1.3 China FDI Flashcards
1
Q
Nigeria:
A
- $2bn for 45% of an offshore oil rig
- oil fields
- Antimaterial medicines
- $1m invested on domestic manufacturing
2
Q
Liberia:
A
-$5m, 100 schools built, 275 schilarships to study in China
3
Q
Angola:
A
- $5.8bn no strings to repair infrastructure
- $2bn loan for 10,000 oil barrels daily
- Tied aid - most of loan hidden to be spent on infrastructure - 70% go to Chinese contractors
- China’s biggest oil supplier
4
Q
Sudan:
A
- 2/3 of all oil - monopsony power
- Sells military hardware and equipment
- $3bn in oil and gas
- China National Petroleum Corporation is largest shareholder in oil fields
- 70% of Sudan Exports to China
5
Q
Zambia:
A
- Chambishi mine opened by china
- Low wages £53 a month
- Hostile to trade unions
- 51 died in explosions
6
Q
Tanzania:
A
- $500m investment
- Mainly low tech labour intensive industry
- 100,000 jobs created.
7
Q
Advantages for Africa
A
- Investments, loans, aid, grants etc.
- Quick development of infrastructure - benefits whole economy and can help other sectors competing internationally
- West more active in Africa, drawn more investment in
- High loans at low cost - high competition - Living standards - 15,000 doctors treated 180m patients since 60s leading to growth as workforce less weak
- Exports - reliable trade partner in resources and commodities stabilise markets and create money to invest elsewhere
- Africa consumers low price Chinese exports due to free trade agreements
8
Q
Disadvantages for Africa:
A
- Trade deals
- Closure of firms - 50% decline in employment for clothing in Swaziland
- Chinese tariffs
- Focus on commodities slows other sectors investment
- African markets ‘open up’ to china so may be undercut by Chinese producers who have EofS - Working conditions: poor health and safety in Zambia copper mines, low wages, hostile treatment of trade unions, Chinese firms sourcing labour from China instead of locally.
