Relationship Between China and Africa

Relationship Between China And Africa

Assignment Submitted

For the International Management Module

at the

Nelson Mandela Metropolitan University

Business School

Prepared By

Ayankoya Kayode A

Foli, Edem

Mpongoshe, Lukhanyiso

Hurrisunker, Sanisha

Maqina, Chumani

Introduction

This assignment examines the strategic relationship between China and Africa.

The first section provides statistics that reveal the extent of trade between China and Africa since 2000. The specific statistics center around the amount of natural resources exported to China and compares that to the amount of imports from China.

After gaining insight into the extent of business between the two, one can begin to understand why Africa is so important to China. This importance is discussed in more detail against the backdrop of the historical background of these two regions.

The following section explains the strategy that China has adapted to trade with Africa and introduces the concept of the “Chinese Model”. This model highlights the driving forces behind China’s strategic decisions and introduces some controversial arguments around some of the methods that China has adopted. An important part of this discussion is the comparison of China’s strategy with that of the West (i.e. regions like the United States of America (USA/US) and the European Union (EU). Some interesting statistics reveal that Africa is attracting significant amounts of Foreign Direct Investment (FDI) and is most likely to continue doing so.

1. Analyse and Discuss the Extent of Trade between China and Africa since 2000. (Jones S. 2012; Alessi C. 2012; China Daily.Com 2011; African Development Bank 2011; The Forum on China-Africa Cooperation 2011)

China will overtake the United States of America (USA/US) as the world’s largest trade partner by.2016. (Jones, S. 2012). China is Africa’s largest foreign trading partner and its trade with Africa is larger than the continent’s trade with the European Union (EU) and...