The effects of the rise of China and political economy of Africa: the case of South Africa

Abstract

The 21st century has witnessed intensified ties between China and South Africa both bilaterally and multilaterally under BRICS. South Africa-China relations have been amplified by the quest to strengthen South-South cooperation as opposed to depending on the West for everything. In this research the focus is on examining the political and economic relations between South Africa and China. The sustainability of the China-South Africa engagement in the areas of economy and politics will be examined. Since South Africa is the weaker partner economically in her relationship with China, will the relationship leave South Africa disadvantaged or will the South African economy benefit from the bilateral relations? On the political level, China’s policy on Tibet and the One-China policy may have a bearing on South Africa’s image in the world. The research is designed to explore the political and economic dimensions of the relationship. The study derives insights from the interdependence theory which argues that we live in a world of interdependence which has altered the concept of power which is at the heart of the realist theory. Interdependence is also defined as mutual dependence among nations and reciprocal effects among states. The study utilizes a qualitative approach where desk research involving primary and secondary sources are used. Fundamentally the study argues that the relationship is mutually beneficial albeit unequal. China is a major power with the second largest economy in the world and South Africa is a regional power with a stagnating economy. China needs South Africa in her Africa strategy due to the fact that South Africa boasts the largest and most advanced economy on the African continent and this makes the country a convenient doorway into Africa. South Africa on the other hand needs Chinese Foreign Direct Investment and trade to speed up growth and grow the black middle class which was disadvantaged during the apartheid years. In 2015 the two countries signed 26 agreements worth 94 billion rand when the Chinese President Xi Jinping paid an official visit to South Africa which will be mutually beneficial to both parties.