Impacts and Challenges of a Growing Relationship between China and Sub Saharan Africa

Kaplinsky, Raphael; McCormick, Dorothy; Morris, Mike

Impacts and Challenges of a Growing Relationship between China and Sub Saharan Africa

Working Paper

2009

Publisher

University of Cape Town

Department

Centre for Social Science Research(CSSR)

Faculty

Faculty of Humanities

Abstract

The existing literature is clear that China is impacting on Sub Saharan Africa (SSA). What is not clear is the precise nature of that impact. Does it come mainly from trade in cheap manufactured goods? Does it come from China’s seemingly insatiable hunger for oil and minerals? What countries benefit and in what sectors? What role do Chinese companies operating in Africa play? How beneficial is Chinese aid and/or international cooperation? Who is losing out, and why? Most of the literature focuses on trade but other interactions also generate positive or negative impacts. Of the many possibilities, we have identified foreign direct investment, production, and aid as potential channels of impact. In the following pages, we attempt first to take stock of our knowledge. We do by subjecting the most common forms of interaction between China and SSA to a comprehensive and detailed analysis using a systematic framework. We then use this analysis to identify the gaps in our knowledge and suggest ways of bridging them. The paper uses secondary data from a number of sources, including the International Monetary Fund, the World Bank, the US Department of Commerce, as well as published materials and relevant websites.

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