Commentary: The story behind China’s veto

THE relentlessness of the Chinese business model scares the West, or the West still has not grasped its full extent. It works well for the developing world because of the minimum conditions for investment it requires, the congruity of Chinese cultural aspects with those of the developing and the cost at which it comes.

For all these reasons, Chinese development in the developing world, especially Africa poses a serious strategic business threat to the West, but is viewed as an opportunity of unprecedented levels by the developing world.

Why are the Chinese more acceptable in Africa as business partners?

They have an unprecedented work ethic derived from the Confucian philosophy among other practices. It is estimated that each year around 600,000 Chinese die as a result of exhaustion caused by overwork. Some studies put that number as high as 1 million. It is called “guolaosi” in China or "karoshi" in Japan.

The Chinese are also willing to take more risks and have less conditionalities (for example human rights, corporate social responsibility considerations, work in inhuman and extreme conditions and have less demands than their Western equivalent. They will also boost labour numbers by bringing in thousands of their own (skilled) people.

They also appeal to the developing world’s anti-British and anti-American sentiment and hence are more attractive as work and business partners.

Their long history as liberators on the African continent, juxtaposed against the long history of Western colonisation gives them a distinct comparative advantage over their Western competitors. Governments and institutions in the developing world trust them: they were Cold War partners and generally are ‘all weather friends’ who have a non-interventionist approach to foreign policy.

They are also the only viable economic and military threat to western imperialism with a huge capability to shift the international balance of power and challenge the idea that economic growth is only possible through open market policies – the basic tenets of the Washington Consensus.

Besides the Chinese seem to show real concern. They are ‘true friends’ at least in manner and mutual respect. They never lose their temper publicly, or say anything offensive. President Hu Jintao has been more visible in Africa visiting more countries in the past 12 months, more than any Western head of state.  

The flipside is also true. African countries respect China, arguably more than they respect the West (whom they view with a mixture of disdain and suspicion) – a product of a long history of colonisation.

China derives more solace and comfort from doing business with Africa than Britain and U.S. From 4 June 1989, China’s relationship with the West has never been the same. It re-evaluated its foreign policy in light of Western reaction to Tiananmen Square.

Western condemnation of the Tianamen Square deaths was highly distinguishable from Africa's reaction which was far more muted, if not supportive.

As a result, the China's attitude towards Africa turned from one of ‘benign neglect to one of renewed emphasis,’ and a long lasting mutually respectful relationship was born. A new era of South-South cooperation was born and it replaced the symbiotic relationship between Africa and the West, which was draining Africa through interests on loans and other conditionalities.

The ever-expanding “south-south cooperation” may be viewed as more efficient and less wasteful than the West’s grand gestures.

The G8 and Africa might smile in boardrooms, but suspicion runs high and business models clash.

That is the case for China. Next instalment in this column: Is there a case against China in developing countries.

itayi@talkzimbabwe.com