2.0 Literature Review
3.0 Challenges of trade relations
3.1 Labor Practices and Markets Strategies
3.2 Chinese National vs. Corporate Interests
3.3 Western Suspicions
3.4 Sustainable Development
4.0 Solutions to trade challenges
The founding of the People's Republic of China in 1949 marked the initiation of contemporary China-Africa trade and economic relations .From the 1950s to the 1970s, African countries were preoccupied with their fight for national liberation while China worked to safeguard its own sovereignty and territorial integrity. They supported each other, forged friendship and mutual trust, and laid g good political foundation for the future growth of trade and economic relations In 1978, China began to implement its policy of reform and opening up, giving top priority to economic development. This accelerated China's industrialization and modernization processes and brought growth opportunities to Chinese enterprises. After gaining independence, most African countries launched serious to develop their economies and engage in international cooperation. In 1983, the Chinese government put forward the principles of equality, mutual benefit, efficiency, diversity and mutual development for the economic and technical cooperation with African countries. Between 1978 and 1999, the complementarities between China and Africa came into full play, thus deepening trade and economic relations between the two sides. Together with the rapid growth of bilateral trade, Chinese companies began to contract to engineering projects in Africa, provide Africa with skilled labor, and establish equity and cooperative joint ventures on the continent. At the same time, African businesses started to invest in China. China is the largest developing country in the world, and Africa is home to the largest number of developing countries. The combined population of China and Africa accounts for over one-third of the world's total. Promoting economic development and social progress is the common task China and Africa are facing. Over the past 60 years relationship with African countries, China has adhered to the principles that stress sincerity, equality and mutual benefit, solidarity and cooperation development. It has demonstrated respect for the will and choices of African countries, actively encouraged cooperation between Chinese and African businesses, and shown its sincerity in aiding African development. Trade and economic cooperation has achieved remarkable results, having grown in size, scope and areas of cooperation and having yielded benefits to the peoples of both China and Africa. The challenges that Africa faces in trade and regional integration are legion and cannot go without notice.
2.0 Literature Review
Most literature neglects to look at the most cardinal points of trade challenges between china and Africa, the volume and structure. Prof Olu Ajakaiya (2006) highlights that in identifying the opportunities and challenges presented by China-African trade relations, it should be instrumental to consider its volume and structure. It should also be noted that like it is with other parts of the world, China maintains a trade deficit with several African countries. Although African exports to China totalled about US$16 billion in 2004, while Chinese imports reached about US$14 billion (Shinn, 2005), this overall African trade surplus is highly misleading.
China has vigorously defended its economic and trade relations with African countries. It needs more natural resources such as oil, gas, and minerals for its rapidly growing economy, while Africa needs more investment in basic infrastructure to develop its potential. Dr Michael JK Boko(2012) explains that China has confirmed that it is fast stepping in with a different agenda from the brazen exploitation that motivated...
Bibliography: Raphael Kaplinsky, Dorothy McCormick, and Mike Morris. Impacts and Challenges of a Growing Relationship between China and Sub Saharan Africa. 2008.
Li Anshan, China and Africa: Policies and Challenges, 2006.
Dr. Michael J.K. Bokor, As China enters Africa, new challenges emerge,2012.
Prof. Olu Ajakaiye, China and Africa –Opportunities and Challenges, 2006.
Drew Thompson, China’s emerging interest in Africa; the opportunities and challenges,1995.
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