China Surpasses US as Nigeria’s Import Partner
From Constance Ikokwu in Washington D.C, 08.03.2007
The Peoples Republic of China has gradually eclipsed the United States as Nigeria’s import partner with 11 per cent of trade and about 20,000 Chinese presently living and working in the country.
Delivering a speech on the “Political Dynamics Affecting the Business Climate in Nigeria” during a meeting of the US Department of State Advisory Committee on International Economic Policy, a government official who cannot be identified because of Chatam House Rules, observed that the US now holds just over 8 per cent of trade, having been surpassed by China.
According to the official, US businesses are “intrigued” by the role that China will play in the development of Nigeria and in the country’s commercial ties to America. He described the relationship between China and Nigeria as “strong and cordial” but “complex”.
“The average Nigerian resents the use of Chinese labourers in construction projects and perceives the Chinese as harsh employers. Nigeria’s pharmaceutical and textile industries are suffering from what appears to be ‘dumping’ of Chinese pharmaceutical and textiles and from counterfeit goods originating in China,” he said.
Explaining further, the circumstances under which the Chinese operate in the country, he observed that “Nigeria’s infrastructure could clearly benefit from Chinese aid, but the Chinese are discovering that their largest and most highly touted, proposed infrastructure projects have not even broken ground because of cultural and market misunderstandings, bureaucratic hurdles and corruption.”
The US official encouraged the Nigerian government to pursue public tenders in a transparent manner that encourages China to promote transparency and competition for its long-term interests on the Continent.
In spite of China making headway in the country, he disclosed that the US has over the past seven years provided 53 per cent of the Nigeria’s foreign investment to the tune of $11.2 billion, in addition to being the second largest export market for US wheat.
The official re-affirmed the US government position that Nigeria is a strategic partner, a dependable ally and that a prosperous Nigeria is important to US security, democracy, trade and energy needs.
He disclosed that Nigeria had in June 2006 expressed interest in a Phytosanitary Standards Agreement and a Bilateral Investment Treaty (BIT) which could help “lock in” reforms that has to do with basic protection for investors.
“These developments point to the need for robust bilateral engagement, despite the enormous challenges. We are encouraged by President Yar’Adua’s public and private commitment to these types of reforms but recognize that he is operating in a complex political environment,” he said.
