The document discusses China's growing economic engagement with Africa. It notes that most Chinese investors in Africa are working in harmony with local communities by investing in development projects and charity programs. However, some problems have been identified with smaller Chinese companies that do not properly consider social and environmental risks. There is a need for China and African countries to have more collaborative approaches to sustainable development.

1. CHINA-IN-AFRICA
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! DR SIMON ZADEK
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SENIOR FELLOW, JF KENNEDY SCHOOL GOVERNMENT, HARVARD UNIVERSITY
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! ASSOCIATE SENIOR FELLOW, INTERNATIONAL INSTITUTE OF SUSTAINABLE DEVELOPMENT
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"C8;M>:!NOPO!!!!!A;:L536!$=E>:!);Q!ROSENIOR ADVISOR, SUSTAINABILITY, WORLD ECONOMIC FORUM
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12 JANUARY 2010
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The Joan Shorenstein Center on the Press, Politics and Public Policy The Joan Shorenstein Center on the Press, Politics and Public Policy
1 www.zadek.net

2. The Fact
“Our previous approach was to
build a school here, a road there.
“In our study visit to 15 countries in We learnt that this doesn’t make
Africa we found that most Chinese sense. When you build a school, you
investors were in harmony and have to ask will it have teachers?
compliance with local community Will it have books? What happens
and were investing in charity when you leave? To work on that
programs.” you have to get the government on
board.”
Yao Guimei, Deputy Director, Dept.
of African Studies, IWAAS, CASS Toni Aubynn, Head, Corporate
Affairs and Social Development,
Gold fields Ghana
“The economies of China and Africa are complementary. Since 1999 economic
growth in China and Africa has been correlated.”
Jing Ning, Director, MOFCOM
2 www.zadek.net

3. Just a word on China in Africa…there’s a lot of it about
3 www.zadek.net

4. So why more…
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The Joan Shorenstein Center on the Press, Politics and Public Policy
The Beijing Dialogue on Corporate Responsibility in African Development
4 www.zadek.net

5. Looks Familiar … ! Will
China become
Africa’s largest
Green investor,
“We need to build an and with what
environment where Consequences?
business people feel
motivated to invest
in sustainable
development in
Africa.”
4th Generation
“This is just another MOFCOM CSR
part of our business Sustainable Growth
process. We review
social and
3rd generation
environmental risks.”
CSR
“We provide healthcare
Business strategy
free of charge to Partnerships
SINOSURE
villagers along the
expressways we are
building.@ 2nd generation CSR
Standards
Commitments
CITIC Targets
1st generation CSR
Ad hoc response
Donations
“there are some real problems with some Chinese companies operating
internationally, especially smaller ones…we will address this”
5 www.zadek.net

6. China’s China trade/ Sustainability
Firm-level analysis
development investment & emerging
(over-focus)
pathway policies economies
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The Joan Shorenstein Center on the Press, Politics and Public Policy
Beyond firm-level practice...
6 www.zadek.net

7. Standards at the Beijing crossroads
Strategic response to different standards… … concerns that standards may be:
• Inappropriate? Set to meet the
working practices of Western
• GRI • SASEC
companies.
• UNGC • Textile
• ISO Industry
• Barriers to new entrants?
• EX-IM
Adopt Develop Standards hardest to comply with in
global own the difficult operating environments
standards standards where there are opportunities for
new entrants.
Comply • Negative for development?
Influence
standards
only when Potential to prevent Chinese from
mandatory investing, creating employment,
• FSC • EITI building infrastructure and
benefiting local economies.
“There needs to be local ownership of standards, not colonialism in terms of universal
standards. Countries like China should have its own rules and principles. We need to
nurture diversity in this area. Levis and Nike had their own standards, which contributed
to competition in the market. Let Chinese players develop their standards and competition
before you can talk about convergence.” Liang Xiaohui, CNTAC
7 www.zadek.net

8. Responsible Competitiveness in China
Responsible Competitiveness in China
…if not at home, where ?
8 www.zadek.net

9. 1. Green business: Chinese companies will domestically green rapidly,
advancing state-mandated labour standards.
2. Corporate governance: China leads in blended public-private
models of corporate governance.
3. Standards: China moves from international market-taker to market-
maker, and experiment domestically in non-mandatory standards.
4. Extra-territorial regulation: China imposes controls on its
international investments (especially state-owned)
5. Trade and investment: China will advance sustainability-aligned
domestic trade/investment (inward/outward) polices.
6. African green growth: China will become the largest investor in
green growth in Africa, including being the largest provider of
concessionary debt.
Six bets on China-Africa futures… 9 www.zadek.net

10. Simon Zadek
Email: simon@zadek.net
Blog: http://www.zadek.net/blog/
10 www.zadek.net