China-Africa Trade Relations: Insights from AERC Scoping Studies

Abstract

This paper analyses the impact of China-Africa trade relations both at the aggregate African and at the national level of a selected sample of countries. The paper confirms that there are both trade-related gains and losses arising from China-Africa trade relations. Beyond this is the concern that the existing pattern of Africa-China trade --- which continues to be strengthened by China's rising profile --- does not correspond to the region's longer term objectives, that is, to diversify its economic and trade structure and ensure that trade contributes to the industrial development of African countries. This paper suggests that for many African countries, the negative effects may outweigh the positive ones. Hence, concerted policy measures may need to be taken in particular African countries, carefully crafted in each case to suit specific circumstances. In broad terms, the menu of policy measures could include those aimed at gaining enhanced market access to the Chinese market as well as those targeted at eliminating the binding supply response capacity constraints.