The Issues and Challenges Facing Chinese Companies in Africa

Over the decades, China has become Africa's most important economic partner. Not only has Sino-African trade increased by a factor of 20, but Chinese investment has also increased many times over. China's involvement in Africa is therefore much greater and more diverse than previous studies suggested. More than 10,000 Chinese companies are active on the continent. This presence has made a major contribution to the dynamism of the African economy, with job creation and the transfer of knowledge and technology. Looking beyond preconceptions, the study sheds new light on the prospects for the China-Africa partnership, while taking the opposite view of some of the rough estimates that have hitherto been the benchmark in many official and economic circles. Using a case study approach, this study looks at the issues and challenges facing Chinese companies setting up in Africa and those planning to do so.