Economic Relations: China and Africa Trade, Issues: Critics, Supporters and India

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Economic Relations

  • China-Africa Trade: valued at $10 bn in 2000. $107 bn in 2008

  • Over 1600 Chinese companies have investment of operational presence on the African continent.

  • Seven special economic zones have been set up by China in five African countries.

Issues

  • Critics: rise of Chinese neo-colonialism. Its economic policy damages Africa’s development, delays industrialization, ruins local industry and does not transfer technology. It supports dictatorships, corruption and a violation of human rights.

  • Supporters: China largely doesn’t interfere in the internal affairs of the countries. It has contributed to the enhancement of Africa’s importance in world affairs as well as to rise in prices of African commodities and growth of Africa’s GDP.

India

  • Though India has had historically a stronger relation with Africa, in recent years, the gap between India’s and China’s profile in Africa has been widening to India’s disadvantage.

  • India should closely monitor China’s activities in Africa and intensify and broaden its cooperation with African countries selectively.

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