Analyzing Recent Economic Relations between China and Sub-Saharan Africa: Trick or Treat?

Abstract

Chinese economic transformation into a market economy has influenced world-wide economic relations and trade. This paper examines the economic developments and challenges between China and Sub-Saharan Africa (SSA) by providing data on different economic activities, as well as recent information on foreign direct investment (FDI). The study analyzed recent evolution of Sino-SSA trade relationship, as well as explored the current Chinese direct investment (FDI) in SSA. Cameroon, Kenya and Ethiopia were used as case-studies. This research found that the current economic ties despite its promising appearance is ill-fated because China is heavily investing in manufacturing and exploitation of resources, while investment in education and electricity which are critical to long-term economic growth is SSA are almost none-existent. Also, China is decreasing amount of imported good from SSA, due to slowing growth while exporting more goods and services to the region. This work is important because Chinese massive economic growth in recent times had affected the world wide economy, and developing countries are impacted more. Recent trends and noticeable changes are examined and recommendations are made based on methods of strengthening healthy trade relationships for long-term benefits.