Chinese President Xi Jinping pledged $51 billion in financing to Africa, during the summit he hosted for the continent''s leaders in Beijing last week. The move comes as the U.S. scrambles to regain influence in the region.

China hosted the ninth Forum on China-Africa Cooperation (FOCAC) summit last week, an event held every three years since 2000. Most of Africa''s 53 countries sent delegations to the summit, except for Eswatini—formerly known as Swaziland—which remains the only African nation maintaining diplomatic ties with Taiwan rather than China.

A few years ago, China-financed megaprojects like bridges, roads, and ports were commonplace in the developing world, including many in Africa. These investments were a key part of President Xi Jinping''s signature global development strategy, the Belt and Road Initiative.

However, many countries could not repay these loans, leading to allegations in Washington that China was engaging in predatory "debt traps." This criticism became more prevalent as several African nations began experiencing financial strain.

Efforts to restructure or renegotiate Chinese loans became widespread, especially after the COVID-19 pandemic hit, which worsened economic conditions in many countries. Several African nations, including Zambia, Chad, and Ethiopia, were forced to seek debt relief. Zambia, in particular, defaulted on its loans in 2020 and underwent a protracted restructuring process.

By June 2023, Zambia had managed to secure extensions on maturities through its participation in the G20 Common Framework, but not reductions in the principal of the debts, including those to China.

China has shifted its approach to international investments, particularly through the BRI, in the wake of these debt crises and as the world''s second largest-economy cools.

Once characterized by large-scale loans for massive infrastructure projects, the initiative now favors smaller, more focused projects, which Chinese officials have touted as "small but beautiful."

When asked how China reconciles this shift toward smaller projects with the new large-scale support it has pledged to Africa, Chinese Foreign Ministry spokesperson Mao Ning told reporters she saw no contradiction.

China''s foreign direct investment flow to Africa first overtook the U.S.''s in 2008, totaling just under $6 billion, according to data from the U.S. Bureau of Economic Analysis and China''s Ministry of Commerce. From 2013 onwards, Chinese FDI consistently exceeded that of the U.S., and between 2015 and 2022, China''s investment flows were more than double those of the U.S.

Since 2021, the Biden administration has made efforts to boost U.S. investment in Africa, Alex Vines, director of the Africa Program at the London-based think tank Chatham House, pointed out.

Previously, U.S. development aid had focused on sectors like health, agriculture, and governance. Recently, however, the U.S. has placed more emphasis on infrastructure projects, such as upgrades to the Lobito Corridor railway linking Angola''s Lobito Port with the city of Luau.

"There has been a re-curation of assets and increased footfall of U.S. officials in Africa, alongside initiatives like the Lobito Corridor," Vines said.

Vines said the U.S.''s "Achilles heel" when it comes to engagement with Africa it''s the American private sector, which "outside of hydrocarbon investments and access to strategic and critical minerals remains tepid." "This gives China and other U.S. competitors an advantage.

By contrast, many of the new partnerships heralded by China last week were focused on business ties, such as trade, green development, and cooperation on industrial chains and development.

Vines predicted U.S. engagement with Africa would drop further if Republican Party nominee Donald Trump is elected to a second term, citing the former president''s "American First" prioritization of reducing trade deficits over foreign investment and aid.

Data from the U.S. Census Bureau shows that in 2023, the U.S. exported just under $29 billion in goods to Africa but imported over $38 billion, creating a $10 billion trade deficit.

"This is not what many African states want," Vines said. "They increasingly seek multipolarity, including economic engagement with both China and the U.S."

A Pew Research Center poll released last year surveyed respondents in two African countries, Kenya and Nigeria, about their views of investments from the superpowers.

Among Nigerians, 82 percent said Chinese investment benefited their country, while 74 percent viewed U.S. investment favorably. Meanwhile, 73 percent of Kenyans believed both countries'' investments had been beneficial.

Newsweek reached out to the Chinese Foreign Ministry and U.S. State Department with written requests for comment.

Update 9/10/24, 10:40 a.m. ET: This article has been updated with additional context.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to journalism that''s factual and fair.

Hold us accountable and submit your rating of this article on the meter.