I have been arguing for a long time that Chindia is not the right buzzword for the 21st century. CHINAFRICA is the right word. You can type Chinafrica is my blog search box to see how many times I wrote about it.
Recent days bring more and more news on this front on the daily basis. Today’s Financial Times has two articles, one article on China Development Bank entering a partnership with United Bank of Africa, one of Nigeria largest lenders. Only last week Industrial and Commercial Bank of China took a 20% stake in the largest South African bank, the Standard Bank, at the cost of US$5.56bn. UBA which now has a balance sheet of about 8bn says that “the deal provides UBA with an almost infinite amount of capital to execute projects, and that Chinese will invest in any credit that UAB recommends”.
Financial Times also writes that China’s National Council for Social Security Funds has held preliminary talks about buying stakes in companies such as Carlyle or Kohlberg Kravis Roberts.
And this is still ahead of any moves yet to be made by the China Investment Corporation.
It does appear that the next axis of power in the 21st century will be CHINAFRICA. It is in the best interest of Europe and United States to make sure, that global, inclusive, not protectionist policy agenda reflects these prospects.