Opinion
The story behind the emerging strategic Africa China alliance
By Emmanuel Musaazi
China has become the new cash cow on the block.
Money from China is being sought worldwide and countries are lining up bowl in hand from Africa to Asia and the Caribbean to South America.
Europe too has joined the queue and the Chinese are not disappointing, apparently willing to disburse freely, prompting suspicion about their motives.
It is said that nothing goes for nothing so the big question is what is China’s deal?
A lot of things had to happen by accident and design to bring China to this pivotal position.
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Firstly, the unquenchable desire by the West for cheap labor and cheap products resulting in a 50 year transfer of capital from the West to Asia and in particular China.
Secondly as a result of China’s aggressive saving policies: “China saves half of its gross domestic product (GDP) and its marginal propensity to save (MPS) approached 60 percent during the 2000s” – according to Dr. Zhou Xiaochuan, the present Governor of the People’s Bank of China in his article “Some Observations and Analyses on Savings Ratio” China has gradually built up capital.
