Home Project-material WAR AGAINST TERRORISM: A CRITICAL APPRAISAL OF THE ECONOMIC TRADE RELATIONS FROM 1999-2007

WAR AGAINST TERRORISM: A CRITICAL APPRAISAL OF THE ECONOMIC TRADE RELATIONS FROM 1999-2007

Dept: HISTROY AND INTERNATIONAL RELATIONS File: Word(doc) Chapters: 1-5 Views:

Abstract

The study traced the historical development of Nigeria-Chinese from 1999-2007 with emphasis on economic bilateral relations. Furthermore, the study discussed the relationship between Nigeria and China in key areas such as bilateral trade, oil and gas, power generation, rail transport system, road construction, communication, manufacturing and retail loan finance and general free trade zone. . Attention was also given to the domestic factors that shaped China?s relations with Nigeria and how Nigeria views the changing role of China on the African continents. Historical method or approach was employed in this study. Both Primary and Secondary sources published were used by the researcher. The study established that Nigeria?s external relation with China has been beneficial to the two countries. Again, it established that the relationship between Nigeria and China is a win-win strategy but this is yet to be thoroughly maximized by the Nigerian government given the political, mil
INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Given the political complexities and the emergence of china as a great economic world

power, it becomes important for us as students of international relations to study the strategic

relationship between a “democratic” Nigeria and “undemocratic” China. This position

emerges out of what the year 1971 symbolized as a divide between two historical phases for

both Nigeria and China. For Nigeria, 1971 marked the close of the first ten years (1960-1970)

of its existence as an independent state, And by any account, that was a remarkable decade

for Nigeria. As a matter of fact, the course and impact of events in those ten years would have

been remarkable for any country in historical terms. For China, on the other hand, the year

1971 signified a historical benchmark because for the first time since 1949, it achieved

international recognition by attaining full membership of the united nations (UN) in complete

replacement of Taiwan which had occupied that seat as the official Republic of China

(ROC).Thus both Nigeria and China enjoyed a moment of diplomatic triumph from their

respective point of view. However, following China?s economic growth in the 1980?s,

Nigerian leaders began to look forward to a more serious economic engagement with China

(Bukaremba, 2005). Nigeria?s first contact with China took place in 1960 when a Chinese

delegation, on the invitation of the Nigerian government, attended Nigeria?s independence

celebrations. The delegation brought a message from Chinese leaders congratulating Nigeria

on the victory won by the Nigerian people in their struggle against colonialism. In February,

1971, Nigeria finally established diplomatic ties with China more than a decade after

independence. Both countries opened embassies in each other?s capital within the year. The

Chinese government has described this relationship as a “win-win” situation” (Agubamah,

2014). The period between 1971 and early 1999 witnessed minimal diplomatic exchanges,

low bi-lateral trade relations, a near absence of Chinese Foreign Direct Investments inflow to

Nigeria.

With the inauguration of the former President Chief Olusegun Obasanjo in 1999, NigeriaChina relations began to deepen. The First Ministerial conference of the forum on ChinaAfrica cooperation was held in Beijing, China in 2000. The conference is believed to have

laid the foundation and set the pace for a new order that has witnessed a significant shift in

Nigeria?s and Africa?s foreign diplomatic and economic relations. Obasanjo did not attend

but senior Nigerian representatives did and in the same year the China Civil Engineering

Construction Corporation(CCECC) was awarded a tender to build 5000 housing units for

athletes participating in the eight All African Games in Abuja, which were built. Also both

countries signed an agreement on the establishment of a Nigeria Trade Office in China and a

China Investment Development and Trade Promotion center in Nigeria in 2001. In 2004, the

volume of trade grew by 17.6 percent, with Nigeria?s exports to China registering a growth of

330 percent. China?s main exports to Nigeria are light industrial, mechanical and electrical

products ( Akongbowa, 2008). Soon after the Beijing conference, Sino-Nigeria relations

assumed a new dimension characterized by rapid and aggressive economic, cultural,

scientific, and educational cooperation, increasing Chinese Foreign Direct Investment (FDI),

aids/ grants, technical assistance as well as several sponsored training programs for Nigerian

officials. China has now emerged as Nigeria?s and Africa?s major development and trade

partner, having taken the place of Europe and North America in Nigeria?s development

agenda.

Bilateral relations between the two countries intensified further during President Obasanjo?s

second term in office, from 2003-2007.To further enhance the bilateral relations between the

two countries was the visit of President Hu Jintho and Prime Minister Wen Jiabo of China to

Nigeria between , 26th

-27th,April, 2006 and Obasanjo visiting China twice. During President

Hu?s visit to Nigeria, he agreed with President Obasanjo to work on a strategic partnership

between the two countries.

They both agreed to establish an intergovernmental Nigeria-China investment forum which

was later founded in 2006.

The pattern of economic interaction between Nigeria and China is compressed to a mid- level

position. Both Nigeria and China have the West including (Japan) as their major trading

partners. Below this level they, jointly operate their own system of exchange where China has

the opportunity of exporting advanced industrial Goods from West and exporting its own

goods and technology to Nigeria. This flank is underpinned by the following agreements:

i)A bilateral trade agreement, signed on November 3,1972.This agreement expired in 1985.

But subsequently, the two countries exchanged a draft bilateral trade agreement with each

other through the diplomatic channel.

ii) A bilateral agreement on economic, scientific and technical cooperation. This was first

signed on November 12, 1972 and subsequently renewed on July 8, 1982 and April 1996.

iii) Agreement on cultural , and educational cooperation. This was first signed on November

20, 1981 and subsequently renewed under the implementation programmes of cultural and

education agreements on March 28, 1990.

.iv) May 1997 Agreements;

a) Reciprocal promotion and protection of investments.

b) Protocol on cooperation in electric power project in Nigeria.

c) Protocol on bilateral cooperation on steel industry.

d) Oil cooperation

v) Agreement on the establishment of Nigeria Trade Office in China and the China

Investment Development and Trade Promotion Centre in Nigeria signed on May 22, 2001.

Additionally, Nigeria and China operate one of the biggest projects between them-i.e the

$528.60 million contract of December 9, 1995 between the Federal Ministry of Transport and

China Civil Engineering Construction Corporation (CCECC) for the rehabilitation of the

Nigeria railway system. On the whole Chinese construction companies have been involved in

projects covering roads and bridges, ports, oil fields, bore holes, agriculture, and power

distribution and supply. Between 2003 and 2007, Nigeria was a top destination for Chinese

Foreign Direct Investment on the continent, second only to South Africa. Its attractions are

clear: vast energy reserves and a large domestic market of 150 million inhabitants with

growing disposable incomes.

1.2 STATEMENT OF PROBLEM

The foundation of Nigeria-China relations dates back to the early 1970?s.Both countries

established formal diplomatic ties in February 1971. Ever since then, scholars of foreign

policies have produced research works on the bilateral relationship that exists between

Nigeria and China.

However, in as much as the relationship seems irresistible, the basic problem of sincerity of

intentions still plays a limiting factor. Thus it becomes important to look at how both sides

have benefitted from their relationship.

Analysis shows that hegemonic stance of china in international politics has allowed it benefit

more from relating with struggling African countries who usually because of their internal

politics stay at the bottom. Thus, given the internal dynamics of Nigeria?s politics that

features corruption as its shortcoming and has overtime formed a cliché in the Nigerian

political milieu, the possibilities of achieving a win-win situation has really been hampered.

Flowing from the foregoing it becomes necessary to study the root and patterns of this

relationship which necessitated the reasons for the research. However it is therefore observed

that the problems faced by Nigeria from its economic relations with China are as follows:

The influx of allegedly sub-standard goods from China. This issue was taken up officially by

the standards Organization of Nigeria.

The other issue is China?s steady trade surplus against Nigeria ever since recorded trade

between them began in the mid- 1950?s. On the other hand China also has points of

complaint over doing business in Nigeria .One, the problem of insecurity arising from armed

robbery and pronounced social proclivity towards violence and lawlessness. The high cost of

operations due to inadequate power and water supply; the bad state of telecommunications

and infrastructure (i.e. roads and railway); poor police work as when reported crime

investigations do not yield any results and corruption.

1.3 OBJECTIVES OF THE STUDY

The research will attempt to:

1. Examine the roles played by both countries in strengthening bilateral relations

2. Evaluate the performance of both countries in economic bilateral relations.

3. Highlight challenges confronting Nigeria-China bilateral Relations.

4. Propose ways to achieve sustainable socio-economic development and self-reliance

through regional economic integration.

1.4 RESEARCH QUESTIONS

The research will further attempt to give answer to some questions like:

1. What are the roles and efforts of Nigeria and China in strengthening economic bilateral

relations?

2. How much has Nigeria and China performed in its economic and bilateral relations

attempt?

3. What are the challenges confronting Nigeria and China in its relationship attempt?

1.5 RESEARCH HYPOTHESIS

1 H: The relationship between Nigeria and China has definitely affected both nation?s foreign

policies.

H: The relationship between Nigeria and China has not affected both nation?s foreign

policies.

2 H: Nigeria?s economy has benefitted from her relations with China.

H: .Nigeria?s economy has not benefitted from her relations with China

3 H: NIGERIA-CHINA is not confronting any challenge in its relationship attempt.

H: NIGERIA-CHINA is confronting challenges in its relationship attempt.

1.6 SIGNIFICANCE OF THE STUDY

The study aims to enhance our general knowledge of the bilateral relations between Nigeria

and China most especially in the areas of economic bilateral relations . Owing to the

importance of development and growth to nations, Nigeria-China study becomes imperative..

Thus, this study becomes relevant to policy makers; foreign and internal, governmental

agencies, business thinkers, students, political and economic analyst to list a few. It will

further be useful as a source of information for further researchers in the academic field.

1.7 SCOPE OF THE STUDY

The study focuses on Nigeria- China?s Economic relations from 1999-2007.

The research will cover key areas in Nigeria- China relations most especially its economic

ties. However, the research will be limited to the economic bilateral relations between the two

countries to a period covering 1999-2007.

1.8 CHAPTER ORGANIZATION

This thesis is presented in five chapters. (Chapter 1) provides a general introduction,

background of the study. Chapter2 provides further information on the conceptual and

theoretical framework. This is done to make the reader appreciate the relevance of the current

research especially in the Nigerian context. It further helps to deepen the entire conception of

the thesis and provide a specific context for the study. Also expands on the theoretical

background of the study and also reviews the literature on studies related to ours. The third

chapter presents the methodology of the study. The focus of the fourth chapter is to find the

analysis of the study .The final chapter (chapter 5), provides concluding discussions and

recommendations. Further, a summary of the main thesis of the study is presented, the

management implications of the study given and also the study limitations and

recommendations for management and for further academic research provided in the final

chapter.

1.9 DEFINITION OF TERMS

— Bilateral Relations: Relationship involving two groups or countries which could be

economic, political, military and cultural sectors.

— Treaty: A formally concluded and ratified agreement between states (countries).

— Cooperation: A situation in which people work together to do something.

— Self- assertion: The act of expressing or defending your rights, claims, or opinions in a

confident or forceful way.

— Investment: The outlay of money usually for income or profit.


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