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.
China and Africa: The Next Decade (Keynote address on 1 February 2013 during a conference on China in Africa at the University of Denver in Denver, Colorado)
China's Engagement in Africa (chapter in the CSIS Africa Program report: Africa Policy in the George W. Bush Years: Recommendations for the Obama Administration, January 2009)
Challenges Facing Somalia (House Subcommittee on Africa, Global Health, and Human Rights and the Subcommittee on Terrorism, Nonproliferation and Trade, July 7, 2011)
Ethiopian Armed Groups (The Future of Armed Groups in Africa, conference hosted by State Department’s Bureau of Intelligence and Research and U.S. Africa Command, Germany, Nov. 13-14, 2009)
Remarks on the Horn of Africa (Conference hosted by the Center for Strategic and International Studies and the American Academy of Diplomacy, Oct. 29, 2009, Washington, D.C.)
Dear Ambassador,
ReplyDeleteThank 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