Chinese Economic Activities in Sub Saharan Africa: A Substitute for Europe?

Abstract

In February 2008 the American film director Steven Spielberg announced his withdrawal as an artistic advisor for the 2008 Olympic games in Beiijng. Mr. Spielberg accused the Chinese government of not doing enough to pressure Sudan to end the human suffering in the Darfur region. China imports about 60% of Sudan’s oil reserves. In turn, China sells weapons to the Sudanese government and defended Khartoum on the UN Security Council. China has been widely criticized for its bonds with the Sudanese government that ignores the atrocities in Darfur. Spielberg’s press release quickly made the general public aware of China’s presence in Africa. The economic activities between China and Africa have increased substantially over the past decades. And while the Western critics are skeptical about this new South-South alliance there are some positive outcomes for Africa as well. This article surveys the trade, investment and aid links of China and Europe with Sub Saharan Africa. It will aim to explain the consequences for the European continent of China’s economic ties with African oil-exporting and non- oil-exporting countries. Most importantly this paper attempts to detect a possible substitution effect of European economical ties with Africa that are displaced by new Sino-African relationships