how much does south africa owe china 2020
In 2020 South Africa was estimated to owe the equivalent of 4% of its annual GDP to Chinese lenders. China has built roads and railways across Africa and is the biggest trading partner for the entire continent. [41] In July 2015 South Africa's deputy president, Cyril Ramaphosa, led a trade and economic delegation to China. South Africa has $25 billion in foreign debt that is considered sustainable even when it is one of the most unequal countries in the world with 20 percent of adults HIV infected. During crackdowns on immigration, Africans are seen as easier targets than Europeans or other Asians. Forgiving zero-interest loans for poor and least-developed countries in Africa has been a tradition for China. A global resurgence in national self-reliance might actually be a good thing for America’s place in the world. On April 4, reports of an infected Nigerian man attacking a Chinese nurse went viral, unleashing a slew of online trolls demanding the cleansing of a city they claimed was “littered with blacks.” Three days later, four Nigerians tested positive for the virus after having been seen eating together at a local restaurant. Strange, Parks, Tierney, Fuchs, Dreher, and Ramachandran, China’s Development Finance to Africa: A Media-Based Approach to Data Collection. In 2012, the IMF found that China owned 15% of Africa’s external debt, and hardly three years later roughly two-thirds of all new loans were coming from China. [69], Diplomatic relations between the People's Republic of China and the Republic of South Africa, The emergence of China as a power among others gives or offers an opportunity to African countries to be able to free themselves from the shackles that are really colonially designed [51][52] The refusal to allow the Dalai Lama to visit South Africa sparked a political debate within South Africa about the country's political and business interests with China, with some accusing the government of "selling out" sovereignty, and others pointing out the negative consequences to Sino-French business relations after French president Nicolas Sarkozy met with the Dalai Lama. [53], In 2011 the Dalai Lama was invited to attend and give a lecture at the 80th birthday of Desmond Tutu in October. Economic realities, compounded with the destabilization caused by COVID-19, demand that Chinese officials assuage African concerns. Before the 1990s South Africa had a close official relationship with the government in Taiwan for strategic and economic reasons. And while it poses very real challenges to Sino-African relations, no full breaks between China and African nations are on the horizon. Prior to the establishment of full diplomatic relations, South Africa and the People's Republic of China established "cultural centres" in Beijing and Pretoria, known as the South African Centre for Chinese Studies and the Chinese Centre for South African Studies respectively. The size of loan and the lack of public information about it was controversial[25][26] and criticized by opposition parties as a possibly pushing South Africa into a "debt trap". CGD Working Paper 323. [34], In August 2010 President Jacob Zuma led a South African delegation of 17 cabinet members and 300 businesspeople to China[1][35] where they signed the Beijing Declaration on the Establishment of a Comprehensive Strategic Partnership Between the People's Republic of China and the Republic of South Africa. [20] In July 2010, the South African publication Business Day reported that 45% of SABMiller's growth would come from its China operations by 2014. [60], Chinese South Africans are an ethnic group of Chinese diaspora in South Africa. The clock covers 99% of the world based upon GDP. In Africa, that proportion is 22 percent. Amongst the foreign countries accused of giving money to the ANC is the Communist Party of China. The “Pandemic Prophet” Laurie Garrett reflects on a year like no other and what she’s looking at next. [33], Sino-South African relations expanded significantly in 2010 following a number of high-level official visits and exchanges by officials from both countries. Meanwhile, many others were forced into a 14-day quarantine and random testing without getting their test results. In July 2018, China announced to invest $15 billion in South Africa's economy which included loans for power utilities and infrastructure. Share page. Notes: This interactive graphic displays gross government debt for the globe. Most South African exports to China in 2010 were primary products. Benghazi cloistered U.S. diplomats. As of now, no formal apology has been offered. The tables include public and publicly guaranteed debt stock and debt services due by creditor country. In the Korean War, the South African Air Force fought on the side of the United Nations against the Chinese Peoples Liberation Army, while Pretoria later enjoyed a strong relationship with the Republic of China (ROC) in Taiwan. In 2018, Chinese President Xi Ji… Interest payments accounted for 9,2% (or R146 billion) of general government expenditure (R1,58 trillion) in 2016/17. Economic realities, compounded with … Yet Zhao did not specifically address allegations of forced evictions, lack of testing results, and other discriminatory actions. Overview: In December 2020 South Africa exported ZAR120B and imported ZAR93.8B, resulting in a positive trade balance of ZAR26.3B.Between December 2019 and December 2020 the exports of South Africa have increased by ZAR20.5B (20.6%) from ZAR99.6B to ZAR120B, while imports increased by ZAR5.42B (6.13%) from ZAR88.4B to ZAR93.8B. The hashtag #ChinaMustExplain quickly trended on Twitter, as users expressed their anger and frustration. The country's sovereign debt is expected to reach 96% of GDP (gross domestic product) in 2020, while the country has defaulted on a spree of loans in 2019. China’s Racism Is Wrecking Its Success in Africa Share. The two countries also signed a Memorandum of Understanding on geological exploration and mineral resources. [43] This was closely followed by a visit from, now President, Xi Jinping to Pretoria, South Africa on the 2nd December 2015 where agreements to finalise the China-South Africa 5-10 Year Framework on Cooperation were signed. In November 2010 Chinese Vice President Xi Jinping (习近平) travelled to South Africa to meet with South African Vice President Motlanthe and signed bilateral cooperation agreements in energy, trade statistics, banking regulation and other areas. 7. China is also Africa’s top creditor, having lent an estimated $152 billion to nearly 50 African states between 2000 and 2018. An instrument to ease Eskom’s R450bn debt – most likely a special purpose vehicle – could be finalised by the end of March. Celine Sui is a United States-based independent scholar and freelance journalist focused on Sino-African relations. Debt as a percentage of GDP: 56.1%. “South Africa’s gross loan debt stood at R2.2 trillion in 2016/17, according to the National Treasury. [62] The nine vessels were part of a fleet of 28 Chinese trawlers that were accused by local anglers of illegal fishing within 3 kilometers of South African waters allegedly fishing the annual sardine run. [5]:168–169, In September 2007 then South African Deputy President Phumzile Mlambo-Ngcuka visited Beijing and met with Chinese President Hu Jintao (胡锦涛). About sharing. [7] The administration of South African president Jacob Zuma saw a significant warming of relations between 2009 and 2018 that coincided with a cooling of South Africa–United States relations. [9] Although the Centres, each headed by a Director, did not use diplomatic titles, national flags, or coats of arms, their staff used diplomatic passports and were issued with diplomatic identity documents, while their vehicles had diplomatic number plates. There are two possible outcomes of U.S.-China competition—but Washington should prepare for the more turbulent one. [65][66] It was later reported that the future South African Public Protector Busisiwe Mkhwebane was allegedly implicated in the deal when she worked as Counselor Immigration and Civic Services in South Africa's embassy in China. [19] With the invitation, it was expected that South Africa would expand its trade relations with other BRIC countries, including China. close. African expats were left at the mercy of xenophobic attitudes and heavy-handed enforcement. Much of China’s success in Africa comes from the world power’s tendency to avoid criticizing allies who ignore human rights and international law. [22], Increasingly the South African government, inspired by China's success in reducing poverty and promoting economic growth, is looking to China for policy ideas and inspiration in its efforts at promoting growth. [59], The 2018 visit to South Africa of President in exile of Tibet, Lobsang Sangay, strained relations as the South African government refused Chinese demands to expel Sangay despite threats that the visit might impact Chinese investment into South Africa. [42], In September 2015 President Zuma attended the Chinese 70th anniversary celebrations since the end of World War 2. South Africa has pulled itself back from a fiscal cliff – but there are warnings it could teeter again. It is alleged by the mayor of Cape Town that he was asked by national government to withdraw his application for a visa to visit SA for reasons “in the national interest” so as to avoid embarrassment by his visa being officially rejected. The latest economic analysis for the region predicts predicts economic activity will decline by 3.3 percent in 2020, confirming the region’s first recession in 25 years. Yet economic and political relationships between governments alone will not help China address this crisis, not when the insults remain so fresh and when many on the Chinese side still refuse to acknowledge the deep-rooted prejudices underlying the crisis. By the first quarter of 2009, China had canceled 150 such loans owed by 32 African countries. ", "South Africa's Ruling ANC Looks to Learn from Chinese Communist Party", "My Chinese dream: ANC brass put ideas to work", "SA and China: A love founded on state control", "Dalai Lama visit to SA hangs in the balance", "South Africa turns away Dalai Lama, political firestorm follows", "South African minister: Refusing visa to Dalai Lama "a matter between states, "South Africa accused of "selling out" after Dalai Lama barred from peace conference", "South Africa's moral beacon Desmond Tutu turns 80 on Friday with celebrations overshadowed by his government's dithering on whether to allow his close friend the Dalai Lama to visit", "Dalai Lama calls off South Africa visit over visa", "Dalai Lama: China is built on lies, run by hypocrites", "That's that, then: Dalai Lama cancels South Africa trip", "A South African visa for the Dalai Lama? In a conversation with IMF Country Focus, the Director-General of South Africa’s National Treasury Dondo Mogajane explains how the government has responded to the COVID-19 crisis, how IMF financing will help to stabilize the economy, and strategies for addressing debt and spurring growth. However, Taiwan lobbied hard for continued South African recognition and initiated an expensive public relations drive to convince members of the anti-apartheid government. “Officials on all sides will have to scramble to put this episode behind them in order to focus on more pressing issues, such as containing the virus and Chinese debt relief,” said Eric Olander, the managing editor of the China Africa Project initiative and podcast. Servicing this level of debt can be expensive. China’s Racism Is Wrecking Its Success in ... immediate removal of all Chinese nationals in Kenya, New Bill Takes Aim at State Department’s ‘Bunker Mentality’, America Will Only Win When China’s Regime Fails, UNDP Memo Echoes Ethiopian Talking Points on Tigray. How much of Europe does China own? Copy link. On October, 1st 1996, the National Day of the People's Republic of China, Nelson Mandela sent a congratulation message to Jiang Zemin, President of the PRC. A dozen African countries have summoned their Chinese ambassadors to explain the “inhumane treatment being meted out.” A coalition of African ambassadors in Beijing delivered a letter to China’s foreign minister demanding an immediate end to all discrimination. Erratic laws and racial profiling make navigating byzantine immigration channels challenging. Moussa Faki Mahamat, the chairman of the African Union Commission, also expressed his “extreme concern.” Moses Kuria, a vocal member of the Kenyan Parliament, took a more aggressive stance, calling for the immediate removal of all Chinese nationals in Kenya. The World Bank projects 2019 growth at 1.3%, accelerating further to 1.7% in 2020. According to Cobus van Staden, a senior researcher at the South African Institute of International Affairs, although Africa’s debt has been increasing rapidly, and China is … Eighty percent of Nigeria’s bilateral debt is owed to China. In late March 2010 CPPCC Chairman Jia Qinglin (贾庆林) visited South Africa and met with South Africa's President Jacob Zuma and signed contracts worth more than US$300 million. [1] Since 2007 Sino-South African relations have become increasingly close with increasing trade, policy and political ties. China’s Racism Is Wrecking Its Success in ... By signing up, I agree to the Privacy Policy and Terms of Use and to occasionally receive special offers from Foreign Policy. China’s government, banks and contractors extended more than $150 billion to Africa’s governments … [8] During this period South Africa placed much of its diplomatic focus on supporting the BRICS partnership in which China plays an important role. [10] They also performed visa and consular services. The events of April 10 are part of the response to growing Chinese fear of a reemergence of coronavirus infection but also build on long-standing hostility toward Africans in southern China. This technical hurdle factors into local officials’ heavy-handed approach to prevent a second wave of the infection. The dismantling of the apartheid regime in South Africa and the fall of the Soviet Union in the early 1990s opened up the possibility of official relations being established between the PRC and South Africa. ... Is China burdening Africa with debt? Cross country investment had grown to US$7 billion in the same year. The PRC supported and was closely allied with the anti-apartheid group the Pan African Congress (PAC) while the African National Congress (ANC) was supported by the PRC's communist rival, the Soviet Union.[5]:178. A viral post shows McDonald’s staff in a restaurant in Guangzhou holding a sign that says: “We’ve been informed that from now on black people are not allowed to enter the restaurant.” Rumors quickly circulated that “300,000 black people in Guangzhou were setting off a second epidemic,” and even though public officials later debunked that myth, the damage to domestic perceptions in China had been done. Austin Strange, Bradley C. Parks, Michael J. Tierney, Andreas Fuchs, Axel Dreher, and Vijaya Ramachandran. … I cannot buy food anywhere. Over the past week, hundreds of African migrant workers, traders, and students in the southern city of Guangzhou, home to Asia’s largest African diaspora, were tossed out onto the street—some by their landlords, some by hotel managers, and some by local officials. In Chinese media, Africans are often characterized as backward or primitive and blackness as unattractive. In South Africa, China's biggest trade partner in Africa, Xi unveiled a $14.7 billion (€17 billion) investment in its broke national energy utility Eskom and its rail, port and pipeline company.