Market News

Key Points

• China’s top diplomat to visit four African countries this week
• Annual New Year tour maintains a 35 year-long tradition
• Beijing boosting financial, infrastructure support for Africa
• Consistency of China’s engagement with Africa a contrast to US, EU

BEIJING, Jan 6 (Reuters) – China’s top diplomat began his annual New Year tour of Africa on Sunday, maintaining a 35-year-long tradition, to quietly advance Beijing’s already sizeable influence across the resource-rich continent as Europe’s presence wanes and America’s wavers.

While global capitals and investors brace for the return of U.S. President-elect Donald Trump to the White House, and wars in Ukraine and the Middle East and domestic politics keep German and French ministers occupied, Foreign Minister Wang Yi being in Namibia, the Republic of Congo, Chad and Nigeria highlights the consistency of China’s engagement with Africa, analysts say.

Wang’s visit through to Saturday also comes as the world’s No.2 economy ramps up its financial support for the debt-laden continent and looks to strike more critical minerals deals and find markets to absorb its exports.

“The decision on which countries to go to each year rarely follows any external logic,” said Eric Orlander, co-founder of the China-Global South Project. “(But) it resonates in Africa as a reminder of China’s consistent commitment to the continent, in contrast to the approaches of the U.S., United Kingdom and European Union.”

Mao Ning, Chinese foreign ministry spokesperson, announced the visit at a news conference on Friday, saying it aimed to deepen practical cooperation across the board for sustained and substantive growth of China-Africa relations.

As China’s economy slows, Africa offers a much-needed avenue for its state-owned infrastructure firms struggling for projects as indebted local governments hold off on spending, and a market for its electric vehicles and solar panels, areas where the U.S. and EU say it has over-capacity.

Africa’s 50-plus votes at the United Nations could also help advance Beijing’s efforts to reshape multilateral institutions and reinterpret global norms so that they are more in line with its interests, particularly on issues such as human rights.

While current U.S. President Joe Biden’s December trip to Angola was his only visit to sub-Saharan Africa in his presidency, China puts Africa at the front of its diplomatic calendar.

“China has become central to Africa’s policy, as an actor and an inspiration,” said Hannah Ryder, founder of Development Reimagined, an African-owned consultancy, referring to how candidates vying to chair the African Union Commission have talked up Beijing’s ability to improve Africa’s manufacturing capabilities and China’s track record in mass education ahead of February’s election. The commission is the secretariat of the 55-nation African Union.

SECURITY ISSUES

Wang’s decision to visit the Republic of Congo, which this year takes over as co-chair of the Forum on China-Africa Cooperation(FOCAC) that sets the agenda for China-Africa relations, also points to China’s commitment to implementing the outcomes of last year’s summit, Ryder said, where China pledged $51 billion in fresh financial assistance.

Beijing is also beginning to make its presence felt on pressing regional security issues, analysts say, which partly explains why Wang will travel to Chad.

France last month began the withdrawal of its military from the Central African country, after its government unexpectedly ended a defence cooperation pact that had made it a key Western ally in the fight against Islamic militants in the region.

“China has been a reliable and stable partner for the new military juntas in the Sahel and West Africa,” Orland said.

“For the French and U.S., who see a dilution of Western power in the region, China’s presence is seen as ‘controversial,’ but it’s a very different view from African perspectives.”

(Reporting by Joe Cash; Editing by Raju Gopalakrishnan)