The economic aspect of Chinese-African relations: Possibilities and challenges

Abstract

The paper analyses Chinese-African economic relations, starting from the 1970s until today, with a view on possible trends in their future development. This cooperation was first founded on a political level and then followed economic cooperation. The goal of this paper is to present the development of Chinese-African relations, to point out the crucial moments and possibilities of these relations and to analyse the present and future problems. Considering extensive economic and political documentation, the authors analyze the phase development of these relations, looking upon the correlation between the economy and politics. Besides that, the level of trade and investments in both directions is examined. Special attention is paid to Chinese investments in Africa, with an analysis of the value and type of investments, as well as the field of industry in which they are engaged. The authors conclude that China and Africa have attained political and economic relations on the highest level so far and that through new initiatives, such as the Forum on China African Cooperation, this cooperation is developing even further. Nevertheless, there are also serious challenges for future cooperation such as a huge debt of African countries, disbalance in trade and extensive use of natural resources in Africa.