made by Said El Mansour Cherkaoui tracing the USA-China relation since the Presidency of Donald Trump that we consider as the opening of a New Chapter that we are still reading up to now Global Risk Analysis Said El Mansour Cherkaoui Ph.D. ★ Strategic Catalyst Driving U.S.-Morocco-Africa Investment, Trade, and Business Development ★ Senior … Continue reading
China has sought to maintain neutral relationships with all Middle Eastern countries, avoiding direct involvement in regional conflicts.
China’s growing presence in the Middle East has led to increased competition with the United States and other Western powers. The Middle East region’s ongoing conflicts and political turmoil pose significant challenges to China’s interests.
China’s relationship with the Middle East is complex and multifaceted. As the Middle East continues to evolve, China’s role will likely become even more significant. Understanding these dynamics is crucial for comprehending the shifting geopolitical landscape.
China seeks to position itself as a strategic partner to Middle Eastern countries, offering an alternative to the United States. Regional instability, human rights concerns, and competition with the United States pose challenges to China’s engagement.
A strong economic and energy relationship between Saudi Arabia and China plays a role in infrastructure development and security.
On the other side, China is maintaining a complex relationship with the Gulf States, with Dubai focusing on trade and Abu Dhabi on security. The UAE seeks to balance its relationships with the United States, China, and Russia.
The China-Iran relationship is a strategic partnership driven by shared interests in challenging the U.S.-led global order. However, Iran’s economic dependence on China limits its leverage.
A growing relationship with Israel, given that China is seeking Israeli expertise and technology. However, recent tensions over the Israeli-Palestinian conflict have strained the relationship.
China’s Middle East Strategic Diplomatic and Economic Strategies
China seeks to undermine the U.S.-led global order and promote a more multipolar world. Overall, China’s engagement in the Middle East is multifaceted and strategic. While its economic influence is significant, its ability to shape regional politics is limited by the region’s complexities and the ongoing competition with the United States. China generally avoids direct involvement in regional conflicts, preferring to maintain neutrality. China focuses on economic cooperation and infrastructure development as its primary tools of influence.
Global Risk Analysis
TRI CONSULTING KYOTO TRI CK USA – Said El Mansour Cherkaoui Ph.D. ★ Strategic Catalyst Driving U.S.-Morocco-Africa Investment, Trade, and Business Development ★ Senior Policy Adviser in International Affairs ★ Accomplished Public Speaker ★ Distinguished News Executive Editor ★ The recent decline in the United States’ standing in the Arab world and China’s growing influence indeed has significant implications. Let’s break down … Continue reading
Noting the longstanding traditional friendship between China and Saudi Arabia, Li said that since the establishment of diplomatic relations 34 years ago, bilateral relations have achieved leapfrog development through joint efforts, yielding fruitful results in practical cooperation.
During his stay, Li will engage in in-depth discussions with the Saudi crown prince and prime minister on bilateral relations and other issues of common concern to strengthen friendship and expand cooperation.
In December 2022, Chinese President Xi Jinping attended the first China-Arab States Summit and the first China-Gulf Cooperation Council (GCC) Summit and paid a state visit to Saudi Arabia, said Li.
For over a year, both sides have actively implemented the key outcomes of the summits, continuously strengthening political mutual trust, steadily advancing exchanges and cooperation in various fields, maintaining close communication and coordination on regional and international affairs, and continuously enhancing the China-Saudi Arabia comprehensive strategic partnership, the Chinese premier said.
Li also expressed his expectation that the visit would further expand mutually beneficial cooperation in various fields, deepen the friendship between the two peoples, and foster greater progress in China-GCC and China-Arab relations.
“The practical cooperation between Saudi Arabia and China is characterized by its comprehensiveness and strategic nature,” said Ibrahim Al-Shammari, research director of Riyadh Center for Political and Strategic Studies.
Al-Shammari said Saudi Arabia and China are driving the development of their economic and trade relations through major initiatives such as the Belt and Road Initiative, which aligns with the Saudi Vision 2030.
Li’s visit to Saudi Arabia sends a strong signal that the two countries will continue to strengthen strategic cooperation in various fields, which demonstrates the importance both sides attach to their strategic partnership and the willingness to deepen practical cooperation, Al-Shammari added.
Saudi Arabia is the first leg of Li’s four-day visit to the Middle East, which will also take him to the United Arab Emirates.
Saudi Arabia’s strategy as it looks beyond its traditional Western partners and deepens its relationship with China. For Saudi Arabia, China represents not only a vital trading partner but also a source of technological and cultural exchange. The influx of Chinese language teachers and tourists, along with major financial agreements, signals that this partnership is only set to grow.
“By strengthening bilateral ties with China, the ADS agreement opens doors for economic development across sectors, benefiting both nations,” Abdulrahman Ahmad Al-Harbi, Saudi Arabia’s Ambassador to China stated in June.
Saudi Arabia has ambitious tourism goals, with the government aiming for 70 million international visitors by the end of the decade. In 2023, 27 million international tourists visited Saudi Arabia, many for religious purposes. However, the kingdom is rapidly expanding its leisure offerings, with projects such as the Red Sea Project leading the way.
By 2030, the Red Sea Project aims to offer 8,000 hotel rooms spread across 50 resorts, including luxury brands like The Four Seasons, Rosewood, and the St Regis.
For China, Saudi Arabia offers a stable and rapidly developing market. The kingdom’s young population is increasingly tech-savvy and eager to engage in international commerce, presenting opportunities for Chinese companies like Huawei, which are looking to expand in the Middle East.
At the same time, these developments are reshaping the region’s geopolitical landscape. Saudi Arabia’s partnership with China represents a realignment of its global alliances, one that reflects a broader trend of Eastern economies taking on more prominent roles in global affairs. This growing cooperation is part of a larger shift that could redefine trade, business, and cultural exchanges in the region.
Ultimately, deepening ties between China and Saudi Arabia will present major new opportunities for luxury and lifestyle brands. As tourism and business collaborations expand, brands that cater to both markets can tap into the growing demand for high-end experiences and products.
With an influx of Chinese tourists and the rise of e-commerce among Saudi Arabia’s young, tech-savvy population, luxury brands have a prime opportunity to position themselves and benefit immensely from this evolving landscape.
