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Changing China, Changing Africa: Future Contours of an Emerging Relationship

18 Pages Posted: 10 Jul 2014  

Martyn Davies

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Peter Draper

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Hannah Edinger

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Date Written: July 2014

Abstract

Current China–Africa relations have been statically framed: China invests in the continent and exports resources extracted by its state‐owned enterprises and fuelled by aid flows, while simultaneously undercutting African industry through cheap exports. We frame this debate, then explore how the framework could adjust in response to changing economic realities in China, centered on the “rebalancing” of the growth model toward domestic consumption. We argue that a new wave of private sector‐led, low‐cost manufacturers may find its way to selected African shores, in the process transforming those economies and the way in which China interacts with them, both for the better.

Keywords: Africa, China, industrialization, value chain

JEL Classification: O55, F21, F5, Q32

Suggested Citation

Davies, Martyn and Draper, Peter and Edinger, Hannah, Changing China, Changing Africa: Future Contours of an Emerging Relationship (July 2014). Asian Economic Policy Review, Vol. 9, Issue 2, pp. 180-197, 2014. Available at SSRN: https://ssrn.com/abstract=2464343 or http://dx.doi.org/10.1111/aepr.12059

Martyn Davies (Contact Author)

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30 6th Street
Parkhurst
Johannesburg, 2193
South Africa

Peter Draper

Frontier Advisory ( email )

30 6th Street
Parkhurst
Johannesburg, 2193
South Africa

Hannah Edinger

Frontier Advisory

30 6th Street
Parkhurst
Johannesburg, 2193
South Africa

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