Impact of Globalisation on Rare Earth: China's co-optive conquest of Colongese coltan

Molintas, Dominique Trual (2013): Impact of Globalisation on Rare Earth: China's co-optive conquest of Colongese coltan.

Abstract

Captivated by Chinese cunning confidence—international leaders watch out for the ramifications of her African affairs and the changing world order. In respect of the Sino-Congolese Co-operation Agreement, China on the overall appears to be more that of a developmental partner and far less a cruel conqueror. Several analysts suggest that the relationship is more balanced than one might have presumed. Notwithstanding, the pressure particularly put on the Democratic Republic of Congo as a laboratory for economic advancement, is for the rest of the region to appreciate whether the Chinese framework for development can rationalise authoritarian rule in the reconfigured global landscape, by contrast of democracy.

The China-Africa relation is one good leap from the Beijing economic reforms. It begins with the practical perspective for solutions in the quest for potential sources of raw materials to sustain country industrial growth. Africa is but right.

Subsequently, the logic to leverage in the age of Globalisation, through deepened integration of the Chinese economy in cross border trade, travel and tradition. By so doing in just one decade of barter, China became the leading trade partner of the African continent with a total market share of 10.4% and over 800 Chinese companies doing business with 49 African nations. This marked a tenfold increase accomplishment that outperformed the GDP growth in the mainland. Trade infrastructures stipulated in bilateral agreements between Governments, or joint ventures between state owned enterprises, are to serve as an alternative eco-political strategy to induce structural adjustment, speed up modernisation, strengthen capacity, broaden the scope of scientific exploration, alleviate humanitarian conditions and curb armed conflicts.

Despite a strong resentment of the Congress of South African Trade Unions Cosatu, for fear of market infiltration, China gestured meaningfully with the revocation of bilateral debt of 31 African countries to the value of about US$1.27b. Aside all these she continuously participates in financing development initiatives.

Clearly, China has explicit interest in African mineral wealth and has taken action. Whether it is to be understood as a novel approach to redress the issues on marginalisation or a starkly bad deal in the long term, the magnitude and impact of this relationship cannot be ignored. What has changed in the Democratic Republic of Congo are the following: Minerals magnitude, investing infrastructure, defence strategies for conflict containment, finally labour and workplace betterment. And for other nations up for the same lesson, a mind-set change.

• Item Type: MPRA Paper
• Language: English
• Keywords: Rare earth, China, Colongese coltan, development economics
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F18 - Trade and Environment; F - International Economics > F6 - Economic Impacts of Globalization; F - International Economics > F6 - Economic Impacts of Globalization > F62 - Macroeconomic Impacts; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development

References

Alden, C.a.A.C., 2008. History and identity in the construction of China's Africa Policy. Review of African Political Economy, 35(115), pp.43-58.

Anshan, L..H.H.A.Z.a.H.W., 2012. FOCAC Twelve Years Later: Achievements, challenges and the way forward. Discussion Paper 74. Uppsala: Nordiska Afrikainstitutet Peking University School of International Studies.

Bloomberg, 2009. GBN: DR Congo to adapt China deal to appease IMF. London: Harvard University Center Congo Forum.

Brautigam, D., 2011. Chinese development aid in Africa: What, where, why, and how much? https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2013609. London: Paul H. Nitze School of Advanced International Studies Johns Hopkins University.

Brussels Institute of Contemporary China Studies, 2009. Opportunities, Obstacles and Resistance, The Political Participation by Brussels Based Belgian Moroccan, Belgian Turkish and Belgian-Congolese Organisations. Brussel: Vrije Universiteit Brussel Research Portal Brussels Institute of Contemporary China Studies.

Capital Economics, 2009. Precious Metal Forecast Survey. London: London bullion market London bullion market.

Chimp Reports, 2012. Congo’s $6bn China accord: deal of the century or Africa’s “Great Chinese Takeout? Chimp Reports Trending News, 14 Novermber. pp.https://chimpreports.com/6961-congos-6bn-china-accord-deal-of-the-century-or-africas-great-chinese-takeout/.

Congo Rep, 2012. Chinese engineers deploy Brazzaville-Kinshasa fibre link under Congo River. Washington: PriMetrica, Inc TeleGeography.

Daly, J., 2008. Feeding the Dragon: China’s Quest for African Minerals. The Jamestown Foundation, 29 February.

Edoho, F., 2011. Globalization and Marginalization of Africa: Contextualization of China––Africa Relations. Africa Today, 58(1), pp.103-24.

Ewing, J., 2008. Congo Fighting Revives Tainted Phone Fears. Bloomberg Business, 18 November. Foster, V., 2008. Africa's infrastructure : A time for transformation. New York: The World Bank.

Freeman, C.a.B.X., 2011. Chinas emerging global health and foreign aid engagement in Africa. Washington: CSIS Center for Strategic International Studies.

French, H., 2010. The next empire. The Atlantic, 13 May.

Gardner, B., 2011. The emerging world: A glimpse at the changing world of China and emerging markets. http://emergingworld.blogs.france24.com. Paris: France Blogs www.bradleymgardner.com. Garrett, N.a.H.M., 2009. Trading conflict for development. http://rcsglobal.com/trading-conflict-for-development/. London: RCS Global Delivering responsible supply chains.

GJelten, T., 2007. Congo and China forge economic partnership.

https://www.npr.org/templates/story/story.php?storyId=11428653. Washington: NPR National Public Radio.

Global Witness Limited, 2011. China and Congo: Friends in need. A report by Global Witness on the Democratic Republic of Congo. London: Global Witness Limited Global Witness Limited. Goethals, S.M.R.a.O.J., 2009. Chinese mining operations in Katanga. http://www.raid-uk.org/sites/default/files/drc-china-report.pdf. London: Lionel Healing Rights and Accountability in Development.

Gylfason, T., 2009. Development and growth in mineral-rich countries. http://www.unrisd.org/80256B3C005BCCF9/(httpAuxPages)/10A9C51E5130141BC12574F000384976/$file/draftGylfasonV2.pdf. Toronto: UNRISD United Nations Research Institute for Development.

Haifang, L., 2012. Building a 'harmonious world': A mission impossible? The Copenhagen Journal of Asian Studies, 30(2), pp.75-99.

Hinde, C., 2010. Fast improving: risk-reward balance. Mining Journal special publication: Democratic Republic of the Congo, A supplement to Mining Journal, p.3.

Holslag, J., 2010. China’s evolving behaviour in Africa and the options of cooperation with Europe. Journal of Current Chinese Affairs, 4.

Humphreys, D., 2001. In search of a new China: mineral demand in South and Southeast Asia. In search of a new China: mineral demand in South and Southeast Asia, 31(2), p. 103–112.

Humprey, D., 2004. The mining industry after the boom. Mineral Economics, 32(2), p.2009.

Ianucci, E., 2009. WA adjusts royalty rate for lithium. Sydney: Mining Weekly Australia Creamer Media Mining daily.

Jopson, B., 2007. China pledges USD10b in loans to Africa. Singapore: INDVSTRVS INDVSTRVS. Kaplinsky, R.a.M.M., 2006. Dangling by a thread: how sharp are the Chinese scissors?. London: http://oro.open.ac.uk/8584/ The Open University.

Kavanagh, M., 2012. Congo’s $9 Billion Inga Plant May Sell S. Africa Power. London: Bloomberg Bloomberg.

Kelly, C., 2009. Tantalum industry in dire need of new resources. Reuters, 22 October. Le Pere, G.a.S.G., 2008. China, Africa and South Africa: South-South co-operation in a global era. Pretoria: https://www.igd.org.za Institute for Global Dialogue.

Lee, P., 2010. Asia Times : China has a Congo copper headache. http://www.atimes.com/atimes/China_Business/LC11Cb02.html. ingapore: Asia Times Asia Times. Lum, T., 2008. Comparing global influence: China’s and US diplomacy, foreign aid, trade, and investment in the Developing world. Washington: Congresional Research Service.

Lum, T., Blanchard, C.M. & Cook, N.&.C.T.J., 2008. Comparing global influence: China's and US diplomacy, foreign aid, trade, and investment in the developing world. Washington: Congressional Research Service Reports Congressional Research Service Reports.

Ma, T., 2009. China and Congo’s coltan connection. Virginia: Project 2019 Institute Project 2019 Institute.

Macau Hub, 2012. Construction of new Mbanza Congo airport, in Angola, begins in 2013. Macau Hub, 12 December.

McCormick, D., 2008. China & India as Africa's New Donors: The Impact of Aid on Development. Review of African Political Economy, 35(115), pp. 73-92.

McKinsey Insights, 2010. Lions on the move: The progress and potential of African economies. https://www.mckinsey.com/featured-insights/middle-east-and-africa/lions-on-the-move#0. Seattle: McKinsey Insights McKinsey Global Institute.

Meyer, N., 2012. Can China's deal of the century save Congo. World Polcy, 20 July. pp.https://worldpolicy.org/2012/07/20/can-chinas-deal-of-the-century-save-congo/.

Mohan, G.a.M.P., 2008. New African choices? The politics of Chinese engagement. Review of African Political Economy, 35(115), pp.23-42.

Njuguna, A., 2008. Chinese begin work on Congo Republic coast link road. Isiolo: Thomson Reuters.

Nzongola-Ntalaja, G., 2010. The Congo from Leopold to Kabila: A People’s History. Kinshasa: Zed Books.

OECD, 2006. OECD Due Diligence Guidance for Minerals. London: Colombia’s Antioquia region Organisation for Economic Co-operation and Development.

Pambazuka News, 2009. China provides humanitarian aid to DR Congo. Pambazuka News: Voices for Freedon and Justice, 27 March.

Parsley, B., 2013. The global intellgence files. https://wikileaks.org/gifiles/docs/50/5034778_-africa-drc-china-evidence-of-corruption-in-6-bil-sicomines.html. Kinshasa: WikiLeaks The GiFiles. People's Daily Online, 2004. China's peacekeeping medical team offer aid in Congo (Kinshasa). People's Daily Online, 31 December.

Putzel, L.a.K.N.(., 2010. Chinese aid, trade and investment and the forests of the Democratic Republic of Congo. Bogor Barat: Center for International Forestry Research Center for International Forestry Research.

Ruhl, O.a.B.H., 2010. D. New York: The World Bank Group emocratic Republic of Congo Country Brief. San Jose, C., 2008. Global Tantalum Market to Exceed 6.95 Million Pounds Lbs. by 2012, According to New Report by Global Industry Analysts, Inc. New York: Vocus PRW Holdings, LLC Cission.

Tantalum-Niobium International Study Centre, 2011. Bulletin 145. Almaty: Tantalum-Niobium International Study Centre.

Waserman, H., 2009. China in South Africa: A long affair. Rhodes Journalism Review , 32(2), pp.34-35.

Wazekwa, F., 2012. Life gets better for Kinshasa elites, but is a struggle for most. Congco Siasa, 22 March.

Wazekwa, F.a.O.K., 2012. Life gets better for Kinshasa elites, but is a struggle for most. Kinshasa : Center for International Cooperation The Congo Research Group.

Xuanzi, J., 2011. Is China Capitalizing on the Congo? New York: The Center for Global Prosperity Hudson Institute.

Zeleza, P., 2008. Dancing with the Dragon, Africa’s courtship with China. The Global South, 2(2), pp.171-87.