Chinese Outward FDI in Africa: How Much Do We Know?

Abstract

Inward Foreign Direct Investment (FDI) in China has received a significant amount of research attention (Graham and Wada, 2001). In stark contrast, Chinese outward FDI has, to date, not received attention on the same scale (Goldstein et al., 2006: 12; Hong and Sun, 2004: 4). There are a small number of studies on countries in Southeast Asia (e.g., Wu and Sia, 2002) and Russia (e.g., Wu and Chen, 2001). However, there is little research available on Chinese investment in Africa. Indeed, even the level of outward Chinese FDI is unclear and this is particularly so in Africa. This is not only because of data weaknesses but the very nature of Chinese FDI and its blurred boundaries with Chinese aid and non-equity investments. Kaplinky et al. (2007: 26) put it thus, ‘It is not clear how much of Chinese economic activity in Sub-Saharan Africa comprises FDI, how much is a result of winning commercial tenders, how much is linked to Chinese aid and how much is part of integrated production networks’.