Money drives China’s foreign policy. Strong bilateral relationships, however, require more than investment deals. As China overlooks the importance of culture and community relations in pushing investment projects, our government should seize the opportunity to show that for all of its past faults, the United States offers a far better model of aid and partnership.
In countries throughout Africa and elsewhere, China has poured money into railroads, roads and other infrastructure projects – often will little integration with local communities. Instead, workers, materials, and even restaurants are brought from China, forming isolated communities that spring up to complete the work.
The projects themselves have often been criticized as “debt trap diplomacy” paving the way for Beijing to take over key elements of infrastructure and leave countries with permanent financial ties to China. Additionally, since this investment comes from the state, based on what Beijing wants, not what locals need, there is a risk that many of the projects do little good for the local economy.
For locals employed with the Chinese companies there is another problem as well: racism. In one instance, for example, a Chinese manager was sent back to China after a local employee recorded a racist rant. In other cases, managers have made similarly derogatory comments and let locals operate new rail lines only when news cameras were rolling.
Although the United States is often, and often with good reason, criticized for foreign policy failure, the U.S. model of investment takes a much more relational approach with an emphasis on stability and including local leaders and communities.
It is the general practice of U.S. companies to hire and promote locally, meaning that real job opportunities come with project and then managers are likely to also be local. Additionally, U.S. companies typically invest in social welfare, as does U.S. foreign aid, in addition to rejecting bad governance and corruption.
That is a much more well-rounded approach that Chinese companies who are willing to overlook corrupt officials, work with their own Chinese contractors and have few if any locals involved in management.
With countries increasingly pushing back against Chinese leadership, the United States should take the opportunity to prove itself a true alternative and partner to Beijing’s investment.
For Washington, this would be an easy win. Improved relationships, regional stability and partnerships, opportunities for U.S. companies to take the lead in emerging markets, and the to ensure that countries look west, not east, first.
The U.S. seems ready to just that with a new $60 billion agency the newly minted US International Development Finance Corporation established with the recently signed BUILD Act.
That’s a great start. That money will build mutually beneficial relationships between the United States and our allies while offering U.S. companies an opportunity to engage with important emerging markets and countries and their citizens engaged investment that brings U.S. values of local communities, stability and good governance.
