Appendix

Tables

Table 1: Summary of China's economic engagements in the world and in Africa under four categories

Note: 2010-2014 total (billion $US)

Table 2: Cross-Country Studies on Chinese Investment in Africa

Author, DateResearch QuestionMeasure of InvestmentData DescriptionMain Result(s)
Kaplinsky, 2008What does the rise of Chinese exports mean for African industry?TradeUNCTAD, Comtrade and various secondary sourcesAfrican firms are getting squeezed out of export markets due to rising Asian competition and the governance structure of global value chains is changing.
Kaplinsky and Morris, 2009What are the characteristics of large state-owned Chinese FDI in SSA?State-owned FDIAERC scoping studies, 2005 UNIDO survey, other smaller case studiesChinese state-owned FDI is integrated with Chinese government strategy, long-term oriented and bundled with aid, especially in natural resource countries.
Brautigam, 2011How much of China's finance to Africa qualifies as official development assistance?Aid, concessional and non-concessional loansChinese foreign aid data, key interviews, review of official policiesMuch of China's officially-supported financing to Africa does not meet the OECD criteria for foreign aid.
Kolstand and Wiig, 2011What are the motives behind China's OFDI in Africa?Outward FDIUNCTAD (2003-2006)The dominant motive for Chinese FDI in Africa is access to natural resources, particularly in poorly governed countries, but that is not different from other countries' engagement.
Cheung et al., 2012What are the determinants of Chinese FDI in Africa?Outward FDIMOFCOM OFDI flowChinese ODI correlates to market size and real GDP growth, trade and project ties with China, corruption and low law and order and presence of natural resources.
Ramasamy et al., 2012What are the determinants of FDI location by Chinese public and private countriesPublic and private FDIAnnual reports of top firms listed on Shanghai and Shenzhen exchangesState-owned enterprises affiliated with local governments invest more in less stable countries while central and especially private firms rather tend to be market seekers.
Zhang et al., 2013What are the determinants of private Chinese FDI in Africa?Private FDIMOFCOM OFDI flowPrivate FDI is market seeking and tends to concentrate in manufacturing and agriculture
Kholsa, 2015Does Chinese involvement in Africa reduce intra-regional trade?FDIFDI is not directly included in the estimate, trade data from ComtradeTrade relations with China reduce trade with other African countries though the effect has been much lower since 2000, possibly due to infrastructural investment/FDI.
Shen, 2015What are the trends of Chinese private FDI in Africa?Private FDIMOFCOM OFDI flowAbundance of skilled employment and natural resources are the main determinants of the sector of Chinese investments in a given country
Chen, Dollar and Tang, 2016What are the determinants of Chinese FDI in Africa?Firm-level FDI dataMOFCOM OFDI flowAbundance of skilled employment and natural resources are the main determinants of the sectors of Chinese investments in a given country.
Sindzingre, 2016What are the patterns of convergence between Chinese and Western involvement in Africa?Trade, FDI, aidUNCTADThere are increasingly convergent patterns of trade and investment with Africa between China and Western countries, in terms of primary commodity trade and related sectors of investment.

Note: UNCTAD and MOFCOM OFDI flow are the same since UNCTAD's source is the MOFCOM OFDI flow data.

Table 3: Country Studies on Chinese Investment in Africa

Author, DateCountryResearch QuestionMeasure of InvestmentData DescriptionMain Result(s)
Econometric studies     
Edwards and Jenkins, 2015South AfricaIs China crowding out South African exports of manufactures?Manufacturing exportsComtradeSouth Africa has lost market share to China in its major export markets. Nonetheless, the crowding out is relative as South African manufacturing exports grew rapidly between 2001 and 2010.
Edwards and Jenkins, 2015South AfricaThe Impact of Chinese Import Penetration on the South African Manufacturing SectorManufacturing productionStatistics South Africa Production Data ComtradeEmployment in labor intensive manufacturing was negatively impacted by Chinese manufacturing imports. Price inflation was reduced by these imports.
Ross, 2015.NGA, ZAF, ZAM, GHA, KEN, ALG, EGY, SDNWhat are the determinants of Chinese OFDI in African countries?FDIUNCTAADFDI is driven by access to natural resources, infrastructural quality and regulatory environment
Seyoum and Lin, 2015EthiopiaWhat determines Chinese FDI in Ethiopia and its location factors?FDI2012 World Bank survey of Chinese investorsChinese FDI is determined by firm-specific advantages (i.e. technology and lower costs) and market access.
Case studies     
Gu, 2009Ghana, Nigeria, MadagascarWhat does Chinese private FDI look like in Africa?Private FDIPrimary data collection from firmsDominated by SMEs, mostly in manufacturing.
Haglund, 2009ZambiaDoes Chinese state owned FDI promote short- or long-term interests?SOEPrimary data from mining industry and stakeholdersThe nature of investments in the mining sector make them focused on short-term profits rather than long-term sustainability.
Tang, 2010DRG & AngolaWhat is the impact of Chinese FDI on local employment?FDIField ResearchA lot of unskilled labor has been localized but less so skilled labor. Increased localization among older enterprises.
Oyeranti, Babatunde and Ogunkola, 2011NigeriaWhat is the economic relationship between China and Nigeria in terms of FDI?FDINigerian Investment Promotion Commission, qualitative survey, key informant interviewsFDI is concentrated in a few sectors of strategic interest to China, largely extraction. Much is carried out by SOEs or JVs.
Corkin, 2012AngolaWhat are the sourcing behaviors and local linkages of Chinese large construction projects in Africa?Construction projects (not necessarily FDI)Qualitative interviews in Angola and ChinaVery little integration of Angolan labor and materials into Chinese consutrction, amid weak enforcement of government requirements
Auffray and Fu, 2014GhanaAre there managerial knowledge spillovers from FDI?Construction FDI31 interviews in AccraFew Chinese construction companies have integrated Ghanaians into their management structures.
Kernan and Lam, 2014GhanaWhat is the role of Chinese state in SOE FDIs?Construction FDIField interviews in GhanaLocalization is driven by profit maximization and competition and follows patterns by Western companies
Tang, 2014COMESAWhat is the impact of Asian countries on African textile industries?TextileField interviewsAsian textiles have outcompeted African textile companies but there is potential for flying geese to relocate production to Africa.
Barton, 2015ZambiaWhat if any influence does the Chinese State have on terms of FDI in Zambia?SEZsPrimary archival data, elite interviewsFinds that literature speculates on non-evident coercive investment practices and that investment arrangements are "calculated, consensual and symbiotic"
Chen et al., 2015NigeriaIs there larning and technology transfer from Chinese manufacturing FDI in Nigeria?Manufacturing FDIField interviews with Nigerian and Chinese firms in NigeriaEvidence of limited but significant technology transfers, limited evidence of perceptions that Chinese firms don't hire local labor
Karkkainen, 2015ZimbabweIs Chinese engagement with Zimbabwe part of China's geoeconomic strategy? Secondary sources only

Suggests that China's securing of resource backing for loans is part of its global geoeconomic strategy.

Brautigam, Weis and Tang, 2016EthiopiaWhat have been the effects of Ethiopia's industrial policy on its leather sectorChinese FDI in leather sectorSemi-structured interviewsThe policy framework centered around attracting Chinese investment has yet to translate latent comparative advantage into a full one due to policies, supply of hides, low scale and infrastructure.
Brautigam, Tang and Xia, 2017Ethiopia, Ghana, Nigeria, TanzaniaWhat does Chinese manufacturing investment look like on the ground in these countries?Manufacturing FDIIn-depth interviewsChinese investment is largely local-market seeking with some exporting; high local employment but few linkages and little tech transfer.
Tang (forthcoming)TanzaniaMapping the overall state of Chinese investments in Tanzania's manufacturing sectorManufacturing FDI21 in-depth interviewsChinese manufacturing investments are in various subsectors, Chinese firms are somewhat clustered, there is technology transfer in terms of machinery and local management, varying use of local raw material.
Xia (forthcoming)KenyaWhy are Chinese companies investing in Kenya, what are they investing in and what are their impacts?Ag. & Mfg. FDIKenInvest, field interviewsConstruction FDI has flocked to Kenya partly due to increasing Chinese contracted projects, domestic and AGOA market access for mfg., ag. Investment is relatively new and local linkages are growing.

 

Figures

Figure 1: Mention of Chinese Investment in Africa in Major News Outlets 2000-2016

Source: Authors' calculations using LexisNexis. Note: Number of mentions is equal to the number of newspaper and related articles in the LexisNexis database for the given year that mention China AND Investment AND Africa.

Figure 2: African Countries' Growth Performance - GDP Annual Growth Rate in 2000-2015 (Percentage)

Source: WDI (World Bank 2017)

Figure 3: China's Total Exports and Imports and Shares in World Trade

Source: UN COMTRADE (2017)

Figure 4a: China's Trade with Africa - Exports

Figure 4b: China's Trade with Africa - Imports

Source: UN COMTRADE (2017)

Figure 5a: China's FDI to Africa and the Rest of World - Flows

Figure 5b: China's FDI to Africa and the Rest of World - Stocks

Source: Authors' calculations using data from Table of "China's Outward FDI Flows by Country and Region" in China Commerce Yearbook (various years) published by Ministry of Commerce (MOFCOM) - click here. The data is same as from China Statistical Yearbook: "Oversea Direct Investment by Countries or Regions" - click here; and UNCTAD Bilateral FDI Statistics - click here.

Figure 6a: China's FDI in Africa, Total Africa, Large Recipient Countries and the Rest of Africa - Flows

Figure 6b: China's FDI in Africa, Total Africa, Large Recipient Countries and the Rest of Africa - Stock

Source: Authors' calculations using data from Table of "China's Outward FDI Flows by Country and Region" in China Commerce Yearbook (various years) published by Ministry of Commerce (MOFCOM) - click here. The data is same as from China Statistical Yearbook: "Oversea Direct Investment by Countries or Regions" - click here; and UNCTAD Bilateral FDI Statistics - click here.

Figure 7a: China's Total FDI Flow by Sector Structure in 2004-2015 (Percentage)

Figure 7b: China's Total FDI Stock by Sector Structure in 2004-2015 (Percentage)

Source: National Bureau of Statistics of China (2017) - click here.

Figure 8: Top Five Sectors in China's FDI Stocks in Africa (Billion $US)

Source: Statistical Communique on China's Foreign Direct Investment (MOFCOM 2017) - click here. Note: The data is for whole Africa, including North Africa, as the data cannot be separated for SSA countries.

Figure 9: Structure of China FDI Stocks in Each Region in 2015 (Percentage)

Source: Authors' calculations using data from Statistical Bulletin of China's Outward Foreign Direct Investment 2013-2015 downloaded from the website of the National Bureau of Statistics of China (2017b) - click here. Note: The sector level of FDI stock data is available only for top five sectors in each region. The missing bar for a particular sector in a particular region implies that this sector does not belong to the top five for this region. However, it does not imply that China did not have FDI for this sector in this region. For each region, the sum of reported sectors in the figure is around 70-80 percent of Chinese FDI stock in this region. We do not have FDI flow data similar as in this figure. It should be expected that structures of FDI flows have changed more rapidly than the stocks.

Figure 10: Value of Turnover Fulfilled Contracted Projects in Africa and Share in China's Total

Source: Authors' calculations using data from Table of "China's International Contracted Projects and Labor Service Cooperation in 2015 by Host Country/Region" in China Commerce Yearbook (various years), published by Ministry of Commerce (MOFCOM 2017) - click here. The data can also be accessed at the National Bureau of Statistics of China - click here. Note: China's overseas contracted projects refer to activities of contracting overseas construction projects by Chinese enterprises.

Figure 11: Number of Chinese Workers in Africa by End of Year

Source: Authors' calculations using data from Table of "China's International Contracted Projects and Labor Service Cooperation in 2015 by Host Country/Region" in China Commerce Yearbook (various years), published by Ministry of Commerce (MOFCOM 2017) - click here. The data can also be accessed at the National Bureau of Statistics of China - click here. Note: Chinese workers in Africa refer to two types of workers: (1) Chinese workers going abroad under foreign contracted construction projects implemented by Chinese enterprises, which is red bars in the figure; (2) Workers organized by Chinese firms operating in China to provide services to enterprises or agencies abroad, including but not limited to Chinese firms, which is green bars in the figure. There is no separated data for the two types of workers in 2009 and 2010.

Figure 12a: Africa Total Exports and Share of Exports to China

Figure 12b: Africa Total Imports and Share of Imports from China

Source: UN COMTRADE (2017).

Figure 13a: Total FDI Flows in Africa from China and the Rest of the World and Share of China

Figure 13b: Total FDI Stocks in Africa from China and the Rest of the World and Share of China

Source: UNCTAD (2017) - click here.

Figure 14a: Share of China's FDI in Africa Total inward FDI Flows, Total Africa, Large Recipient Countries and the Rest of Africa (Percentage)

Figure 14b: Share of China's FDI in Africa Total Inward FDI Stocks, Total Africa, Large Recipient Countries and the Rest of Africa (Percentage)

Source: Authors' calculations using data from table of "China's Outward FDI Stocks by Country and Region" in China Commerce Yearbook (various years) published by Ministry of Commerce of the People's Republic of China. Note: The five large FDI recipient countries are DRC, Nigeria, South Africa, Sudan and Zambia.

Figure 15: Growth in GDP versus in Capital Formation, Annual Average in 2000-2015 (Percentage)

Source: Authors' calculations using data from the United Nations Statistics Division (UNSD 2017) - National Accounts, click here. Note: Resource-rich countries are Angola, Chad, DRG, Namibia, Nigeria, Sierra Leone and Zambia.

Figure 16: Equivalent Shares of FDI Flows in Gross Capital Formation for 16 High Growth Countries (Percentage)

Source: Authors' calculations using data from UNSD (2017) for gross capital formation and UNCTAD (2017) for FDI flows.

Figure 17: FDI Inflows in 16 High Growth Countries in 2004-2011 and 2012-2015

Source: Authors' calculations using data from UNCTAD (2017).

Figure 18: Ratios of FDI Flows in 2012-2015 over 2004-2011, Total and from China

Source: Authors' calculations using data from UNCTAD (2017). Note: Ratio=1.0 if the amount of FDI Inflows in 2012-2015 is the same as in 2004-2011

Figure 19: FDI Inflows in 16 High Growth Countries from the World and China, 2012-2015 Aggregation

Source: Authors' calculations using data from UNCTAD (2017).

Figure 20: Equivalent Shares of Construction Value Contracted by Chinese Enterprises in Gross Capital Formation in 16 High Growth African Countries in 2004-2011 and 2012-2015 (Percentage)

Source: Authors' calculations using data from UNSD (2017) for gross capital formation and UNCTAD for FDI flows.