Viktor Eszterhai Senior analyst China The current USled world order and Chinas goals Three pillars t he American value system W estern values ID: 525681
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Slide1
The Sino-Angolan State Level Relations – a Constructivist Approach
Viktor Eszterhai
Senior
analyst
,
ChinaSlide2
The current US-led
world order and China’s goalsThree pillars:the American value system/Western valuesthe U.S. military alignment system: security foundation for US leadershipthe international institutions (UN)Munich Security Conference, 2016 Slide3
Hypotheses
H1: There is Chinese/non-western type of international relationsH2: China implements and tests her new, non-western type of foreign policy in AfricaSlide4
The Guanxi
– Chinese School of IRA type of social connections in traditional Chinese society – long forming period and very flexibleThe generalized form of xiao (孝) – the most important connection of the Chinese familyBased on Confucian and the traditional Chinese society’s conventions and logicEach member of the society is stakeholder, determinates their everyday life (resources distribution, information flow, social status, social propositions, decision making mechanism…)Slide5
The Mechanism of Guanxi
The members are interested in relationship: relation oriented The motivation is: to enlarge mianzi ( 面子 - face) and to provide resourcesHierarchical and patriarchal: the stronger member leads the relationship BUT: more rights and autonomy – more dutyNot rational, works in long run Rare conflict inside, no moral obligation and competition outsideNegative: cost of maintenance, must accept hierarchy
A
asks
B
for
favour
,
B
can
ask
the favour back: value, and time is not definedSlide6
The case
study: China-Angola Framework AgreementNational Reconstruction ProgramBUT: Western donors, World Bank, IMF: staff-monitored program and show good performance for three trimesters before being eligible to receive financial support.China:China-Angola Framework Agreement (2003): $2-billion financing package in low interest rate concessional loan (Libor+1,5%), payable over 12 years, for public investment projects: only condition involve Chinese construction companiesSlide7
Mechanism of Angola-China
Framework AgreementGuarantor of the loan: National Bank of Angola (backed with oil)
Ministry
of
Finance
Angola
EximBank
of
China
Chinese
Construction
Company
Related
Ministry
Angola
Third
Party
supervision
3
. Project
finished
5
.
Apply
for
the pay out
6. Confirmation of the pay out
7. Pay out
4.Announce the finished project
1.
Agreement between the related and financial ministries between Angola and China
Involve partner from Angola
2. Tender and
selection
Slide8
Results
+ further extension of the program (0,5 billion USA dollar)Slide9
Mutually beneficial?
CHINA:Commercial loans, not aid – diversify China’s investmentsSupport for the Chinese companies + help to be multinational: international experience + reference for other tendersWin a partner in long term(oil) Enter the Angolan market: boost exportPolitical interest: model for other African countriesANGOLA:Better conditions than Western donors: commercial loans, lower interest rates, and longer repayment time. Non-Chinese creditBoost oil export – economic developmentCheap and fast constructionNo or few corruption – closed financial systemNo colonialism – partnersSlide10
Guanxi logic in China
Angola Framework AgreementThe members are interested in relationshipLong run perspective: not just for one businessHierarchical and patriarchal: the stronger member leads the relationship BUT: more attention to keep the smaller side’s autonomy: Angolan side chooses the project – Chinese finances it Moral goals – responsible for the smaller sideThe motivation is: to enlarge face and to provide resources + BUT: more rationalAngola asked China for
a
favour
…Slide11
Conclusions
There is a Chinese/non-western type of international relationsTo understand the motivation and behaviours of China we have to turn to more culture-oriented modelsWe have to be more openSlide12
Thank
you
for
your
attention
!
E-mail:
eszterhai.viktor
@
pageobudapest.hu