The Black Informant | African American Commentary, News and Community Building

China’s growing trade with Africa indicative of Sino-Western energy conflicts

By Brian Smith

asiantribune.com

Trade between China and Africa jumped 39 percent to $32.17 billion in the first 10 months of 2005, fuelled by increased oil imports and the export of Chinese goods, largely textiles. This follows rises of 59 percent in 2004 and 50 percent in 2003.

The rate of increase in Sino-African trade could see China threatening the United States’ predominant position in the next period. US-Africa trade was $44.5 billion in 2004.

Energy is China’s main concern and over the last few years it has struck or expanded on existing oil deals with Angola, Algeria, Chad, Equatorial Guinea, Gabon, Nigeria and Sudan. Africa now supplies around one quarter of China’s energy imports.

China is expected to overtake both the UK and France this year to become the world’s fourth largest economy, and is growing at around 9.3 percent per year. China’s trade surplus was $90.8 billion for the first 11 months of 2005, three times the level of 2004. This was boosted by textile exports following the end of the quota system. China’s excess capacity and reliance on exports is antagonising both the US and European Union.

In 2003 China overtook Japan to become the world’s second largest consumer of oil after the US. Demand is increasing rapidly and its oil consumption is growing by 7.5 percent per year, seven times more than the US. China’s energy needs accounted for 40 percent of the total growth in global oil demand over the past four years. It currently imports about one third of its consumption, but is projected to import two thirds by 2025.

By 2010 China is expected to have 90 times more cars than it had in 1990, and is projected to surpass the total number of cars in the US by 2030. China is also attempting to increase and diversify supplies, particularly away from the Middle East, where it currently sources about 58 percent of it oil. Areas of interest include Russia, the Caspian Basin, the Americas, the East China Sea and particularly Africa. (more…)