Institute of Development Studies

The Financial Crisis and China: Implications for Low Income Countries

China has become a significant trade and development partner for many low income economies, particularly in Africa. How are the actions that China is taking in response to crisis, including its massive fiscal stimulus package and efforts to restructure its own economy to reduce export dependence, likely to affect its interests in and relations with other low income economies?

A background paper and workshop presentations explore aspects of this question. The study concludes that China’s interests in Africa, rooted as they are in its own long term strategic and domestic interests will not significantly change. State and private actors will take advantage of opportunities for continued investment, particularly in commodities needed for China's own energy and resource security; and development assistance will continue as a mechanism for strengthening political and economic relationships. China is likely to emerge as a stronger development partner in the region. African governments and the international community need to understand China’s interests and engage in dialogue through multi-lateral fora to ensure the best sustainable development outcomes for African countries.

• Project dates: December 2008 - March 2009
• Project status: Closed
• Funder: Department for International Development (DFID)

Selected Outputs

• Cook, S. and Lam, W. (2009) 'The Financial Crisis and China: What are the Implications for Low Income Countries?' , Brighton: IDS
• Cook, S. and Gu, J. (2009) 'China and the Global Financial Crisis: Implications for Low-income Countries', IDS In Focus Policy Briefings 7.6, Brighton: IDS