Lessons learned: the Chinese approach to doing business in Africa

Abstract

China’s political and economic approaches in Africa have been under serious scrutiny. Its influence on the global and political stage is stronger than ever. Today, China is Africa’s largest trade partner. Several studies have revealed prosperous Chinese investment in Africa, unprecedented benevolence, and a niche market for investment and trade. Absent from the literature, however, are lessons learned on Chinese culture, history, and its approach to doing business in Africa. This study fills this void by not only examining previous engagements and the cultural components, but also factors that influenced the Chinese Model of Development in Africa from 1993 to 2010, a time of heavy Chinese investment in Africa. This study also explores (1) Chinese policies in relation to the natural resources in Africa, (2) Chinese organizational partnerships with African businesses, and (3) the effects of the Forum on China Africa Corporation policies in Africa. This research used Nigeria as a case study with a special emphasis on the GDP growth before and after the Forum on China-Africa Corporation engagement in Africa. This study found that the Chinese Model of Development in Africa has shown constant growth despite increasing debates about its imperial and monopolistic dealings in Africa. The Model of Development has proven to be highly productive and beneficial to both regions.