... • Weakness of economy • Academic and Scientific Misconduct in China • Regulation of gas prices • Corruption in developing country • Country is creating political risk • Air pollution China Strengths: • Stable infrastructure • Chinese influence in Africa • Natural resources • Polluted water supply INTRODUCTION Although there are many points outlined within the TOWS. There are only several, which are most apparent, and significant that will be discussed. A few competitive advantages a Multinational Corporation will benefit from would be some of China’s strengths, which are; infrastructure and telecommunication, and it’s influence on Africa. Some issues a Multinational Corporation may run into would be among the labor force. There are many solutions that China is already headed toward in response to the main issue of human labor. Most of which will benefit a potential Multinational Corporation and China’s economy. COMPETITIVE ADVANTAGE The major advantage China has over its competitors is a high standard and stability of infrastructure; which includes the improvement of their telecommunication services, and their relationship with Africa. Having a stable quality infrastructure enables a constant increase in productivity, and facilitates efficiency in the transportation of raw materials into the...
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...Chinese Immigration in Africa To talk about Chinese immigration in Africa we have to present first the ties that link China with the continent. Modern political and economic relations began in the era of Mao Zedong, the first leader of the Chinese Communist Party, following the Chinese Civil War. His Chinese international policy paved the way to both modern Chinese-African relations and immigration trends. In 1956 China signed the first official bilateral agreement with African countries (Egypt, Algeria, Morocco, Sudan, and Guinea); it focused primarily on trade relations. By the 1960s, 19 African countries had official ties to Beijing. To help cement new diplomatic relations, Mao sent a number of Chinese to the continent in the 1960s, as well as 150,000 technicians between the 1950s and 1970s, to work in agriculture, technology, and infrastructure. Most returned to China after completing their contracts. Those were not the first wave of immigrants coming from China to Africa. For that we have to go way back in the 17th century. The first Chinese immigration took place in South Africa. They were prisoners, usually debtors, exiled from Batavia by the Dutch to their then newly founded colony at Cape Town in 1660. From that time until the late 19th century the number of Chinese people in the Cape Colony never exceeded 100. Chinese people began arriving in large numbers in South Africa in the 1870s through to the early 20th century initially in hopes of making their fortune on the...
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...Chinese companies are winning over European multinationals in Africa - Why have Chinese companies found the emerging markets of Africa less risky and a more attractive proposition than western multinationals? - MSc BD7 Ping SUI Introduction: As an important global player and the main drive for economical growth, China’s massive investment in Africa has drawn the world’s attention. People can see European multinationals everywhere in Africa in the 80s, while now Chinese companies seem to take over the leading role. For example, in Angola, China helped to build the Angola Benguela railway, which is the longest railway Angola has had so far; in Nigeria, Chinese Telecom companies “Huawei” has a dominating presence both in fixed and wireless services by taking more than 90% of the market share. Not only can you find commodities made in China everywhere, but Chinese companies now build the infrastructures in many African countries too. On the contrary, the presence of European multinationals is not as strong as the Chinese ones: the amount of the funds flowing from Europe to Africa has decreased from 70% to 17% since the 70s; Western Europe’s share of overall international trade with Africa has decreased from 51% to 28%, while China has taken the place and become the biggest trading partner Africa has by surpassing America in 2009. Why are European MNCs less and less preset in Africa? What are the difficulties they have encountered? Do Chinese companies have same barriers...
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...October 2011 China And Africa. Zambia - China: Trade, Politics, and Development. Scope : In little over three decades, the Bilateral relationship between Zambia and the Peoples Republic of China has been cemented with a stronghold foundation, but then again, as interests have been reciprocated allying both over time, politics and economic imbalance has caused trade and development to be somewhat controversial in their Relationship. This paper will also look at the historical and contemporary ties between the two economies. In the Late 1960’s, shortly after Zambia’s Independence, China constructed a 2000km railway linking Zambia to Tanzania, in order to provide an alternate route to seaport trade for Zambia. This gesture, showed China’s interest in building ties with the Southern African State, and it also showed, that China could be a dependable ally of the Zambia. Zambia in turn also reciprocated, supporting the One China policy and also co- sponsoring China’s bid in the UN Security Council. Since then, both states have become affiliates with the sole purpose of steadfast development through trade and aid. After time and effort have been put into building political ties, investments made among allied states tend to incline economic gains and this gives birth to a new type of partnership among states. Chinese Investments in the Zambia can be dated back to the period of Zambia’s Post-independence, this was...
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...BEIJING FOREIGN POLICY IN WEST AFRICA (Yang Jiechi Policy) Foreign Policy Article: Published by Kingsley C. Onyenankeya December 5, 2011 SUNY EMPIRE STATE Kingsley: Beijing Foreign policy in West Africa 1 Contents Executive Summary Concept and Assumptions Methods of Argumentation Theoretical and Policy Prescriptions Conclusion References Kingsley: Beijing Foreign policy in West Africa 2 Executive Summary China's increase involvement in West Africa over the past decade is one of the most significant recent developments in the region. It appears to redirect the idea of marginalization of West Africa and Africa as a continent, which brings significant political consequences. Beijing's West Africa interest is part of a recently...
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...superpower, has catalyzed her desire to engage Africa in her Foreign Policy. This has heightened the Chinese desire to geo- strategic reach into Africa as a going global strategy this has been the plan as far back in the 1978 eras of Mao Zedong. China’s objective in the new phase of assertiveness is to maintain strong economic ties in Africa, unlike the previous objective of building a coalition of sharing common goals with Africa as ‘Third World’. This geo-economic factor is influenced by the desire for resources to fuel its economic growth and gain energy security. China in strengthening her diplomatic and political ties sees Africa not just as ally to bid for influence and power, but as a source for natural resources . China has established Confucius Institutes (state-funded Chinese Cultural Centers) that have sprung up throughout Africa, teaching local people the culture and traditions. One wonders if China is positioning itself for taking over supremacy and advancing her Soft Policy in Africa. It is perhaps important to see our languages and cultures going out there too. The China- Africa Cooperation which was aimed at strengthening China’s diplomatic and political ties stared in post colonial Africa. The African plight of political freedom from their colonies, referred to as aggressors according to the Chinese and their desire to have a say in the international arena has given the Chinese a reason to defend their being in Africa. The analysis of the Beijing Consensus...
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...GLOBAL BUSINESS OPERATIONS Chinese investments in Africa Why have Chinese companies found the emerging markets of Africa less risky and a more attractive proposition than western multinationals? Mohammed Hayath Nisar Ahmed MIB 35 – Group B Grenoble Graduate School of Business P a g e | 1 The distinct existence of Chinese multina‐ tional corporations on the global stage is al‐ tering the landscape of international busi‐ ness and politics. Western organizations, once with virtually undisputed command over the financial resources and requisite political ties to dominate global business, are now being challenged by a host of emerging country corporations with China being at the lead. Extremely competitive and strongly backed by the state, Chinese multinational corporations are on an acqui‐ sition spree that is bagging key resources and market share across the developing world. In many respects it is Africa, a conti‐ nent rich in natural resources and under‐ex‐ ploited markets that has only limited histor‐ ical ties to China, which is serving as an at‐ testing ground for the new Chinese multina‐ tional corporation. China’s investments in Africa have become ever more diversified in recent years. While oil and mining remain an important focus, Chinese foreign direct investment (FDI) has flooded into everything from shoe manufac‐ turing to food processing. Chinese firms have also made major investments in Afri‐ can infrastructure, targeting key sectors ...
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...China in Africa Christopher Ransom On October 24, 2013, Professor Deborah Brautigam, from the School of Advanced International Studies at Johns Hopkins University, spoke on China’s impact in Africa. She began by discussing China’s thirst for resources in the area and how it was evident from her very first visit to Liberia in 1983. Professor Brautigam has written two books on the subject: Chinese aid and African Development and The Dragon’s Gift, so she seems to be a very reliable source of information. Initially one would think that the involvement is very big with twenty-five big dams built by Chinese funding, but a closer look shows that only five of the twenty-five were actually relevant operations of the Chinese. With that said, she did say that the engagement with Africa does present a very difficult situation with the tree and ivory demand of China. The high demand of both these goods makes for a very unhealthy and dangerous situation to the environment of Africa. Professor Brautigam then spoke on the partnership of China and Sudan and the deadliness of this. China is the largest supplier of guns to Africa. It goes without saying that this is not a good thing and results in a very dangerous atmosphere. Even with all of the downsides to the partnership of China and Africa Professor Brautigam did want to strip away all of the myths of the relationship. To begin she discussed how long they have been there, which has been since about the 1950s and has really ramped...
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...countries tackle the outside world, to maximize their national gain in all the fields of activity including trade, investment and other forms of economically beneficial exchanges, where they enjoy comparative advantage.; it has bilateral, regional and multilateral dimensions, each of which is important”.[1] China has emphatically registered its presence on the African economic and political landscape in the last decade. Among other things, the volume of trade between China and Africa has risen steadily from USD 10 billion a year in 2000 to over USD 40 billion in 2005, and is projected to cross USD 100 billion by 2010. To celebrate and cement these growing ties, thirty five heads of state from Africa assembled in Beijing at the invitation of the Chinese president Hu Jintao for the inaugural China-Africa Summit (referred to as the Summit henceforth) in November 2006. More than 2000 trade deals were signed in Beijing as China promised USD 5 billion in aid and credit to African countries in the next few years, and vowed to train thousands of its young men and women.[2] Zambia is a land-locked country in Southern Africa with a population of 13 460 305. Zambia’s natural resources include copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium and hydropower. Zambia's economy has experienced strong growth in recent years, with real GDP growth in 2005-08 about 6 per cent per year. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country...
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...Menzies a British historian claims that the Chinese Admiral zheng set up colonies and sailed round South America before Columbus . According to mail online “Menzies used evidence of a copy of a 600 year old map found in a second-hand book shop is the key to prove that the Chinese, not Christopher Columbus, were the first to discover the New World.” This purported evidence that a Chinese sailor mapped the Western Hemisphere more than seven decades before Columbus is just one of Earth-shattering claims that author Gavin Menzies made in his book ‘Who Discovered America?’.However Menzies agrees with Sertima that Columbus did not discover the Americas as he expressed The traditional story of Columbus discovering the New World is absolute fantasy, it’s fairy tales,’ Mr Menzies told MailOnline. However Menzies theories are not accepted by the mainstream academic community as he has no formal training as a historian and no advanced degree from a major university...
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...L-T Benefits for Africa, with some opposing views, and recommended policies at the end. I did not include the footnotes yet as we have to agree on a format first. Let me know what you think. Thanks. Viewed from a short-term perspective, it is quite clear that Chinese FDI in Africa is more beneficial for China than Africa. However, as Africa slowly familiarizes itself to the increased participation of China in its economy, the long-term potential of Chinese FDI for Africa is much more apparent. The benefits are significant, and are more likely to be attained when Africa has fully adapted to China’s involvement in its economy. First of all, Chinese FDI is considered an essential source of capital formation, especially for the less developed economies of the African countries. Large capital inflows from China would not only stimulate Africa’s economy, but also increase its wealth by promoting trade as well as opening and expanding market opportunities. China, in particular, is reputed to save its income to a greater extent than other countries[1], implying that a large amount of this surplus of income is being spent on its investments in Africa to further strengthen Africa’s economy. In fact, Africa’s economy grew by 5.8% in 2007, and this dramatic increase is to be partially attributed to Chinese investment[2]. Moreover, Chinese knowledge and expertise are expected to be passed on to the local African firms in the form of transfer of technologies[3]. Further analysis...
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...Economic and Trade Relationship Between China and Africa Since the founding of the People’s Republic of China, China and Africa have developed a long-standing friendship. This is evidenced by the cooperation in political, economic, and cultural areas. They have created a new type of strategic partnership based on political equality and mutual trust, economic cooperation and cultural exchanges. China has demonstrated respect for African countries by actively encouraging cooperation and providing aid between Chinese and African businesses. With china being the largest developing country and Africa being the continent with the most number of developing countries, their trade and economic relations have not only played a significant role in promoting their respective progress, but has also helped to win the attention and support of the international community to Africa's development. Currently, China is one of Africa’s most important trade partners. In this essay, I will endorse the understanding of China and Africa’s relationship. When the founding of the People’s Republic of China occurred in 1949, it also marked the initiation of China-Africa trade and economic relations. While African countries fought for national liberation and China worked to safeguard its own sovereignty and territorial integrity, they both supported one another by friendship and mutual trust. They laid a good political foundation for their future growth of trade and economic relationship...
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...China’s Relations with Africa and West Name Name of Institution Tutor Date China’s Relations with Africa and West Introduction The international relations between China and countries of the West and Africa have enjoyed a long standing relationship though at different levels. Since the emergence of the People’s Republic of China, China-West and China-Africa relations have advanced continuously, as shall be demonstrated herein by the deepening relations in economic, political and cultural realms. These relations have created a new form of strategic partnerships founded on political equality, economic win-win relations, mutual trust and social-cultural exchanges. Over the last 60 years or so, China-West and China-Africa co-operations, have been based on the principles of equality, sincerity, mutual benefit and international relations development. Particularly, in Africa the co-operations have demonstrated reverence to the will of African countries, deepened relations between African and Chinese businesses and indicated a higher level of sincerity in helping African countries in their development agendas. However, this may not be the case with co-operations between China and the West due to different interest between the two entities, apparently, different from those that are experienced in Africa. Notwithstanding these different interests, a common feature on trade and economic relations have reached remarkable results and the overall effect has enabled growth in business...
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...Foreign direct investment in least developed countries (LCD’S): Some 850 million people, or 12 per cent of the world’s population, live in the 48 least developed countries (LDCs). These countries are the world’s poorest, with per capita GDP under $1,086,and with low levels of capital, human assets, exports and technological development. The Programme of Action of the Least Developed Countries for the Decade 2001-2010 adopted at the Third United Nations Conference of the Least Developed Countries in 2001 in Brussels stated that foreign direct investment (FDI) was an important source of capital formation, know-how, employment generation and trade opportunities for LDCs and called for accelerating FDI inflows into these countries. Since 2001, both LDC governments and their development partners have indeed pursued proactive FDI promotion policies. Although there was an abrupt interruption of the secular trend in 2009, FDI flows to LDCs grew at an annual rate of 15 per cent during 2001-2010 as a whole to reach an estimated $24 billion by 2010, compared with $7.1 billion in 2001, and their share in global FDI flows rose from 0.9 per cent to over 2 per cent. The Brussels Declaration contained 30 international development goals for LDCs, including the attainment of an investment to GDP ratio of 25 per cent and an annual GDP growth rate of at least 7 per cent in order to achieve sustainable development and poverty reduction in LDCs. The Brussels goal of 7 per cent growth is being...
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...INTRODUCTION The historical relationship with African countries is fundamentally different for traditional and new donors, or Western donors and China. In contrast to Western donors, China never had a presence as a colonizer in Africa. To the contrary, China played the role of a supporter in the struggle for independence of African countries. This is highlighted by a lot of Africans, particularly in response to Western criticism of China. Some Africans feel that the reactions from the West arise because Westerners fear competition from China. Consequently Western objections to China’s way of dealing with Africa, is not perceived as a result of concern for African countries, but a protection of Western political and economic interests on the African continent. The Chinese emphasize that their engagement with Africa is in fact South-South cooperation, and that it should be beneficial to both China and Africa. Rather than emphasizing its role as a donor to African countries, China considers its engagement to be a mutual benefit, leading to win-win results. Chinese aid is mainly invested in infrastructure such as roads, railways, buildings, monuments etc. This is generally very welcomed in African countries where infrastructure is often seriously underdeveloped. Many of the infrastructure projects are implemented to facilitate trade. Although all of the countries in cooperation with China are receiving some sort of aid, the size and form of the aid inflows vary. China does not disclose...
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