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    Forcnooc

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    Forcnooc

    Uploaded by

    mr_fabulous1057
    49 views3 pages

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    forcnooc

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    49 views3 pages

    Forcnooc

    Uploaded by

    mr_fabulous1057

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    of 3

    Add in introduction Nigeria and the People's Republic of China established formal diplomatic relations

    on February 10, 1971


    Also add in the intro that In 2006 the CNOOC purchased a share for USD 2.3 billion in an oil exploration
    block owned by a former defence minister.
    Hence an argument against could be not to let CNOOC have too much power. They could want their
    rules to be played…

     China doesn’t interfere in the Nigerian’s government politics

    o This approach has been officially termed “noninterference in domestic affairs”


    o This is a rupture from Western countries that demanded human rights etc…
    o Allow Nigeria and China to focus on business
    o Would maybe make discussion easier: less uncertainty, less concessions
    (regarding the Nigeria government’s policies)
    o Quote to use: “When we provide aid or do deals in Africa or elsewhere, we do not
    attach political requirements,”says Zhang Hongming, an Africa specialist at the
    Chinese Academy of. Social Sciences. “This is the guiding principle of Chinese
    foreign policy to this day.”

    Additional Reading in Case you want to get a broader picture

    Noninterference?

    The Chinese approach to foreign relations is officially termed "noninterference in


    domestic affairs." Chinese leaders say human rights are relative, and each country should be
    allowed their own definition of them and timetable for reaching them. CFR’s Economy says that
    unlike the United States, China does not mix business with politics. In fact, China has argued
    that attempts by foreign nations to discuss democracy and human rights violate the rights of a
    sovereign country.

    Some China experts say Beijing's approach is not significantly different from how any other
    country pursues its interests. "The United States is highly selective about who we're moral
    about," says David C. Kang, a professor of government at Dartmouth College. "We support
    Pakistan, Egypt, Saudi Arabia—huge human-rights violators—because we have other strategic
    interests. China's not unique in cutting deals with bad governments and providing them arms."

    But China's foreign policy appears to be evolving as it realizes the need to protect its economic
    interests. For instance, it has altered its policy of blocking UN Security Council resolutions
    authorizing peacekeepers for Darfur and placed modest pressure on Khartoum to allow a UN
    peacekeeping deployment. "Beijing's recent handling of the situation in Sudan shows that it is
    learning the limitations of noninterference, however much that principle remains part of its
    official rhetoric," write Stephanie Kleine-Ahlbrandt and Andrew Small in Foreign Affairs. "China
    has found noninterference increasingly unhelpful as it learns the perils of tacitly entrusting its
    business interests to repressive governments," they write.

    But China also continues to sell arms to Sudan, among other African countries. The
    Congressional Research Service reports that China views these sales as a means of
    "enhancing its status as an international political power, and increasing its ability to obtain
    access to significant natural resources, especially oil" (PDF). In the period from 2003 to 2006,
    China's arms sales to Africa made up 15.4 percent ($500 million) of all conventional arms
    transfers to the continent. Notable weapons sales include those to Sudan, Equatorial Guinea,
    Ethiopia, Eritrea, Burundi, Tanzania, and Zimbabwe. Beijing has also sent Chinese military
    trainers to help their African counterparts. Arms sales and military relationships help China gain
    important African allies in the United Nations—including Sudan, Zimbabwe, and Nigeria—for its
    political goals, including preventing Taiwanese independence and diverting attention from its
    own human rights record.

    http://www.cfr.org/publication/9557/#p6

     Partnership is growing
     This deal will permit it to reach another level.
     Would maybe lead to other multiple investments
     Nigeria in need for investment to sustain growth

    China builds: infrastructures, gives financial aid, knowledge transfer

     Mr Rong Yansong, the Economic and Commercial Counselor of the Chinese Embassy in
    Nigeria, says the trade volume between both countries increased from $3billion in 2006
    to $7.24billion in 2008. It was only $384 million in 1998

     Chinese investments have the potential to provide much needed jobs, generate
    employment, creation of wealth and boost economic development.

     For African governments, the investment in infrastructure is arguably the most important
    spin-off of the intensifying liaison.
    For years business in Africa has been hampered by poor transport links between
    countries and regions.
    “According to a study prepared by the staffs of the World Economic Forum, the World
    Bank,
    and the AfDB, African firms lose as much as 8 percent of sales due to power outages,
    and
    transportation delays can account for as much as 3 percent of lost sales (World
    Economic
    Forum, 2007).”

     Improving infrastructure is critical


     Addition by the CNOOC of new plants and equipment in addition to what is already there

     Example: During Chinese President Hu Jintao's visit in 2006, China secured four oil
    drilling licenses and agreed to invest USD 4 billion in oil and infrastructure development
    projects in Nigeria

    http://news.bbc.co.uk/2/hi/business/4946708.stm

     China helped Nigeria launch its first communication satellite (however wasn’t a big
    success)

    A multi-million dollar Nigerian satellite launched in May 2007 has been shut
    down to prevent it spinning out of control and damaging others in orbit.
    Chinese-built NigComSat-1 cost the African oil producer $340m

    The Nigerian Communication Satellite NIGCOMSAT-1 is expected to offer broadcasting, phone and
    broadband internet services for Africa.

    http://news.bbc.co.uk/2/hi/africa/7726951.stm

    Nigeria gets $1bn China rail loan in 2006


    China has agreed to lend Nigeria $1bn so that the African nation can modernise its
    railways and help speed up the development of its economy. This shows how far
    China is willing to go secure to oil supplies. Much more than Western Countries and
    FMI

    This lead to creation of thousands of jobs, new infrastructures…


    Coincides with GDP growth in Nigeria: as a matter of fact: GDP growth of 5% in 2006 and
    5.3% in 2007 source: Economist Intelligence Unit

    Additional Reading for infrastructure

    B. African Demand for Infrastructure


    Inadequate infrastructure is one of the top constraints to business in Africa, where energy and
    transportation are among the main bottlenecks to productivity growth and competitiveness.
    According to a study prepared by the staffs of the World Economic Forum, the World
    Bank,
    and the AfDB, African firms lose as much as 8 percent of sales due to power outages,
    and
    transportation delays can account for as much as 3 percent of lost sales (World
    Economic
    Forum, 2007). Poor infrastructure also holds back commercial agriculture. Improving
    infrastructure thus is critical if Africa, particularly SSA, is to diversify exports, move up the
    value chain, and achieve sustained growth.
    There is thus a large unmet demand; upgrading infrastructure requires financing and
    technical expertise, both lacking in many African countries. Moreover, traditional donors,
    bilateral and multilateral, tend to allocate only a relatively small proportion of their funding
    to infrastructure (Table 4), and for the private sector, investing in infrastructure in poor
    countries is a high-risk business.

    Most important aspect to take into account is the business aspect


    Is the deal good financially
    Have to compare with previous deals, are we going to make more money?

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