China Feature World Staff Writer June 27, 2024 0 Comments

China and global development: what to read in June 2024

Welcome to the June 2024 edition of our China and Global Development round-up.

This month, I have curated a selection of resources that delve into the Belt and Road Initiative’s role in promoting structural transformation, the evolving dynamics of Africa-Asia relations, the EU and China’s distinct development approaches in Africa, and the New Development Bank.

Read 1: The Belt and Road and dynamics of structural transformation

Along with my colleagues Lorena Lombardozzi and Rhys Jenkins, I have edited a special issue on “China’s Belt and Road Initiative and dynamics of structural transformation”. This project stemmed from our observation that while there is a lot of discussion about the Belt and Road Initiative (BRI) and international development, they rarely engage meaningfully with key development themes – a gap we wanted to fill.

Drawing on case studies from Africa, Asia and Latin America, the authors of the seven articles within this special issue explore the drivers and channels through which the BRI can promote structural transformation (investment, development finance, knowledge transfer and upgrading). They also assess whether the BRI has achieved or fallen short in delivering transformation in host countries, taking into account the political economy dynamics at play. All the articles will remain free to access for around a month.

Read 2: The economics of China

Yuen Yuen Ang’s collaboration with the Institute for New Economic Thinking on a seven-part series on ‘The Economics of China’ is captivating. While the series is still unfolding, the first few episodes already show Ang’s ability to present China in a novel way. For example, she challenges common assumptions, such as Deng Xiaoping’s sole focus on economic reforms, revealing how he managed to implement deep political reforms. She also disputes the notion that the ‘China model’ is a blueprint imposed by Beijing in an authoritarian setting and shows that the ability of local governments to interpret and implement directions by the central government led to the creation of multiple Chinese models. This series is well worth following as it promises unique insights into what is thought to be common knowledge about China.

Watch 3: China and the African Continental Free Trade Area

The Africa-China Centre for Policy and Advisory hosted an event on the African Continental Free Trade Area (AfCFTA) and its implications for Africa-China trade, where I participated as a panellist. This is a crucial yet under-explored topic in African development that deserves attention, and I commend the Centre for providing a platform for this discussion. During the event, we explored trends in Africa-China trade, the areas where Chinese capital contributes to this project, but also how the AfCFTA may reshape trade patterns between Africa and China (spoiler alert: not so much!). The full event can be watched below.

Read 4: China’s economic transition and its impact on Africa

A paper by Zainab Usman and Xiaoyang Tang examines the changes in the Chinese economy and their likely effects on China-Africa relations. First, they argue that the so-called growth slowdown is an anticipated change, driven by policy responses to challenges such as demographic shifts and the transition to a new development model, which moves away from the high-speed growth that characterised the Chinese economy in the past. The authors then suggest a few areas in which we might see changes in the China-Africa relationship: trade from Africa to China remains largely composed of unprocessed commodities, but this is shifting from oil to metals and minerals, necessary for the energy transition; capital flows are shifting from public-sector financed infrastructure to private investment in industrialisation; China is becoming more prudent in lending to Africa, but it is also emerging as a lender of last resort to many African countries. The changing economic conditions may also incentivise African countries to adopt non-USD payments in favour of the renminbi and to intensify cultural exchanges with China.

Listen 5: New trends in Africa-Asia economic relations

In this podcast, Landry Signé interviews Amit Jain on Asia-Africa relations, comparing China with India, Singapore, and Japan. Amit highlights India’s role as a significant business and development partner for Africa; along with Japan, which recently announced plans to set up an automotive factory in Kenya, and is taking a 5.5% stake in the African Development Bank. Southeast Asian countries such as Singapore and Malaysia have also invested in the African oil sector. Nonetheless, this pales in comparison with China’s economic presence in Africa, which is far more extensive and spans across many sectors.

Read 6: The EU and China’s approach to development in Africa

Manling Yang’s (open access) journal article explores the similarities and differences between the EU and China’s approach to development cooperation in Africa. Beyond institutional differences, the author argues that similarities are underestimated. First, mutual benefits and interest with Africa have been a rising narrative in the EU and Chinese approach; second, both the EU and China place increased emphasis and significance on the Global South as a group, and on South-South cooperation; third, China and the EU are further engaging in shaping the global development system through its existing mechanisms, such as the UN.

Read 7: The New Development Bank

Despite being established around the same time as the Asian Infrastructure Investment Bank, the New Development Bank (NDB), formerly known as the ‘BRICS development bank’, is less well-known. Bert Hofman and P.S. Srivas’ article delves into the origin and trajectory of the bank so far.

They study the unique aspects of its governance structure, innovations in its operational model, and the challenges it currently faces. They conclude that almost a decade after its establishment, the NDB has laid the groundwork required to operate, but its members face internal and external geopolitical challenges (China and Russia with the US, but also China and India) that may hinder its future progress.