China to Push Green Tech Exports at Africa Summit Amid Western Export Curbs
China is set to make a strong push for its green technologies at this week’s Forum on China-Africa Co-operation Summit in Beijing, as it seeks to solidify economic ties with 50 African nations before anticipated Western curbs on its exports. The summit, which begins on Thursday, will be a platform for China to promote its electric vehicles (EVs) and solar panels while offering loans and investment in exchange.
African leaders attending the summit will be looking for concrete commitments and reassurances from China, especially in light of unmet pledges from the previous summit in 2021. At that event, China promised to buy $300 billion worth of goods from Africa, a commitment that remains partially fulfilled. Additionally, leaders will seek updates on ongoing Chinese-funded infrastructure projects, such as a major railway intended to connect the East African region.
Eric Olander, co-founder of the China-Global South Project, notes that African nations will need to align their proposals with China’s evolving priorities, which now focus more on advanced and green technologies rather than large-scale infrastructure projects. China is shifting its strategy away from funding big-ticket projects to concentrating on green technology, including solar farms, EV plants, and 5G Wi-Fi facilities.
The urgency for China to find buyers for its green technologies comes amid looming Western restrictions on its exports. The U.S. and European Union have cited concerns over overcapacity in China’s EV and solar panel sectors. In response, China is focusing on building production bases in emerging markets and adapting its loan conditions to prioritize green technology.
The latest figures indicate that China has already started to modify its loan offerings, with 13 loans amounting to $4.2 billion allocated last year. This included about $500 million for hydropower and solar projects. The shift in focus is also evident in the reduced emphasis on funding traditional infrastructure like bridges, ports, and railways.
As President Xi Jinping opens the summit, he is expected to highlight opportunities in China’s green energy sector to African leaders from key nations such as Gambia, Kenya, Nigeria, South Africa, and Zimbabwe. The summit will also see delegates from every African country except Eswatini, with which China has no diplomatic relations.
China’s dominant role as a trade and financial partner in Africa is under scrutiny from other global powers. The U.S., along with Britain, Italy, Russia, and South Korea, has been actively engaging with African leaders to bolster their influence in the region.
Despite China’s significant presence and influence, African leaders are expected to negotiate for more favorable terms. There are concerns that China’s willingness to extend further financing may be tempered by recent security issues and debt restructuring challenges faced by several African nations.
Experts like Lina Benabdallah from the Centre for African Studies at Harvard University anticipate a cautious approach from China regarding new financing commitments, with a greater emphasis on technology transfers. Yvette Babb, a portfolio manager at William Blair, is keen to see how new finance commitments will address existing debt and how China will navigate ongoing security concerns.