Ex Oriente Lux 2021

170 Ларина Виктория Российский университет дружбы народов, Экономический факультет WHAT GOES AROUND COMES AROUND: AFRICA DIVING IN CHINESE DEBT The transformation of China’s economy led this country to become a powerful player on the global community. Looking back to history, China used to have low- skilled workforce (low labor cost), but nowadays Chinese people tend to become medium-skilled which lets them to no longer be the cheapest labor in the World. Frankly speaking, China has become a victim of its own success. Meanwhile the labor cost continues to rise in homeland; China has taken a specific interest in Africa, which has led to countless infrastructure projects. They have been a remarkable sight but has raised questions of what the actual are moves here. Africa is establishing itself as the source of labor and resources for China. Until the west pays attention, Africa will continue moving forward on its path towards diving deeper into debt. Everything that China does in Africa is financed by loans granted by China’s state owned and controlled export-import bank. These loans need to be paid back by the countries granted them. This bank gives low-interest or even no-interest loans to African countries so that they can implement any of the devel- oping projects. China is investing in its own future as a global superpower. The country, which is seeking for more friends in the global community. China needs its own option for the new growth opportunities and cheap labor. However, China is following this policy by making investments on mining, farming and building new roads and ports in different African countries. These relations between a powerful nation like China and developing African countries are built on the political and economic goals. China can use this oppor- tunity to gather more friend’s countries in UN General Assembly. In some interna- tional cases, such as Taiwan issue and Hong Kong situation.