Chinas increasing presence in sub-Saharan Africa Literature review

Chinas increasing presence in sub-Saharan Africa - Literature review Example Kaplinsky, McCormick, and Morris (2007, p.3) note that China is one of the fastest growing economies in the world. The speedy development has particularly been experienced over the last few decades. The growth has been attributed to the economic restricting coupled with improved efficiency (Adisu, Sharkey, and Okoroafo 2010). Data shows that China was the third largest economy in the world in 2004, but at the same time ranked 129th in terms of per capita because it is the most populous country in the world with over a billion people according to the World Development Indicators (Bloomberg 2010). The Central bank of China projected that the economy of the country was to grow by 9.2% in 2006 (Trofimov 2007). However, as at the second quarter of 2006, the Chinese economy had grown by 11.3%, which was the highest in the world in 2006 according to De Lorenzo (2007). The growth in Chinese economy is also attributed to its active role in the global economy, particularly in Sub-Saharan countries where China has invested heavily over the last few decades. As at 2006, the Chinese economy was projected to overtake the U.K. and become the fourth largest in the world. China obtains more than 28% of its gas and oil from sub-Saharan Africa, which among the highest inn the world according to Ajakaiye (2006, p.11-13). Sautman and Hairong (2007, p.16-18) note that the growth of trade between China and Sub-Saharan Africa (SSA) has improved significantly over the last few decades. In this regard, the data available shows that in 2003, the transaction between China and SAA was valued at $18.5 billion, which was a significant improvement in comparison to the 2002, which registered $12.39 billion. (Swartz and Hall 2010). Presently China ranks among the top trading partners with SSA with Gabon being the second largest client after the U.S. Some of the SSA where Chinese investments are highly noticeable includes Kenya, Benin, Nigeria, Angola, South Africa, and Tanzania, Algeria and South Africa just to name but a few (Taylor 2006, P. 937-939). The Chinese companies, particularly the Building and Public Works (BPW) are competing actively against other companies in Africa (Muekalia 2004). This is evident from the Chinese increase in infrastructural projects, a field that many experts say China has high expe rtise as noted by Zafar (2007). China’s motives for its presence in Africa Oil deposits are arguably one of the reasons why China has had a lot of interest in investing in SSA. Kaplinsky, McCormick and Morris (2007, p.14) reveal that the government of China has all a long been very anxious regarding the country’s energy dependency. For instance, Kaplinsky, McCormick and Morris (2007) note that China was the eighth leading oil importer in 2000 and rose to fourth in 2006. China’s oil import was projected to increase to the extent that it was likely to overtake countries like Japan and Japan by 2010 (Fine, and Jomo 2005, p.76). ORAM (2005) cites that the dependency on oil imports present a major challenge to the international duty china intends to undertake. A report shows that Indonesia, Iran, and Oman, for a long time, have been the principle suppliers of oil to China (Anshan 2007, P.70). However, some of the oil producing countries that China has depended on is undergoing depletion such as the Indonesian oil reserves. Further, the U.S. has been able to consolidate its control over Middle East Oil except Iran since its intervention in Iraq (Wang and Bio-Tchane 2008). In addition, the oil deposits in