Chinese Trade And Investment And The Forests Of The Congo Basin

Since 2000 and the implementation of China’s ‘going abroad’ policy, mainland Chinese state-owned and private companies have significantly increased their interests in the resources and investment opportunities of the Congo Basin, bringing new opportunities as well as potential social and environmental costs. This report is a synthesis of some main findings of preliminary scoping studies conducted by CIFOR and partners in Cameroon, Democratic Republic of Congo and Gabon. It focuses on how Chinese trade and investment in the forestry, mining and agricultural sectors might relate to effects on forests and forest-dependent communities in the region. All studies were conducted under the CIFOR project ‘Chinese trade and investment in Africa: Assessing and governing trade-offs to national economies, local livelihoods and forest ecosystems’, initiated in 2010. The scoping studies yielded useful results, including an increased understanding of the main trends in natural resources trade between the target countries and China, and the major land-based productive sectors targeted by Chinese investors. The studies also considered the role of national agencies tasked with promoting investment and overseeing corporate adherence to environmental and social requirements, and provided a better understanding of the informal processes surrounding investment and acquisition of land and other resources.

Chinese trade and investment and its impacts on forests: A scoping study in the miombo woodlands [Chinese] 中国的贸易和投资及其对林业的影响: 对米欧波 (Miombo) 林地的概况研究 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, this relationship is likely to continue to play a defining role in African economies. These trends are important for African nations that see this relationship as an opportunity to catalyse much-needed investments in infrastructure and industry, to stimulate job creation and exports, and to counter-balance the historical influence of western nations. Yet a perceived lack of transparency in Sino-African diplomacy (and related lending conditionalities) and lesser concern for social and environmental impacts among Chinese investors has raised concerns about the potential risks of this emerging partnership. In the absence of strong evidence on the uniqueness of Chinese diplomatic and economic relations in specific countries in the region and related impacts, it is impossible to assess the opportunities and risks posed by China’s growing influence in the region. This report, and the wider project in which it is embedded, aims to shed light on this debate by examining the Chinese influence on the forestry sector in Congo Basin and Miombo woodland countries. Through a comparative analysis of patterns of aid, trade and investment with Chinese and other ‘development partners’, and their social, economic and environmental implications for key sectors shaping African forests (agriculture, forestry, mining), the project aims to explore the nuances behind the emerging Sino-African partnership. Towards this end, this report explores the diplomatic and economic relations between China and three miombo woodland countries (Mozambique, Zambia and Zimbabwe). Emphasis is placed on the identification of key patterns of Sino-African trade and investment in sectors of interest, as a means of identifying trends of importance to forests and exploring key themes for more in-depth research. Initial findings suggest that while Chinese aid, trade and investment are playing a significant and often defining role in the sectors of interest, the level and mode of influence – and anticipated impacts on forests – vary considerably across countries and sectors. The report also highlights the trade-offs that often accompany the activities of state and non-state, small- and large-scale operators alike.

Deforestation rates in the Congo Basin are among the lowest in the tropical rainforest belt and are significantly below rates in most other African regions. Local and regional development, population increases and global demand for commodities are likely to increase deforestation and forest degradation in the Congo Basin.

Chinese investment in Africa has increased greatly in recent years. In Cameroon, the years following the last global financial crisis saw a boom in Chinese investments in the rubber industry, in particular in rubber estates belonging to two companies: Sud-Cameroun Hevea SA and GMG HEVECAM. These investments come from Sinochem, one of the largest Chinese state-owned multinationals, and involve the rehabilitation of existing rubber estates, as well as expansion into new areas. Since the initial investment from China, exports of rubber from Cameroon to China increased from almost none to nearly half of total rubber exports in 2011. We conducted research into the nature and extent of China’s investment in the Cameroonian rubber sector and assessed initial findings through the lens of socially responsible investments (SRI). Overall, the picture shows that the two investments are subject to a number of governance challenges, particularly in relation to land allocations.

The Congo Basin comprises Cameroon, Central African Republic, the Democratic Republic of Congo, the Republic of Congo, Equatorial Guinea and Gabon. It covers close to 70% of the forestlands of Africa. Of the 530 million hectares in the Congo Basin, 300 million are composed of forests: 99% of these are primary or naturally regenerated forests, as opposed to plantations.

This Handbook explores the rapidly evolving and increasingly multifaceted relations between China and developing countries. Cutting-edge analyses by leading experts from around the world critically assess such timely issues as the ŠChina model�, Beijin