Increasing Chinese Investment Is Not Good for Africa

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  • Topic: Africa, African Union, Sudan
  • Pages : 2 (462 words )
  • Download(s) : 124
  • Published : March 31, 2013
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Padraig Carmody, of Trinity College Dublin, and Francis Owusu, of Iowa State University, are less sanguine about Chinese involvement in Africa. Although they also perceive potential benefits from increasing trade with China, they describe how increasing resource flows are strengthening authoritarian states and fuelling conflict. Since 2000, Chinese trade with Africa has more than tripled. Whereas China only accounted for 7% of African imports in 2003, imports from Africa grew an astounding 87% in 2004 alone. By the end of 2005, China overtook Britain as Africa’s third largest trading partner. Their paper investigates the implications of Chinese and American investment and trade strategies for Africa. The authors begin by exploring recent Chinese interest and involvement on the continent. They then move to describe the Chinese geo-economic strategy for the continent, and the advantages it bring to resource competition with the U.S. The economic and political impacts of Chinese investment and trade with Africa are later explored. Carmody and Osusu go on to mention that China’s desire to become a global economic powerhouse and a counterweight to U.S. hegemony in the international system is now clear. The expansion of the Chinese economy has increased the demand for resources, especially for oil. China’s demand for industrial resources is huge, but Africa has the potential to substantially meet this demand, as it is three times larger than China and rich in resources. It is no wonder that Chinese companies invest so much in Africa. The authors argue that China’s geo-economic strategy in Africa can be identified: 1- to ensure access to critical natural resources, 2- to recycle massive foreign exchange reserves into profitable investments overseas, 3- to find markets for the products of Chinese industry, 4- and to develop African agriculture to provide non-food agricultural to supply Chinese industry and consumers. Africa has recently been hit with a Chinese “Textile...
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