China in Africa: The battle for resources

Against a backdrop of Chinese acrobatic troupes and the piercing wail of the Peking opera, it was on a cold November morning in 2006 that the China-Africa summit, or the Forum on China-Africa Co-operation (FOCAC) as it was formally known, signalled the public arrival of China in Africa.

And what a flamboyant arrival it was.

"In less than a year, in countries such as Sudan, Angola and Ethiopia, which had been accustomed to crumbling transport infrastructure for decades, the Chinese built highways that connected the major urban centres with rural communities.

"Springing up alongside these physical connections, were Chinese mobile telephone networks spreading connectivity throughout the continent, while Chinese communication satellites beamed information to a waiting population. In the markets of cities, fanning out into the most remote corners of the countryside, the rise of Chinese retail traders and low-cost imported goods meant that many Africans could afford new clothes, shoes, radios and watches for the first time in their lives," writes Chris Alden in his book, China in Africa.

"Give a man a fish and you will feed him for a day, but teach him how to fish and you will feed him for a lifetime." This old Chinese saying lies behind much of the motivation for China's investment in Africa in recent years - the African continent is rich in natural resources, from copper in Zambia and iron ore in Gabon to oil in Nigeria and gold and diamonds in South Africa. Instead of just buying these raw materials and precious goods, China has offered investments in the countries' infrastructure in exchange for their riches. African politicians also acquired new parliament buildings, presidential palaces and sport stadiums, all built virtually overnight.

By the end of 2011, Chinese investment in African countries totalled almost $90 billion (£55.4 billion), the third-largest recipient behind Asia and Europe.

According to official Chinese data, bilateral trade between China and Africa hit a record $166 billion in 2011 from $50 billion in 2006. Oil is the top item imported from Angola, followed by hardwood timber from Liberia. Sudan, which is the number one recipient of Chinese investment, exports two-thirds of its oil to China. Even Ethiopia, which has very limited natural resources, saw its trade double from $150 million in 2003 to $300 million in 2006.

Africa's growth of about 6% annually has had a strong correlation with the investment it has received from China since 2006. African politicians hail China for increasing living standards and local employment opportunities. Official statistics in Zambia show that Chinese investment has created 15,000 jobs. Ugandan President Yoweri Museveni has backed China as his top investor, saying that 5,550 additional jobs have been created.

Africa's "bloc voting" in organisations such as the United Nations (UN) further accentuates its importance to China. These votes were vital in China securing its position as the host of the 2008 Olympics, and also in blocking resolutions tabled at the UN Commission on Human Rights which condemns China's human rights practices.

In return, Premier Wen Jiabao has declared that China will offer "assistance [to Africa] with the deepest sincerity and without any political conditions". This "no political strings" policy is a marked contrast to Western donors who impose conditions on aid. As economist Jeffery Sachs says: "China has a very pragmatic approach [to Africa]. It gives fewer lectures and more practical help."