China Jiliang University

Geography of international economy and trade

C o u r s e p a p e r

M ajor :
Inter national Economics and Tr ade
Name： GABRIEL MWIILU
Student number： 20170938

2019.5.28
 CHINA-ZAMBIA ECONOMIC
RELATIONS: TRADE,CURRENT
INVESTMENTS, AND CHALLENGES.

China-Zambia relations have evolved over time dating back to

pre-independence era when China provided active support to the

Zambian government in its efforts to consolidate political

independence and struggle against western colonialist control.

The diplomatic relation was however officially established on

October 29, 1964 . Bilateral relations between the two countries

have gradually evolved to modern times covering a wide

spectrum of issues such as political, trade relations and economic

and technical cooperation, as well as exchanges in the fields of

culture, education and health. Reinforcing this relation is the

monumental construction of the Tanzania-Zambia Railway

(TAZARA) with Chinese assistance, which has become a

cornerstone of China-Zambia Relations. In the past four decades,

China‘s growing economy has caused it to take a greater interest

in Zambia‘s economy. Zambia was first to establish diplomatic

relations with China in Southern Africa just after independence.

The China-Zambia relations are consistent with China-African

relations. Nevertheless, as Zambia enjoys a unique position as

the show-piece of the success of China-African relations as well

as the ‗experimental region‘ of new Chinese diplomatic policies

in Africa. First of all, Zambia is one of the African countries

which have the longest-standing diplomatic relations with the

People‘s Republic of China

By the close of 2017 China was the second preferred destination

for Zambia’s exports after Switzerland.From 2005 going

forward (with an exception of 2007) Zambia’s trade with

China had a trade surplus reaching the highest in 2013 with

the value of USD 1,297,673,759. The surplus can be

explained by the increased base metal and food items

exports to China (Bank of Zambia, 2010; 2013).

To encourage exports of non-traditional exports to China, the

two countries signed an MOU during the 2018 Forum of China-

African Countries (FOCAC) where Zambia and China had signed a

protocol on export of Zambia’s honey to China which is key to

the diversification agenda. The export of honey was officially

launched on 12th of October, 2018.

Total trade had hit the highest point in 2013 of US$

3,223,495,988 reducing by 24 percent to reach US$2,450,523,871

in 2017 as shown in graph.

This reduction could be explained by declining copper prices and

a severe electricity shortage during the period under

consideration. Zambia’s currency, the kwacha, had lost about 50

percent of its value against the U.S. dollar from 2014 to 2015,

fueling higher prices on imported goods .

China is a leading source of foreign direct investment in Zambia.

While data on Chinese investment in Zambia are incomplete,

Chinese firms have invested substantial amounts in the country,

primarily in the mining sector. Zambia signed an agreement in

July 2009 with Zhonghui Mining Group, which committed to

invest US$3.5 billion in mining projects in the Copperbelt and

Northwest provinces.

China’s diplomatic and economic presence in Africa has grown

considerably in recent years. From the establishment of the

Forum on China–Africa Cooperation (FOCAC) and efforts to

strengthen diplomatic, cultural and economic relations with

African nations, to the rapid growth in Chinese Foreign Direct

Investment (FDI) and bilateral trade (German, Schoneveld,

Wertz-Kanounnikoff, & Gumbo, 2011). This relationship is likely

to continue to play a defining role in African economies.

By the end of December 2017,Chinese FDI was 19% of the total

FDI stock for Zambia.This demonstrates how important Chinese

FDI is important to Zambia.Foreign direct investment is critical

for Zambia just like any other developing and emerging market

countries.

Chinese firms have invested heavily in mining and other sectors in

Zambia over the last 10 years with investment exceeding $3 billion

in 2014, according to latest Chinese embassy estimates. This was

revealed by the then Chinese Ambassador to Zambia Mr. Yang

Youming during the commemoration of the 65th anniversary of the

People‘s Republic of China. Further, he stated that there were over

550 Chinese businesses operating in Zambia by October 2014.

FDI from china in energy sector has been raised after FOCAC,

china is investing in many energy projects in Zambia as shown

below, especially, hydro and coal power. Energy priority project will

expected to add output in national energy sector earlier, which

could be helpful for Zambia minimize its energy short fall.

While Zambia Electricity Supply Corporation (ZESCO) will own

most new generation capacity, China has taken the lead on both

the construction and the financing arrangements in most of the

recent generation infrastructure.

Rail line
Between 1968 and 1976 china helped Zambia to construct a rail

line called TAZARA railway. The 1,860 km long project was built

with financial and technical assistance from China, amounting to

well over US$400m, in the form of a long-term interest-free loan.

TAZARA was conceived to provide the critical outlet to the sea that
landlocked Zambia needed in order to break free from its

dependency on Rhodesian, Angolan and South African rails and

ports. However, recently, Tazara has been facing a lot of

challenges and drowned in debt, as a result, its operation have

been severely curtailed. To avert the total collapse of the rail

authority, in 2012, china committed to chip in; and prior to this, the

country provided US$5m to rehabilitate 90 wagons. The

agreement was signed by Tazara MD Akashambatwa Mbikusita-

Lewanika and the chief representative of the economic and

commercial representation of the people‘s republic of China in

Tanzania, Lin Zhiyong. Mbikusita-Lewanika said Chinese

assistance provided under 15 protocols signed over the decades

had averted the total collapse of the rail authority. ―Whilst we

acknowledge that the support funds under the protocols are

provided as interest-free loans to the Tanzanian and Zambian

governments, we are also grateful to the government and the

people of China for the continuing positive association with

Tazara‖. As if the construction of TAZARA was not enough, in

2009, China pledged that they will finance another $2.26 billion rail

line in Zambia as part of a larger Investment in Africa‘s

Infrastructure. China struck this deal with Zambian Government to

build a new Railway connecting two cities in the Eastern part of the
country. China civil engineering construction corp, (CRCC), a

subsidiary of the state-owned China Railway Construction, Corp.

Ltd, signed the agreement with the Zambian Ministry of Transport,

works, Supply and Communications to build the railway. The

single-track will stretch 240 miles from Chipata to Serenje, allowing

passengers train to travel at speeds of up to 75mph and cargo

freight up to 50mph. The rail line which will also connect Zambia to

Malawi through existing Chipata-Mchinji line will boost both

Zambia‘s local and International trade prospects. This project aims

at enhancing regional trade and transport competitiveness by

providing an alternative trade route

to the East coast of Africa via the port of Nacala in Mozambique.

Highways or road infrastructure is not in good condition in Zambia;

because of poor roads, infrastructure land communication is

difficult. In business perspective a poor road infrastructure

increases transport cost as well as delay in delivery of goods.

Showing the trust Zambian government has in Chinese

companies, the government has been awarding a lot of big

projects especially in construction sector to Chinese, for example,

in 2013, and Zambia‘s Road Development Agency (RDA) awarded

a US$108 million contract to China-Hydro Zambia Limited for the

construction of a 45.5 kilometre dual carriageway from Kitwe to

Chingola.The Kitwe-Chingola road is a vital road that forms part of

the regional trunk road network and is an important link on the

North-South corridor. ―The route carries a lot of international

traffic and links the Copperbelt and north-western Zambia to the

rest of the country and beyond borders,

After completion of these projects the road infrastructure in

Zambia will develop more, which would be helpful for faster

communication and supply chain system which in turn reduce the

transport cost and easier the market access in all regions of the

country. Moreover, Infrastructure is one of the key factors of

investment environment; development of infrastructure in Zambia

could make the country more attractive for FDI inflows from other

countries.

Conclusion
China's support to Zambia structural transformation is part of its

"win-win" policy, under which both Zambia and China benefit

from enlarging business opportunities. At the same time, it

provides the opportunity for Chinese companies to secure

resources and expand their operations overseas.

To end, it is appropriate to quote Iya (1999): ―it has to be

realized that nothing would be sufficient to rehabilitate Africa

unless Africans first acknowledges its problems, develops a

sufficient understanding of the problems, and express a desire

and unwavering will to solve them.”

China is source of the much needed capital which in

partnership with Zambia might very well turn the tables of

development in Zambia. Chinese own development is

phenomenal. It is the only country that has reduced poverty by the

largest of margins in recent times. To countries in the West worried

about Chinese intrusion into what was once primarily ‗theirs‘, I

would say, it is now too late. Africa has discovered the best kept

secret in the world and is poised to take full advantage of that

discovery.

2
The Impact of Anti-
Globalization on The
Global Economy
Anti-globalization is a term used to describe the political stance of

individuals and groups who oppose the neoliberal form of

globalization (using the term globalization in a doctrinal sense not

a literal one). "Anti-globalization" is also used to refer to

opposition to international integration (using the term

globalization in a literal sense not a doctrinal one). Anti-

globalization can denote either a single social movement or an

umbrella term that encompasses a number of separate social

movements. In either case, participants stand in opposition to the

unregulated political power of large, multi-national corporations,

particularly the powers exercised through trade agreements.In the

United Nations address and subsequent solo news conference in

New York September 25, President Donald Trump made his most

direct and unapologetic defense of his manifesto of anti-

globalism and economic nationalism in plain populist language.

He highlighted what he deemed as America’s choice of

“independence and cooperation over global governance, control,

and domination”, and asked the world community “to honor our

sovereignty in return.”(1) Trump also announced his rejection of

“the ideology of globalism” and acceptance of “the doctrine of

patriotism.”(2) His blurry line between patriotism and

nationalism can be misleading. His disconnect with the rest of

the world, even with his close allies was extravagant during his

address at the General Assembly.While rejecting globalism,

Trump has evidently stigmatized a well-celebrated virtue of

engagement and collaboration among nations and international

institutions. He has associated globalism with the negative

connotations of ‘ideology’. This could be Trump’s new cold war.

There Are Various Causes and Effects

Championed By Anti-Globalization. These
include labor rights, environmentalist, feminism, freedom of

migration, preservation of the cultured of indigenous peoples,

biodiversity, cultural diversity, food safety, organic

farming,greenhouse effect , and ending or reforming

capitalism

Disadvantages:

The demonstrations affected to social securities, many people

die due to the extremist actions of the demonstration activities.

The governments also have to perform many actions to control

these extremist activities.

The power of the voice of the anti-globalization still weak, the

persuade ability of this organization also weak, can not appeal

large group of people to do things, almost the activist just stand

alone or just at a small group.

The anti-globalization are always action without organization,

they just a group of people who were hurt by the activities of

one organization then stand up and perform anti actions.

Lack of evidence:

Lack of effective:

The anti-globalization activities at Vietnam:

In general, the anti-globalization activities of Vietnam are not

many. This is because Vietnam performs globalization too late.

After 30 Apr 1975, Vietnam was achieved to be an independence

country. Almost people agreed that during ten years after the

independence date was the black period of Vietnam economic.

Almost activities become stagnation; famine incur in many areas

event at Mekong delta which was the biggest farm in the country;
education, health care and other social welfare were totally

ignored.

The globalization of Vietnam begins at 1986 with the open

market policy name “socialist-oriented market economy”. Thank

to this policy, the economic of Vietnam reversed, farmers got his

own land (event in temporary) for manufacturing and alive. Up to

Dec 2001, US-Vietnam Bilateral Agreement was signed; this is the

very important step for recover the economic and became the

first step to join into World Trade Organization (WTO).

These are just some activities at Vietnam for this event: to strike

for higher rate of pay in the industrial zone Binh Duong province

and Bien Hoa city at 2008 for some Taiwan firms.

Several incidents of anti-globalization

movements that have caught the
imagination of the world

The first international anti-globalization protests was

organized in dozens of cities around the world on 18 June

1999. This was done in London, UK, and in Eugene, Oregon,

where the protests turned into a mini-riot where local

anarchists drove cops out of a small park.

There was another incident, known as N30, which took place

in Seattle on 30 November 1999. Protesters blocked the

entrance of delegates to WTO meetings. They succeeded in

forcing the cancellation of the opening ceremonies. Two large

protest marches, one permitted and another unpermitted,

were organized. Seattle riot police arrested more than 600

protesters, and dozens were injured in the ensuing riots.

Martial law was declared and curfew imposed.

Genoa Group of Eight Summit

One of the bloodiest protests took place in Western Europe.

This was the protest against the Genoa Group of Eight

Summit, which took place between 18 July and 22 July 2001.

This resulted in the death of at least three demonstrators, the

hospitalization of several hundred demonstrators after police

attacks and torture. Hundreds were arrested and charged with

some form of “criminal association” under Italy’s anti-mafia

and anti-terrorist laws. The authorities have looked into the

incident, and investigations against several police personnel

were initiated.

Iraq
In 2003, the anti-globalization movement took on a new

dimension with the widespread global opposition to the war in

Iraq. On February 15, approximately 10 million or more anti-

globalization protesters participated in global pre-war protests

against war on Iraq. This global protest did not stop the

invasion itself and the US-led coalition continued with its

attack on Iraq.

The anti-globalization movement has come in for severe

criticism from politicians, right-wing organizations,

mainstream economists, and other supporters of capitalist

globalization. A common criticism leveled against the

movement is that the anti-globalization movement does not

have clear-cut goals. It is felt that the views of different

protesters are often in opposition to each other. Though many

supporters of the movement agree with this contention, they

argue that, as long as they have a common enemy, they should

march together—even if they do not share exactly the same

political vision.Anti-globalization activists counter these

claims by stating that free trade policies create an

environment for workers in which workers in different

countries are tempted, and even forced to “betray” other

workers by undercutting standards on wages and work

conditions. The anti-globalization movement supports a

strategy of cooperation for mutual benefit, and encourages fair

trade, which aims to provide third-world farmers with better

terms of trade.

HOW TO DEAL WITH ANTI-GLOBALIZATION

World Social Forum:

The World Social Forum (WSF) is an annual meeting held by

members of the alternative globalization movement to

coordinate world campaigns, share and refine organizing

strategies, and informs each other about movements from

around the world and around many different issues.

The first WSF was organized by various associations and

organizations, like the French Association for the Taxation of

Financial Transactions for the Aid of Citizens (ATTAC). The

WSF had been sponsored, in part, by the Porto Alegre

government and the Brazilian Worker’s Party. It was held from

25 January to 30 January 2001, in Porto Alegre, Brazil, and

was attended by about 12,000 people from around the world.

It was here that the WSF’s Charter of Principles was adopted

to provide a framework for the forum.

The second WSF held in Porto Alegre from 31 January to 5

February 2002, was attended by over 12,000 official delegates

representing people from 123 countries. The third WSF was

again held in Porto Alegre, in January 2003. The fourth WSF

was held in Mumbai, India, from 16-21 January 2004. It was

attended by more than 75,000 participants. A notable aspect

of this forum was cultural diversity. The fifth World Social

Forum for 2005 was held in Porto Alegre, Brazil between 26-

31 January. The WSF has helped in organizing a number of

regional social forums, including the European Social Forum,

the Asian Social Forum and the European Education Forum.

All regional social forums adhere to the Charter of Principles

drawn up by the World Social Forum. The Asian Social Forum

in Hyderabad in January 2003 was a demonstration of India’s

commitment to the WSF process. A preparatory meeting at

Bhopal in April 2002 framed the Bhopal Declaration.

The WSF is firmly committed to the belief that Another World

is Possible. It provides a platform for discussions on

alternatives to the dominant neo-liberal processes, for

Exchanging experiences and for strengthening alliances

among mass organizations, peoples’ movements and civil

society

The World Social Forum is a world process. All the meetings

that are held as part of this process have an international

dimension. The alternatives proposed at the World Social

Forum stand in opposition to a process of globalization. It has

been felt that the process of globalization is commanded by

the large multinational corporations and by the governments

and international institutions.These generally serve the

interests of those corporations; this is done with the

involvement of national governments. The principles on which

the WSF is based are resigned to ensure that globalization will

prevail as a new stage in world history. This will respect

universal human rights, and those of all citizens—men and

women—of all nations and the environment and will rest on

democratic international systems and institutions at the

service of social justice, equality, and the sovereignty of peo-

ple.

Amnesty International:

A British lawyer, Peter Beneson, founded Amnesty

International (AI) in 1961. Originally, it was launched as an

appeal which aimed at obtaining an amnesty for prisoners of

conscience all over the world. Today, AI is an international

organization, a movement that has spread across the world.

The movement envisages a world wherein every individual

enjoys all the human rights enshrined in the Universal

Declaration of Human Rights and other international human

rights documents.

Amnesty International is a worldwide movement working for

the protection of human rights. It has an organization that is

independent of all governments and is neutral in terms of

political, religious, and ideological affiliations. It strives to get

the release of individuals who have been arrested for their

convictions, the color of their skin, their ethnic origin or their

faith. Such prisoners are called the “prisoners of conscience”.

1. Apart from getting justice for prisoners of conscience or the

“forgotten prisoners”. Amnesty International has also carried

on campaigns against torture, ill- treatment and capital

punishment. These three activities have been given priority in

the statutes adopted by AI in 1974. Amnesty International

tries to achieve its goals in two main ways: by promoting

general-awareness of human rights and by opposing specific

abuses of human rights. (Frangsmyr) [Frangsrriyr, Tore

(Editor- hvCharge) and Abrams. Irwin (Editor). (1997). Nobel

Lectures, Peace 1971-1980. World Scientific Publishing Co.

Singapore]

Promoting General Awareness of Human Rights:

1. Amnesty International has been carrying out a wide range of

educational activities about human rights, promoting the

values contained in the Universal Declaration of Human

Rights (UDHR) and other internationally agreed human rights

standards. People are educated about their rights, and are told

to accept that all human rights must be protected.

Governments are encouraged to accept and enforce

international standards of human rights. Apart from

governments, political organizations, businesses, other groups

and individuals are also encouraged to support and respect

human rights. There is opposition to specific abuses of human

rights.

Opposing Specific Abuses of Human Rights:

1. AI undertakes research and action for preventing grave

abuses of the rights to physical and mental integrity, freedom

of conscience and expression, and freedom from

discrimination.

The issues dealt by AI include:

a. Torture or other cruel, inhuman or degrading treatment or

punishment.

b. Torture is still used regularly in dozens of countries. AI

emphasizes the belief that torture is always wrong, and

opposes it under all circumstances.

c. AI vehemently opposes the death penalty in practice in

different parts of the world.

d. AI opposes all “disappearances” and campaigns for

revealing the fate and whereabouts of the missing people.

e. AI also opposes deliberate and arbitrary killings,

which include:

i. Extrajudicial executions by governments (illegal and

deliberate killings carried out under government’s orders or

with its permission).

ii. Killings caused by the unnecessary use of lethal force by law

enforcement officials.

iii. Killings of civilians in direct or indiscriminate attacks by

governments or armed political groups. These killings are

against the laws of war.

Conclusion

According to Yin Yang theory of Chinese, every thing has 2 faces:

positive and negative, the existing of anti-globalization also

belongs to this theory, anti-globalization will exist parallel with

globalization, this also the rules of the existing: “opposition to

develop, and develop must contain opposition”.

Einstein also issued the theory for relativity: Every thing