China’s “Going Global” Policy in Africa: An Exploratory Overview of an Evolving Policy Framework

Abstract

The pace of economic engagement between China and Africa has increased exponentially in recent years, fueled mostly by burgeoning trade and investment ties. This impressive transformation of Sino-African relations has been complimented significantly by China’s “Going Global” policy, resulting in a huge number and diversity of Chinese multinational companies on the African continent. This proliferation of Chinese companies in Africa has generated new opportunities and prospects for all stakeholders, but has also engendered a host of challenges. This has no doubt had a significant impact on both the making and shaping of China’s foreign policy in Africa, and subsequently China Africa relations as a whole. This study relies on an extensive review of available qualitative and quantitative data to gain insights into the complex institutional and operational framework behind Chinese government support for the international ambitions of Chinese companies in Africa. What are the motives behind Beijing’s “Going Global” Policy? Which key institutions are involved, and what policy tools are employed to encourage the overseas investments of Chinese companies? What are the key drivers behind Chinese companies’ foray into the African market and what are the implications for China Africa relations, both in the short-term and long-term? These and other essential questions are addressed in this paper.