V. D. The Future of China-Africa Economic Relations: FACTORS INFLUENCING THE GROWING TIES
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Free Download - II.E. Contract Labor and Other Services: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA By International Monetary Fund |
China’s growing role in Africa is not transitory. As China-Africa economic relations are
increasingly based on trade and investment, and trade is based on more than just
commodities, the relationship is likely to expand, along with economic growth in China and
Africa. Economic relations are increasingly dominated by commercial ties rather than by aid
considerations (Box 2).
The private (more broadly, the corporate) sector, rather than government ministries, is
increasingly the engine of economic exchange between China and Africa. The future of
China-Africa economic relations will thus be shaped by shifts in comparative advantage and
changes in global supply chains. This underscores the importance of improving the
investment climate and strengthening the regulatory framework, particularly in Africa, to
achieve win-win outcomes.
Issues of debt sustainability, governance reform, and environmental protection are associated
with new lending and investment in Africa. These issues need to be addressed based on
shared information, collaboration, and coordination between host country authorities and
their development partners.
IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007
V D The Future of ChinaAfrica Economic Relations FACTORS INFLUENCING THE GROWING TIES - To learn more about this author, visit International Monetary Fund's Website.
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