This paper discusses the entry of China into the game of foreign finance
in Africa. It analyses the scope, destination and sectoral distribution
of Chinese financial flows and trade in comparison with Western patterns
and trends of aid, foreign direct investment (FDI) and trade. China's
foreign aid and manufacturing investment flow to Africa's physical
infrastructure and productive sectors of agriculture and manufacturing
fill the vacuum which emerged when Western financial flows shifted to
other sectors and activities. In contrast, China's trade patterns with
Africa highly resemble those of Africa's leading Western trading
partners. Africa imports manufactured goods and exports primary goods.
Differences in relative factor endowments of labour, capital and natural
resources are largely responsible for the pattern of Sino-African trade.
Key words: Growth and Development, Foreign Finance, International Trade, China, Africa
Discipline: Development Economics, International Relations, Political Economy, Public Policy
JEL Classification: F10; F21; F35; F50; O19; O53; O55