Navigating the Evolving Landscape between China and Africa's Economic Engagements

Abstract

China and Africa have forged a strong economic relationship since China’s accession to the WTO in 2001. This paper examines the evolution of these economic ties starting in the early 2000s, and the subsequent shift in the relationship triggered by the commodity price collapse in 2015 and by the COVID-19 pandemic. The potential effects on the African continent of a further slowdown in Chinese growth are analyzed, highlighting the varying effects on different countries in Africa, especially those heavily dependent on their economic relationship with China. The conclusion offers a discussion of ways how African countries and China could adapt to the changing relationship.

Keywords: Africa, sub-Saharan Africa, China, Trade, Debt, Lending, Investment, Belt and Road Initiative., growth slowdown, economic engagement, A. AFRMOD, C. Investment linkage, AFRMOD model, Foreign direct investment, Loans, Exports, Global, Caribbean, South America

JEL Classification: F10, F21, F34, F42, G21, F35