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

African Nations Should Avoid Forfeiting Sovereignty to China Over Loans, Says US State Secretary
U.S. Secretary of State Rex Tillerson (left) and African Union (AU) Commission Chairman Moussa Faki, of Chad, hold a news conference after their meeting at the African Union headquarters in Addis Ababa, Ethiopia on March 8, 2018. Jonathan Ernst/Reuters
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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.