Saturday, November 29, 2025

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.