Commerce between Africa and China was predicted to have escalated among 2000 and 2008, with China turning into Africa's third-biggest trading partner and second-largest export resort. Trade relationships amid China and Africa were prominently concentrated in three locations: primary resources from Africa to China; low-cost manufactured goods and FDI from China to Africa, including new investment opportunities such as land acquisition; and outsourcing of farm production, particularly of raw materials and biofuels.
It was estimated that by 2009, 1 million Chinese farmers were working in Africa. Africa had substantial extensions of fertile land accessible, although the lack of infrastructure (not only for farming tasks themselves but also for transport) and political variables such as land ownership, corruption and governance were serious dilemmas. This case discusses China's growing businesses for Chinese state-owned enterprises, particularly with the dangers that these can entail and Africa.
PUBLICATION DATE: September 07, 2010 PRODUCT #: HKU897-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
