Beijing is hosting the 9th summit of the Forum on China-Africa Cooperation. There's been immense development since the first meeting in 2000 after China has invested billions in infrastructure and trade.
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00:00China has invested billions to access Africa's wealth of oil, copper, cobalt and other resources,
00:07building roads, railways and port facilities.
00:11The project ensures the swift and efficient transfer of raw materials to China,
00:15while the countries in question obtain infrastructure that benefits their economic development.
00:20But the boom is now over.
00:22Many African countries have gotten into debt trouble
00:26and they realize they have to cut back on the amount of loans they're taking out
00:31because they will have trouble repaying them.
00:34As a result, the whole Belt and Road Initiative has slowed down in Africa.
00:40But China's presence on the continent still far outstrips that of Europe.
00:45At the turn of the millennium, the trade relations of many African countries were still dominated by Europe.
00:51Almost two decades later, the situation had been completely transformed.
00:58That economic dominance is part of China's strategy to become the world's preeminent superpower.
01:04While many Western firms are put off by the high risks involved,
01:08Chinese companies enjoy state backing.
01:12One of the problems that the West faces is that foreign direct investment
01:18depends overwhelmingly on the private sectors of Europe and the United States.
01:23Whereas China has a stronger ability to manipulate
01:28the amount of foreign direct investment that goes in,
01:32the government plays a larger role.
01:35In addition to traditional infrastructure,
01:38the state-affiliated technology giant Huawei is also involved,
01:42expanding Africa's telecoms networks.
01:46Chinese companies are also cracking the consumer market,
01:50with low-priced phones as well as clothing and cars.
01:54That said, Europe has launched an initiative to make up lost ground,
01:59and Middle Eastern countries are also fast-growing investors in the African continent.