xi jinping
China will persuade a conference of 50 African nations in Beijing this week to accept more of its goods before Western export restrictions on electric vehicles and solar panels take effect, in exchange for additional loan and investment guarantees.
However, the dozens of African leaders expected in the Chinese capital for the three-year event may not be simple to lure.
They will want to see how China intends to achieve an unfulfilled vow from the previous summit in 2021 to purchase $300 billion in commodities.
They will also seek updates on the status of incomplete Chinese-funded infrastructure projects, such as a railway that would connect East Africa.
“The price will go to those countries that have carefully studied the changes in China and aligned their proposals with China’s new streamlined priorities,” said Eric Olander, co-founder of the China-Global South Project.
“That’s a big ask for a continent that generally has very poor China literacy.”
Africa’s largest two-way lender, investor, and trading partner is shifting away from sponsoring large-scale projects in the resource-rich continent, instead opting to offer advanced and green technologies that Chinese corporations have extensively invested in.
As Western export curbs approach, Beijing’s first objective will be to find clients for its EVs and solar panels, which the US and EU claim are overcapacity, as well as to create foreign production sites for emerging markets.
China has already begun to adjust the terms of its loans to Africa, allocating more funds for solar farms, EV plants, and 5G Wi-Fi facilities while reducing spending on bridges, ports, and railways.
According to data from Boston University’s Global Development Policy Centre, China made 13 loans totaling $4.2 billion to eight African states and two regional banks last year, with approximately $500 million going towards hydropower and solar projects.
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