July 7, 2014 (Chinavestor) Sino-African Relations and China’s Strategic Invasion
A nation that may seem contempt from the outlook will be continuously flawed by the same struggles mankind has been blighted by for generations. We may accustom ‘Power’ and ‘Greed’ to only those individuals who observably glorify this, but it is not just Mr. Gordon Gecko who desires to bathe in this sin. Our livelihoods are governed by a hierarchy of regulators and money is drip fed into our systems to keep us in balance, which may also be the same system attributable to 86% of the world’s population considered to be developing. Those countries in the early stages of ‘Emerging’ or still measured as ‘Poverty Stricken’ may be now subject to an organization outside their own government. With craving for land and authority pretty much in the history books, the act of neo-colonialism in the modern era now has a common denominator – resources.
A Backroom Endeavour
With China pushing out record GDP growth figures and manoeuvring themselves around the globe via crafty M&A tactics, the nation has set the bar at unprecedented high levels. Even more staggering is that China holds the world’s largest population, so how does it manage to deliver strong growth figures whilst having to maintain and service their own people? Surely one must make painstaking decisions to figure out how to reallocate resources amongst 1.3 Billion inhabitants. Energy firms must also struggle exploring these resources so richly needed. No other country in the world demands more energy than China and no other country also grows in such a manner. However, this demand for energy is not countered by China’s own supply of resources, but China is now dependant on importing the resources from other nations. Shale play from Canada via a $19 billion acquisition of Nexen, a $4.2 billion purchase of PetroKazakhstan and even a $14.3 Billion, 12% stake of supreme multinational mining firm Rio Tinto (NYSE:RIO), displays China’s aggressiveness on the subject. Behind these mainstream commercial transactions however lays a far more sinister game of corporate surgery. China has made a new ally that should cause a stir greater than any other controversial peace treaty in existence. I inserted the word ‘should’ to highlight this relationship is occurring mainly behind closed doors and that the open world is still facing only the shadow of all the possibilities of the relationship.