CHINESE FOREIGN DIRECT INVESTMENT AND OFFICIAL FINANCING IN SUB-SAHARAN AFRICA
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Authors
Touw, Kevin
Subjects
China
foreign direct investment
official financing
ODA
OOF
Export-Import Bank of China
China Development Bank
foreign direct investment
official financing
ODA
OOF
Export-Import Bank of China
China Development Bank
Advisors
Glosny, Michael A.
Date of Issue
2020-03
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
Chinese foreign investment and official financing significantly increased following the announcement of the zouchuqu, or “go global” policy, in 1999. China’s emergence as an international investor, lender, and benefactor—especially in the developing world—has led to concerns that its activities threaten the existing international order. This thesis seeks to determine the factors that drove Chinese foreign direct investment (FDI) and official financing in Sub-Saharan Africa by examining the region as a whole, as well as individual case studies of Angola and Senegal.
Overall, the research concludes that China’s activity in Sub-Saharan Africa was primarily driven by a desire to expand economic opportunities for Chinese firms. Across the region, Chinese funds went toward expanding export markets to ease Chinese excess capacity concerns and securing new sources of natural resources. A limited portion of Chinese FDI and official financing was driven by foreign policy goals, most notably persuading six African countries to switch diplomatic ties from Taipei to Beijing. The Angola case study demonstrates that African countries that offered substantial economic opportunity for Chinese firms attracted significant levels of Chinese investment and financing. The Senegal case study shows how African countries with limited economic prospects for Chinese firms received relatively little of either, even if they offered China a potential foreign policy win.
Type
Thesis
Description
Series/Report No
Department
National Security Affairs (NSA)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.