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China’s interests in Africa are being shaped by the race for renewable energy

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China-Africa relations have strengthened, focusing on renewable energy and mineral resources. China heavily invests in African minerals, raising concerns about local development, labor standards, and sustainable energy access amid the global green energy race.

China-Africa relations have deepened over the past two decades, characterised by increased economic cooperation, investment and infrastructure development. China is now Africa’s largest trading partner, with partnerships focused on building roads, railways and energy projects.

As the ninth Forum on China–Africa Cooperation (FOCAC) kicks off this week in Beijing, a new, green theme is shaping their relationship: the global renewable energy race.

We asked Lauren Johnston, a development economist with expertise in China-Africa relations, to provide some insights into this development as it positions both regions as key players in the global shift towards green energy.

How is the race for green energy shaping relations between China and Africa?

The global climate crisis has created a push for renewable energy technology – like solar or wind power – which would lessen reliance on polluting energy sources. China saw some years ago it had a chance to lead in such a new industry.

Africa is home to a lot of the important minerals needed to create renewable technologies – like copper, cobalt and lithium, key ingredients in battery manufacture.

The race for green energy is therefore leading to a rush for these minerals in Africa, led by China, the US and Europe.

Chinese mining presence in Africa, which is much lower than western presence, is concentrated in five countries: Guinea, Zambia, South Africa, Zimbabwe, and the Democratic Republic of Congo (DRC).

Among them, the DRC, Zambia and Zimbabwe are the crucible of the new green energy race in Africa. They are home to Africa’s copper belt and the greatest store of lithium, copper and cobalt.

The DRC is particularly important. It has significant reserves of cobalt and high grade copper, as well as lithium. Cobalt is an unusually hard metal with a high melting point and magnetic properties. It is a key ingredient in lithium batteries.

More than 70% of the world’s cobalt is produced in the DRC and 15%-30% of that is produced by artisanal (informal) and small-scale mining.

China is the leading foreign investor – it owns some 72% of the DRC’s active cobalt and copper mines, including the Tenke Fungurume Mine – the world’s fifth largest copper mine and the world’s second largest cobalt mine.

China’s CMOC Group is the world’s leading cobalt mining company. It could produce up to 70,000 tonnes, thanks to the new Kisanfu mine.

In 2019, the DRC and China were responsible for about 70% of global production of cobalt and 60% of rare earths.

Zimbabwe is another country in which China has been investing within the context of the green energy race. Zimbabwe is home to Africa’s largest lithium reserves, a critical element in electric-vehicle battery production. In 2023 Prospect Lithium Zimbabwe, a subsidiary of Chinese company Zhejiang Huayou Cobalt, opened a US$300 million lithium processing plant. It has capacity to process 4.5 million tonnes a year of hard rock lithium into concentrate for export, against a global backdrop of some 200 million tonnes produced annually.

Zimbabwean president Emmerson Mnangagwa (L) shakes hands with a representative from China’s Sinomine Resource Group at Bikita Lithium Mine (2023).
Tafara Mugwara/Xinhua via Getty Images

There are a couple of other developments on the continent that are worth watching.

China is investing in the first mega-scale battery factory on the continent, in Morocco.

Chinese interests also have permission to develop the world’s largest untapped high-grade iron ore deposit, in Guinea. Iron ore, used in steel production, plays a crucial part in the renewable energy sector in several ways – for instance, steel is used in wind turbines and in mounting structures for solar panels. The agreement to exploit the Simandou iron ore deposit involves various countries. China’s steel-making giant Chinalco is among the players. Production is due to begin in early 2026.

As China ramps up investments in these green minerals, what concerns exist for African countries?

China’s growing control over key renewables minerals brings several challenges to African minerals suppliers.

For African countries it generates concerns for development – many want to add value to their minerals endowment at home rather than export raw materials to China and then import manufactures. China has been criticised for abandoning African interests by adding value in China and not in Africa. Many people and industries on the African continent lack access to reliable and affordable energy – and local industry is keen to capture that market.

For instance, according to the International Energy Agency, China controls over 80% of the global manufacturing steps involved in making solar panels. The concentration of production in China, alongside competition, has pushed down global solar panel prices.

China’s solar industry is keen to close Africa’s energy gap, providing sustainable energy to the millions that don’t have access. For instance, at this year’s Forum on China–Africa Cooperation gathering, China is expected to advance its Africa Solar Belt Programme. This is an agenda supported by the World Resources Institute which not only seeks to use solar energy to close Africa’s energy gap, but also to focus on powering schools and healthcare facilities with solar too.

Some countries, like South Africa, are pushing back by imposing tariffs on solar imports to protect their local industries.

There are also fears that the race to renewables, and the approach of Chinese mining-sector firms in Africa, is setting back workers’ conditions. Expansion of mines in some countries has also led to forced evictions and human rights abuses.

What can African countries do differently to take advantage of China’s mineral rush?

There are several steps they can take.

First, they can pay more attention to basic labour standards and human rights.

Second, African firms should aim to learn from their Chinese partners. They can develop the industrial knowledge and understanding of the skills and capabilities needed on the continent, similar to how China learned from Japanese, Taiwanese, Singaporean and western companies in the past.

Third, learn from how other emerging markets manage their relations with China. For instance, with China’s help, Indonesia has taken control of the global nickel market. Indonesia started by banning nickel exports in 2014, aiming to build up its own industries for processing and manufacturing. This plan was supported by Chinese investments.

Lastly, what I call China’s Hunan Model for Africa has a focus on agriculture, mining, transport and construction industries, and on building talent. This includes technical and vocational training.

The more African nations position themselves to take advantage of training programmes from other countries, the better their young people will be prepared to drive industrial growth and economic development in Africa.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Business

Wegovy: The Popular Weight-Loss Drug Now Available in China

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Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.


Wegovy Launch in China

Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.

Cost and Accessibility

In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.

Benefits and Side Effects

Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.

Source : Popular weight-loss drug Wegovy goes on sale in China

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China Implements New Measures to Increase Foreign Investment in A-Share Market

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China’s 2024 updates to strategic investment rules simplify A-share market access for foreign investors by lowering shareholding thresholds, reducing lock-up periods, and increasing investment options, reflecting a commitment to greater market openness and participation in economic reform.


The 2024 updates to China’s strategic investment rules simplify entry for foreign investors in the A-share market by lowering shareholding thresholds, reducing lock-up periods, and expanding investment options, signaling a commitment to increased market openness and flexibility through these new measures.

China’s capital markets are undergoing a significant transformation as part of the nation’s ongoing commitment to economic reform and openness. The recent update to the Administrative Measures for Strategic Investment in Listed Companies by Foreign Investors (hereinafter, the “new measures”) reflects this commitment, targeting an increase in foreign investor participation in China’s A-share market. For nearly two decades, China’s “strategic investment” pathway provided foreign investors with access to shares in A-share listed companies, but strict requirements—such as high minimum investment thresholds and prolonged lock-up periods—made it accessible only to select large investors.

The new measures, effective December 2, 2024, relax many of these restrictions to attract a broader and more diverse range of foreign investors. Key changes include lowering the minimum shareholding threshold from 10 percent to 5 percent, reducing the asset requirements from US$100 million to US$50 million in assets, and shortening the lock-up period from three years to one. Additionally, foreign investors can now use equity from unlisted overseas companies as consideration, while new investment routes, like tender offers, enhance flexibility.

In 2005, China introduced the Strategic Investment Regime as part of its broader efforts to open up its financial markets to foreign capital while retaining a level of control over sensitive industries. This framework allowed qualified foreign investors to acquire strategic stakes in Chinese A-share listed companies, aiming to promote foreign participation in the domestic market.

However, the stringent requirements—such as high minimum investment thresholds and extended lock-up periods—restricted this pathway to a limited pool of large, multinational investors. The regime reflected China’s cautious approach at the time, seeking to balance openness with economic stability and control over critical sectors.

A decade later, in 2015, China implemented its first significant revisions to the Strategic Investment Regime. These amendments sought to make the investment process more accessible by easing certain restrictions, aiming to encourage foreign capital inflow as China continued its gradual integration into global markets.

While some requirements were relaxed, the fundamental limitations—such as high entry thresholds and complex approval processes—remained in place, meaning that access to China’s A-share market was still primarily confined to major institutional investors with substantial capital.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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Less is More: Rethinking Indonesia’s Tariffs on China

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Rising concerns over China’s industrial overcapacity have led countries to impose higher tariffs, including Indonesia’s planned 200% tariffs on Chinese goods, risking Indonesia’s competitiveness and economic security.


Tariffs Escalate Amid Concerns of Overcapacity

Concerns regarding China’s industrial overcapacity have prompted countries to increase tariffs on Chinese goods. Indonesia, following the U.S. example, plans to impose tariffs as high as 200 percent on various Chinese imports, including textiles and ceramics. This response aims to safeguard local jobs from the influx of inexpensive Chinese products.

Economic Impact of Tariffs

These tariffs are designed as safeguards and anti-dumping measures against potential job losses in Indonesia. However, the ongoing investigations have not definitively shown that China’s practices are the root cause of these issues. The political appeal of broad tariffs might lead to unintended consequences, such as reducing the overall competitiveness of Indonesian exports and risking retaliatory measures from affected countries.

Dependency on Chinese Goods

Indonesia heavily relies on Chinese manufacturing inputs, which constituted over 26 percent of its intermediary goods imports in 2021. With competitive pricing, these inputs have enhanced Indonesia’s export capabilities, particularly to markets like the U.S., where the trade surplus increased from $8.58 billion in 2019 to $11.96 billion in 2023. Reducing trade openness may ultimately undermine the Indonesian economy’s resilience against geopolitical challenges.

Source : Less is more for Indonesia’s tariffs on China

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