Question

what are the challenges facing China in the investment in Africa?

Answer 1

China has largely invested in African countries and both of them are reaping benefits from these agreements but China is facing a lot of challenges too. Following are some of them:

• Competition with Western power

The Western power (American and European Nations) is onlooking China’s increasing interest and presence in Africa. They criticize China’s Africa policies while infusing their own strategies of competition with China’s influence in the region. Their main strategy is to persuade China to comply with their doctrine of “good governance” and “better transparency” in African region to constrain China’s benefits.

• Repairing damaged reputation

Many NGOs have characterized Chinese involvement with Sudan and Zimbabwe as corrupt and abusive. Thus China’s international reputation has been spoilt. The Western media is trying to imply that China’s sole interest is to exploit oil and natural resources in Africa. This has threatened China - Africa policy. How Africans react to China’s presence in the region, is of less importance as compared to how international community perceives China’s role in Africa. This will eventually affect China’s long-term success in the African continent.

• Internal Competition

​​​​​​​As China's trade relations with Africa strengthen, the competition between domestic and Chinese enterprises will intensify. This will lead to political unrest amongst the masses consequently affecting Chinese firms.