As the war for global economic hegemony continues, currently through the veil of US : China trade talks, we continue to be fed a stream of anti-China rhetoric by our media that disseminates a succession of myths promoted by the Murdoch media empire. Myths that are designed to fuel an irrational and unjustified fear about China in order to benefit US interests and goals.
One of the most popular of these myths is that China is attempting a global takeover through debt diplomacy to Africa and the South Pacific (or Indo-Pacific as the US likes to say to the annoyance of ASEAN countries!). This myth nicely brushes over the sustained neglect and even exploitation of these regions by the West, championed by the US as its cheerleader.
Of course, this Myth is nonsense and has no substance. That does not mean that there is not debt owing by African countries to China. Such debt has arisen because China has been pursuing an aggressive expansion policy to build infrastructure overseas in order to ensure internal stability by preserving many millions of Chinese in employment as China’s own economic infrastructure needs slow.
That debt has arisen by virtue of China spending billions of dollars to build massive economic infrastructure (such as ports and rail) that deliver an improved economic future to these countries. And, of course, these projects are only necessary as a result of the poor financial condition of many African companies, often as a consequence of decades, if not centuries, of exploitation by the West. China delivers investment into Africa, China is NOT a country whose wealth has been built largely off the back of the African slave trade.
This last week we have seen the Chinese Government CANCEL a massive debt owing by the Cameroon Government (reportedly 3,000 billion francs). Not surprisingly, this act of generosity has not received any mention in our media. Why not? It is clearly relevant and significant. The answer, of course, is that is because it so directly dispels the myth about China’s debt diplomacy.
Interestingly, this debt forgiveness by China could also be a great boost for Western Australia and for our potential to open up the Mid West through building port and rail infrastructure to support a China led 100 Mtpa iron ore industry in the region.
One of the companies seeking to use China’s financial muscle to help develop the Oakajee Project is currently seeking to raise funds from China with the dual goal of resuscitating Sundance’s massive Mbalam-Nabeba iron ore project in Cameroon and the Congo as well as advancing the Oakajee agenda. The timing of this announcement from the Chinese Government could hardly be timed better and will hopefully be a further catalyst to help funds flow into the MidWest!