Day Four :The Centre for China Studies, Stellenbosch University & Leeu Estates

Day Four- January 18

Morning Meeting: The Centre for Chinese Studies at Stellenbosch University

Meeting with CCS Acting Director, Ross Anthony.

Greetings from Cape Town! After an action-packed week in Johannesburg, we have started our Cape Town tour with a visit to the Centre for Chinese Studies (CCS) at Stellenbosch University. We were met by the interim director of the CCS, Dr. Ross Anthony. Dr. Anthony holds a doctorate in social anthropology from the University of Cambridge and conducts research on China’s economic investments in Africa as well as China-Africa cooperation on geo-political security issues. He has also examined issues in the Xinjiang Uyghur Autonomous Region in Northwest China. Dr. Anthony introduced us to the Centre’s mission and answered our questions on China’s engagement on the African continent.   

About the Centre for Chinese Studies (CCS)

Established in 2004, the CCS is one of the most prominent institutions for scholarship on the presence of China and greater East Asia in Africa. Although based at Stellenbosch University in South Africa, the CCS focuses on China’s engagement on the broader African continent. The CCS initially began as a consultancy and advisory corps (founded by Martyn Davies- who we met with last week) but has since shifted its focus to non-partisan policy analysis on political, economic, and environmental drivers in the China-Africa relationship. In addition to academic and policy research, the CCS is working expand its teaching program so as to build Africa-based expertise on China-Africa relations. To this end, the CCS has partnerships with four Chinese universities and works closely with the Confucius Institute at Stellenbosch University.

China’s Economic Slowdown: Impending Doom?

We opened our discussion by asking Dr. Anthony for his views on the effects of China’s economic slowdown on the economies of African nations. Dr. Anthony explained that much like the 1970s, many Chinese companies are “going out” and engaging in massive infrastructure projects around the world. In 2015, China’s foreign minister Wang Yi visited Africa and discussed China-Africa cooperation around the “three networks of infrastructure and industrialization”, whereby China would assist African nations in building ports, roads, railways, and other necessary infrastructure. This policy would not only address the gap in critical infrastructure for African nations, but would also ease the overcapacity problems in China and help keep Chinese companies afloat. Though this kind of “win-win” cooperation undoubtedly has benefits for both sides, it will not necessarily have uniformly positive affects. For example, Dr. Anthony discussed the decline in competitiveness of China’s manufacturing sector and how China may look to push some of this industry overseas to Southeast Asia or Africa. In the case of South Africa, there could be challenges in establishing China’s manufacturing industry here due to strong labor laws and powerful labor unions with ties to the government.  

China as a Different Model; Anti-China/Anti-Western Sentiments

During this trip, many of us have talked to ordinary South Africans about their views on China. While some people have acknowledged the benefits of China’s engagement in Africa, many people also viewed China’s presence on the continent as a looming threat. In light of this, we were keen to ask Dr. Anthony how African politicians can afford to support China without angering their constituents. He pointed out that this really depends on the electorate; in South Africa, the African National Congress Party (ANC) is bleeding votes from the middle class and is much stronger in rural areas, where foreign policy is not necessarily a key issue for voters. At the same time, even though politicians may adopt an anti-China stance to appease their constituents, once elected they may change their thinking because of China’s strong connections on the continent (as was the case in Zambia in the 2006 presidential election). Apart from how voters view China, Dr. Anthony also discussed China’s lack of exportable culture and Africa’s western-influenced media as other reasons for why China is sometimes viewed negatively in Africa, which is something we had previously discussed with the China-Africa Media Project at Wits University in Johannesburg.  

Areas of Cooperation: China, South Africa

We were interested to hear Dr. Anthony’s views on other areas of Chinese engagement in Africa and whether there are any areas of cooperation between China and South Africa on the continent. One of Dr. Anthony’s research areas is in security issues and he explained how China from an early point has gone into dangerous areas such as the Congo and South Sudan. It has been expanding its involvement in Africa by establishing a base in Djibouti and having a military presence in South Sudan and Mali. In terms of cooperation with South Africa, while there may be some security cooperation, Dr. Anthony told us that on the rest of the continent, China and South Africa are actually competitors in infrastructure development. For example, South African telecom companies such as MTN compete with Chinese companies such as Huawei or ZTE for projects in other African nations.

- Natalie Lynch, China Studies, SAIS



Lunch at Le Quartier Francais, Franschhoek, South Africa

 Afternoon Meeting: Mullineux & Leeu Collection

After a short drive from the Stellenbosch University, we arrived at Franschhoek (a picturesque wine town about an hour and a half from Cape Town) for lunch and visit to the tasting room of one of the most renown high-end wineries in the Swartland area of western South Africa: Mullineux & Leeu Family Wines. A few years ago, the Indian investor

Analjit Singh bought a significant share in the wine company, initially started by the Mullineux family. With his partnership, the brand name added "Leeu" which in Africans means "Lion"- also the meaning of "Singh" (his surname) in Sanskrit. The multibillionaire has not only invested in this particular winery, but has also bought adjacent land in order to enter the hospitality service and produce his on wine as well. He is thought to be the first Indian to invest  in the wine and hospitality sector of South Africa.

Despite the fact that Mullineux & Leeu Family Wines is partly owned by an Indian investor their main markets remain the United Kingdom, Europe and the Unites States in oppose to an Indian focus. The immensely high tariffs on wines imposed by the Indian government serve as a true trade barrier and make it practically impossible for wine exports to India. Mr Singh from Mullineux & Leeu Family Wines has even founded a separate company in India to facilitate imports into India, but thus far the efforts have been proven to be in vain. 

India has long held a tradition of protectionism and it is apparent that it is certainly no different for wines. However, the recent change in government with Prime Minister Modi demonstrating a clear pro-business attitude, this might change somewhat over the next couple of years. Maybe Mr Singh will then be able to export his own wine from Mullineux & Leeu Family Wines into India.

- Diana Mayrhofer and Shuja Malik

The group completed the meeting with a tasting of the Mullineux and Leeu Chenin and Syrah collection, and a visit and tour to the Leeu Estates, currently under construction, which will open in June as luxury hotels, vineyard, gardens and spa. We were shown around the beautiful estate by the Leeu collections farm manager and their horticulturalist.