Navigating the Evolving Landscape between China and Africa’s Economic Engagements

By Wenjie Chen, Michele Fornino, Henry Rawlings

February 23, 2024

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Wenjie Chen, Michele Fornino, and Henry Rawlings. Navigating the Evolving Landscape between China and Africa’s Economic Engagements, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

China and Africa have forged a strong economic relationship since China’s accession to the WTO in 2001. This paper examines the evolution of these economic ties starting in the early 2000s, and the subsequent shift in the relationship triggered by the commodity price collapse in 2015 and by the COVID-19 pandemic. The potential effects on the African continent of a further slowdown in Chinese growth are analyzed, highlighting the varying effects on different countries in Africa, especially those heavily dependent on their economic relationship with China. The conclusion offers a discussion of ways how African countries and China could adapt to the changing relationship.

Subject: Balance of payments, Exports, External debt, Financial institutions, Foreign aid, Foreign direct investment, International trade, Loans

Keywords: A. AFRMOD, Africa, AFRMOD model, Belt and Road Initiative., C. Investment linkage, Caribbean, China, Debt, Economic engagement, Exports, Foreign direct investment, Global, Growth slowdown, Investment, Lending, Loans, South America, Sub-Saharan Africa, Trade

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2024/037
Stock No:

WPIEA2024037
ISBN:

9798400267840
ISSN:

1018-5941

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