The Formation of Chinese Outward FDI Strategy in Africa: A Historical Perspective

In the past decade, China has posited Africa as one of the most important regions for carrying out its ‘go global’ strategy (Gu, 2005, p.8). The share of Chinese outward direct investment (ODI) flow to Africa increased from 2.62 per cent in 2003 to 9.82 per cent in 2008 (MOFCOM, 2009). Compared with Asia, Africa enjoyed a relatively small but strong growth rate of Chinese ODI flow (OECD, 2010). By the end of 2008, Africa has become the second largest recipient of Chinese ODI. Relative to a long-term low inflow of FDI from the global market to Africa (Naude and Krugell, 2007), China’s proactive ODI strategy in the region is currently the subject of unprecedented attention (Large, 2008; Carmody, 2008; Carmody and Taylor, 2009).