China’s “Going Global” Policy in Africa: An Exploratory Overview of an Evolving Policy Framework

Sigli M Mumuni,Shelly Ann Murphy

doi:10.22158/jar.v2n1p11

Abstract

The pace of economic engagement between China and Africa has increased exponentially in recent years, fueled mostly by burgeoning trade and investment ties. This impressive transformation of Sino-African relations has been complimented significantly by China’s “Going Global” policy, resulting in a huge number and diversity of Chinese multinational companies on the African continent. This proliferation of Chinese companies in Africa has generated new opportunities and prospects for all stakeholders, but has also engendered a host of challenges. This has no doubt had a significant impact on both the making and shaping of China’s foreign policy in Africa, and subsequently China Africa relations as a whole. This study relies on an extensive review of available qualitative and quantitative data to gain insights into the complex institutional and operational framework behind Chinese government support for the international ambitions of Chinese companies in Africa. What are the motives behind Beijing’s “Going Global” Policy? Which key institutions are involved, and what policy tools are employed to encourage the overseas investments of Chinese companies? What are the key drivers behind Chinese companies’ foray into the African market and what are the implications for China Africa relations, both in the short-term and long-term? These and other essential questions are addressed in this paper.

Highlights

China’s relationship with Africa has evolved in several stages over many decades and has been driven by ideological, political, economic and security interests
The majority of Chinese investments has traditionally been focused on energy, mining, construction and manufacturing, and State-owned companies like the China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOOC) and China Power Investment Corporation (CPIC) have made huge inroads into Africa with investments running into the tens of billions of dollars (Shinn, 2012)
This paper will seek to answer the following questions: What are the motives behind Beijing’s “Going Global” Policy? Which key institutions are involved, and what policy tools do they employ to encourage the overseas investments of Chinese companies? How much leverage does the Chinese government have over the activities of its companies in Africa and what are the implications for China Africa relations, both in the short-term and long-term? These and other essential questions will be addressed in this paper

Summary

Introduction

China’s relationship with Africa has evolved in several stages over many decades and has been driven by ideological, political, economic and security interests. Li Anshan, a prominent China-Africa scholar, has noted the popular perception in the West that the recent rapid developments of the Sino-African relationship have arisen after a long, dormant period, and that its recent re-emergence reflects a set of ambitious and unsettling goals on the continent that include a quest for energy, trade and geopolitical interests In his opinion, such viewpoints fail to convey the most important elements in Sino-African relations, saying “that the development of the relationship over the past 50 years has been based on ‘equal treatment, respect for sovereignty and common development’ and that ‘Sino-African relations’ are not new—dating back to ancient times and progressing gradually based on common historical experiences”. This paper will seek to answer the following questions: What are the motives behind Beijing’s “Going Global” Policy? Which key institutions are involved, and what policy tools do they employ to encourage the overseas investments of Chinese companies? How much leverage does the Chinese government have over the activities of its companies in Africa and what are the implications for China Africa relations, both in the short-term and long-term? These and other essential questions will be addressed in this paper

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Conclusion