Thursday, November 1, 2012

China's Investments in Africa

The China-US Focus website asked me to write a short piece on China's investments in Africa. It appeared on 1 November 2012.

Click here to read my take on this important issue.

1 comment:

  1. Dear Ambassador,

    Thank you for your enlightening article on the confusion as to what constitutes Chinese investment in Africa.

    You mention four reasons for the discrepancy between FDI statistics namely: confusion with loans; it is not clear how "China" defines FDI; statistics from MOFCOM are based on reported FDI only; and funneled FDI through tax shelters like Hong Kong (the main destination of Chinese FDI according to MOFCOM).

    However, later in the article you state that the bulk of "China's FDI" has been concentrated in Nigeria, South Africa, Sudan, Algeria and Zambia in the period 2003-2007. On what data is this statement based and what definition of FDI is used?

    I am asking because I conducted research in Algeria in the beginning of this year on Chinese FDI and Algerian government officials stated that Algeria does NOT receive ANY Chinese FDI. There are indeed Chinese companies involved in infrastructure projects for example; however, the Algerian government is paying. In other words, if we ask the Ministeries of FDI host countries, the number of Chinese OFDI will be different again.

    Kind regards,
    Sanne van der Lugt