Western Isolationism and China’s Response

Since the start of its “going global” strategy in March 2000, China has pursued a more open approach to cooperation, backed by the aspiration for shared prosperity. Needless to say, this has not been without resistance. Indeed, there has been a wave of anxiety-driven economic policies in the West, particularly in the U.S. In contrast, as we advance towards globalisation and shared prosperity, such restrictive trade policies and economic insecurity can only be counterproductive, to say the least. However, now that we are in this situation, it is important to analyse what it might mean for China-Africa cooperation.

First, despite the protectionist policies dressed as responses to the “China threat,” if anything, they only address the symptom. China’s growing influence globally points to a world weary of continuously being dealt an unfair hand of exploitation and interference, a hallmark of Western foreign policies. Evidently, by offering an alternative, China grew into Africa’s largest and Latin America’s second-largest trading partner. This was a key factor behind the Biden administration’s doubling of tariffs on semiconductors, steel, and aluminium products, going from 7.5 percent-25 percent to 25 percent-50 percent, and electric vehicle tariffs from 25 percent to 100 percent, not to mention subsequent tariffs by the new Trump administration. Coming from the vanguard of free markets, these policies are clearly rooted more in anxiety than in strategy!

However, what makes China’s response even more illuminating about its commitment to the goal of delivering shared prosperity is that, rather than alter its approach in response, China has increasingly broadened its opening up. Moreover, it responded to criticism of its investments in Africa positively, for example, by focusing on sustainability and high-quality investments under the Belt and Road Initiative, fronting debt sustainability and promoting industrial cooperation. As the U.S. was retreating from the Paris climate agreement to enhance its energy sufficiency, China was making more commitments to invest in green energy and de-carbonisation in Africa.

Finally, while the West pursues repressive and isolationist economic policies, as seen in the U.S. pressure on Panama to stop Chinese developments on the Panama Canal, China is doing the exact opposite: renewing commitments to old and agreeing to new Free Trade Area (FTA) pacts, including ASEAN FTA, RCEP, etc. Moreover, China’s support for the African Continental FTA does not stop at creating a continent-wide trade zone, but the zero-tariff treatment for African products synergises the 2.8 billion-strong market between China and Africa.

In summary, as the West locks itself up in silos, China has continued to build resilient global trade systems amidst disruptive economic policies, steadily advancing shared prosperity, and building a global community of humankind with a shared future. Importantly, the lesson for the world here is that the default flow of human civilisation is progressive; thus, to go against this flow is like the proverbial swimming against the tide. In fact, restrictive trade policies can only hurt the West in the end, as without competition, prices can only go higher, pushing down real incomes, GDP, and ultimately hurting the economy.

The author is Research Fellow with Development Watch Centre, Uganda.