Kenya should work towards mutually beneficial economic ties with US, China

OPINION AND ANALYSIS

Thika Highway. A number of infrastructure projects are being financed by the Chinese government and firms. PHOTO | FILE 

By VICTOR NYAKACHUNGA

A visit by Chinese President Xi Jinping to the US prior to the commencement of the annual United Nations General Assembly has empirically toned down the belief in most public spaces that these two economic giants hardly see eye to eye after four years of Chinese absence.

This is largely attributed to recent hostile relations arising from multiple accusations between the countries — ranging from China’s alleged cyber crimes, aerial confrontations, greenhouse gas emissions, military aggression (in South China sea) to hostile economic relations.

The two countries’ head of states meeting implies the desire to work together towards strengthening their relations. This is a big moment that has actively drawn the world’s attention given their significance in shaping global socio-political and economic paths.

Such high profile visits are always accompanied by pledges and signing of agreements mostly behind closed doors. It is these agreements that open new chapters in international relations and new trade ties.

State visits and international meetings are normally used by world leaders to iron out their issues, create better diplomatic relations and enter into new deals.

That’s why it was not surprising when President Uhuru Kenyatta also took advantage of this year’s UNGA to cut deals with US companies that have promised to commit Sh400 billion for power generation under the umbrella of Business Council for International Understanding (BCIU).

There are benefits that Kenya can reap from a good trade relationship with her foreign development partners.

China remains one of Kenya’s key bilateral partners having taken the lead in development assistance especially around infrastructure development.

Earlier, in August 2013, President Kenyatta had made a state visit to China where he also met President Xi Jinping with the aim of improving bilateral relations.

China is currently the most populous country in the world. This indicates her indisputable position as a key market for consumer goods that Kenya can take advantage of to export more agricultural produce like coffee, tea and horticultural products.

The country has also achieved a spectacular economic take off, multiplying its global weight seven times over the last 30 years to become the second largest power in terms of nominal GDP and the first in terms of exports.

Furthermore, China has set up major internationally orientated industrial companies and is increasing its investments both abroad as well as in new technologies at home, such as renewable energies to further strengthen its position. 

These technologies can be shared through training of the local workforce to reduce the cost of labour and enhance our technological know-how. The experience that China has had in improving her economy is invaluable to us.

Kenya has achieved tremendous development results through our partnership with China. Through this result-oriented partnership, the Chinese have significantly transformed infrastructural growth and development in the country.

The emergence of super highways and modern storey buildings are all derived from this partnership.