China can probably be perceived as a great example if you look at how China reasons and evaluate their own industrial development and employment in the process of assistance and aid. China's aid policy towards Africa is interesting in this context.
Assistance is often offered as part of a package solution, which projects primarily in infrastructure development are offered in exchange for China's access to African natural resources.
Half of the Chinese aid is tied, which means that aid projects at least to 50 percent must be carried out by Chinese companies and with Chinese machinery, and there are no exceptions.
China's growing trade with Africa has positive effects in many countries, export revenues are increasing and cheap imports from China offers new options for African consumers. At the same time, major ventures in the infrastructure leads to that African economies have better access to other markets, both in Africa and the rest of the world.
Major Chinese investments are a welcomed addition to many African countries' economies.
The report indicates that the African countries' commodity export dependence, which is seen as a major concern for many African governments, is strengthened by China's growing engagement in Africa.
Chinese imports mainly consist of traditional African export commodities such as oil, gas and various metals. More manufactured goods and many agricultural products are still imposed by the high tariffs in China. It impedes the development of African economies towards more industry-based and diversified exports.
But the Chinese government continues to encourage Chinese companies to invest in Africa and this implies that there is a long-term approach to its engagement. There are many indications now that the Chinese companies "take this opportunity" and further strengthens their positions as the many Western investors withdraw from the various African projects.
In this way, the crisis means that China's influence on Africa will be even stronger.
Cecilia Helland
Source
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