The Pros And Cons Of Investment In Africa

• Should Africa be wary of China’s continued investment across the continent? Who stands to benefit from this arrangement, and who stands to suffer?

there have been many changes in commerce. One change in commerce over the years was who dominated Trade in The Indian Ocean. Over the course of this time period the Indian ocean trade was dominated by the Indians, the Chinese the Arabs and even the distant European powers. Their were also changes in what goods were traded. Some trade goods like the exotic animals taken from Africa to China that weren’t traded for longer then a few decades. The reason Ming China had imported animals was because they were in an age of exploration at the time and wanted to have some animals for their exotic royal zoo. Also sending great explorers like Zheng He showed their ability to travel to distant lands and take what they please. Another change was how things were traded. Over the course of the 1,100 years described many changes occurred in the world of sailing. China had many of these inventions with in it’s walls before this time period. China was so Ethnocentric .that they did not spread their inventions till generations after they were made, and even then it was often by accident The compass were great improvements on how sailors navigated to their destinations. The ships them selves also changed throughout this period. The Chinese Junks were incredible ships, vastly larger then the ones Columbus used, They were equipped with cannons to defend them selves from pirates and were, in their time the most impressive ships on the water. There are changes in commerce in the Indian

China had a significantly larger population than Europe, China was the home to one hundred to one hundred thirty million people, whereas Europe had only fifty to fifty-five million people in the fifteenth century (Kennedy 4). China had been severely deterred when the Mongol hordes entered their civilization and in the aftermath of Kublai Khan invading their country. However, the Ming dynasty surfaced in 1368. The Ming were able to bring the empire back together by finally defeating the Mongols, and by restoring old Chinese order and tradition. With the Mongols being defeated, the Chinese made leaps and bounds in the world of technology, creating inventions that were far ahead of their time. From an early time, there were very large libraries in China. In order to create the books that existed those libraries, the Chinese created printing by movable type all the way back in the eleventh century. This segued into the use of paper money, which quickened the flow of commerce, which resulted from the increase of trade due to “… canal building and population pressures…” (Kennedy 6). Perhaps what is most impressive about Ming China was their overseas exploration. The most prominent of

It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.

One extremely prosperous time of the trade in China was in the Ming Dynasty under the reign of Yonglo. This was because during this period, the explorer, Zheng He, was promoting the trade with China and showing off the Chinese culture through goods like silk or ceramic art. He went on seven voyages to places like Southeast Asia, the Indian Coast, the Arabian Peninsula, and East Africa (document 2). One effect of his voyages was the making of a port city called Canton where the Portuguese, Dutch, and English merchants all traded with China. Unfortunately, after the death of Zheng He, the explorations ended due to it being too costly and then came the end of external trade after limiting contact with other places.

In the year 1500, Ming China enforced an isolationist policy for trade. China had totally separated itself from the outside world, and private international trade was made unlawful. Just certain trade was permitted, for example, the Japanese were permitted in an assigned port like clockwork. Be that as it may, around the mid-1500s, a few Europeans came to Guangzhou to exchange. After this, in 1517, a Portuguese endeavor arrived, however, the gathering was placed in prison. Fortunately, in 1557, the Ming court and the Portuguese agreed to a settlement, formally making Macau, a region on the south shoreline of China, a legitimate exchanging port for the Portuguese. Later on, exchanging got to be allowed among the Chinese once more, and was no

There are plenty of changes yet some no changes in the trade works between Africa and Eurasia from 300CE-1450CE. The motives for creating trade relations was to get the necessary goods to live on as well as becoming richer despite of living in different regions. However the goods that were traded changed like gold, salt, indigo, and Persian rugs. As well as the trading of ideas that changed technology and religion.

3. In addition to horses, China imported alfalfa, grapes, and a variety of other new crops as well as medicinal products, metals, and precious stones. China exported peaches and apricots, spices, and manufactured goods including silk, pottery, and paper.

Trade encouraged the influx in prosperity and trade in China. In other words, trade was major aspect of the early Chinese society as it made up majority of Chinese economy. For example, the Silk Road located in China enabled for trade to happen from Asia to Europe. As stated by the National Geographic, “The Silk Road allowed for trade goods such as silk, cloth and clothing, as well as spices to spread from China to India, Arabia, Persia, Egypt, and extended all the way to Europe.” This Silk Road not only increased the trades occurring in the Ancient World but it also allow Chinese products to permeate throughout. This trade in China and its connection to the silk road also encourage means of cultural diffusion. “Trade goods produced in China were cloth and clothing, spices, and silk” as stated by National Geographic. This demonstrates

In the African continent, they developed an economic relationship with the European nation. There was clear signs that European needed connections. Prior to their relationship, african rulers had established trade links with the Mediterranean world, Western Asia, and Indian Ocean region. The expansion provided Europeans goods that included, cloth, iron, copper, jewelry, beads, and more. In exchange, Europeans return with textiles, carving, spices. The main trade however was

The government of china is very keen to encourage foreign investors, because foreign companies are regarded as relatively good corporate

We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction

China’s accession to the WTO in 2001 has helped shape its economy to becoming a more predictable environment for trade and foreign investment. Corporate governance and frameworks for business operations and interactions have improved, providing a much more transparent environment. (Deckers, 2004)

While relations with China are not in themselves a recent phenomenon, the extensive amount of trade that the two partake in is. Actually, the affiliation between China and Africa stretches back centuries. Some scholars try to establish the starting point based on “the discovery of ancient Chinese ceramics on the east coast of Africa, or to the trading ties begun under the Song dynasty” (Raine 13). Trying to trace ties back this far is important in increasing a sense of loyalty. After all, people tend to have stronger feelings of fidelity towards someone they have known for years, as compared to someone they have just met. Another frequently cited encounter is when the Chinese explorer Zheng He “reached the east coast of Africa where…Zheng came, saw and never conquered…[leaving only a legacy] of trade, stimulating a local market for Chinese silk and porcelain” (Raine 13). This incident is important in further establishing solidarity between the two nations. China refers to this history to prove “it has interacted commercially without further agenda and without detriment to Africa” (Raine 14). It uses this point to relate to Africa – they are both Third World nations that have faced oppression from the First World, and therefore need to stick together.

In the recent years, China has had a growing presence in the African continent, engaging in trades, delivering aid and initiating projects. China’s involvement in Africa is something that has triggered very animated debates among students and scholars. Many hypotheses as to China’s intentions have been presented. Is China really the solution to Africa’s underdevelopment or simply for its own political and economical interests? This essay will present a more pessimistic view on this whole situation arguing the very dangers and consequences of China’s relationship with Africa. Not only does China worsen the countries’ economic conditions by triggering high levels of inflation and unemployment but it also represent a new form of colonialism