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Working Paper 124 - Post-Crisis Prospects for China-Africa Relations

23-Jun-2011

China’s rapid growth has transformed its relationship with Africa. Industrialization has boosted China’s import demand for oil and minerals (e.g. iron ore, bauxite, nickel, copper), which Africa can satisfy. China is now Africa’s third largest trading partner; bilateral trade with Africa reached $114 billion in 2008, up from $65.9 billion in 2007. The government’s “going global policy”, which encouraged Chinese companies to become multinationals, has supported a rise in China’s FDI in Africa to $5.4 billion in 2009, up from a negligible amount just a decade ago. The current China-Africa relationship could be described as “commodities-for-infrastructure”, although a shift to broader cooperation on development is now evident.

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