China africa business relationship building

China-Africa Relations: At a Crossroads? - China Briefing News

china africa business relationship building

These cover building of roads, airports, schools, hospitals, power station and water reservoir. Criticism of the China-Africa trading relationship. ERIC OLANDER: The Sino-African political relationship has evolved . So the goal may be to really build successful businesses in these. The dramatic growth in the relationship between Africa and China is one of . Emblematic of China's enhanced engagement with Africa was the construction of the . organisations, and business people from Africa and China.

Africa, being a major source of raw materialssaw the colonial powers vie for influence among the newly independent nations, with former colonial powers establishing special relations with their former colonies, often by offering economic aid and alliances for access to the vast resources of their former territories.

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Today, the presence of diamondsgoldsilveruraniumcobalt and large oil reserves have brought Africa to the forefront of industrial development, with many of the world's economic powers building relations with Africa's resource rich nations.

China sees a source for raw materials and energy, desperately needed to support its feverish industrial and economic growth.

china africa business relationship building

Success in this quest means high employment and a higher quality of life for Chinese citizens, as well as increasing social stability and political security for Chinese elites. Chinese oil companies are gaining the invaluable experience of working in African nations which will prepare them for larger projects on the far more competitive world market.

The efficiency of Chinese assistance, loans, and proposals generally been praised. Finally, Chinese industry has found in Africa a budding market for its low-cost manufactured goods. Chinese diaspora in Africa have been actively supported by Chinese embassies, continuously building the 'Blood Brother' relation between China and Africa as perceived victims of Western imperialism.

They work together with the Chinese to provide Africa with key structural infrastructure—roads, railways, ports, hydroelectric dams, and refineries—fundamentals which will help Africa avoid the " resource curse ".

Success in this endeavor means avoiding the exploitation of their natural wealth and the beginning of fundamental social and economic transformations on the continent. In Africa, this Chinese alliance provides strong psychological consequences. It provides economic hope and shows African elites an example of success which they may take as exemplars of their own future. Writer Harry Broadman commented that if Chinese investments in key sectors of infrastructure, telecommunication, manufacturing, foods, and textiles radically alter the African continent, the main change will have taken place in African minds.

History of Sino-African relations[ edit ] Early dynasties a. Chinese porcelain has been found along the coasts of Egypt in North Africa. Chinese coins, dated 9th century, [7] have been discovered in KenyaZanzibarand Somalia. The Song dynasty established maritime trade with the Ajuran Empire in the midth century. There are other evidences that reveal that economic development must come before governance. Chinese-funded infrastructure projects will result in increased economic activities and reduced inequality.

The Chinese model is trusting their partners to want to engage in trade, without putting preconditions.

China-Africa relations enters 'Golden age'- Ramaphosa

The most innovative business models of our time have shown how employment could be created in an unregulated trade environment. Example of trade without regulation is Airbnb reinvented lodgingand Uber reinvented taxiCrypto currencies are also not regulated, and even financial innovation came first before they were regulated.

Africa wants to reinvent itself as a group of startup nations and regulations can come in later. So, Africa is welcoming investment from China.

Introduction to China-Africa relations : A Q&A with Eric Olander

The loans come with huge business for Chinese companies that have now turned the African continent into a construction site for rails, roads, electricity dams, stadia, commercial buildings and so on. This might explain why President Cyril Ramaphosa of South Africa disagrees with the insinuation that a new colonialism is taking hold in Africa as those he described as detractors would have Africa to believe. Mercantilism - Make Africa Great Again Africa has seen China as a trusted partner because of the Chinese investment policies towards the continent.

This China-Africa love affair has created a direct competition with other developed nations, irrespective of the country where Chinese firms are operating. Meanwhile, the China — US trade war and the competition with other Western counterparts is healthy and a welcome development for Africa.

Countries like Kenya and Nigeria will benefit because China will target to import more from Africa; some agricultural products from Kenya, and some oil products from Nigeria for example. Uncertainty arising from Brexit has also made matters worse, and the United Kingdom is now in the process of working out a solo deal with the continent.

Due to lack of political enthusiasm, only one EPA with Southern Africa has been ratified, and progress on the others has stagnated. An increase in wages could in fact result in an increase in consumption per capita due to lifestyle changes, and a greater need for resources. In contrast, wages in countries such as Ethiopia and Tanzania have remained at relatively low levels.

china africa business relationship building

With the and shift to a services-driven economy, China may increasingly relocate its manufacturing to Africa. Ethiopia, for example, recently attracted 15 Chinese investment projects in textiles and electronics through modernizing its industrial zones and creating special economic zones, displaying the potential for such changes. African business Sino-African trade flows are no longer a one-way street.

InSABMiller owned more than 90 breweries, produced 30 beer brands, and owned 23 percent of the market share.

china africa business relationship building

The development initiatives directed by China should foster industrialization and human capital on the African continent, which should in turn encourage the development of more added-value goods and services — to be delivered primarily in China. For instance, the FOCAC Action Plan aims to boost China-Africa training and education opportunities, with 2, degree programs and 30, government scholarships available for African students who wish to study in China.

In the past few years, ambitious African companies from a wide range of sectors have looked to expand into China, with a number of large investors originating in South Africa, for instance.

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Aspen Pharmacare Holdings, a South African pharmaceuticals manufacturer, has increased its exports by two-thirds in and has used its recent acquisitions of pharmaceutical product lines to boost its number of sales representatives in China to over people. Chemical and energy giant Sasol, also from South Africa, is currently looking to strengthen its position in the growing Chinese market through a new alkoxylation plant in Nanjingwhose construction began the June 8 this year.

The plant will allow the firm to meet differentiated customer requirements, such as personal care, detergent, textiles, and other categories.

china africa business relationship building

African commercial activity in China is also thriving at a local level. Trading is the main line of work for many in China to purchase inexpensive goods from wholesale markets, shops, and factories throughout the country to sell them back in Africa.

The goods sourced in China by African traders are mainly textiles, cosmetics, and electronic products.