The European Council on Foreign Relations published on 4 October 2024 an article titled "Value-added and Value Lost: The Macroeconomic Limits of China's Africa Strategy" by Theodore Murphy.
China's manufacturing overcapacity relies on exports to the rest of the world, including Africa, flooding international markets with both low end and high-end Chinese-made goods. As African economies try to increase their low value manufactured products, they must compete with low-cost Chinese products. European economies face a similar problem from China's high-end manufacturing.
The author suggests European and African economic policy makers should counter Chinese overcapacity jointly while creating new areas for Africa-Europe economic cooperation.
