Study On The Impact Of China’s Concessional Loan Assistance On China-Africa Oil Cooperation

The effectiveness of China’s foreign aid and China-Africa energy cooperation are important contents in the field of international economic cooperation.Since China started its foreign aid activities,many studies have discussed the impact of foreign aid,but the specific research on the impact of China’s foreign concessional loan aid on China-Africa petroleum cooperation is very rare.Based on this,on the basis of sorting out the current situation of China’s concessional loan assistance to Africa and China-Africa oil cooperation,this paper attempts to analyze the impact of China’s concessional loan assistance on China-Africa oil cooperation from multiple perspectives including theoretical mechanism,quantitative empirical test and typical cases,and then puts forward relevant policy suggestions.This paper first investigates China’s concessional loans and China-Africa oil cooperation.This paper introduces the relevant situation of China’s foreign aid and aid to Africa,analyzes the operation and management mode of concessional loan aid to Africa,and studies the current situation of China-Africa oil cooperation.The research shows that the volume of oil trade between China and Africa increases year by year,but its proportion decreases year by year.Concessional loan assistance plays a positive role in China-Africa oil trade and cooperation in the oil industry chain.Offshore oil and gas fields and liquefied natural gas in Africa are a new direction for China and Africa to deepen energy cooperation.Secondly,it analyzes the impact of China’s foreign concessional loan assistance on China-Africa oil cooperation from the perspective of theoretical mechanism and quantitative demonstration.From the perspective of theoretical mechanism,concessional loan assistance can affect China-Africa oil cooperation directly and indirectly.Concessional loan assistance can promote the in-depth cooperation between China and Africa in oil trade and oil industry chain through cost reduction,financing agreement,technology spillover,political mutual trust,etc.According to the quantitative empirical test,there is no sufficient evidence that the concessional loan aid can promote China-Africa oil trade,but the price of crude oil,the population of recipient countries and the domestic price index have a significant impact on China-Africa oil cooperation.Then,a typical case is used to analyze the impact of foreign concessional loan assistance on China-African oil cooperation.Sudan’s oil project and China-Angola oil cooperation are beneficial attempts for China’s policy banks and oil companies to jointly implement the strategy of "going global".These aid practices have brought about mutual complement and win-win results between the two sides.On the one hand,it helped recipient countries solve the problem of difficult and expensive financing.It has established a relatively complete petroleum industry system and improved its ability of earning foreign exchange from petroleum.It also enables the recipient countries to achieve rapid economic development.On the other hand,it provides China with stable and sufficient crude oil supply and improves China’s energy security.It also enables Chinese enterprises to enter the African market with the support of concessional loans,accumulating international project experience and training and cultivating international talents.According to the research conclusions,there are the following policy implications: First,we should continue to consolidate the oil cooperation with African countries,deepen the oil cooperation with key countries(such as Angola),and also increase the cooperation with other African oil-producing countries.Second,while consolidating oil trade,it is important to carry out cooperation in exploration,exploitation,refining and other industrial chains,increase the depth and scale of oil and gas cooperation with African countries,and help recipient countries establish and improve their oil industry systems.Third,we should continue to give full play to the role of assisting people to fish and make full use of concessional loans from policy banks to energize China-Africa energy cooperation.Fourth,we should pay attention to the impact of other factors on China-Africa oil cooperation.For example,the oil price is the main factor that the recipient countries consider when exporting crude oil.When trading crude oil with the recipient countries,they should reasonably price the crude oil and avoid the impact of exchange rate fluctuations on the bilateral crude oil trade volume.