China is using its growing trade power to enhance its global influence, especially in Africa, Latin America and Asia where it is perceived as an all-weather friend. Since opening up its economy in 1978, China's foreign trade has been growing by leaps and bounds. In 2008, its foreign trade volume exceeded $2.56 trillion 70 times more than what it was 10 years ago, according to the US-China Business Council. China has now become the world's largest exporter, beating Germany, reported the World Trade Organisation.
To fuel its booming export-driven economic growth that has been averaging 9 per cent for more than two decades, China desperately needs to access, on a long-term basis and with accelerated pace, oil, minerals and other natural resources. No wonder it has been establishing listening posts, bunkering facilities at friendly ports and in some cases developing altogether new harbours to protect ocean routes and sea lanes to ensure an uninterrupted flow of goods and materials with its trading partners especially in Asia, Africa and the Middle East.
With $73 billion annual Sino-African trade, mostly with Angola, Equatorial Guinea, Nigeria, the Republic of Congo and Sudan, for example, China is Africa's second largest trading partner next only to the US. African countries welcome China's low priced manufactured goods, foreign direct investment as well as development aid for building railroads, dams, schools, roads, hospitals and fibre-optic networks with no strings attached, no human rights questions asked.
China makes resource-rich countries offers so attractive that they just cannot refuse. These offers are long-term trade and development opportunities bundled in benign aid packages that invariably include diplomatic support for authoritarian rulers, arms sale and, occasionally, debt forgiveness. Today, Chinese multinational corporations are engaged in scores of hydropower, oil, gas and mining projects in Myanmar. In March, China signed a $2.9 billion agreement with Myanmar for construction of oil pipelines for transporting crude oil from the Middle East and Africa via Myanmar to China.
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