Angola and the Paradox of Chinese Power

Angola is clearly China’s most important relation in the African continent, with bilateral trade between the two nations reaching a staggering $25 billion in 2009.ⁱ Angola is Beijing’s main trading partner in Africa and its main source of foreign oil imports, providing China with 790,000 bbl/day of Angolan crude oil in 2010.

Since 2002 Chinese state own banks have provided Angola with $15 billion in soft loans for hundreds of projects. In 2010, China granted Angola a $1 billion loan to revive the country’s agricultural sector. The Angolan government is paying off these loans with oil exports to China and by awarding contracts for such projects to Chinese companies. These companies have been awarded numerous contracts through the vast country, building railroads, roads, ports, power plants stadiums and military installations. Angola also has the world’s fourth largest diamond fields, and in 2009, China surpassed the US as its main buyer.ⁱⁱ Dozens of high level Chinese delegations have visited Angola in recent years while nearly every senior official in Angola as paid a call to Beijing including serving President Eduardo dos Santos.

Chinese loans, as well as companies doing business, have contributed to an impressive resurgence of the country’s economy and infrastructure after nearly 30 years of civil war. In the early 2000s, when Western institutions such as the World Bank impose severe conditions on assistance to Angola and dispensed long (and sometimes hypocritical) speeches on transparency and accountability, the Chinese came along with billions in loans and no questions asked.

Therefore, one would expect, as some observers have predicted, that Angola would fall under greater Chinese control. While China has gained an impressive economic presence in Angola, its political and diplomatic influence is growing weaker by the day, and its soft power is rather weak. Along with billions in loans also came thousands of Chinese workers, with an estimated 100,000 Chinese now believed to be residing in Angola.ⁱⁱⁱ While Chinese companies have won numerous lucrative contracts, very few jobs have actually been created for the Angolans.^iv Some Western scholars have claimed that China brought thousands of workers to Angola because the country lacked skilled workers. Portuguese, Brazilian, Indian, and other countries' companies in Angola don’t seem to have that problem.

The most insulting excuse was by a Chinese scholar from the state run Academy of Social Sciences at a June 2008 conference hosted in Lisbon when she claimed that: “We brought thousands of Chinese workers because many Angolan men got injured during the war and cannot work.”

In November 2009 I wrote an article for Yale Global Online Magazine in which I discussed the growing tensions between local Africans and the growing number of Chinese migrants, and the potential for conflict this creates. A year later several Angolan media outlets and the world’s leading media seem to share the same concerns. ^v

In August 2010, the conference of Angolan Bishops expressed its concern over the growing number of Chinese workers in Angola, while state-owned Angolan oil company, Sonangol, imposed restrictions on the number of Chinese workers.^vi There have also been accusations of mistreatment of Angolan workers and serious doubts about the quality of Chinese construction, with the most notorious case being that of the closure of the Luanda general hospital short after it was opened.

Other infrastructure, including several roads, had similar problems.^vii As noted by an Angolan civil engineer. “You have buildings built by the Portuguese fifty years ago still standing, while Chinese buildings just a year old are collapsing. Yes they build very fast and very cheap. But it also comes down fast” ^viii

Small and medium scale traders also resent the thousands of Chinese businessmen who are fast putting them out of business. Chinese companies have also been accused of using child labor in several rice farms around the country and several other irregularities.^ix Attacks on Chinese citizens are not uncommon and have led the Chinese Embassy to lodge several protests. Anti-Chinese sentiment has on occasions reached ridiculous proportions, with several negative reports in the local media of Chinese cannibals and sod misers preying on young Angolans.^x

While most resentment is felt in the lower classes, Angolan elites are growing more concerned over their self-created over-dependence on China and have begun to take steps to balance Chinese dominance. In the past two years several contracts that were initially to go to Chinese companies have been given to Indian, Brazilian, American and European companies. While China remains, and is likely to remain, the country’s main economic partner, the Dos Santos government has strengthened diplomatic and security ties with the United States, Europe, Brazil and other Asian powers, such as India.

The United States remains the main importer of Angolan oil – a situation the Angolans have no desire to change. The Angolan government as also awarded several oil concessions to Brazilian, Indian and European companies.^xi Several Chinese diplomats interviewed by the author have accused the Angolan government of having promised certain deals to Chinese companies, and then changed their minds after obtaining concessions from China.^xii

In contrast to Chinese companies, American giants such as Chevron have employed thousands of Angolans and engaged in several community benefit projects, investing $160 million in such projects. Chevron and its subsidiaries in Angola employ an estimated 3500 long term Angolan workers, making that company the single largest foreign employer in the country.^xiii Instead of using the excuse that Angola lacks qualified human resources Chevron has been investing in the training and education of national staff for several years. However, this is not to say that American and Western companies have a perfect record, as shown by the Angolan government suing of Chevron over environmental violations.

Despite China’s tremendous economic gains, most Angolans still prefer to go to the United States and Europe for their education. Angolan bureaucrats, diplomats and military officers are not being educated in China, but rather in the West; these are the people that shape the country’s policy now and into the future.

The biggest source of friction between Angola, the US and its Western allies is the issue of human rights and corruption. For instance, some observers have noticed that the court cases against American oil companies for alleged environmental violations are in retaliation to American criticism of such matters. Despite these irritants, American-Angolan relations have improved remarkably in recent years and American oil companies have expanded their presence in the country. If one takes into account the fact that Washington only recognized the ruling MPLA government in 1992, US-Angolan relations have indeed witnessed a remarkable improvement.

The Angolan government has played a smart and sophisticated balancing game: it allowed China to assume a preponderant role at a time when the West scorned the country, and obtained billions in loans without having to make difficult reforms. Now with its oil economy booming and the world's fourth largest diamond fields, Angola is looking to other options. Partly in reaction to China’s overwhelming position in Angola, Angola’s traditional partners, such as the US, Portugal, Brazil, and the EU, have increased their commitment to Angola further strengthening the Dos Santos regime and balancing Chinese influence.

As noted by a former director of SIED, the Portuguese spy agency: “The Angolans had played the China card very well. During the Cold War they played the Soviets, Cubans and Americans. In Angola you had Cuban troops guarding American oil fields. Only in Angola.” ^xiv

While many in the West have expressed concern over China’s presence in Angola, China’s fast dominance of the continent have led many countries to re-engage the West and other emerging powers such as India and Brazil in order to balance China’s preponderance. This is not to suggest that Angola sees China necessarily as a treat, but rather that it believes that it has more to win by diversifying its relations. As noted by an Angolan minister: “Our relations with China not only allowed us to obtain large loans, but most important it forced the West to treat us with more respect and in a less patronizing way. For that we are grateful.” ^xv

While Angola initially encouraged China to assume a leading role in its economy, China’s rapid dominance of the country made the Angolan leadership concerned over its over-reliance on China. Ironically China seems to be the victim of its own success. By gaining an over-dominant position in Angola, China weakened its political and diplomatic position, allowing other powers to reengage. Growing economic power did not translate itself into diplomatic and political influence. Eager to secure energy resources, Beijing has established an impressive presence in Angola, however its growing economic dominance has weakened other dimensions of its power. Herein lies the paradox of Chinese power.

The United States and other nations with and interest in Africa should not be too concern edover a possible Chinese takeover, and should continue to play on their advantages, such as better labor standards, better technology, educational and cultural appeal, while abstaining from the usual moral sermons. In the end, China may have bitten more than it can chew. China has provided vital support to Angola, particularly in the early 2000s when the West was not forthcoming. It’s unlikely that Angola would have recovered so fast from the war without Chinese assistance. Who could have loaned Angola $15 billion in 8 years? Overall Angola as benefited from its ties to Beijing, however, there is much room for improvement on both sides.

With an ever expanding oil industry, large diamond fields and reports of extensive deposits of natural gas Angola is fast emerging as a power to be reckoned with, second only to South Africa. A legacy of 30 years of civil war, where thousands of Cuban and South African troops were involved, has given Angola one of the largest and most experienced armies in Africa. A rising regional power such as Angola is unlikely to accept a dependent position in relation to China.

As noted by Dr. Roque Rodrigues the longest serving foreign diplomat in Lunda: “Having lived in this country for 20 years I can tell you that the Angolans are extremely proud and independent, Through their history they have learned to balance foreign powers eyeing their rich country. To say that Angola is in the hands of the Chinese it’s really not to know anything about Angola and its people.”^xvi

Loro Horta is a graduate of the People’s Liberation Army National Defense University (PLANDU) senior officers course and the Chinese Ministry of Commerce Central School. Previous to his Chinese education Mr Horta was educated in Australia and the United States. He was born and brought up in Africa where he lived for 23 years working in law enforcement and for international relief organizations.