China and africa trading relationship set to grow

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china and africa trading relationship set to grow

Continent's leaders want Beijing to commit to strategic relationship at summit. Africa's population, set to double by , is the youngest and fastest-growing While Chinese investment in Africa has grown, reaching $bn in , it is China became Africa's largest trading partner in , as Chinese. China-Africa Trade Economic Relations in life who are concerned about African development to increase support to Africa, as the .. by the end of , Chinese investors had set up around 1, companies in Africa. China has become Africa's largest trade partner and has greatly expanded its economic ties to the continent, but its growing activities there have Investment from a mixture of state and private funds has also set up tobacco.

This marked the change to capitalist practices as the foundation of the PRC's socioeconomic development, a process initiated several decades earlier following the aftermath of the Great Leap Forward. Beginning inthe PRC initiated a policy of rapid modernization and industrialization, resulting in reduced poverty and developing the base of a powerful industrial economy.

Is China Really Helping Africa? - Forbes Africa

Africa[ edit ] Africa has a population of roughly 1. Industrialization started marginally in the early 20th century in the colonies of the European nations, namely Portugal, Belgium, Spain, the Netherlands, Germany, France, Italy, and the United Kingdom. The continent's various wars for independence brought on the violent and disruptive division of Africa. 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.

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. 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.

Roundtable: China-Africa relations - who benefits?

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.

Africa–China economic relations

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.

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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.

The Yuan dynasty 's Zhu Siben made the first known Chinese voyage to the Atlantic Ocean, [7] while the Ming dynasty 's admiral Zheng He and his fleet of more than ships made seven separate voyages to areas around the Indian Ocean, and landed on the coast of Eastern Africa.

Most Chinese emissaries are believed to have stopped before ever reaching Europe or Africa, probably travelling as far as the far eastern provinces of the Roman and later Byzantine empires.

china and africa trading relationship set to grow

However, some did reach Africa. Yuan dynasty ambassadors, which was one of only two times when China was ruled by a foreign dynasty, this one the Mongolstraveled to Madagascar.

china and africa trading relationship set to grow

Politically aid has been used to create strong bilateral ties between African countries and China. Proponents highlight the structural benefits brought about by aid; downplaying the benefits to China in the form of profit, resource extraction, and the acquisition of service contracts to Chinese companies. Currently this strategy is geared towards partnering with resource-rich countries, which often lack the political and economic structures required to efficiently and effectively manage such bilateral trade opportunities.

The key challenge is to ensure that there is an effective political and economic strategy to piggyback off Chinese intervention to ensure broad based economic empowerment. Private Money Worth Its Weight In Gold Part of this strategy should include elements like building a middle class in Africa, developing African entrepreneurs, allocating factors of production, industry 4.

The current economic polarization in Africa needs to be addressed by actively creating a middles class. Clan-based economic feudalism needs to be replaced by an educated and economically engaged middle class.

Economic empowerment in turn will promote political development leading to healthier international trade relations. Entrepreneurship, while still in its African infancy, has made significant strides both domestically and internationally. Agriculture, manufacturing, retail, and tourism can act as an employment sponge for basic labour intensive work. While not a cornerstone employment strategy, it will lead to rapid, broad-based job creation, often requiring very basic skill sets.

Further vocational training can be provided in these sectors to prevent generational skills gaps. Effective allocation of factors of production — specifically land ownership — will be critical. Traditional industrial economies, such as Germany and the United States, expect the fourth industrial revolution to create many competitive advantages, reversing the trend to relocate manufacturing processes to low-cost countries and create new high-tech opportunities at home.

Africa is ideally positioned to leapfrog into Industry 4. This will enable African-owned manufacturers to effectively compete with Chinese companies.