The Rise of Chinese Investments in Africa: For Whose Benefit?

Mlambo, Daniel N.; Mlambo, Victor H.; Mubecua, Mandla A.

doi:10.22610/jebs.v10i4(j).2409

Cited by 4 publications

(6 citation statements)

References 13 publications

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“…While progress was being made here, the Bandung Conference in 1955 marked a watershed event in the development of these ties. This meeting which brought together 29 Asian and African nations as well as some Middle East countries, was hailed as a success and a perfect platform to further enhance Asian-African cooperation (Mlambo, Mlambo & Mubecua, 2018). (Mlambo, Mlambo & Mubecua, 2018).…”

Section: Historical Background Of China-africa Relationsmentioning

confidence: 99%

China’s Renewed Engagement in Africa: Another Unequal Exchange

UYABARA¹

2022

WJSS

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In our globalizing world, the art of nations and regions coming together for calculated political, economic and even socio-cultural gains is no longer strange. For the past two decades, China has been more visible, vigorous and strategically engaging Africa on many fronts leading to a growing concern from several quarters. In spite of a functional relationship with an obvious win-win deal for both parties, the benefits from the socio-economic interactions between the duo have been subjected to diverse opinions by scholars and analysts, with serious concerns raised over the seemingly lopsidedness of the benefits in favour of China. While some Africans see this as a healthy engagement of South-south cooperation for mutual benefits, others feel uncomfortable with this renewed engagement. They consider it another rebranded unequal exchange not so different from colonialism and neo-colonial interactions that will further deepen Africa’s dependence. It is against this backdrop that this paper investigates deep to uncover the ultimate gainers in this new deal especially from 2000 till date. The question for this research therefore is; what was the nature of China-Africa previous relations that is remarkably deferent from her current engagement that is generating this huge global outrage? The study is undertaken in the context of the realism and dependency theories. The paper is a qualitative study, where secondary data are sourced from works done by previous writers and analyzed to answer the questions raised. The paper concludes that this engagement, just like Africa’s previous interactions with other nations and regions of the world, holds no real gains for the continent, at best, another unequal exchange in disguise.

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Section: Historical Background Of China-africa Relationsmentioning

confidence: 99%

China’s Renewed Engagement in Africa: Another Unequal Exchange

UYABARA¹

2022

WJSS

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“…This role by politics aids to the other factors like cheaper products, better terms of trade, no interest on loans, and alternative payment models that come from China. With leaders wanting the best for their parties to remain in power we anticipate that this relationship will be used as a way to ensure that the trade benefits the local industries that prove their effectiveness (D. N. Mlambo, Mlambo, & Mubecua, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of China-Africa Trade on Industries in Africa: A Case Study of FOCAC and BRI

Mbona

2021

BER

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Over the last two decades, the trade between Africa and China has grown significantly but there is still a debate on how local industries in Africa are being affected. Two key foreign policies, FOCAC and BRI, by China are the foundations on which the trade is done with its African partners. This study aims to assess which industries in Africa are being affected by these Chinese-led foreign trade policies and the significance of that impact. Using panel data, the study examines the effect of the FOCAC era and the FOCAC+BRI era on the energy, agriculture, mining, manufacturing, and technology industries for six partners. The results from the analysis showed that imports positively affect the agriculture and the energy sectors while the manufacturing industry is negatively affected by imported goods. On the other hand, exports have shown a positive impact on the mining sector. However, the agriculture industry is still struggling to have positive gains from exports. The findings of this study are important as the continent works towards "One Africa" which seeks to promote sustainable development of the continent. Also, the study focuses on specific industries that are significant to the economic growth of these countries as shown by their positive relationship with the GDP of these nations.

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“…Infrastructure and trade constituted a more substantial proportion in Chinese investments. In 2015, China's trade to Africa was 188 billion dollars in total, which was the highest foreign doner among other developed countries such as France and USA [12]. Africa also appreciated Chinese investments.…”

Section: Chinese Investments In Developing Countriesmentioning

confidence: 99%

“…According to their current relations, although it seemed that both China and Africa benefitted from the engagement, it was inevitable to have criticisms from Western countries and Africa. For example, African workers experienced unfair treatments such as low wages and insecure working conditions, and in the meantime, small African businesses were severely affected due to cheap Chinese imports [12]. Overall, Africa still needed Chinese short-term and long-term financial support, and more clear policies would consolidate China-Africa relations.…”

Section: Chinese Investments In Developing Countriesmentioning

confidence: 99%

Is China’s Investment A Debt Trap? -A Comparative Research Based on the Investment in the United States, Europe and China

Hao¹

2021

Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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The essay is to prove that Chinese investments in developing countries are not a debt trap by comparing US, European and Chinese investments. This phenomenon has been observed in recent years and it was usually questioning China's motive of foreign investments from the perspectives of Western countries. The essay uses case study method. Through the case study of the US, European and Chinese foreign investments, the essay hopes to have broader lessons of knowing that there was no debt trap in Chinese foreign investments. The result of the essay reveals that the debt trap does not exist in Chinese investments in developing countries due to the lack of relevant evidence and Western countries' misunderstanding, even though US and European investments are different from China. In conclusion, the essay deepens our understanding of Chinese foreign investments, and to some extent, it will reveal that Western countries have stereotype towards Chinese investments in terms of the debt trap. Moreover, the essay can be useful to understand how to correctly view Chinese foreign investment approach, and explain that to a certain extent, Chinese investments have helped local economic development and objectively point out that there is still some room for upward mobility of Chinese investment approach in the region. Admittedly, the essay is limited in the way that in the international environment, state-to-state investments do not necessarily seek economic returns, but may also demand political returns. For example, US aid to Israel is fundamentally about preserving its political and economic interests in the Middle East. Further studies can look into the US, Europe and China's strategies towards developing countries and their roles in the investments.

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The Rise of Chinese Investments in Africa: For Whose Benefit?

Cited by 4 publications

References 13 publications

China’s Renewed Engagement in Africa: Another Unequal Exchange

China’s Renewed Engagement in Africa: Another Unequal Exchange

The Impact of China-Africa Trade on Industries in Africa: A Case Study of FOCAC and BRI

Is China’s Investment A Debt Trap? -A Comparative Research Based on the Investment in the United States, Europe and China

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