East of Africa (and West of China): Chinese Business in Africa Harvard Case Solution & Analysis

Trade between China and Africa is estimated to be four times between 2000 and 2008, with China becoming the third largest trading partner in Africa and the second largest export destination. Trade relations between China and Africa were mainly concentrated in three areas: primary resources from Africa to China, cheap manufactured goods and foreign direct investment from China to Africa, including new investment opportunities, such as land acquisition, as well as outsourcing of agricultural production In particular, basic food and biofuels. It has been estimated that by 2009, 1 million Chinese farmers in Africa. Africa has been a great expansion of fertile land available, although the lack of infrastructure (not only for agriculture but also for transport), and political factors, such as land ownership, corruption and governance were serious problems. This case is China's growing business with Africa and the risks that could lead to these, especially for the Chinese state-owned enterprises. "Hide
by Markus Schuetz, Carola Ramon-Berjano Source: University of Hong Kong, 20 pages. Publication Date: September 7, 2010. Prod. #: HKU897-PDF-ENG

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