Investment between China and Africa Essay Example | Topics and Well Written Essays - 2000 words

Investment between China and Africa - Essay Example The researcher states that many studies have shown that China is currently the major destination of foreign direct investment from many parts of the world. However, Chinese have also been aggressive in making investments in other foreign countries with African region being their major target. Just like many other developed countries, China has been engaged in a vicious competition with other countries like the USA and other developed European countries like the United Kingdom in the scramble for resources in Africa. This has been attributed by the fact that Africa is currently the leading continent with so much untapped potential that includes unexploited natural resources and availability of abundant business opportunities resulting from the undeveloped nature of most of its countries. This has made governments of various states apply different strategies in order to have at least a significant pie in these developing economies, one being creating good relationships. China is one of the giant economies in the world today has been applying all means possible in luring African countries to enter into treaties and good business relations, a factor that has made some of the major Chinese companies establish their operations in Africa. Some studies have shown that China is the leading bilateral trade partner with Africa, a two-way trade that has dramatically been growing in the past two decades through the major growth has experienced in the last one decade. In the year 2011, the bilateral trade between China and Africa is estimated to be over US$166 billion from US$10.6 billion in the year 2000. This growth can only be termed as incredible and is likely to grow at an even higher rate in the coming years.