Add in introduction Nigeria and the People's Republic of China established formal diplomatic relations

on February 10, 1971

Also add in the intro that In 2006 the CNOOC purchased a share for USD 2.3 billion in an oil exploration
block owned by a former defence minister.
Hence an argument against could be not to let CNOOC have too much power. They could want their
rules to be played…

 China doesn’t interfere in the Nigerian’s government politics

o This approach has been officially termed “noninterference in domestic affairs”

o This is a rupture from Western countries that demanded human rights etc…
o Allow Nigeria and China to focus on business
o Would maybe make discussion easier: less uncertainty, less concessions
(regarding the Nigeria government’s policies)
o Quote to use: “When we provide aid or do deals in Africa or elsewhere, we do not
attach political requirements,”says Zhang Hongming, an Africa specialist at the
Chinese Academy of. Social Sciences. “This is the guiding principle of Chinese
foreign policy to this day.”

Additional Reading in Case you want to get a broader picture

Noninterference?

The Chinese approach to foreign relations is officially termed "noninterference in

domestic affairs." Chinese leaders say human rights are relative, and each country should be
allowed their own definition of them and timetable for reaching them. CFR’s Economy says that
unlike the United States, China does not mix business with politics. In fact, China has argued
that attempts by foreign nations to discuss democracy and human rights violate the rights of a
sovereign country.

Some China experts say Beijing's approach is not significantly different from how any other
country pursues its interests. "The United States is highly selective about who we're moral
about," says David C. Kang, a professor of government at Dartmouth College. "We support
Pakistan, Egypt, Saudi Arabia—huge human-rights violators—because we have other strategic
interests. China's not unique in cutting deals with bad governments and providing them arms."

But China's foreign policy appears to be evolving as it realizes the need to protect its economic
interests. For instance, it has altered its policy of blocking UN Security Council resolutions
authorizing peacekeepers for Darfur and placed modest pressure on Khartoum to allow a UN
peacekeeping deployment. "Beijing's recent handling of the situation in Sudan shows that it is
learning the limitations of noninterference, however much that principle remains part of its
official rhetoric," write Stephanie Kleine-Ahlbrandt and Andrew Small in Foreign Affairs. "China
has found noninterference increasingly unhelpful as it learns the perils of tacitly entrusting its
business interests to repressive governments," they write.

But China also continues to sell arms to Sudan, among other African countries. The
Congressional Research Service reports that China views these sales as a means of
"enhancing its status as an international political power, and increasing its ability to obtain
access to significant natural resources, especially oil" (PDF). In the period from 2003 to 2006,
China's arms sales to Africa made up 15.4 percent ($500 million) of all conventional arms
transfers to the continent. Notable weapons sales include those to Sudan, Equatorial Guinea,
Ethiopia, Eritrea, Burundi, Tanzania, and Zimbabwe. Beijing has also sent Chinese military
trainers to help their African counterparts. Arms sales and military relationships help China gain
important African allies in the United Nations—including Sudan, Zimbabwe, and Nigeria—for its
political goals, including preventing Taiwanese independence and diverting attention from its
own human rights record.

http://www.cfr.org/publication/9557/#p6

 Partnership is growing
 This deal will permit it to reach another level.
 Would maybe lead to other multiple investments
 Nigeria in need for investment to sustain growth

China builds: infrastructures, gives financial aid, knowledge transfer

 Mr Rong Yansong, the Economic and Commercial Counselor of the Chinese Embassy in
Nigeria, says the trade volume between both countries increased from $3billion in 2006
to $7.24billion in 2008. It was only $384 million in 1998

 Chinese investments have the potential to provide much needed jobs, generate
employment, creation of wealth and boost economic development.

 For African governments, the investment in infrastructure is arguably the most important
spin-off of the intensifying liaison.
For years business in Africa has been hampered by poor transport links between
countries and regions.
“According to a study prepared by the staffs of the World Economic Forum, the World
Bank,
and the AfDB, African firms lose as much as 8 percent of sales due to power outages,
and
transportation delays can account for as much as 3 percent of lost sales (World
Economic
Forum, 2007).”

 Improving infrastructure is critical

 Addition by the CNOOC of new plants and equipment in addition to what is already there

 Example: During Chinese President Hu Jintao's visit in 2006, China secured four oil
drilling licenses and agreed to invest USD 4 billion in oil and infrastructure development
projects in Nigeria

http://news.bbc.co.uk/2/hi/business/4946708.stm

 China helped Nigeria launch its first communication satellite (however wasn’t a big
success)

A multi-million dollar Nigerian satellite launched in May 2007 has been shut
down to prevent it spinning out of control and damaging others in orbit.
 Chinese-built NigComSat-1 cost the African oil producer $340m

The Nigerian Communication Satellite NIGCOMSAT-1 is expected to offer broadcasting, phone and
broadband internet services for Africa.

http://news.bbc.co.uk/2/hi/africa/7726951.stm

Nigeria gets $1bn China rail loan in 2006

China has agreed to lend Nigeria $1bn so that the African nation can modernise its
railways and help speed up the development of its economy. This shows how far
China is willing to go secure to oil supplies. Much more than Western Countries and
FMI

This lead to creation of thousands of jobs, new infrastructures…

Coincides with GDP growth in Nigeria: as a matter of fact: GDP growth of 5% in 2006 and
5.3% in 2007 source: Economist Intelligence Unit

Additional Reading for infrastructure

B. African Demand for Infrastructure

Inadequate infrastructure is one of the top constraints to business in Africa, where energy and
transportation are among the main bottlenecks to productivity growth and competitiveness.
According to a study prepared by the staffs of the World Economic Forum, the World
Bank,
and the AfDB, African firms lose as much as 8 percent of sales due to power outages,
and
transportation delays can account for as much as 3 percent of lost sales (World
Economic
Forum, 2007). Poor infrastructure also holds back commercial agriculture. Improving
infrastructure thus is critical if Africa, particularly SSA, is to diversify exports, move up the
value chain, and achieve sustained growth.
There is thus a large unmet demand; upgrading infrastructure requires financing and
technical expertise, both lacking in many African countries. Moreover, traditional donors,
bilateral and multilateral, tend to allocate only a relatively small proportion of their funding
to infrastructure (Table 4), and for the private sector, investing in infrastructure in poor
countries is a high-risk business.

Most important aspect to take into account is the business aspect

Is the deal good financially
Have to compare with previous deals, are we going to make more money?