China-Africa Direct Investment and Cooperation

　　Yao Guimei

　　Abstract

　　Since the beginning of the 21st century, African countries have made remarkable achievements in improving the investment environment and become the hot spot of investment in the world. The direct investment of China in Africa, which has been expanding rapidly and has covered more and more fields and countries, is playing an active role in the economic transformation and social progress of the African countries. However, studies show that direct investment of China in Africa is the weak point within the framework of China-Africa economic and trade ties, whose total volume is obviously lower than that of the bilateral trade and project contracting, which would lead to an obvious imbalance to the detriment of the sustainable development of China-Africa economic and trade relations. Therefore, it is necessary to expand direct investment of China in Africa so as to assure a balanced development of China-Africa economic and trade cooperation as well as a higher level of transformation and upgrading which would lead to a “community of a shared future” between China and Africa upon the basis of a reciprocal international cooperation.

　　Focusing on the theme of expanding direct investment of China in Africa, this research report will come with strategic, forward-looking and operable recommendations. The report points out that to expand direct investment of China in Africa, there are both opportunities and challenges from various fields and levels. In order to properly manage the opportunities and challenges, the Chinese government, enterprises, financial and other related institutions are obliged to make an integrated effort, carrying out a precise layout in key countries and key industries, innovating the mode of investment and financing, and supporting the development of private enterprises, so as to promote and assist the development of these countries by expanding China’s direct investment in Africa. Meanwhile, it is necessary to attach great importance to the soft-power building regarding legal, financial, tax, talent reserve, cultural and other affairs in the process of expanding China’s direct investment in Africa. Furthermore, risks from politics, security, capital, nationalization, and international competition ought to be properly dealt with in order to safeguard the expansion of China’s direct investment in Africa.

　　Key Words

　　Direct Investment of China in Africa, Mode, Industrial Layout, Leading Role, Recommendations