Sino-Cameroon economic relations: opportunities
and challenges
Written by:
Nanje Delphine Ule: European Studies
Atinuke Ajoke Olojabi: Development and International Relations
Supervised by:
Wang Qi
Project Structure
PROBLEM FIELD
SINO-CAMEROON ECONOMIC RELATION
PROBLEM FORMULATION
WHY SINO CAMEROON RELATIONSHIP PRESENT BOTH
OPPORTUNITIES AND CHALLENGES TO
CAMEROONIAN YOUTHS
METHODOLOGY
DELIMITATION
METHOD
CHOICE OF
THEORY
EMPIRICAL DATA
THEORIES
NEO-COLONIALISM
WORLD SYSTEM
THEORY
TRADE
CHINESE
DEVELOPMENT
MODEL
INVESTMENT
CONCLUSION
1
AID
Table of Contents
project Structure .............................................................................................................. 1
List Of Acronomys ........................................................................................................... 4
Chapter One.................................................................................................................... 5
1.0. Introduction ............................................................................................................. 5
1.1. The Project Structure ............................................................................................... 7
1.2. Methodology ............................................................................................................. 7
1.2.1. Research Design .................................................................................................. 7
1.2.2 Delimitation............................................................................................................ 7
1.2.3 Method .................................................................................................................. 8
1.2.4 Choice Of Theory .................................................................................................. 8
1.2.5 Empirical Data ....................................................................................................... 9
1.3
Theories ................................................................................................................. 9
1.3.1 World System Theory ........................................................................................... 9
1.3.2 Neo-Colonialism .................................................................................................. 11
1.3.3 Chinese Development Model ............................................................................... 13
Chapter Two.................................................................................................................. 15
Analysis Of Opportunities .......................................................................................... 15
2.1 Historical Background ........................................................................................ 15
2.2
Sino-Cameroon Trade Relations ....................................................................... 16
2.3 Chinese Investment In Cameroon ...................................................................... 19
2.4
Chinese Activities In Term Of Aid ..................................................................... 21
Chapter Three ............................................................................................................... 25
Analysis Of Challenges ................................................................................................. 25
3.1 Challenges Of Sino- Cameroon Trade Relation ..................................................... 25
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3.2 Challenges Of Sino-Cameroon Relation In Term Of Investment ............................ 27
3.3 Challenges Of Sino-Cameroon Relations In Term Of Aid ....................................... 27
Chapter Four ................................................................................................................. 30
Concluding Remarks: .................................................................................................... 30
References .................................................................................................................... 32
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LIST OF ACRONOMYS
ADB-African Development Bank
EU- European Union
EXIM-Export-Import
FOCAC-Forum on China-Africa Cooperation
GDP-Gross Domestic Product
HIPC- Highly Indebted Poor Countries
IMF- International Financial Institutions
OFDI-Overseas Foreign Direct Investment
USA- United State of America.
WB- World Bank
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CHAPTER ONE
1.0 INTRODUCTION
China’s presence in Africa is not new. The relationship has grown from one level to
another for the last two decade. The Chinese dreaming of interest in the continent can
be traced back to the period when African nations were under the colonial rule. She
ideologically assisted and gave her support towards the decolonization of African
countries. After the attainment of independence of most African countries, the
relationship began to grow from strength to strength over the years (Anshan L.2008). In
general, there are three main reasons for Chinese interest in Africa, which were:
 To gain access to the natural resources such as oil, gas and minerals:
 To widen China’s export market and strengthens China’s diplomatic support for
different organizations:
 To ensure the growth of the PRC and widen political influence.
China’s relationship with Africa was characterized by summit, diplomacy, equality, codevelopment and cooperation. Such cannot be seen in Africa’s relation with any other
country. Within the same period, the foreign relations between China and Africa have
expanded. (FOCAC 2008). China continuous global power has left few in doubt of its
predicted possibility to become a world’s economic super-power in the near future.
Through a combination of sound economic management, policy reforms, and hard work
China has realized escalating economic growth of more than 8 percent a year for the
last decade. (Zafar A, 2007).
The Influence of Chinese goods and money to Africa has been greeted with a lot of
consternation and suspicions in most African countries, Cameroon has not been an
exception (Ngome 2008)
In fact, the revitalised dedication of China-Africa and mainly Cameroon which will form
the basic part of the study started immediately after Cameroon gained her
independence in January 1960, and in early 1970s, when China was courting a host of
African countries to gain more global influence in a landscape dominated by competition
between the west and the soviet union (Brautigam, 2009, Shinn, 2008). The historic
summits cemented and broaden the relationship the aftermath of it saw an increase in
diplomatic and cultural exchanges, trade, investment, debt cancellation etc. Chidaushe
(2007), sees China as having “a clear policy to engage with Africa as a whole, Africa’s
approach to China still remains largely ad hoc. Although several countries have adopted
a ‘Look East’ policy, these are still at individual national level with each country pursuing
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maximum benefit for its own best interest and specific needs” Chidaushe,(2007, pp,109110).
This project is devoted to the Sino-Cameroon economic relations. The inspiration for the
choice is that much has been written about China-Africa relations but some scholars
have not been paying attention to a precise country to country relation with China.
The aim and objective of the study is to critically examine the nature of Chinese
investment in Cameroon and to understand how this economic nexus is influencing the
Cameroon’s social, political and economic development especially to the youths.
To realize this objective, the study will investigate how the relationship does present
both opportunities and challenges for Cameroonian youths. An extensive overview of
historical background of Sino-Cameroon relations will be highlighted in the introduction
section of the analysis, to be followed by a detailed analysis of the relationship as well
as likely opportunities and challenges it might create on the part of the Cameroonian
youths. Cameroonians especially the youths believe that China has brought some
economic benefits to the country through the import of some economic gains such as
human capitals, goods and services, subventions etc.
While some are of the opinion that the coming of the Chinese into the continent has
done more harm than good, that they are attracted to the country due to the presence of
enormous natural resources, in order to exploit them for their own selfish interest (
Ngome, 2008.). The striking questions are: Can we say they are motivated for the
search of raw materials to feed their industry? Could China single handedly develop a
whole continent while is also still developing? Could they really coming to reintroducing the same system they claimed to have fought for, that is Africa colonization?
For these reasons, we are motivated to examine this research question.
Why Sino-Cameroon relationship presents both opportunities and challenges to
the Cameroonian youth?
In order to answer the above question, the project seeks to use qualitative approach to
interpret information from text books, published and unpublished works, internet, and
other reliable sources with the theories of neo-colonialism, world System, and Chinese
development model. This will help produce a shared meaning about the opportunities
and challenges that the relationship unveils for the Cameroonian youths.
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1.1 The project structure
The first and the pre sent chapter starts with the introduction that presents the project
topic, the research question, the methodology, and present the different theories.
Chapter 2 and chapter 3 are the main focal points of the project work which answers
the research question and are the analysis chapters. Chapter 2 will introduce briefly the
historical background of the Sino-Cameroon economic relations, followed by thematic
analysis such as trade, investment and aid, and to bring out the likely areas of
opportunities while chapter 3 will analyze the areas in which the relationship has been
posing challenges to the Cameroonian youth. Chapter four is the concluding remarks.
1.2
METHODOLOGY
The following section contains a description of an argument from a methodological point
of view. When we talk of methodology we refer to a structural framework in which the
project is carried out: from the case study to research design, and the Method that will
be applicable, delimitation, the theories use, and empirical data. It is worth knowing that
the interpretative approach will be applied in order to understand the realities of the
China-Cameroon relation. This approach seeks to explain how members of social group
interpret the world around them. (Bryman, 2008, pp 17).
In order to explain our study, we used local, news papers, text books written by various
authors, abstracts, journal, and government journals from Cameroon and China ministry
of foreign affairs. Our interpretation is base on the economic Aid, investment, trade such
as import and export commodities, and the use of secondary data analysis.
1.2.1
RESEARCH DESIGN
Research design, illustration or a descriptive aspect in which the project is carried out
.There are two main types of research design namely the Qualitative and Quantitative
research design. The qualitative research design is based on carrying out study by
reading different author’s works while quantitative research is based on collection of
data, and conduction of interviews, project work is based only on qualitative research
design.
1.2.2
DELIMITATION
Due to the vast nature of the China-Africa relations we decided to delimit our study to
Sino-Cameroon economic relations. We investigated how the relationship has a realistic
insight that presents both opportunities and challenges, particularly to the Cameroonian
youths. Another factor that caused us to delimit our project work is time factor. The
primary data which requires us to carry out research work by conducting interview from
source is lacking because there was sufficient time for this study, coupled with the
7
inability to travel down to Cameroon to conduct interviews due to financial constraint. So
we decided to focus our research on the secondary data which was available to us from
text books, internet, journals, and articles, coupled with numbers of theories provided
useful materials for our empirical data.
1.2.3 METHOD
The Quantitative research method was used to make our analysis; we examined and
explored the infrastructural, trade, investment and aid through interpretative approach.
We interpret various authors’ works such as text books, journals, articles from the
internet.
1.2.4
CHOICE OF THEORY
The objective of this chapter is to explain the method we have chosen to analyze our
study. To give an overview of structural framework in which the study was carried out.
We decided to use three types of theories, which enabled us to analyze our project work
properly. They include: Neo-colonialism and Chinese development model and world
system theory. These three theories are structural and agent in nature, each has
economic, political, and cultural underpinning that assisted us to understand and
analyze the proposed research question. The World system theory postulated by
Immanuel Wallerstein is employed for its explanation that shapes the relationship
between Cameroon and China. Sino-Cameroon relations within the international
division of labor being unfavorable to Africa, and China’s rise as a semi- periphery and
as an alternative partner to Cameroon analyzed through the help of this theories. China
as a new actor in Africa, and how its relationship with Cameroon has created challenges
for some and opportunities for others was also discussed. The world system theory
focuses on the states in the global market.
Neo- colonialism can be define as the policy which the colonial masters used on their
colonies after independence to get access and control of the Economic, political and
social life of the colonies. Through the application of this theory in this project work, we
would like to enlighten the readers, if this Sino-Cameroon relation is not a recolonization of Cameroon as it has been perceived by some and if China’s growing
impact is to develop the country. It also helps us to examine the rise of a new power can
create anxieties around the world.
By the application of Chinese development model, the analysis of the problem
formulation can be considered. This model has been noted for remarkable and
development which China has experienced in the past decades. Ajakaiye et al, (2009)
asserts that Chinese export led growth which leads to 4% increase of the world output,
10%growth rate for the last two decades is all attributable to this historic development
model. Therefore, the theory assisted us in examining the opportunities and challenges
8
of the Sino-Cameroon relations whether or not Cameroon can adapt this as an
alternative development strategy.
1.2.5
EMPIRICAL DATA
It is imperative to note that a lot of Author’s had written widely on China and the African
continent, ranging from text books, journals, abstracts, articles and report from internet
and many of these materials treated the subject matter in focus from not only from
divergent but from different perspective. Among such sources are books from Li Xing
‘The Rise of China and the Capitalist World Order’, Deborah Brautigam “The Dragon’s
Gift: The real story of china in Africa’’, Walter Wilson Nana, “China investment question’’
Taylor I. 2006. China oil diplomacy in Africa, Naidu S. and M. Davies 2006 “China fuel it
future with African riches” and many others, such as journals which portray China as the
core in African investment. In spite of this, many articles have been written from
Chinese news papers, stating China’s official policies in chinadaily.org.cn, FOCAC, and
the World Bank have given a wider explanation of the role of China in Africa pertaining
to infrastructure, aid, trade and Investment.
1.3
THEORIES
The theoretical framework of our project consists of three theories such as: World
system theory, Neo-Colonialism, and Chinese development model.
THEORIES USED
THE OPPORTUNITIES AND
CHALLENGES OF SINOCAMEROON RELATIONS.
 WORLD SYSTEM THEORY
 NEO- COLONIALISM CHINESE
DEVELOPMENT MODEL
1.3.1
WORLD SYSTEM THEORY
The World system theory that was developed in the 1970s is a Neo-Marxist analysis
which comes from Immanuel Wallerstein in which he rejects the notion of a “Third
World”. He claimed that there is only one World which is connected by a complex
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network of economic exchange relations. That is say , the accumulation of capital and
World economy or World system.
According to Wallerstein, there is a lasting division of the World in the Core, SemiPeriphery and Periphery which is an inherent feature of the world system. Areas which
have so far remained outside the reach of the world system enter it at the stage of
“Periphery”. Wallerstein (1974) states that: there is a fundamental and institutionalized
“division of labor” between the Core and the Periphery.
He further explains that the capitalist World economy is built on hierarchy of Core areas
as Semi- Peripheral areas and Peripheral areas. (Alvin,1990, pp181). The Core refers
to the developed countries with high level of technological development and
manufactures complex products. Beyer Peter 1994 affirms that:
“The core areas exhibit complex variety of economic activities with relatively high wages
for workers, and the most sophisticated technologies”
The role of the Periphery is to supply raw materials such as agricultural products and
cheap labor for the expansion of core agents. Economic exchange between the Core
and the Periphery takes place as unequal terms: the periphery is forced to sell its
products at low prices but has to buy the Core’s comparatively high prices. This unequal
state which was once established tends to stabilize itself due to inherent, quasideterministic constraints. The status of Core and Periphery are not exclusive and fixed
geographically; instead they are relative to each other.
Semi-Periphery to Wallerstein, are countries of the capitalist World economy and forms
the buffer Zones in the capitalist World economy. They act as Periphery to the Core and
a Core to the Periphery. The zones are Brazil or Mexico, China and Eastern Europe.
Alvin, 1990 States that:
“The Semi-Periphery areas are the middle layer between the upper stratum of the Core
countries and the lower stratum of the Peripheral countries”.
Most of the African countries are within the Periphery in which Cameroon is not left out.
With the application of this theory, efforts was made to explain whether the relationship
had something positive for both partners, (China and Cameroon) and If this, will be a
platform for Cameroonians to move out of its current status.
In world system theory, there is classification based on the division of labor. This is
important for our analysis on the Sino-Cameroon relations. The “Core” countries known
to be Western and European countries export the raw materials of the Periphery which
constitute most African Countries with relatively low price such that
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these countries are left with little or without profits. They manufacture these goods in
their own countries and send them down to Peripheral countries with relatively high
price.
China as a Semi-Periphery developing nation is having strong ties with the “Core” and
also with the Peripheral African nations. Its crescent weight on the international arena
makes the country an alternative player in the World system. Cameroon and other
African counties now have a choice between western or Chinese partnership. China
export both raw materials and manufacturers to African countries and to the Core
countries and at the same time, import both raw materials and manufacturers
respectively. Davies, (2008) contends that there are over 800 Chinese-own enterprises
operating in Africa mostly in the extractive industries and this is one of the country’s soft
power or foreign business policy towards the continent.
Cameroon as a peripheral nation has over the years involved in the exploration of
Agricultural products, cotton, timber, crude oil, Gold, cocoa etc to China. The
relationship between the two countries is based on conditional ties. The situation of the
country has experienced some challenges and opportunities in its relationship with
China. However, this project is to thoroughly examine the issue if China’s great
manufacturing exports and imports could have huge implication for Cameroon which
undoubtedly is not having the same capabilities and in our view make the application of
the theory to the study very important.
1.3.2
NEO-COLONIALISM
Neo colonialism portrays the influence of the developed nations in the affairs of the least
developed nations in regards to economy, trade, aid Investment, culture and political
aspects. It was first coined by Kwame Nkrumah, the first post independence president
of Ghana in the 20th century, and has been discussed by a number of 20 th scholars and
philosopher including Jean- Paul Sartre and Noam Chomsky. Our main focus of this
theory was applied to China and Cameroon in particular.
Historians have made us to understand that the rapid growth of the European economy,
particularly in their industries was a call for concern that cause them to focus on Africa
for natural resources including labor to their growing industries and, market for their
finished products. This explain their desire for a continent like Africa considered to be
“full of milk and honey” and never intended to leave until the 1950s when the wind of
decolonization or nationalism was blowing across Africa and the world in general, during
which was assisted by some socialist countries like Russia China and Cubas.
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Maurizio Carbone study on how the European Union presents the impact of China’s rise
to Africa on the EU. Contrary to conventional wisdom, Carbone argues that the EU,s
renewed interest in Africa is not as a result of China’s new assertiveness in the
continent, but is a consequence of intensive search for a more coherent external policy
by Brussels, something which has been in place since 2000s. Carbon further reiterated
that, Africa represents an ideal continent in which different EU actors could
simultaneously pursue traditional development goals together with new political
objectives. However the existence of three competing visions within the EU have
negatively affected it ability to constructively engage with China.
The EU institution, particularly the European commission has sought to affirm the EU’s
aspirations to become an influential global actor. The European Parliament presentation
of its preference for a value –based development policy, blended with paternalistic
overtones, and the EU Council carried with emotional reaction of some member states,
who have not wanted to lose their position as Africa main reference point. This idea has
however resulted to a confused message which China has found hard to accepts, never
mind Africa, since they were not effectively involved in the process and were skeptical
about the whole idea of “trilateral cooperation”.
The Chinese growing Aid in Africa which was basically motivated in the 1950s following
Mao Zedong theory on ´´third world’’ revolutionary forces in his famous ´´three world
theory’’. According to this theory, China who was also consider as a poor nation by the
western world, took the initiative in helping other nations which were considered poorer
than China, such as Africa, in providing financial aid, investment trade and
infrastructural development, to motivate them by neutralizing assistance from the
western world. The implementation of this theory gave China a solid ground in Africa.
This strong influence of China in Africa was welcome by other nations or continent like
Europe and America as a threat of their interest in Africa. In this regard, the European
Union therefore embarks on measure to support Africa, in order for her to attain the
millennium development goal by 2015. It is imperative to note that the European Union
is out to see how poverty is eradicated in Africa, and mortality rate is reduced.
France has been the main trading partner even after independence, has now loss grip
over this nation with the coming of Chinese in Cameroon. Many of the French product
which were of high demand in Cameroon, are no longer consumable with the presence
of Chinese products which availability is seen and can be easily affordable because of it
cheap prices. The exploration of raw material from Africa by China and the sale of their
manufactured goods to Africa has been argue by some scholars Lord Chancellor Jack
Straw as an aspect of neo-colonialism of China to Africa, since they carry out the same
functions like the ex-colonial master, except for the fact that they don’t interfere in the
internal affairs of the states. It is worth knowing that despite the critics levied on China’s
selfish economy motive to Africa, it is statistically notice that the US is still the largest
12
importer of Africa raw materials especially oil, and China economy is still compactable
with that of the western powers where 33 percent of the import oil goes to USA and 9%
to China. The indispensability of this theory to the Sino -Cameroon relations on trade
and Aid, and its impact to the Cameroonian especially to the youths, is calls for concern
which will be unveil in our analysis chapter.
1.3.3
CHINESE DEVELOPMENT MODEL
The Chinese development theory was first formalized not by a Chinese economist but
by American economist and journalist Joshua Cooper Ramo, in a paper which was
published by the British foreign policy center, The Beijing Consensus: Notes on the new
Physics of Chinese power.
“China is marking a path for other nations around the world who are trying to figure out
not simply how to develop their countries, but how to fit into the international order in a
way that allows them to be truly independent, to protect their way of life and political
choices in a world with a single massive powerful centre of gravity, I call this new
Physics of powers and development the Beijing Consensus ”
Ramo therefore went further to describe this model as being flexible, a dissociation from
uniform solutions, an eagerness to experiment and innovate, defense of national
borders and general interests, an accumulation of tools that project an asymmetrical
power balance and it is both pragmatic and ideological in its approach.
Ramo further argues, that the world has become fascinated with china’s development
model especially the developing countries majorly the African countries. The model has
been viewed as more likely to bring along the much needed development that had been
expected under the Washington consensus.
Unlike the Washington model the Chinese model recognized that each country faces a
unique set of challenges and therefore requires unique solutions, this can be seen
through the Chinese programme to slow population growth; its infamous ‘One Child’
policy represents the embodiment of Beijing consensus. Despite becoming a punching
bag for human right groups within China, the policy is widely accepted as necessary
and effective. According to a 2008 survey by the power research centre, 79 percent of
Chinese support the policy.
The Chinese development which is now known as the Beijing consensus has been seen
as a new development model based on China’s economic success now, one of the
latest ways in which china is asserting itself as a major player in international politics.
The new development model is a combination of authoritarian socialist politics and
increasing market based forms of economic organization which had led to rapid
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economic growth. The shift comes as developing countries around the world look for a
way to spur growth in a challenging economic climate. The model is promise on export
led growth with the goal of ensuring internal socio-economic development for the
Chinese economy. It is associated with Deng Xiaoping’s idea of “crossing the river by
feeling stones’’.
China has witness transformation since the origin of the model. It entails active state
interventions and close state business relations (Xing Li 2008). Innovation has been
credited for the China’s miracle. The success of the Chinese model largely due to
knowledge innovation combined with technology among other reasons that the model
has led to the reduction of poverty for the country.
Chinese model, with its emphasis on domestic challenges being solved with domestic
solutions, the issue of respecting sovereignty, selecting only the external ideas that
work best in dealing with a specific country’s situation, innovation and since it is a model
that works on experimentation, there is no room for developing countries to try out what
works for them, the fact that they are permitted to make mistakes and leave out what
doesn’t work for them has led to the model being viewed as the best approach to
development. It is acknowledge that Beijing approach gives hope to every nation of the
fact that it can be a power at least in its own right, although not powerful enough for
domination but may be enough for self determination
China model is built o a strong state control, policy consistency, knowledge and
innovation as well as self determination with emphasis on infrastructural development.
Our focus therefore, is to carefully examine whether transferring the Chinese
development approach into the Sino-Cameroon relationship will create either
opportunities or challenges for Cameroonian youth. With the current Sino-Cameroon
development relationship, efforts will be made to appraise how Cameroon is positioning
itself to embrace and utilize the Chinese approach.
The reason is that, if China success for the last three decade is linked to the
development model, then by this reason Cameroon then could equally adopt same
model to renew and modify its national socio-economic development. But has
Cameroon got a strong state, infrastructure and the cultural understanding to be able to
execute the approach will form the basis for the application of the development
approach in this study. However, the question as to whether or not the above affirmation
could be the case will be thoroughly discussed in the analysis chapter.
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CHAPTER TWO
ANALYSIS OF OPPORTUNITIES
2.1 HISTORICAL BACKGROUND
As stated earlier, the relationship between China and Cameroon started far back after
Cameroon gained her independence in January 1960. By March 26, 1971 Cameroon
had strengthened its relationship with Taiwan to establish diplomatic links with the
people Republic of China. China immediately began offering aid and technical
assistance. After this time, they started migrating in large scale between 1995 and
2000, increasing roughly in number to about four thousand in the year 2008. (Sunday
and Baye 2008).
The relationships between these two countries have been characterized by several
visits of government top officials; this has led the two countries to signing numerous
agreements basically on economic and technical cooperation. For example, the visits of
the Chinese prime minister in August 2003 and in September same year came the visit
of Cameroon’s president (Paul Biya) to China. This relationship was crowned with the
memorable visit of Chinese president Hu Jintao to Cameroon in January 2007.
(Cameroon Tribune, 30 January 2007 as cited by Sunday and Baye 2008).
In January 2007, When the Chinese president visited Cameroon; he declared in his
speech that Chinese relationship with Cameroon is basically on ‘sincere friendship’,
equality, ‘reciprocal benefit’, and win-win cooperation (Cameroon Tribune, 31 January,
2007). The key agreement which had been signed between the People’s Republic of
China and the Republic of Cameroon include: Trade agreement in 1972, agreement for
the reciprocal protection and promotion investment in 1977, agreement for Economic
and commercial in 2002 among others. (Sunday and Baye 2008).
Economic cooperation between Cameroon and China has increased over recent years
and this offers both opportunities and challenges to the Cameroonians economy, with
most influence on the youths. The influence are in diverse activities, which range from;
roads construction, fishing and poultry farming, catering, forest exploitation, retail of
cheap imported products from China and other infrastructures. The Chinese
government has made contributions in the area of development. For example, In
January 2008, the Chinese government granted interest free loan of about Francs cfa
1.3 billion to Cameroon for the funding of projects to design both parties. (Sunday and
Baye 2008)
Furthermore, it has been discovered in the recent years that as the level of economic
interaction between China and Cameroon is growing rapidly as a Cameroon base bank
Afriland First Bank branch, which has been opened in Beijing China, is purposely for the
15
increasing economic cooperation between the two countries. European countries such
as France (Cameroon colonist) have been Cameroon’s tradition economic partners over
the years meanwhile their relationship with China had been low, but now increasing
rapidly. In years to come, China will rival France or may well take over from them finally
as the principal imports with their numerous Infrastructural projects in Cameroon being
financed by them today.
While we acknowledge the fact that the diplomatic/bilateral cooperation between
Cameroon and China has brought tremendous opportunities, we must also point out
that it has raised some challenges in Cameroonian’s socio-economic life especially to
the active level of the country which are the youths. For instance, the influence of cheap
Chinese manufactured products in Cameroon poses serious threats to small and
medium sized enterprises that are still producing for local markets. It is essential for the
Cameroonians to critically examine the benefits as well as the challenges to know what
they stand to gain and lose from this relationship, so as to come up with economic
strategies so in order to increase the opportunities and reduce the challenges.
2.2
SINO-CAMEROON TRADE RELATIONS
Cameroon economic growth is heavily depended on trade, the country main export
commodities include cocoa, gold, timber, agricultural products crude oil among others. It
is clear that much of Cameroonians trade is concentrated on export commodities and
import of manufacturers making it vulnerable to external shocks. Trade between China
and Cameroon stood at US$ 340 million from January to November 2006, representing
an increase of 104% compared the same period of 2005; this was justified by Chinese
ambassador to Cameroon (Cameroon Tribune, 30 January 2007).
Jansson (2009) contends that a spike in Chinese imports from Cameroon can be noted
in 2008, due to largely a sharp increase in imports of Cameroon oil to China. Even
before the establishment of diplomatic relation in 1971, Sunday and Baye (2008) argue
that Cameroon had been trading with China and by 2008 the relationship took another
dimension when China noticed an economic transformation and integration into the
World’s trading market. This economic boom or increase in China’s economy made her
to modify her diplomatic policies signed with Cameroon to that of economic interference.
This economic interference of China gave her influence to trade with the African
countries and Cameroon in particular.
Sunday and Baye (2008) noted that in the year 1999, Cameroon export were relatively
low prior to 1999, but shot up more than 170% within a year to stand at more than
US$123 million in 2000. Export to China then represented almost 7% of total export
from Cameroon, up from barely 2.7% in 1999; China was ranked 6 th position among
Cameroon’s export destination in 2000.
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This was however going to be the peak of Cameroon’s export destinations in 2000 as
they took a downward trend from then onward. By 2005, export to China declined to
barely US$ 69 million, representing only 2.5% of Cameroon’s total exports. China fell to
the 8th position among Cameroon’s export partners while Cameroon’s export to the
world increased from US$ 1791 million in 2000 to US$ 2806 million in 2005.The export
performance was poor, which showed that Cameroon is not yet reaping from the huge
demand of raw materials by China.
Import on the other hand have been on a steady rise in 2005, taking a comparative
analyses Cameroon imported goods from China worth more than US$ 39 million in
1999, China’s share of total imports to Cameroon consequently moved from just 2.8%
to 5% and China became Cameroon’s third source imports after France and Nigeria,
allowing China to move up to 9th position in 1999 while Cameroon’s total import
increase by 110% between 1999 and 2005, import from China increased by 27%
(Sunday khan and Menjo Baye 2008). As import from China increases, import from
Cameroon’s traditional partner decreases.
What commodities define this trade relation, most readings show that China exports
essentially manufacturers such as electronics goods, foot wear, machinery,
motorcycles, T-shirt and other clothing, and a wide range of additional low cost of
consumer items to Cameroon and Africa as a whole. Cameroon on the other hand
exports agricultural products and metal to China. Rotberg, (2007) explains that Chinese
trade with the African continent has accelerated from 10 billion dollars to 50 billion
dollars and about 40% of African exports goes to China while 30% of import from Asia
to Africa comes from China (Rotberg, 2007: pp 3-4) Cameroon’s imports constitute
mainly manufacturers whereas, Cameroon’s exports to China mainly involves primary
commodities signifying a typical Periphery core relations in the World System
classification.
World system theory of Wallerstein (1974) establishes that in the international division
of labor, the best means which countries can navigate through the various classes is the
power of the manufacturing hubs China will be directing the terms of trade with its
relationship with Cameroon. Its mass production ability means China’s manufacturing
firms will be enjoying large economies of scale in competing with the local
manufacturers especially those into textile industries in Cameroon. What is also certain
is that at the end of the day, the Chinese business men and women in Cameroon will
repatriate a great sum of profits home making China benefit at the expense of
Cameroon.
The Sino-Cameroon relations which have been in existence for 40 years now have
present opportunities in Cameroon development objectives. As part of the opportunities,
the relationship is bringing in affordable manufacture imports, investment, job creation,
17
technology transfer and healthy competition in local businesses in Cameroon. It is
established here that since the adoption of the Chinese development model and its
export led growth in the late 1970s, African countries have become a major destination
for Chinese manufactures. Many wholesalers and retailers have been able to outsource
import goods from China and this has helped making goods cheaper in the
Cameroonians market.
By this, consumers who could not have afforded local manufactured products and those
from Western and European market have been able to make do with the Chinese
imported cheap products in the country. Besides, local business men and companies in
alliance with the Chinese counterparts are beginning to make more profits, knowledge
and expertise as how to organize their business activities, this is where Chinese
development model which deals with mutual and co-operate development becomes
useful, in the sense that when the knowledge gain are properly utilized, it can enhance
business activity.
Furthermore, the Sino-Cameroon trade relations have created job opportunities as
many youths who found themselves unemployed have resorted to the sales of Chinese
products which do not require a lot of capital and also the Chinese motorcycles have
been a lot of benefit to the unemployed youths who use them for commercial purposes,
this has greatly reduce crimes rate in the country. It has also increased the living
standard of some people especially the middle and the low income earners. Local
labors are also benefitting but just for short time as most of these Chinese firms employ
them for short period of time.
For the fact that Cameroon is still in the stage of development, given also the poverty
faced by the population of the country. Chinese cheap products have become helpful.
Chinese products are cheap and affordable even to the lowest level of Cameroonians.
They are cheaper than those from other countries.
The market is flourishing despite the belief and understanding that the standards of
Chinese products are inferior to those from the core countries. They are still found
virtually everywhere in most cases found within the means of many families and are
available everywhere especially in the urban areas. These products have removed the
odious tasks of having amass a lot of wealth to buy a single item that hitherto
discouraged the poor households from purchasing such goods that they could not have
dreamt of acquiring in the time past when the core countries were the only serious
producer. The relative low prices of these goods make them attractive and affordable
particularly to the poor since they constitute the majority of Cameroonians population
thereby creating a large market for these cheap Chinese commodities.
18
The Chinese model approach of non interference and respect for sovereignty is another
opportunity for the country. The model has given the Washington consensus a reason
to realize that development does necessarily do with political reforms. It gives a chance
for African countries to be powers in their own right and to be architects of their own
development without the external pressure of foreign bodies. The Chinese approach
equips Africans with a feeling of power on whom to hold on to.
2.3 CHINESE INVESTMENT IN CAMEROON
Investment or infrastructural development is central to nation’s economic growth and
development in which Sino-Cameroon is not left out. With the adoption of Chinese
development model by most African countries which its key features are: Infrastructure,
Role of State, policy consistency, self determination, innovation and no interest groups
Chinese investment and infrastructural development both eternal and within has been
growing tremendously.
“We are inviting Chinese firm to come in numbers and invest in Cameroon in all sectors,
especially hydro- Carbon, mineral exploitation, and wood extraction” this invitation was
expressed by the Cameroon president Paul Biya in January 2007 when the Chinese
president Hu Jintao paid his first-ever visit to Cameroon (Cameroon Tribune, 2 February
2007.pg. 3 as cited by Sunday and Baye 2008). Also, the Chinese president said on the
occasion that Chinese relations with Cameroon and Africa were built on “sincere
friendship, equality, reciprocal benefit and win-win cooperation”. Despite the desire to
have Chinese investment in private sectors in Cameroon, there is no government
department that affirming the amount of Chinese investment in the country at the
moment. There are no apparently official records tracking the activities of the Chinese in
the private sector of the economy.
However, there are many Chinese working in private sectors of Cameroon. They are
involved in diverse activities which range from road construction, fishing and poultry
farming, confectioneries, catering, medical care and forest exploitation and retailing of
wide varieties of cheap goods imported from China. They essentially small scale
activities. Given that there is no consistent data on the amount of Chinese private
investment in Cameroon.
The general understanding gathered is that Chinese investment in Cameroon over the
years has been increasing from one sector to the other and by 2006, the sector with the
greatest share of Chinese investment is the agricultural which has been contributing to
Cameroon economy, comprising 14.7% of the country GDP in 2008 (ADB 2008). In the
industrial agricultural sector in Cameroon is comparatively well developed, with
substantial exports of cocoa, cotton, coffee and rubber to China. Cameroon has about
9.3million ha of land suitable for agriculture, or 15 percent of the total land area, of
which only 26 percent is, cultivated (OECD 2006). Also, between 2009 and 2010 in
19
Cameroon, Chinese agric business companies were negotiating for parcels of
agricultural land ranging from 10 000 to 100 000 ha for large food and palm oil project
(Brautigam 2009).
Jansson (2009) recorded that China awarded US$ 655 million contract to build a new
seaport in in Southern Cameroon as part of new Kribi sport which was constructed by
China Harbour Engineering Corporation. The Chinese company Yang Chang from
Shaannxi province signed an agreement in April 2009 with the Cameroonians oil
company SNH (Societe Nationale des Hydrocarbures) to start one year exploration
undertaking on two previously untouched onshore blocks, Zina and Makari in northern
Cameroon, at a cost of US$ 18 million.
Furthermore, China has become a major market for Cameroonians timber over past
decades, especially since 2006 when the value of exports jumped from US$ 50 million
to US$ 100 million, only one Chinese logging company is active in the ground. With
almost 57 000 hectares of forest concessions approximately 10 percent granted in
Cameroon.
The Hong Kong group ranks first among the timber companies in the country. It is
immediately followed by groups whose majority shareholders are from EU countries
including France, Italy, and the Netherlands (Putzel Louis et al, 2011). In addition, China
has significance for Cameroon’s forest sector as an importer of Cameroonians timber.
Timber and wood products represented 21.9 percent of China’s overall imports from
Cameroon in 2008, of which 82percent was raw wood. It has been argued that
Cameroon timber exports to China are to a greater extent non-certified, illegal timber
compared to Cameroon’s timber export to the EU and the USA.
The main argument is that lacking procurement policies in the Chinese market has an
influence on the quality of logging operations in Cameroon. In addition, there are some
other sectors in Cameroon which are also attracting Chinese private investment, such
areas as fishing; they are some Chinese firms in Douala that used advanced fishing
equipment unlike those local fishing equipment the Cameroonians are using.
When we take a look at Chinese model from this perspective, it will be reasonable to
argue that, the rate at which Chinese is rendering assistance and investing is
contributing immensely towards the acceleration of Cameroon socio-economic
development. The reason is that investment is often devoid of strict conditions and
Cameroon being the receiver stands a better chance to make best use of the benefits
than those investments that usually come with strings attachments.
However, if one view this base from the neo-colonialism approach it can also be argue
that the huge investment and infrastructural development like those above can be view
as another form of neo-colonialism where Cameroon will continue to rely on China for
20
development support, thereby make the country to break through the old dependency
pattern inherited from colonial days. But for the fact that Chinese own do not come with
a lot of conditions might make it different from that, of those from the old development
partners.
If one may ask in what way, the investment will be contributing to the socio-economic
development in the country. At a glimpse one can say it provide employment for the
youths as Chinese companies work on various projects, they recruit manpower in
sectors like miming, construction industry among other, enhancing technology transfer
to those Cameroonians youths who are actively involved in the project executions and
these are distinctive opportunities on the part of the Chinese development approach
which has turned around the Cameroon’s economy.
2.4
CHINESE ACTIVITIES IN TERM OF AID
One of the aspects which exemplify the Sino-Cameroon relations is Aid. Aid in this
context is vividly seen or observed in term of wide investment of infrastructural projects
carried out by Chinese in Cameroon. Chinese aid to Cameroon is either in form of loans
which are interest-free or interest subsidizes by the Chinese government to Cameroon,
grants which turns to be like a gift and are follow-up subsequently on how it should be
spent in the country, and technical assistance which is essentially for infrastructural
development.
Cameroon leaders have adopted the Chinese development model by turning their backs
to the west, and this is also due to favorable Chinese aid. Aid has been poured from
Beijing; Cameroon and most African countries have consumed billion of US dollars from
China. Indeed, much has been said about Chinese approach to aid delivery African
countries by some Africa old development partners, they see Chinese aid as a means to
undermine African democratic gains.
Brautigam, (2008) states that: African governments have welcomed the China’s visibility
as a source of finance. What makes China aid admirable is the non interference and
lack of condition. The aid, which include infrastructure, is welcomed as Cameroon is a
country where infrastructure development was lowly funded in many decades.
The Chinese development approach described as a partnership and not a form of
charity or giving of alms, offers Cameroon and Africans as a whole a change and a
chance for them to be accepted as equal partner in their engagement with aid donors
have warmly received the Chinese development approach. A spark of the Chinese
demonstration of aid in Cameroon came when the Chinese president Hu Jintao visited
Cameroon in 2007, and signed eight agreements amounting to US$ 130 million which
largely contain grants interest free and concessional loan. (Cameroon Tribune, 1
February 2007: as cited by Sunday Khan and Menjo Baye 2008).
21
This bilateral relation between China and Cameroon through aid aspect has led to a
massive achievement of some outstanding projects in Cameroon, and many more are
still under realization. A handful of the realized projects funded by Chinese in Cameroon
are:
 The construction of the Yaoundé Congress centre in 1980, and handed to the
ministry of culture.
 The construction of the Lagdo Hydro-Electric dam, under the ministry of water
and energy.
 The 200-bed Yaoundé Hospital of Gynecology, Obstetrics, and Pediatric.
 The construction of tailoring workshop for handicapped women in Yaoundé.
 The construction of multipurpose sport complex worth 200 million RMB,
inaugurated in June 2009.
 Roads building projects undertaken by China Geological Engineering Group.
 Donation of laboratory equipments to Yaoundé University.
 Building of schools in Nanga Eboko, Guider and Douala.
 Donation of an agricultural centre in terms of the commitment made at the 2006
FOCAC summit.
 The construction of malaria research centre in Yaoundé.
Jansson (2009) explained that during the Chinese president visit in January 2007, US$
54 million in concessional finance was extended to Cameroon of which US4 4 million
was earmarked for a mobile network project. It was implemented by Huawei and Camtel
and has been in operation since 2008.
The remaining US$ 9 million was directed towards EXIM water financed production and
distribution project in Douala worth US$ 24 million in total. China CGC overseas
construction company signed an agreement in December 2007 to carry out the project,
which includes the construction of networks, a portable water treatment plant and well
digging which is to increased the water production capacity of the city from 115 to
260,000 cubic per year.
A category of China’s aid is technical assistance. Sunday Khan and Baye Menjo (2008)
noted that there are four teams of experts from China working in Cameroon, consisting
mainly medics working at the Gynecological, Obstetrical, and Pediatric hospital in
Yaoundé (built by Chinese) and also at the Mbalmayo and Guider hospital. There is
22
also a team working at the Yaoundé conference centre (built by Chinese) for many
years now.
The teams are generally financed with grants from the Chinese government. They
further explained that China’s aid is not conditioned or tied to any country reform
whatsoever. Its explicit policy of the Chinese model approach is not to interfere in the
internal affairs of any country. The Chinese leader reiterated this in his speech in
Cameroon in 2009 “China has never imposed its own ideology, social system or
development pattern upon others, nor work for its interest at the cost of others”.
China’s aid is generally offered in the form of projects, it can also be given as cash for
direct budget support although that is common and it usually so if sums are relatively
small. Brautigam (2008: pp 5) notes that Chinese aid often state that China gives aid as
a “quid pro quo” in exchange for access to natural resources like oil, resources rich
countries, which are cash strapped find this alternative positive. Loans are targeted at
infrastructure projects in order to facilitate development of petroleum industries. This is
also one of the many reasons in which Cameroon and other African countries embraced
Chinese model.
Furthermore, a mandarin language teaching centre was established in Yaoundé in
1997, managed jointly by Zheijiang University and the international Relations institute of
Cameroon. The teaching centre has branches in Douala and Maroua which is currently
teaching Mandarin Chinese as well as culture.
The question that comes to mind here is that, is coming of Chinese to Cameroon is not
another form of colonization? China through the aid given to Cameroon, thereby, using
this as a means to portray her socio-cultural aspect by introducing the learning of the
Chinese language, the advertisement of Chinese dishes by opening Chinese
restaurants and also encouraging the dress style from the importation of goods from
China. This aspect which is not different from what the colonial master did to their excolonies in Africa is carry out by China, a system we can term neo-colonialism. The excolonial masters introduced their languages and also inculcated their culture in African
continent. However, our interest is to find out what will be the impact of these in
Cameroon’s development objectives; will these create opportunities or challenges for
Cameroonian youths?
The Sino-Cameroon relations have brought enormous benefit to the Cameroonians
especially to the youth through aid which includes debt relief. This enormous increase in
China’s aid can be seen in the investment of human and physical capital with a potential
impact on growth and poverty reduction. Chinese loan is an opportunity that
Cameroonians could take advantage of to realize their country development. Chinese
aid is different from the traditional aid donors in that they offered at high rates with
23
generous grace periods of long repayment terms. Terms of Chinese loans are preferred
to those of western companies.
Chinese aid in given in term of infrastructure is another huge opportunity for
Cameroonians; it is the area which the West had neglected. China aid mostly comes as
infrastructure. Any country with infrastructure will attract investors and in another way,
will lead to economic growth. It will open up new revenue streams and increase local
employment possibilities.
Another area of opportunity is that Cameroon students and many other African
students are being enrolled in Chinese Universities; they receive scholarship to pursue
their degree, improving by the China’s image in students’ countries and understanding
of China among the education elite. As a result of Chinese aid, Cameroon students and
teachers can have an access to cheap education of good quality that can engender
brain flow.
Li Xianguag (2010) stated that in the period 2000-2005, 11,296 African studied in
China. He characterizes China’s policy in Africa as “charming offensive” that only
welcome in political and economical fields but is visible in human resources area.
Chinese assistance to Cameroon can also be seen in its building of schools, stadiums,
hospitals, sending of teachers to Cameroon, running workshops training professionals
among others. Beijing does not prioritize only trade and economics but wants to be
equally present in the arena of culture and people to people relations so he would gain
the support of African population.
24
CHAPTER THREE
ANALYSIS OF CHALLENGES
3.1 CHALLENGES OF SINO- CAMEROON TRADE RELATION
Trade relation between Cameroon and China started in 1971after Cameroon gained her
independence in which a Trade Agreement was signed between the two countries and
increased remarkably from 1995-2008.
As stated earlier that Jansson (2009) asserts that there was a rise in Chinese imports
from Cameroon in 2008, which led to a sharp increase in imports of Cameroon oil to
China. Sunday and Baye (2008) noted that even before the establishment of diplomatic
relation in 1971, Cameroon had been trading with China. By 2008 the relationship took
another dimension when China noticed an economic transformation and integration into
the World’s trading market. This economic boom or increase in China’s economy made
her to modify her diplomatic policies signed with Cameroon to that of economic
interference. This economic interference of China gave her influence to trade with the
African countries and Cameroon in particular.
Relating to the World System theory, it can be argue that Sino-Cameroon trade
relations is creating some challenges in Cameroon because the playing ground in terms
of trade is not the same because in the past Cameroon had been enjoying a favorable
trade balance with China when the exportation of raw materials was higher than
importation of manufactured goods from China.
In 2000, Cameroon’s exports to China peaked and after then Cameroon’s trade surplus
with China has been declining and became worst in 2004 while imports from China
have been increasing steadily. China is seen as a significant player in global textile
industries in Africa. This phenomenon has led to the closure of some local textiles
industries in Cameroon, and some other African countries and these have adverse
effect mostly the youth who are involved in textile. There is therefore, a growing fear
that the Chinese development model will lead to industrialization of African countries
(Zafa, 2007).
Also, trade deficit is another area of challenge of Sino-Cameroon trade relations,
Sunday Khan and Baye (2008) explained that trade deficit with China is contributing
significantly to Cameroon’s overall trade deficit over the past few years. They explained
that in 2004, out of total trade deficit of US$ 205 million, almost US$ 45 million was with
China. The situation worsened in 2008, with China contributing 82% of Cameroon’s total
trade deficit. This aspect weaken the economy of Cameroon ,thus making her to
25
depend more on China an aspect which the former colonial master did to their excolonies in what is known as neocolonialism or imperialism
Furthermore the dramatic increase in Chinese import, created a significant impact in the
textile industries in Cameroon and Africa in general whereby many people rush for the
Chinese products more than the home made products, thus leading to the closure of
most textile home industry (zafar, 2007).A closure of this homemade industries is seen
as a challenge in the drop of the state revenue in the sense that, the closed industries
will no longer be taxed. This invasion of Chinese goods into the country leads to unfair
competitions and loss of revenue for local industries.
There is a sense that the welfare of the consumer is enhanced through cheap goods,
since the price of many Cameroonians exports are falling due to growing Chinese
competiveness. In some sectors, notably clothing and furniture’s, there are indications
that china’s growing competitiveness in global market is having a very harmful impact
on poor exporting economies.
The local industries in Cameroon have been severely affected, they find themselves in
situations where they have to produce and sell goods on uneven playing fields with the
Chinese. The domestic production can no longer compete effectively with the imported
goods, resulting in a loss of domestic market, which further results in loss of revenue
because they operate under unfavorable conditions, with inadequate infrastructures and
social facilities, high interest on loan facilities and high cost of production. Unlike their
Chinese counterparts who have easy access to loan facilities, low cost of production
and reduce tariffs.
Resources extraction in itself is a feared challenge that China development model
present. The exportation of natural resources poses a challenge on Cameroonians
likelihood of industrializing. When these natural are extracted, they are supposed to
have some value added to them as to create employment and support industrialization.
This further cripple Cameroonians hope of industrializing and the huge challenge it
creates in the country is that if World prices for resources fall, Cameroon and other
African countries who have specialized in selling in low value added resources to China
are bound to have a hard landing. The effect on the economy will be devastating. It is
feared that China is only concerned with feeding its insatiable appetite for resources an
aspect which was also practiced by the former colonial masters. China economic
tentacles are said to be extending deeper into African as a new form of colonialism or
imperialism.
The difference with European former colonial masters being that they focused on
gaining political rights, while for China is acquiring a vast informal economic empire
26
through a strategy of non interference to the political affairs of Africa. China as the new
kid on the block devouring little of what, the former that colonial masters left untouched.
Obiorah, (2007) noted that the west has raised some concern on Neo-colonialism of
China. This concern raised that China is seeking to re-colonize Africa and is only
concerned about its benefits from a relationship which promise short time development.
3.2 CHALLENGES OF SINO-CAMEROON RELATION IN TERM OF INVESTMENT
Another challenging area where Sino-Cameroon relations can be viewed is under
investment. Following a diplomatic visit of the Chinese president Hu Jintao to
Cameroon, in January 2007, Cameroon president Paul Biya made a speech “We are
inviting Chinese firm to come in numbers and invest in Cameroon in all sectors,
especially hydro- Carbon, mineral exploitation, and wood extraction” (Cameroon
tribune 2 February 2007pg 3) in regard to this speech we expected China to invest in
industries that will help in the process of the raw material to finished goods, on the
contrary their investment was basically to enhance production of raw materials they
need for their hungry manufacturing industries, and not in the processing or semi
processing of raw materials in Cameroon and African countries in general, which will
enhance value improving price and revenue accruing to these nations. This in effect
explain China’s motive in Africa, their selfish aim which was seen on the exploration of
African raw material with no prospect to developed their industries goes to keep
Cameroon like other African nations dependent. This goes to explain the theory of neocolonialism, which impact is highly felt as it leads to unemployment because of the lack
of processing industries which could create employment for the youths.
3.3
CHALLENGES OF SINO-CAMEROON RELATIONS IN TERM OF AID
Another challenging aspect of the Sino –Cameroon relationship can be viewed under
Chinese aid to Cameroon. Aid in this context is vividly seen or observed in term of wide
investment of infrastructural projects carried out by Chinese in Cameroon. Chinese aid
to Cameroon is either in form of loans which are interest-free or interest subsidizes by
the Chinese government to Cameroon, grants which turns to be like a gift and are
follow-up subsequently on how it should be spent in the country, and technical
assistance which is essentially for infrastructural development. Cameroon leaders have
adopted the Chinese development model by turning their backs to the west and this is
also due to favorable Chinese aid. Aid has been poured from Beijing; Cameroon and
her African neighbors have swallowed billion of US dollars from China.
27
Brautigam, 2008 states that African governments have welcomed China’s visibility as a
source of finance. What makes China aid admirable is the non interference and lack of
condition. The aid, which include infrastructure, is welcomed as Cameroon is a country
where infrastructure development was lowly funded in many decades.
The manner in which this aid is given and the impact of the aid on the nations receiving
it can be term as neo-colonialism. It is reported from World Bank statistics that for over
60years I billion USD of development aid has been transferred from developed
countries to under developed countries particularly Africa, yet per capita income is lower
than it was in the 1970s.
The essence of this is that this aids comes with attached conditions which help to place
Cameroon as a periphery nation who are consider poor to be dependent under the
strong and rich nations, an aspect which is known as neo-colonialism. The evident of
this is the fact that even after the cancellation of debt in 1990s by IMF, and also with the
coming of HIPC, African nations are still indebted an aspect which still place then on
200 billion debt per annum .These factors and more help to keep Cameroon like many
other African nations poor and dependence.(The IMF report journal of 2005)”Aid will not
lift growth in Africa” this journal help to caution leaders donors in their claims to
increase aid in order to solve African problem.(western aid to Africa made the poor
poorer: Ethiopia news and opinion journal)
More to this, through this aid China is able to spread her cultural habits in Cameroon
like the introduction of the Chinese language “Mandarin” in higher institutions in
Cameroon which is seen as compulsory thus projecting their language and culture in
the opening of the Chinese restaurants as well as their dressing style, an aspect which
was implemented by the ex-colonial masters on their colonies.
Chinese introduction of these aspects in Africa gives a glaring picture of what the excolonial master did after independence of their colonies coming to thereafter to get
access to the resources of their colonies with motives of friendly ties but haven a selfish
interest ,an aspect which is seen as colonialism in disguise.
Having acknowledged the positive changes the Chinese model has brought to
Cameroonians and other African countries, we cannot afford to ignore the challenges
that has brought forth with it. Criticism has grown from the west not only from the west,
which has a reason to be afraid of China’s policy in the African continent. Critical voices
have also emerged from within Africa from political leaders, scholars and ordinary Africa
citizens complaining on the challenges that the China model has created in its quest to
acquire resources on the continent.
The World system theory believes in division of labor among international arena. China
becoming a manufacture of the World and Africa being an alternative supplier of raw
28
materials, economic exchange between two sides become intensive. The question that
comes to mind here is that why is China who is a Semi-Periphery country still at the
stage of developing investing a huge amount of money into the Periphery nations?
One of the biggest controversies surrounding the Chinese model is the issue of
unconditional loans. IFIs and other OECD countries have raised concerns on the effects
that the aid system will have in African continent. Some African countries feared that it
will create challenges for their countries by pilling up debts which they will not be able to
pay.
Contracts offered from Chinese aid have become popular for the wrong reasons; they
do not create opportunities for Cameroonians youths. Almost all Chinese aid projects
are executed by Chinese firms; they import their labor from China. Cameroonians only
perform the low skilled tasks like cleaning, driving, and general laborers. Negative
reports surfaced of poor working conditions, abuse of human rights including the use of
child labor and underdevelopment. Sunday and Baye (2008) stated that: Chinese firms
have been alleged of coming with their foods and cooks, and Chinese can work in
Cameroon without buying anything locally. They explained further that some observers
even see the rapid increase of Chinese aid and its focus on projects as a way of
promoting Chinese firms and setting them on international stage, thus providing a
convenient platform to penetrate new market.
Local contractors also appear to be losers as Chinese aid is tied to the procurement of
Chinese goods and services, that is, aid projects executed by Chinese firms with
Chinese labor and equipments. Local contractors cannot bid for Chinese funded
projects. These all create challenges that Cameroonians and African countries have to
deal with to improve their situation.
29
CHAPTER FOUR
Concluding Remarks:
Cameroon economic growth is heavily depended on trade, the country main export
commodities include cocoa, gold, timber, agricultural products crude oil among others. It
is clear that much of Cameroonians trade is concentrated on export commodities and
import of manufacturers making it vulnerable to external shocks. Trade between China
and Cameroon stood at US$ 340 million from January to November 2006, representing
an increase of 104% compared the same period of 2005; this was justified by Chinese
ambassador to Cameroon (Cameroon Tribune, 30 January 2007).The relationship
which have been growing for years now, bringing opportunities and challenges for
Cameroon youths especially under the Economic and social aspects such as Trade,
investment of infrastructural development and aid.
The growth of this bilateral trade relationship is uneven, while imports from China are
growing consistently; export is not in the same direction. From the analysis, it has been
pointed out that export to China since 2001 has been declining, meanwhile imports from
China has been on a steady rise. This signifies that China is not the major destination
for Cameroon exports. This means that in comparative terms, China is not yet the major
hub for Cameroon’s export. May be the trend will change in the near future.
Nevertheless, the Chinese cheap manufacture product are beneficial to the local
population especially the low income earners who could now consumed what was
consume only by the rich ,despite the quality. Hence one could say the Sino-Cameroon
relations have pave way for economic development of Cameroon especially on the most
active level of the society, the youths.
Chinese investment which has been observe to have basic constitute of a monetary
values with main area of focus on general trade and manufacturing, is consider
unfavorable to the local business class competitors who relied mostly on the textile and
the manufacturing industry to boost up their business. It is also worth knowing that the
investment are been carry out by the Chinese nationals who most often will take the
realized profit to China ,whereby the needed capital for the country’s economic growth
will be lacking. However, if this method is reverse, where labor and profit realization
could constitute only Cameroon it will lead to a spark to the economic growth of the
country. For instance, the opening of the bus manufacturing company in Douala where
several busses has been transported from China to Cameroon in order to ease traffic
circulation is an opportunity to the Cameroonians as some of the youths will be send to
China to be trained as engineer who will work in the bus industry that will soon go
operational.
30
The diplomatic ties that were signed between Beijing and Yaoundé, was more center on
aid, as its plays an integral part or stood as a weapon to foster development in
Cameroon. Lot has been said by many scholars about China’s aid to Africa, but our
point of focus here will be on Cameroon. The presence of Chinese aid in Cameroon is
seen and felt not only to the government but also to the individuals.
The numerous investments projects funded by the Chinese government are so glaring,
ranging from Health Education, social works, construction and many others. Among
such projects finance by the Chinese are: the construction of the Yaoundé cultural
center ,the construction of the gynecological and pediatric hospital in Yaoundé, the
construction of the handicap women tailoring workshop in Yaoundé, the rehabilitation of
the Buea hospital, the rehabilitation of the water supply in Douala, the construction of
the sport complex in Yaoundé, the constructions’ of roads, and many others like the
offering of scholarships for Cameroonian students to study in China, and many other
goes to show the benefits which Cameroonians attained as a result of aid under the
Sino-Cameroon relationship.
This aspect on the other hand turns to keep Cameroon in the dependency state, been
contented with the benefit they enjoy from Chinese investment thus swimming in the
peripheral pool. If China could involved leaders and civil society when implementing an
infrastructural development will go a long way to benefit ,as assessment and
development agents will be put in place, and will be of importance even after the
Chinese presence.
The above Sino-Cameroon relationship has been available with the use of Qualitative
research methods which is analyses on secondary data with the use of text books,
articles, abstract, published and unpublished works together with the application of the
selected theories which assisted to generate a shared meaning about the relations in
terms of trade, investment and aid, provided ground for one to conclude that, it presents
more opportunities than challenges for Cameroonians most especially the youths.
However, our recommendations is that future studies in this regard should look into the
policies that can help both countries diversify trade, investments and aid into tactical
areas that can ensure a comprehensive and sustainable development for
Cameroonians youths. At the same time, Cameroon’s government have to really know
what they stand to gain and loose from their bilateral relations, so as to come up with
the economic strategies so as to increase the opportunities and reduce its challenges.
31
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