The Oxford Handbook of Industrial Hubs and Economic Development
This chapter examines the genesis and development trajectories of Chinese cooperation zones in Af... more This chapter examines the genesis and development trajectories of Chinese cooperation zones in Africa since 2006, focusing on their impacts on the broad structural transformation of host countries. In spite of the ambitious plans and high expectations, all the China–Africa cooperation zones faced serious delays and challenges in the fields of infrastructure construction, skill transfer, linkage to local enterprises, sector upgrading, policy influence, and the urbanization process. This chapter argues that the challenges mainly originated from the diverging targets of Chinese developers and African authorities. Unlike in China, the commercial interests of the zone developers in Africa are not appropriately aligned with the local authorities’ broad interest in transformation. To overcome the obstacles, both Chinese and African partners have sought to modify their collaboration patterns. Ethiopia, together with several other countries, has taken particular initiatives to develop its in...
Journal of Chinese Economic and Business Studies, 2021
ABSTRACT Based on a brief review of the existing literature on knowledge transfer between Chinese... more ABSTRACT Based on a brief review of the existing literature on knowledge transfer between Chinese and Africans, this introductory essay sheds light on the purpose, methodologies, and main findings of this special issue. Aiming to investigate the impacts of Chinese FDI projects on technology learning in Africa, a team of SAIS-CARI researchers conducted field research in six African countries. To our knowledge, this is the first time such a comprehensive analysis on China-Africa knowledge transfer has been carried out. Our research finds that the majority of investments in agricultural and manufacturing comes from private small-to-medium sized companies that are driven by market factors and operate outside the Chinese government. The research suggests that Chinese investments in Africa have contributed to hiring and training local employees, demonstrated advanced technologies, and cooperated with local enterprises; however, the effectiveness and sustainability of the knowledge transfer varies across different sectors and countries.
Trade between China and Sub-Saharan Africa has grown over 100-fold since 1990. Although there has... more Trade between China and Sub-Saharan Africa has grown over 100-fold since 1990. Although there has been much focus on China’s interest in securing supplies of natural resources from Africa, trade in the manufacturing sector is also growing dramatically (see figure 1). This trade is also opening the door to increasing direct investment in manufacturing on the continent, as Chinese exporters look to supply African markets and take advantage of low-cost labor. A potentially important channel for this investment is through industrial parks or SEZs. In 2006, the Chinese government announced that it would support the establishment of as many as 50 overseas “economic and trade cooperation zones.” Of the 19 zones approved so far, 5 are in Sub-Saharan Africa: in Ethiopia, Mauritius, Nigeria (two), and Zambia.2 (See table 1 for a description of the zones.)
Journal of Chinese Economic and Business Studies, 2021
ABSTRACT This paper examines Chinese firms’ operations in the Zambian and Malawian cotton sectors... more ABSTRACT This paper examines Chinese firms’ operations in the Zambian and Malawian cotton sectors with emphasis on the manner and effects of knowledge transfer. As new players in the arena, Chinese investors have adopted business models and management styles that differ from those of previous foreign investors in the region. Their low-cost and low-risk approaches have helped them grow quickly in these two countries and seize considerable market share from the established Western investors. Through an in-depth case study and comparison with Western companies, the author reveals that the Chinese investors flexibly modify conventional knowledge transfer channels like labor training, demonstration, and forward and backward linkages to fit their business models and local socio-economic contexts. Simultaneously, they take advantage of China’s strength in manufacturing and experiment with synergistic development in the industrial sector to overcome growth constraints.
Introduction Chinese enterprises have been rapidly expanding their business footprints in Africa.... more Introduction Chinese enterprises have been rapidly expanding their business footprints in Africa. The bi-lateral trade volume between China and Africa has risen from US $29.5 billion in 2004 to US $221.67 billion in 2014, representing an average growth rate of 30 percent per year. China has become Africa's largest trade partner. The foreign direct investment (FDI) stock from mainland China to Africa reached US$32.35 billion in 2014, over thirty-five times more than the figure merely ten years ago. (1) According to China's Ministry of Commerce (MOFCOM)'s registration database, there were more than 3000 Chinese enterprises operating in Africa as of January 2015. (2) With this backdrop of intensifying economic interaction, public opinions and media have paid special attention to the employment practices of Chinese companies in Africa. Much of this publicity is negative. Some observers express concerns--that Chinese companies prefer to bring a large number of Chinese workers...
Chinese private-sector investments in African textile industries draw directly on China’s former ... more Chinese private-sector investments in African textile industries draw directly on China’s former foreign aid projects. Successful private-sector investments clearly benefit from the lessons and experience gained through China’s initial aid-funded operations. These public projects serve as information and logistics platforms for new entrants : meanwhile, the involvement of Chinese sovereign wealth funds might be viewed as a form of partial nationalization. These relationships mean that any examination of China’s direct investment in sub-Saharan Africa must avoid simplistic distinctions and recognize the very close ties between public and private Chinese companies operating in Africa. The sometimes-superficial differences that distinguish public from private companies reflect the versatility and evolution of China’s strategy and its commitment to the African textile industry.
ABSTRACT There is a gap between the elusive concept of Beijing Consensus and China’s effective pr... more ABSTRACT There is a gap between the elusive concept of Beijing Consensus and China’s effective practices to promote economic growth at home and in other countries. This article aims to expound this phenomenon by examining both the rationale underlying China’s structural transformation and the corresponding practices in development cooperation. Using a case study on the evolution of infrastructure construction within China and abroad, this article argues that China's success has little to do with a new pattern of state capitalism, but rather presents a different manner of understanding and facilitating modernization. Target-oriented non-linear synergism can drive comprehensive transformation more effectively in developing countries than model-oriented linear mechanism. With a consistent goal, the pragmatic thinking enables multiple stakeholders to coevolve in diverse contexts through open attitude.
As Chinese investors set up business operations in Africa, disagreements between Chinese and Afri... more As Chinese investors set up business operations in Africa, disagreements between Chinese and Africans regarding work attitudes have emerged. A prevailing view is that cultural differences cause tensions between groups with regards to the meaning of “hard work,” “discipline” and “eating bitterness.” However, we argue that conflicting perceptions of work ethics between Chinese and Africans are instead caused by evolving notions of time that accompany a transition from a pre-capitalist manner of production to that of industrial capitalism. First, we refute the assumption that culture determines work ethics. Second, we show that when a society industrializes, its notions of work ethics and time perception change; we then show how China's industrialization impacts its approaches to operations in Africa. Third, we use two case studies of Chinese investments in Tanzania and Ethiopia to illustrate how Chinese managers are changing African workers’ attitudes through time discipline. Fina...
ABSTRACTThis article examines recent Chinese efforts to construct a series of official economic c... more ABSTRACTThis article examines recent Chinese efforts to construct a series of official economic cooperation zones in Africa. These zones are a central platform in China's announced strategy of engagement in Africa as ‘mutual benefit’. We analyse the background, motives and implementation of the zones, and argue that they form a unique, experimental model of development cooperation in Africa: market-based decisions and investment by Chinese companies are combined with support and subsidies from an Asian ‘developmental state’. Though this cooperation provides a promising new approach to sustainable industrialisation, we also identify serious political, economic and social challenges. Inadequate local learning and local participation could affect the ability of the zones to catalyse African industrialisation. The synergy between Chinese enterprises, the Chinese government and African governments has been evolving through practice. A case study of Egypt provides insight into this le...
The Oxford Handbook of Industrial Hubs and Economic Development
This chapter examines the genesis and development trajectories of Chinese cooperation zones in Af... more This chapter examines the genesis and development trajectories of Chinese cooperation zones in Africa since 2006, focusing on their impacts on the broad structural transformation of host countries. In spite of the ambitious plans and high expectations, all the China–Africa cooperation zones faced serious delays and challenges in the fields of infrastructure construction, skill transfer, linkage to local enterprises, sector upgrading, policy influence, and the urbanization process. This chapter argues that the challenges mainly originated from the diverging targets of Chinese developers and African authorities. Unlike in China, the commercial interests of the zone developers in Africa are not appropriately aligned with the local authorities’ broad interest in transformation. To overcome the obstacles, both Chinese and African partners have sought to modify their collaboration patterns. Ethiopia, together with several other countries, has taken particular initiatives to develop its in...
Journal of Chinese Economic and Business Studies, 2021
ABSTRACT Based on a brief review of the existing literature on knowledge transfer between Chinese... more ABSTRACT Based on a brief review of the existing literature on knowledge transfer between Chinese and Africans, this introductory essay sheds light on the purpose, methodologies, and main findings of this special issue. Aiming to investigate the impacts of Chinese FDI projects on technology learning in Africa, a team of SAIS-CARI researchers conducted field research in six African countries. To our knowledge, this is the first time such a comprehensive analysis on China-Africa knowledge transfer has been carried out. Our research finds that the majority of investments in agricultural and manufacturing comes from private small-to-medium sized companies that are driven by market factors and operate outside the Chinese government. The research suggests that Chinese investments in Africa have contributed to hiring and training local employees, demonstrated advanced technologies, and cooperated with local enterprises; however, the effectiveness and sustainability of the knowledge transfer varies across different sectors and countries.
Trade between China and Sub-Saharan Africa has grown over 100-fold since 1990. Although there has... more Trade between China and Sub-Saharan Africa has grown over 100-fold since 1990. Although there has been much focus on China’s interest in securing supplies of natural resources from Africa, trade in the manufacturing sector is also growing dramatically (see figure 1). This trade is also opening the door to increasing direct investment in manufacturing on the continent, as Chinese exporters look to supply African markets and take advantage of low-cost labor. A potentially important channel for this investment is through industrial parks or SEZs. In 2006, the Chinese government announced that it would support the establishment of as many as 50 overseas “economic and trade cooperation zones.” Of the 19 zones approved so far, 5 are in Sub-Saharan Africa: in Ethiopia, Mauritius, Nigeria (two), and Zambia.2 (See table 1 for a description of the zones.)
Journal of Chinese Economic and Business Studies, 2021
ABSTRACT This paper examines Chinese firms’ operations in the Zambian and Malawian cotton sectors... more ABSTRACT This paper examines Chinese firms’ operations in the Zambian and Malawian cotton sectors with emphasis on the manner and effects of knowledge transfer. As new players in the arena, Chinese investors have adopted business models and management styles that differ from those of previous foreign investors in the region. Their low-cost and low-risk approaches have helped them grow quickly in these two countries and seize considerable market share from the established Western investors. Through an in-depth case study and comparison with Western companies, the author reveals that the Chinese investors flexibly modify conventional knowledge transfer channels like labor training, demonstration, and forward and backward linkages to fit their business models and local socio-economic contexts. Simultaneously, they take advantage of China’s strength in manufacturing and experiment with synergistic development in the industrial sector to overcome growth constraints.
Introduction Chinese enterprises have been rapidly expanding their business footprints in Africa.... more Introduction Chinese enterprises have been rapidly expanding their business footprints in Africa. The bi-lateral trade volume between China and Africa has risen from US $29.5 billion in 2004 to US $221.67 billion in 2014, representing an average growth rate of 30 percent per year. China has become Africa's largest trade partner. The foreign direct investment (FDI) stock from mainland China to Africa reached US$32.35 billion in 2014, over thirty-five times more than the figure merely ten years ago. (1) According to China's Ministry of Commerce (MOFCOM)'s registration database, there were more than 3000 Chinese enterprises operating in Africa as of January 2015. (2) With this backdrop of intensifying economic interaction, public opinions and media have paid special attention to the employment practices of Chinese companies in Africa. Much of this publicity is negative. Some observers express concerns--that Chinese companies prefer to bring a large number of Chinese workers...
Chinese private-sector investments in African textile industries draw directly on China’s former ... more Chinese private-sector investments in African textile industries draw directly on China’s former foreign aid projects. Successful private-sector investments clearly benefit from the lessons and experience gained through China’s initial aid-funded operations. These public projects serve as information and logistics platforms for new entrants : meanwhile, the involvement of Chinese sovereign wealth funds might be viewed as a form of partial nationalization. These relationships mean that any examination of China’s direct investment in sub-Saharan Africa must avoid simplistic distinctions and recognize the very close ties between public and private Chinese companies operating in Africa. The sometimes-superficial differences that distinguish public from private companies reflect the versatility and evolution of China’s strategy and its commitment to the African textile industry.
ABSTRACT There is a gap between the elusive concept of Beijing Consensus and China’s effective pr... more ABSTRACT There is a gap between the elusive concept of Beijing Consensus and China’s effective practices to promote economic growth at home and in other countries. This article aims to expound this phenomenon by examining both the rationale underlying China’s structural transformation and the corresponding practices in development cooperation. Using a case study on the evolution of infrastructure construction within China and abroad, this article argues that China's success has little to do with a new pattern of state capitalism, but rather presents a different manner of understanding and facilitating modernization. Target-oriented non-linear synergism can drive comprehensive transformation more effectively in developing countries than model-oriented linear mechanism. With a consistent goal, the pragmatic thinking enables multiple stakeholders to coevolve in diverse contexts through open attitude.
As Chinese investors set up business operations in Africa, disagreements between Chinese and Afri... more As Chinese investors set up business operations in Africa, disagreements between Chinese and Africans regarding work attitudes have emerged. A prevailing view is that cultural differences cause tensions between groups with regards to the meaning of “hard work,” “discipline” and “eating bitterness.” However, we argue that conflicting perceptions of work ethics between Chinese and Africans are instead caused by evolving notions of time that accompany a transition from a pre-capitalist manner of production to that of industrial capitalism. First, we refute the assumption that culture determines work ethics. Second, we show that when a society industrializes, its notions of work ethics and time perception change; we then show how China's industrialization impacts its approaches to operations in Africa. Third, we use two case studies of Chinese investments in Tanzania and Ethiopia to illustrate how Chinese managers are changing African workers’ attitudes through time discipline. Fina...
ABSTRACTThis article examines recent Chinese efforts to construct a series of official economic c... more ABSTRACTThis article examines recent Chinese efforts to construct a series of official economic cooperation zones in Africa. These zones are a central platform in China's announced strategy of engagement in Africa as ‘mutual benefit’. We analyse the background, motives and implementation of the zones, and argue that they form a unique, experimental model of development cooperation in Africa: market-based decisions and investment by Chinese companies are combined with support and subsidies from an Asian ‘developmental state’. Though this cooperation provides a promising new approach to sustainable industrialisation, we also identify serious political, economic and social challenges. Inadequate local learning and local participation could affect the ability of the zones to catalyse African industrialisation. The synergy between Chinese enterprises, the Chinese government and African governments has been evolving through practice. A case study of Egypt provides insight into this le...
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