African Nations Should Avoid Forfeiting Sovereignty to China Over Loans, Says US State Secretary

March 8, 2018 Updated: March 8, 2018

ADDIS ABABA—U.S. Secretary of State Rex Tillerson said on March 8 that African countries should be careful not to forfeit their sovereignty when they accept loans from China, the continent’s biggest trading partner.

Tillerson is using his first diplomatic trip to the continent to bolster security alliances on a continent increasingly turning to Beijing for aid and trade.

“We are not in any way attempting to keep Chinese dollars from Africa,” Tillerson told a news conference in the Ethiopian capital. “It is important that African countries carefully consider the terms of those agreements and not forfeit their sovereignty.”

The United States is the leading aid donor to Africa but China surpassed it as a trade partner in 2009. Beijing has pumped billions into infrastructure projects, though critics say the use of Chinese firms and labor undermines their value.

Tillerson said Chinese investments “do not bring significant job creation locally” and criticized how Beijing structures loans to African government.

Epoch Times Photo
Chinese employees of the new railway which will link Addis Ababa to Djibouti take pictures in front of the Chinese-made Ethiopian trains in Addis Ababa on September 24, 2016. (Zacharias Abubeker/AFP/Getty Images)

If a government accepts a Chinese loan and “gets into trouble,” he said, it can “lose control of its own infrastructure or its own resources through default.” According to a just-released assessment of China’s One Belt, One Road (OBOR) infrastructure project—where several African countries will participate—by the U.S.-based think tank Center for Global Development, nearly 82 percent of Djibouti’s external debt is owed to China. Djibouti was also listed among eight countries at high risk of debt distress due to future OBOR-related financing.

The growing Chinese lending to the continent has also attracted criticism from some Africans, who say China’s agenda is to feed its appetite for African raw materials like oil, timber, and minerals, and secure contracts for its firms.

Many African governments enjoy close ties with both Washington and Beijing. Kenya, for example, inaugurated a $3.2 billion railway funded by the Chinese regime last year. For the last three years, Kenya has received more than $100 million annually in U.S. security assistance.

Asked about Tillerson’s criticism of China’s approach on the continent, Kenya’s foreign affairs minister Monica Juma said: “This country is engaging with partners from across the world driven by our own interests and for our own value.”

‘Opaque Contracts’

Tillerson arrived in Ethiopia, Africa’s second most populous nation, on March 7 and visited the African Union headquarters the following day. The complex was funded and built by the Chinese regime and is seen as a symbol of Beijing’s thrust for influence and access to the continent’s natural resources.

French newspaper Le Monde reported in January that the Chinese had bugged the complex and were secretly transferring data from computers to a server in Shanghai.

Ethiopia is home to some of Beijing’s biggest investments, from a railway to Djibouti that opened last year to factories and industrial parks.

Earlier this week, Tillerson criticized “China’s approach” to Africa which he said encouraged dependency through “opaque contracts” and “predatory loan practices.”

Ethiopia’s prime minister resigned suddenly last month and a state of emergency was imposed but protests in the restive Oromia region have continued.

The secretary of state met Hailemariam Desalegn, who resigned as prime minister but is still acting in the post awaiting a replacement. Details of their discussions were not released.

Epoch Times Photo
U.S. Secretary of State Rex Tillerson meets with Ethiopia’s Prime Minister Hailemariam Desalegn in Addis Ababa, Ethiopia on March 8, 2018. (Jonathan Ernst/Reuters)

Tillerson said after meeting his Ethiopian counterpart Workneh Gebeyehu that the answer to political turmoil in Ethiopia was greater freedoms.

“It is important that the country moves on past the state of emergency as quickly as possible,” he said.

Tillerson reiterated previous calls for African states to cut ties with North Korea.

North Korea has more than a dozen embassies on the continent. The Trump administration has said that Pyongyang earns hard currency from arms deals with African governments and the trafficking of wildlife parts from Africa.

Tillerson is due to fly to Djibouti, host to military bases owned by the U.S., China, Japan, France, and Italy.

He will then visit Kenya, a key U.S. ally in the fight against al Shabaab Islamist militants in Somalia, before traveling to Chad and Nigeria, which are also battling to contain Islamist insurgents.

From Reuters. Epoch Times staff member Annie Wu contributed to this report.