Institute of Development Studies

China's Private Sector Investment and the Investment Climate in Africa

Great controversy surrounds Chinese economic activity in Africa. However, until now, the role of Chinese entrepreneurs, especially in private enterprises has been overlooked. The China-Africa project, funded by the Centre for the Future State and in collaboration with leading Chinese institutions, examines the role of Chinese private enterprises in Africa. The scale of this research is unprecedented. Researchers from IDS and the China-Africa Business Council (CABC) and the Chinese Academy of Social Sciences (CASS) have had direct access to private Chinese companies working in Africa, including 100 in-depth interviews with Chinese firms and business associations and officials in both China and Africa.

Based upon extensive fieldwork interviews in China and Africa, the research has had a considerable impact in a variety of ways. The most immediate impact has been in the generation of original, empirically-based knowledge about China's private enterprises in Africa and new understanding of the development implications for Africa. This has impacted upon policy-makers, business, civil society, media, and academic communities.

This major IDS initiative is breaking new ground and exciting international interest from the World Bank and United Nations as well as the BBC, Guardian, and People’s Daily through their media coverage and journal articles. This innovative research has had a magnifier effect insofar as it has contributed to emerging themes within IDS. Recognising the important linkage between research and teaching, this research has also carried significant gains for postgraduate curriculum development at IDS. This includes a taught course dedicated to China and International Development, lectures contributing to other taught programmes and doctoral research. 

Related sources

• Harvard Business School
• London International Development Centre
• China 'wants to set up factories in Africa' - Guardian Article
• China Looks to British Experience for Africa Expansion - Guardian Article
• Meeting of Three Worlds - BBC Focus on Africa
• Chinese Private Enterprises Pioneer in Africa - People's Daily
• "Chinese Investment - good for Africa?" Jing Gu's Response - International Affairs Forum
• Lizards Follow the Dragon - Royal African Society

For further details please see the Centre for the Future State website.

• IDS key contact: Jing Gu
• Project dates: March 2007 - December 2009
• Project status: Closed
• Funder: Department for International Development (DFID)

Researchers

• Jing Gu
• John Humphrey
• SONG Hong, Chinese Academy of Social Science
• Rongping Kang, Chinese Academy of Social Science, China
• Kaiyong Ge, China-Africa Business Council

Partner Organisations

• Development Research Centre for the Future State
• China-Africa Business Council (CABC)
• International Poverty Reduction Center in China (IPRCC)
• Chinese Academy of Social Sciences (CASS)

Selected Outputs

• Gu, J. (2009) 'China's Private Enterprises in Africa and the Implications for African Development', European Journal of Development Research, Special Issue on China, India and Africa 21.4:570-87
• Cook, S. and Gu, J. (2009) 'The Global Financial Crisis: Implications for China's South-South Cooperation', IDS Bulletin 40.5:38-46
• Gu, J., Humphrey, J. and Messner, D. (2008) 'Global Governance and Developing Countries: The Implications of the Rise of China', World Development 36.2:274-92
• Gu, J. and Humphrey, J. (2006) 'The Impact of Africa on China' , African Economic Research Consortium publications