China: Likely to Monopolize Africa’s Technology Sector in Near Future

China: Likely to Monopolize Africa’s Technology Sector in Near Future

China is likely to continue forming partnerships with African countries in order to spread Chinese-backed AI surveillance equipment throughout the region. In the past 20 years, Chinese companies have provided technology and training to aid in intercepting anti-government information and prevent crime. AI surveillance represents an exploitable form of aid which China can potentially use to strengthen its influence in Africa, as well as intercept communications in the region.

  • In 2014, Chinese telecom firm Huawei gave Uganda 20 surveillance systems valued at $750,000. In 2015, Uganda signed an agreement making Huawei its only information-communications partner. [i]

  • Zimbabwe signed an agreement with Chinese start-up Cloudwalk to deploy facial recognition software to police as a crime prevention tool. Cloudwalk’s software differentiates between darker skin tones, making China a vital partner in Africa. [ii, iii]

  • China’s success in Africa is due to cheaper costs of equipment, coupled with Beijing’s willingness to invest in volatile regions. [iv]

China’s African partnerships will likely grant Beijing unprecedented access to Sub-Saharan nations by incorporating technology advancements in the Belt and Road Initiative (BRI). It can be assessed that China has the means to use the provided technology to intercept citizens’ and government officials’ data.  In addition, by granting technology through the BRI, China promotes the spread of their technology and ensures financial dependence on Beijing though investment loans.

  • Deals in Angola, Ethiopia, and Zimbabwe for access to Cloudwalk allow Chinese AI companies to diversify their data sets and improve their algorithms. [v]

  • BeiDou, China’s global positioning system, has gained popularity with about 30 countries in Africa and the Middle East. China has promoted the use BeiDou through the BRI, notably with Uganda which uses the system for land surveying and mapping. [vi, vii]

  • High level state visits between African nations and China have increased in the past 10 years, as Beijing increases economic influence on African partners. [viii]

China is likely to strive for a monopoly on telecommunication technology and digital software in Africa in order to enhance the BRI in the region without opposition from the United States. Chinese government-backed companies plan for their low-price telecommunications technology to eliminate American competition. Without American competitors, China has the opportunity to integrate the telecommunication networks of Huawei and ZTE into existing African networks. Telecommunication integration with African countries as a part of the BRI could allow China to expand its influence.

  • Kenya signed a $172 million deal with Huawei to build data centers and smart city services. The technology in these cities provides the Chinese government direct access to personal data of the cities’ citizens. [ix]

  • Huawei accounts for 70 percent of Africa’s 4G networks, which are backed by Chinese loans. These transactions are often less restrictive and processed faster than international loans. [x]

  • Chinese-backed smartphone company Transsion currently holds more than 50 percent of shares in the smartphone market in Africa. Transsion has rapidly outpaced Samsung which now accounts for only 10 percent of the African market. [xi]

Sources

[i]. Parkinson, Joe, et al. “Huawei Technicians Helped African Governments Spy on Political Opponents.” The Wall Street Journal, 15 April 2019. Retrieved from: https://www.wsj.com/articles/huawei-technicians-helped-african-governments-spy-on-political-opponents-11565793017.

[ii]. “Exporting Repression? China's Artificial Intelligence Push into Africa.” Council of Foreign Relations, 17 December 2018. Retrieved from: https://www.cfr.org/blog/exporting-repression-chinas-artificial-intelligence-push-africa.

[iii]. Hawkins, Amy. “Beijing’s Big Brother Tech Needs African Faces.”Foreign Policy, 24 July 2018. Retrieved from: https://foreignpolicy.com/2018/07/24/beijings-big-brother-tech-needs-african-faces/.

[iv]. Crabtree, Justina. “‘China is Everywhere’ in Africa’s Rising Technology Industry.” CNBC, 28 July 2017. Retrieved From: https://www.cnbc.com/2017/07/28/china-is-everywhere-in-africas-rising-technology-industry.html.

[v]. “Exporting Repression? China's Artificial Intelligence Push into Africa.” Council of Foreign Relations, 17 December 2018. Retrieved from: https://www.cfr.org/blog/exporting-repression-chinas-artificial-intelligence-push-africa.

[vi]. Kida, Kazuhiro. “China's version of GPS now has more satellites than US original.”Nikkei Asian Review. 19 August 2019. Retrieved from: https://asia.nikkei.com/Business/China-tech/China-s-version-of-GPS-now-has-more-satellites-than-US-original.

[vii]. “Latest Satellite Launch Expands BeiDou Constellation” Inside GNSS. 28 June 019. Retrieved from: https://insidegnss.com/latest-satellite-launch-expands-beidou-constellation/.

[viii]. Ghafar, Adel Abdel and Jacobs, Anna L. “Beijing calling: Assessing China’s growing footprint in North Africa.” Brookings. 23 September 2019. Retrieved from: https://www.brookings.edu/research/beijing-calling-assessing-chinas-growing-footprint-in-north-africa/.

[ix]. “Huawei turns to Africa to offset US blacklist.” France 24. 6 June 2019. Retrieved from: https://www.france24.com/en/20190609-huawei-turns-africa-offset-us-blacklist.

[x]. Mackinnon, Amy. “For Africa, Chinese-Built Internet Is Better Than No Internet at All.” Foreign Report. 19 March 2019. Retrieved from: https://foreignpolicy.com/2019/03/19/for-africa-chinese-built-internet-is-better-than-no-internet-at-all/.

[xi]. Marsh, Jenni. “Chinese Smartphone Giant Tecno is Dominating the African Market with $40 Phones.” CNN. 10 October 2018. Retrieved from: https://www.cnn.com/2018/10/10/tech/tecno-phones-africa/index.html.

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