China Scrambles for African Resources [View article]
China is ably exploiting its rising stature and taking full advantage of its $2 trillion stockpile of reserves. China is not without its problems like misallocation of resources and corruption but with the West mired in the economic crisis of its own making, a prospering China has an unprecedented opportunity to build on its already powerful economy and project its influence with little competition.
China’s ongoing strategy is driven by multiple motives: to secure long-term access to strategic resources to sustain its impressive economic growth; to insulate its economy against sharp swings in the prices of commodities, petroleum being the most important; and to increase its economic and diplomatic strength by integrating the economies of the supplier countries with its own.
Beyond creating joint ventures to locate and extract strategic commodities, China will frequently invest in host countries and develop infrastructure without all of the strings typically imposed by the World Bank or IMF. China is repaid in commodities and quickly expands trade within the countries of its joint ventures.
China Scrambles for African Resources [View article]
China’s ongoing strategy is driven by multiple motives: to secure long-term access to strategic resources to sustain its impressive economic growth; to insulate its economy against sharp swings in the prices of commodities, petroleum being the most important; and to increase its economic and diplomatic strength by integrating the economies of the supplier countries with its own.
Beyond creating joint ventures to locate and extract strategic commodities, China will frequently invest in host countries and develop infrastructure without all of the strings typically imposed by the World Bank or IMF. China is repaid in commodities and quickly expands trade within the countries of its joint ventures.