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Reference to figure 1 above, In the year 2000 to 2008 both export and imports were gradually increased

ranging from $4.85 to $51.04 billion on the import and $5.01- $51.09 billion for export. The increase
implies more opportunities both African countries and China were in place. In 2009 the export and import
declined, this may be the impacts of 2008 world economic recession (world trade report 2009). The next
five years from 2010 to 2014 both export and import were substantially increasing and always the exports
marked to be higher than the import.
In the year 2015 the export rapidly increased by $50 billion while the import decreased by $32 billion, the
reduced demand from China was an important factor in the dramatic slowdown in the growth rate (David
Dollar, 2016). In the year 2016 to 2018 both export and import were relatively increased that implies higher
demand and supply to both import and export.

Opportunities
Business on African Natural resources
Africa endowed with potential natural resources that has not been exploited including, oil, minerals and
other agricultural products. The Chinese demand create an opportunities and benefits for those African
countries endowed with crude oil, minerals and other natural resources valuable to China. The benefits find
to be a win-win situation where China are looking for natural resources while African countries are looking
for revenue that to be derived from the exports. China massive demand for resources and lack of
conditionality for engaging in trade (in terms of governance and transparency as well as sound economic
management) makes China a formidable and attractive trading partner for many African nations (Ajakaiye,
2006).
China’s most important trade relations in Africa remain centered on importing crude oil. In 2005 China
imported $13.2 billion in crude oil from Africa, representing 62 percent of Africa’s total exports to China.
China’s oil consumption reported to grow by an average rate of 7.5% in recent years, resulting from
increased household and commercial use. Among Africa’s oil producing countries, Angola and Sudan
currently comprise nearly 70 percent of all oil exports to China and accounted for $10.9 billion and $1.9
billion respectively in crude oil exports in 2006, according to China’s official statistics. In addition to oil,
China also imports other natural resources from Africa, including copper, iron ore, gold, coal and timber,
as well as a smaller percentage of agricultural raw materials and some manufactured goods (C.E, Madavo,
2007).
Foreign Direct investment (FDI)
Most of African countries are developing countries who’s its infrastructures are poor developed. China has
been a significant source of foreign direct investment in Africa, cumulating in a reported $6.6 billion in
investment throughout the continent at the end of 2006. The investment has been more directed in building
infrastructure for the extractive industry sectors in which China is involved, including roads, refineries, and
physical buildings. Countries which receive very little FDI, such investments bring the opportunity to
extend and develop their extractive industries e.g. Angolan company known as Sonangol company joint
ventured with Chinese Company Sinopec (a Chinese state-owned enterprise) and formed a company known
as Sonangol-Sinopec International. The joint-venture involves the development of a new refinery at Lobito,
and the project is reported to require a total investment of $3 billion (Ajakaiye, 2006). The right regulations
and cooperation between African governments and China through investment opportunities may increase
the capacity of the local extractive sector as well as generating local employment potentials that will
increase the individual income and country economy at large for a period of the project’s construction.

Challenges
Trade imbalance
In the years before 2000, both China and Africa Exports were too low ranging from $0.40 to $1.54 where
the substantial increase marked in a year 2000. The Export gradually expanded but China stand to be higher
exporter than the Africa. A growing number of countries in Africa have significant trade deficits with China,
and this trend is likely to continue over time. In 2006 Africa’s exports to China totaled $28.8 billion and
China’s exports to Africa totaled $26.5 billion, implying a trade balance in favor of Africa. However, the
balance of trade is quite different if trade with Angola, China’s most important trading partner on the
continent, is removed. Without Angola-China trade, Chinese exports to Africa remain high at $25.8 billion
while African exports to China fall to $17.8 billion, revealing a fourteen percent trade deficit in favor of
China.
The composition of trade between China and Africa is a major factor in causing this trade deficit. The
majority of African countries primarily export unprocessed natural resources and agricultural products to
China. On the other hand, China’s exports to Africa consist of cheap manufactured items of which are of
high demand to the daily consumptions such as closes, homemade machines etc.
Unemployment to Local African
Chinese investment has tended to focus on natural resource enclaves with limited linkages to the larger
domestic economy and long-term economic growth. The main goal of Chinese investment is to supply the
necessary infrastructure to support the existing resource extractive industries. However, the Chinese
infrastructure projects found not to improve job opportunities to African people that will benefit the local
economy. Many Chinese companies prefer to employ Chinese labor and even import building materials
from China for investment projects and thus limiting technology transfer, and creating tension between
local Chinese and African communities.

Reference
D. Dollar 2016 “China’s Engagement with Africa” Natural Resources to Human Resources. The John L.
Thornton China Center at Brookings
O. Ajakaiye (2006) “China and Africa – Opportunities and Challenges”
World Trade report (2009), The Trade Situation in 2008-09.
C.E, Madavo, 2007, “China and Africa: Opportunities, Challenges and Forging a Way Forward”,
Georgetown University.