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Exploring the overlooked diversity of Chinese investments in Africa in the pre-BRI era

Author

Listed:
  • Xinming Xia

    (Tsinghua University)

  • Wan-Hsin Liu

    (Kiel Institute for the World Economy; Kiel Centre for Globalization)

Abstract

China's Belt and Road Initiative (BRI) was officially launched in 2015. The expanding BRI-driven investments in Africa have been fiercely criticized particularly from the West, mainly for China's alleged self-interest in seeking and ensuring access to natural resources on site. The focus on the Chinese investments in Africa since BRI is, however, too narrow to evaluate Chinese firms' economic engagement in Africa. It is important to look back on Chinese investments in Africa in the pre-BRI era. Against this background this note fills a literature gap by providing an overview based on analyzing a comprehensive FDI project database provided by China's Ministry of Commerce (MOFCOM) for the period from 2004 to 2014. We find that Chinese investments were actually more diversified in the pre-BRI era – as to investing firms, host countries and targeted industries – than usually perceived by the public. Overlooking the diversity of Chinese investments in Africa may lead to a biased judgement that neglects the relevance of China's private investments and business engagement on site.

Suggested Citation

  • Xinming Xia & Wan-Hsin Liu, 2024. "Exploring the overlooked diversity of Chinese investments in Africa in the pre-BRI era," Economics Bulletin, AccessEcon, vol. 44(3), pages 1132-1146.
    • Handle: RePEc:ebl:ecbull:eb-24-00264
    as

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    References listed on IDEAS

    as
    1. Rian Drogendijk & Katarina Blomkvist, 2013. "Drivers and Motives for Chinese Outward Foreign Direct Investments in Africa," Journal of African Business, Taylor & Francis Journals, vol. 14(2), pages 75-84, August.
    2. repec:eme:jcefts:v:8:y:2015:i:1:p:4-19 is not listed on IDEAS
    3. Hong Song, 2011. "Chinese Private Direct Investment and Overseas Chinese Network in Africa," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(4), pages 109-126, July.
    4. Andrew G. Ross, 2015. "An empirical analysis of Chinese outward foreign direct investment in Africa," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 8(1), pages 4-19, February.
    5. Juan Zhang & William X. Wei & Zuanshi Liu, 2013. "Strategic Entry and Determinants of Chinese Private Enterprises Into Africa," Journal of African Business, Taylor & Francis Journals, vol. 14(2), pages 96-105, August.
    6. Wenjie Chen & David Dollar & Heiwai Tang, 2018. "Why Is China Investing in Africa? Evidence from the Firm Level," The World Bank Economic Review, World Bank, vol. 32(3), pages 610-632.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    foreign direct investment; China; Africa; diversity;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business

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