January 23, 2023
2 mins read

US to counter China by expanding trade ties with Africa

The US want to wrest control of the supply chain for electric car batteries from China in Africa, where reports of child abuse and forced labour are rampant.

In order to counter China in Africa, which has made inroads with investments and trade, the US sought to expand its influence by bolstering trade ties in the continent, writes Arianna Skibell in Politico.

Biden administration is planning investments in the supply chain for electric car batteries in Africa. The US want to wrest control of the supply chain for electric car batteries from China in Africa, where reports of child abuse and forced labour are rampant, writes Politico’s E&E News reporter David Iaconangelo.

Notably, China is playing out in African mines. Zambia and Congo are major sources of cobalt and copper, key ingredients for lithium-ion batteries.

Once extracted, the bulk of those minerals are exported to China, where 75 per cent of the world’s lithium-ion batteries are made, writes Skibell.

The US wants to disrupt that flow by helping Congo and Zambia not only extract minerals but also process, manufacture and assemble them into batteries.

“This is the future, and it is happening in (Congo) and in Zambia,” Secretary of State Antony Blinken proclaimed last month at the signing of a US agreement with the central and southern African nations.

While the US agreement to help these African countries create a competitive battery industry doesn’t mention China, success there could create a new base for competing against the Asian superpower.

At the same time, it could open the door for new partnerships with US car companies, reported Politico.

That could be crucial for helping President Joe Biden meet his goal of having electric vehicles account for half of all new US car sales by the decade’s end.

ALSO READ: Heading BRICS a big opportunity South Africa

Analysts predict a looming supply shortage of critical minerals, reported Politico.

Progress on the world’s rising climate action ambitions could be undermined by a shortage of some of the critical minerals used in clean-energy technologies including wind turbines, solar farms and electric vehicles (EVs), unless governments act now to head off a “looming mismatch” in supply and demand, according to a far-reaching report from the International Energy Agency (IEA).

It is pertinent to note that Chinese trade with Africa is about four times that of the United States. Beijing has become an important creditor by offering cheaper loans – often with opaque terms and collateral requirements – than Western lenders.

According to a Eurasia Group analysis, in 2021 China-Africa trade, at USD 254 billion, vastly outstripped US-Africa trade, which stood at USD 64.3 billion. Those figures are up from USD 12 billion and USD 21 billion, respectively, in 2002.

Western leaders have sharply criticized what they see as Beijing’s foot-dragging in addressing the heavy debt burden facing many African countries.

China remains the region’s largest bilateral investor, but its new loan commitments to Africa have declined in recent years.

It’s not all about economic sway – Washington has been alarmed by China’s efforts to establish a military foothold in Africa, including on the Atlantic coast in Equatorial Guinea. (ANI)

ALSO READ: AfCFTA pact to help boost intra-African trade

Previous Story

Avatar surpasses $2 bn in global ticket sales

Next Story

Saudi clears 1,045 mines in Yemen

Latest from -Top News

US government shuts down, early deal unlikely

A bitter funding clash between President Trump and Democrats has triggered a government shutdown, paralysing services, fuelling partisan blame, and reviving fears of prolonged political dysfunction. The United States has entered a

PLA at 76: The Party’s Army, Not the People’s

At 76 years old, the PLA continues to exemplify how authoritarian regimes pervert military institutions, creating forces that serve narrow political interests rather than constitutional democracy, writes Major General RPS Bhadauria (Retd)

Why China’s National Day is no celebration for Asia

Whilst China’s leadership celebrates another year of Communist rule, Asia’s democracies are tallying the mounting costs of Beijing’s repressive policies at home and aggressive adventurism abroad, writes Colonel Danvir Singh (Retd) As

Trump’s 20 points to peace in Gaza

Trump unveils 20-point Gaza peace plan with Netanyahu’s backing, offering hostages’ release, technocratic rule, and global oversight, as Hamas faces pressure to accept or risk further war. US President Donald Trump has

Trump Urged to Back Baloch Rights in Pakistan

The letter urged President Trump to recognise the Baloch people’s right to self-governance and to raise his voice against the alleged atrocities committed by the Pakistani military…reports Asian Lite News In a
Go toTop

Don't Miss

African armies turn to drones

Some 30 African governments have acquired drones, according to data

Namibia opens 20 MW solar power plant

Namibian state-owned utility, NamPower inaugurated the utility’s first fully owned