Contours of China's "Africa Mode" and Who May Benefit

Abstract

China’s engagement with Africa intensified simultaneously in the four dimensions of trade, investment, aid, and immigration. Cross-dimensional complementarity as much as the geographical and sectoral spread distinguish the Chinese progression from most Western approaches. Who benefits from China in Africa is nevertheless still unclear in terms of aggregate welfare effects or the pro-poorness of growth. Furthermore, benefits in Africa depend on the African policy response to China’s advancement. It is argued that African policy-makers can take much on board from China’s own industrial, exchange rate, and trade policy. Lastly, negative effects from support for dictatorial regimes in Africa are not attributable to China alone, while Western policy learning on how to grant Africa the necessary policy space in a multi-polar environment remains painfully slow.