China's Investment and Trade in Africa: Neo-Colonialism or Mutual Benefit?

Abstract

China's interest in Africa is not new, and the Chinese government has consistently strengthened its diplomatic and economic relationships with African states since the 1950s. In recent years, China has significantly increased its presence and expanded its economic activities in Africa.' The scope and scale of China's involvement in this resourcerich continent is unprecedented.2 In October 2000, China and Africa launched the Forum on ChinaAfrica Cooperation (FOCAC) to promote friendship and cooperation between China and African states on a broad range of areas.3 Furthermore, since 2000, China's trade with Africa has grown at a staggering rate, gradually rendering it a principal investor in Africa.4 For example, bilateral trade between China and Africa grew from $10.6 billion in 20005 to $198.49 billion in 2012.6 Chinese investment in Africa during the same period increased from tens of millions of U.S. dollars7 to over $2.52 billion.8 China-Africa relationships have developed so fast that '[b]y the end of 2012, China had signed 1). trade agreements with 45 African countries; 2). investment promotion and protection bilateral agreements with 32 African countries; and 3). bilateral double taxation avoidance agreements with 10 African countries.