China's Trade and Investment Relationship with Africa
Executive Briefings on Trade (USITC), 2013
2 Pages Posted: 18 Apr 2019
Date Written: April 1, 2013
China’s trade and investment relationship with Africa is important to both trading partners. For China, Africa represents a growing source of raw materials –most importantly crude oil, iron ore/concentrates, and copper-- which have helped fuel China’s rapid infrastructure development. For Africa, China represents a major trading partner and investor that provides it with cheap consumer products, buys its natural resources, and helps build its infrastructure.
This briefing describes China’s trade and investment in Africa’s major raw material markets, and addresses the roles that Chinese state-owned enterprises (SOEs) and special economic zones have played in this relationship. This bilateral trade relationship is relevant to U.S. firms, as changing Chinese demand and supply conditions can impact global commodity prices and competitive conditions for U.S. firms operating in Africa.
Keywords: China, Africa, trade, investment, fdi, foreign direct investment
JEL Classification: E00, F00
Suggested Citation: Suggested Citation