China's Investment in Africa

Abstract

Economic collaboration by the United States and China with specific African countries can have a valuable impact on the people living there. Africa is home to enormous amounts of untapped economic potential such as natural resources and labor capacity. The United States and China are increasingly involved in Africa for its natural resources, potential trade markets, security concerns, and global health considerations. Meanwhile, African nations face numerous challenges due to political instability, bad economic policies, conflict, and corrupt governance. The Southern African Development Community (SADC) is a good reflection of complex problems found in Africa (e.g., conflict in the Democratic Republic of Congo, Zimbabwe's political and economic crisis). The United States and China are the two external actors that can promote the necessary and drastic transformation to make these countries more productive. U.S.-Chinese economic cooperation focused on Angola and the Democratic Republic of Congo has the potential to serve both United States' and Chinese interests while at the same time reliably benefiting these African nations and their people.

Table of Contents

Introduction1

Discussion1

China's Foreign Policy in Africa1

China's Economic Resurgence and Investment in Africa7

Conclusion11

End Notes13

China's Investment in Africa

Introduction

The United States and China, as internationally powerful countries, have a vast array of interests and foreign policy goals. In Africa, an immense continent, there are multiple nations that require assistance from the two dominant powers, but they also have a significant potential for economic development. The United States, China, and African institutions and individual countries have some convergent interests where they can cooperate. A deeper look into the priorities of these countries and institutions demonstrates that it is possible for cooperation economically. By cooperating in some specific areas, there is a greater potential for positive results for all parties involved.

Discussion

China's Foreign Policy in Africa

The People Republic of China (P.R.C.) is one of the world's leading developing countries with an estimated population of 1.3 billion people. Its economic capacity, along with other factors, such as a permanent seat on the United Nations Security Council, makes it an influential and powerful country. Internationally, the P.R.C. has expanded operations around the globe including into Africa. A thorough understanding of China's influence is difficult due to the lack of reliable data on current Chinese foreign aid and the lack of transparency on investment agreements." China has a significantly increasing presence on the continent and adapted its policy to meet its national objectives. A brieflook at China's involvement in Africa, its current African policy, and the institutions it uses to promote the economic components of its policy will help to understand Chinese intentions in Africa and the possibilities for U.S.-P.R.C.- African cooperation.

During the 1960s and 70s, China's involvement in Africa began by attempting to align itself with the developing world based on an ideological struggle in which Chinese Communist revolutionary ideas were the driving force." Africa was still not a major part of Chinese foreign policy, as the Communist Party was still consolidating control in China and defending its own territorial ...