In a recent Financial Times article, the relationship between Africa and China was analyzed to be beneficial for both parties. The working relationship between the two countries embodies “the essence of colonialism.” China currently exports manufactured goods and in return imports primary resources from Africa. The article focuses on four main areas that are beneficial for both parties:
Skills: The exchange of knowledge is a major benefit for the African countries due to the effort by the CHinese to encourage companies to use local equipment and labor instead of straight importing. Currently, it is too expensive for Chinese companies to build and install locally and therefore Chinese imports of equipment is much more cost efficient, but the use of local employees has been prevalent.
Trade: Africans have the ability to choose what to buy instead of being forced as in previous colonialism by other countries in the past.
Industrialization: China has actively approached the criticism of deindustrialization by their joint relationship with Africa through incentives such as China-Africa Development Fund and the China-Africa Economic and Trade Co-operation Zone.
Energy: Africa is rich in natural resources that is the main cause for comparative advantage between the two parites. This should help Africa in a developmental advantage.