The US Can Outcompete China in Africa

 The American Enterprise Institute published on 26 November 2025 a commentary titled "The U.S. Can Outcompete China in Africa" by Liam Karr and Yale Ford.

AEI argues that American companies have a better track record than Chinese companies on issues such as protecting the environment, worker safety, and labor standards.  US companies are less likely to make some of the mistakes made recently in Africa by Chinese companies.  Consequently, African countries should be attracting more US investment, and US companies should win more construction contracts than Chinese companies.

Comment:  In theory, this is a valid argument, but it overlooks financing advantages often offered by Chinese state banks and state-owned companies, a larger on the ground presence in Africa by important sectors such as Chinese construction and IT companies, a willingness by Chinese companies to take higher risks, a greater willingness by Chinese companies to engage in corrupt practices that are all too common in Africa, fewer governmental incentives available to American companies, and just less interest in Africa by American companies.  There is no indication this situation will change anytime soon.  

China, Cobalt, and the Congo

The UK-based corporate watchdog Rights and Accountability in Development (RAID) published a major report in November 2021 titled "The Road to Ruin? Electric Vehicles and Workers' Rights Abuses at DR Congo's Industrial Cobalt Mines." 

This report exposes dire conditions for many Congolese workers in the industrial mines, often characterized by widespread exploitation and labor rights abuses.  While the companies have a variety of ties to nations around the world, 70 percent of the DRC's mining sector is backed by Chinese investment.  

China-Africa Relations in Wake of FOCAC

The University of Nottingham published on 4 December 2015 a commentary titled "FOCAC: Beyond Trade, Investments and Aid" by Daouda Cisse, University of Alberta.

The author makes a number of useful comments about China's aid architecture in Africa, technology transfer, Chinese living in Africa, environmental protection in Chinese investments, Chinese contract labor, and worker rights. 

Chinese Enterprises Overseas and Sustainable Development

The 151-page 2015 Report on the Sustainable Development of Chinese Enterprises Overseas is available online.  While it covers China's outward direct investment globally, it has useful information dealing specifically with Africa.  It was prepared by the Chinese Academy of International Trade and Economic Cooperation in the Ministry of Commerce, Research Center of the State-owned Assets Supervision and Administration Commission of the State Council, and the United Nations Development Programme in China.

As of the end of June 2015, China's cumulative, non-financial, outward direct investment stock (ODI) in Africa totaled $27 billion, according to official Chinese data.  This constituted only 3.7 percent of China's global ODI stock.  ODI in Africa was concentrated in construction (25 percent), mining/oil (25 percent), financial services (16 percent), and manufacturing (14 percent). 

Africa ranked second after Asia in terms of the value of signed and completed contracts won by Chinese companies.  The cumulative value of signed contracts in Africa at the end of 2014 was $472 billion and completed contracts $310 billion. 

The top three major risks confronting Chinese companies operating in Africa were the political and regulatory environment, labor issues, and employee security. 

Chinese Investment in Zimbabwe Diamonds and Impact on Labor

The University of the Witwatersrand Global Labour Column published in May 2015 a report titled "Chinese Investments, Marange Diamonds and 'Militarized Capitalism' in Zimbabwe" by Crispen Chinguno, Taurai Mereki, and Nunurayi Mutyanda, all at University of Witwatersrand.

The report examines the experience of workers at the Marange diamond fields in Zimbabwe.  Key management of the companies is drawn primarily from serving or retired Chinese and Zimbabwean military personnel. 

Safety Issues at Chinese Copper Mines in Zambia

Human Rights Watch (HRW) issued a report on 20 February 2013 titled "Zambia: Safety Gaps Threaten Copper Miners."  It is a follow up to a longer report issued in November 2011 that charged China Non-Ferrous Metal Mining Corporation with human rights abuses at its Zambian subsidiaries.

Writing for Pambazuka News on 7 March 2012, Barry Sautman, who teaches at Hong Kong University of Science and Technology, and Yan  Hairong, who is at Hong Kong Polytechnic University, respond to the HRW report in a piece titled "A Response to Human Rights Watch's Update on Chinese Copper Mining in Zambia."

The follow up report concluded there has not been significant progress in resolving the mine safety problems. Click here for a translation of the HRW report in Chinese.