Policy brief discloses U.S., China Africa engagement

U.S. President, Donald Trump (left) and China President, Xi Jinping

How does the United States differ from China in its engagement with Africa? A policy brief (https://goo.gl/4tGLWv) released in April 2017 by the China-Africa Research Initiative (CARI) (http://www.sais-cari.org/) at the Johns Hopkins University School of Advanced International Studies (SAIS) answers this question, using analysis from its original data on Chinese and U.S. trade, foreign direct investment (FDI), and loans to Africa over the past 15 years.

The authors find that Chinese engagement emphasizes Africa’s infrastructure needs; key countries are consistently top destinations for different types of economic activities including Nigeria, South Africa, and Algeria; and falling commodity prices are responsible for declining U.S. and Chinese engagement in Africa.

The brief provides three policy recommendations for collaboration between the United States and China in Africa: the U.S. and China should do more to work together in developing African roads, railroads, airports, and harbors; the U.S. and China should coordinate engagement that cuts across trade, FDI, and loan finance in Africa; the U.S. and China should diversify away from resource-rich sectors and focus on other growing African industries, such as manufacturing.

Key findings include:

The value of African oil exports to China decreased by 50% from $53.1 billion in 2014 to $27.5 billion in 2015.

In 2008, oil accounted for 85% of U.S. imports from Africa, but by 2015, oil was only 40% of imports.

As a proportion of global FDI stock, China’s investment in Africa made up 3.7% in 2015, larger than that of the United States, where Africa constituted only 1.4%.

From 2000 to 2015, China Eximbank contributed $63 billion of loans to Africa while the U.S. Eximbank contributed only $1.7 billion. China Eximbank contributed to almost all 54 African countries, while U.S. Eximbank contributed to only five.

Transportation is the top destination for China Eximbank loans to Africa, while energy and mining is the top destination for U.S. Eximbank loans to Africa.

The authors are available to further discuss how oil exports influence Chinese and U.S. trade relations with Africa, why Chinese and U.S. firms favor investment in different African industries, and what are the main sectors to which China and the United States provide loans in Africa?

About the SAIS China Africa Research Initiative

The SAIS China Africa Research Initiative (SAIS-CARI) (http://www.SAIS-CARI.org) launched in 2014 at the Johns Hopkins University School of Advanced International Studies (SAIS) to promote evidence-based understanding of the relations between China and African countries through high quality data collection, field research, conferences, and collaboration.

The mission of SAIS-CARI is promoting research, conducting evidence-based analysis, fostering collaboration, and training future leaders to better understand the economic and political dimensions of China-Africa relations and their implications for human security and global development.

For more information, visit the China-Africa Research Initiative (http://www.SAIS-CARI.org) or @SaisCari

About Johns Hopkins SAIS

A division of Johns Hopkins University (www.JHU.edu/), the School of Advanced International Studies (SAIS) is a global institution that offers students an international perspective on today’s critical issues. For nearly 75 years, Johns Hopkins SAIS has produced great leaders, thinkers, and practitioners of international relations. Public leaders and private sector executives alike seek the counsel of the faculty, whose ideas and research inform and shape policy. Johns Hopkins SAIS offers a global perspective across three campus locations: Bologna, Italy; Nanjing, China; and Washington, D.C. The school’s interdisciplinary curriculum is strongly rooted in the study of international economics, international relations, and regional studies, preparing students to address multifaceted challenges in the world.

For more information, visit sais-jhu.edu or @SAISHopkins