Chinese Companies in the Extractive Industries of Gabon & the DRC: Perceptions of Transparency.: Report from a research undertaking by the Centre for Chinese Studies, prepared for the Extractive Industries Transparency Initiative (EITI) & Revenue Watch Institute (RWI)
Author: Johanna Jansson, Christopher Burke, Wenran Jiang.
Jansson, Johanna and Burke, Christopher and Jiang, Wenran. Aug 2009. "Chinese Companies in the Extractive Industries of Gabon & the DRC: Perceptions of Transparency.: Report from a research undertaking by the Centre for Chinese Studies, prepared for the Extractive Industries Transparency Initiative (EITI) & Revenue Watch Institute (RWI)." Centre for Chinese Studies, Stellenbosch University 72. https://forskning.ruc.dk/en/publications/chinese-companies-in-the-extractive-industries-of-gabon-amp-the-d
Abstract
This report builds on field research conducted in the Democratic Republic of the Congo (DRC), Gabon, South Africa and China through September - November 2008; in Lubumbashi, DRC in June and July 2009; as well as telephonic follow-up interviews during November 2008-June 2009. The aim of the research was to ascertain perceptions held by Chinese stakeholders of African operational environments and transparency in general, and the Extractive Industries Transparency Initiative (EITI) in particular.
The research findings indicate that the majority of Chinese stakeholders currently engaged in the DRC and Gabon are not aware of EITI. However, Chinese company representatives show a willingness to comply with local rules and respond quickly to demands from local authorities. They showed a positive attitude toward the principle of transparency in general and EITI in particular when informed about the initiative.
The findings of this study suggest that there are, in fact, few differences in the operating procedures between Chinese corporations per se and other international actors engaged in Africa. Discernable differences instead pertain to factors such as company size and culture. The research shows that language barriers, cultural differences and misunderstandings arising from these are impediments to communication and interaction between Chinese, African and Western stakeholders in Africa that should not be understated.
The research reinforces the notion that China’s engagement with Africa is highly diverse and varies from country to country. It is clear also that Chinese corporations engaged in Africa are subject to an unprecedented level of scrutiny by the international community and believe they are being singled out for particular attention. In fact, as newcomers to African markets, the Chinese companies in Gabon and the DRC do not have the pervasive market presence that has often been portrayed. Instead, most Chinese stakeholders are at a disadvantage in terms of market access and understanding the unique operating environments in these countries and regions in comparison to Africa’s traditional partners from Western economies.
This report builds on field research conducted in the Democratic Republic of the Congo (DRC), Gabon, South Africa and China through September - November 2008; in Lubumbashi, DRC in June and July 2009; as well as telephonic follow-up interviews during November 2008-June 2009. The aim of the research was to ascertain perceptions held by Chinese stakeholders of African operational environments and transparency in general, and the Extractive Industries Transparency Initiative (EITI) in particular.
The research findings indicate that the majority of Chinese stakeholders currently engaged in the DRC and Gabon are not aware of EITI. However, Chinese company representatives show a willingness to comply with local rules and respond quickly to demands from local authorities. They showed a positive attitude toward the principle of transparency in general and EITI in particular when informed about the initiative.
The findings of this study suggest that there are, in fact, few differences in the operating procedures between Chinese corporations per se and other international actors engaged in Africa. Discernable differences instead pertain to factors such as company size and culture. The research shows that language barriers, cultural differences and misunderstandings arising from these are impediments to communication and interaction between Chinese, African and Western stakeholders in Africa that should not be understated.
The research reinforces the notion that China’s engagement with Africa is highly diverse and varies from country to country. It is clear also that Chinese corporations engaged in Africa are subject to an unprecedented level of scrutiny by the international community and believe they are being singled out for particular attention. In fact, as newcomers to African markets, the Chinese companies in Gabon and the DRC do not have the pervasive market presence that has often been portrayed. Instead, most Chinese stakeholders are at a disadvantage in terms of market access and understanding the unique operating environments in these countries and regions in comparison to Africa’s traditional partners from Western economies.Published: Aug 2009Typ: journalArticleISSN: