Sunday, November 12, 2017

China-Africa: Will the Marriage of Convenience Last?

Coface Economic Publications, a French company, published in November 2017 a study titled "China-Africa: Will the Marriage of Convenience Last?" by Carlos Casanova and Ruben Nizard.

The authors conclude that the nature of China-Africa relations remains unbalanced. The continent as a whole maintains a trade deficit with China, while export dependency levels have increased, especially for oil and metals. In spite of this trend, the latest developments present the possibility that the China-Africa relationship may be able to go from being a failed marriage of convenience to a win-win partnership based on mutual trust. However, African governments need to be wary of becoming overly dependent on Chinese financing, as they could risk becoming vulnerable to shifts in Chinese policies as well as demand.