You can also call this piece “The Tale of Two Presidents.” The contrast between the attitudes of China’s President Xi Jinping and our President Barack Obama is absolutely shocking. President Xi is straight up about business. In fact, he is very aggressive. President Obama seems to be reticent about the issue. In fact, he can be arrogant and cavalier, as if trade and investment don’t really matter that much. Let’s take a look at their Africa trips this year.
President Xi wasted no time in recognizing the importance of doing business in Africa. After being in office for two months, he made a visit to Africa his first overseas trip as president. He visited Tanzania, South Africa and the Congo. He came back with 17 major business agreements. While in Tanzania he publicly stated his concerns about a big trade imbalance (in favor of China) and assured that his nation will be conscious of doing business on a level playing field with African nations. He concluded, “Africa belongs to the African people. In developing relations with Africa, all countries should respect Africa’s dignity and independence,” he added.
From there he went to South Africa for a very important business conference. China has a seat on the BRICS Summit—which is composed of Brazil, Russia, India, China and South Africa. Their mission is to form a multinational lender that will rival the World Bank and focus on developing nations. They plan on “slinging” money and develop a growing influence especially in second and third world nations. The summit was in the beautiful city of Durban.
From South Africa, President Xi went to the mineral rich Congo. Former Chinese President Zhou Enlai once stated, “Whoever has the Congo and its neighboring nations will rule the world.” China still believes in that claim. No other nation in the world is doing more business in this war-torn nation than China. China buys more than 200,000 barrels of oil each and every day from the Congo.
China’s strategy is to monopolize the precious minerals of the world. The two richest nations in precious minerals are China (itself) and the Congo. In fact, all of central Africa is loaded in precious minerals and the vast majority of the mining is owned and operated by Chinese companies. His maiden voyage to Africa has indeed been successful from a business perspective, and that is the only perspective President Xi was concerned with.
China trade with sub-Saharan Africa is worth more than $200 billion per year.
China is now investing in African projects at the rate of $20 billion annually. That is about to increase as it just closed on a $3-billion deal with Nigeria at the rate of just 3 percent for increased infrastructure projects. When China lends to African nations, it does it without rigid conditions such as no corruption, democratic restrictions and poverty reductions like Western sources do. It is just straight business, and the African nations find it friendly.
Now let us look at President Obama. He made his first trip to Africa in 2009. It was a 24-hour whirlwind to Ghana. He checked out a slave castle, shook a lot of hands and had some meetings. Business was not discussed. This year he visited Senegal, South Africa and Tanzania. The cost of the trip is estimated at $100 million. The Huffington Post claims that a family of five would pay about $50 thousand for the trip, including safaris and hotel/air fare.