The Economic Marriage Between China And Africa Economics Essay

Introduction:

Trade relation brought up the politics, legal and institutional aspects one of the countries, it is approximately the relationship one of the economic and political situation of countries, especially as the growing countries increase rapidly and fast in the international marketplaces, therefore the economic difficulties are so complicated and will contain long-term international cooperation to trace onto it. As the WTO happened in the international marketplaces, it offered the importing and exporting all around the world, which needed countries to cooperate each other in order to get more revenue and goods in the foreseeable future.

Nowadays, there are competitions between Asian individuals and African drivers in the international marketing; it is the fact that there surely is competition existing in the international market segments, as the amount of Asian individuals increased, the African motorists hardly found the jobs in order to survive. For example, there will be the competition between Asian staff and African individuals, because China got large amount of individuals, as the Chinese language workers entered into the NZ markets, in order that, African workers cannot find the jobs, because so many Chinese language workers obtained the careers. Many people thought the South-South co-operation will bring about benefits and profits to the both countries, China and SSA, they could both get advantages from importing and exporting goods and services, which could encourage the whole world's financial conditions and business situations. For instance, China exporting the clothing, food and textile to Africa, and then Africa could easily get benefits from importing, because Africa is insufficient food and resources. And in the in the mean time, Africa exporting engine oil and fuels to China, and China might use those engine oil and fuel for the future development and businesses. Therefore, both people could get benefits from one another. However, many people performed different views and views, South-South assistance could produce negative impact on SSA, because folks in SSA cannot find the suitable jobs because the products and service which are importing from China.

At lastly, in this essay, the two different views and issues were reviewed and discussed in the two following areas: which are benefits and harms of South-South co-operation.

Discussions:

It is the controversial topical on whether the china and Sub-Sahara Africa assistance is competitive or complementary, if the China brought in the gasoline and petrol from SSA at the cheaper price, it could gain more and more gains from China, and then China exported goods, such as cheaper food and products to Africa, then SSA could purchase goods and products at the cheaper price, therefore their relationship is complementary, because two parts could advantage the other person and both celebrations could gain income through trade relations. However, when China exported cheaper goods to SSA, it might make competition for the neighborhood manufacturer of SSA, therefore their romantic relationship between China and SSA is so competitive, and China gained income and in the in the meantime the SSA lost profits.

It is apparent that China becomes the more powerful in today's international market, nowadays china generated ripple effects on the planet current economic climate, and it remained the most powerful country in the economical, political and legal situation. China is the abundant in resource; so that it experienced the trade relation with other countries, such as India, America and Japan. For instance, China imported timber, essential oil and material from Africa, the neighborhood manufacturer of Africa gained profits and the GDP of Africa proceeded to go up higher than past years, however, the China exported lower cost texitile to Africa, which means customers consumed Chinese texitile because of cheaper price, the local producer of texitile got the threaten because their texitile price were higher than importing texitile from China. Therefore, China caused the negative effects to good governance and macroecnomics management in Africa because of the potential Dutch disease implications of product booms, the view has been recognized in the task of zafar(2007).

The rapid expansion between China and SSA is a substantial source of impact, trade worth increase to $10 billion in 2002 to more than 40$ billion in 2005 and reached to 50$ billion by 2006, the view has been reinforced in the task of zafar(2007). And China has become a famous and major exporter of companies in the complete world. In the in the meantime, SSA's imports from China had come to to over 8 % by 2006, however, compared to exporting, imports from China have been increased gradually than exporting, and then SSA's trade balance with China to turn from Negative to positive(Zafar, 2007).

Therefore, the partnership between China and SSA is a superb matter and problems, which brought the negative influence on future production, SSA consumers softly, brought local goods from their own countries, and for that reason there are important and negative long-term implications for SSA industrialization (Kaplinsky and Morris 2008). Therefore, this sophisticated relationship got the indirect impact and direct impact, because China itself is a huge source of information country and it itself impact global prices, China acquired cheaper labor price and goods, therefore SSA customers required to purchase cheaper goods, therefore it got significant impacts on SSA.

Trade-related income proverty and syndication impacts can be significant(McCulloch, Winters and CIRERA(2002). As the importing of China is increasing, it could bring about the huge benefits to lower income consumers. In lots of countries, the primary displacement result is on imports of producers from other, non-SSA economies, with wholesalers and vendors turning their sourcing to cheap Chinese language suppliers (Jenkins and Edwards 2006).

The upsurge in commodity creation accompanies with both with capital-intensive systems, and even many tender goods, such as tea, espresso, cotton, therefore, the number of exporting of China is increasing not only provide a negative effect on the big wholesaler of SSA, not only the small manufacturing plant and stores.

The trade between China and SSA not only brought about the direct effect on the global market segments, but also it could lead to the negative impact, indirect impact took place as a consequence of china's relationships with undeveloped nations. For instance, China received high demanding for commodities, which may raise the global price at an increased level, and although Ethiopia didn't want to export dog feeds to China( direct marriage), and it thought we would sell pet animal feeds in to the global market segments, however, the purchase price could be affected by China's growing imports( indirect impact) (Kaplinsky and Morris 2008).

Therefore, it should be centered on the impact of indirect trade links, the increase of product price should be higher mentioned, and there is the indirect aftereffect of China's trade on Africa (Kaplinsky and Santos-Paulino 2006). Exporting and importing goods and services in WTO guidelines involves removing all quota and tariff. The federal government removes the tariff and quota for exporting and importing, which encouraged the international trade, however, the negative impact of the removal of taxes from China in third country marketplaces on poverty and livelihood is huge and unpredictable. For instance, China is loaded in the labor and resources, there are a great number of clothing production factories in the south city of China, those factories could manufactured the beautiful clothes and commodities in very lower price. And, those factories focused on the exporting clothing to third world countries. In a result, the clothing importing impacted the SSA clothing industry, because those clothing importing of China improved the consumption vitality of consumers in SSA. The increase of exporting clothing from China to SSA could result in the negative impact on the manufacturer and store in SSA, because the consumers in SSA preferred to buy importing clothing, due to style or the price. And some local clothing factories in SSA lost the gains, and then the local factories in SSA shut down their business scheduled to competition. Therefore, the effect could bring about not only the amount of job reduction and even more seriously the result of the type of the job loss. If the factories stop to do the business enterprise, the personnel in the SSA could lose their works. And especially, most staff are women, if the women lost their careers, which could bring about the effect on their families. The issue of loss career could become serious and severe, and then the employment decline has become the implication of major property. And subsequently, if the employees in the SSA cannot find the jobs, as a result of financial meltdown and destroyed the employment situation, those people even resided in the poverty, the pace of felony would increase, SSA's economical condition visited become a lot more worse. Finally, another countries could be impacted indirectly, for example, if the consumers in SSA only accepted the clothing from China, other importing countries found it difficult to be competitive in the SSA market segments, then importing to SSA would drop, even more really, which could made negative influence on global monetary situations. At last but not least, the swift importing goods from China to SSA could harm SSA industry and monetary conditions.

At the third stage, the China wanted to promote the help to SSA, and the formal help between China and SSA get back to October 2000, it is called China-Africa Cooperation forum, the meeting was held in Beijing, it was set up the financial institution between China and Africa. China are prepared to reduce Africa's debt burden, and promote investment in SSA( Muekalia 2004). Inside the detail of these establishments in this assembly are of help, such as credit card debt relief are useful and ideal for the existing situation of SSA, because the country is producing and it needed the strong financial support and online backup. However, some organizations aren't useful in this meeting, such as the tariff exemption, tariff exemption should be based on the united states which received huge resources and capitals, for the SSA, the country itself was less in resources and capital. And in addition China was criticized for some selection of issues, such building the stadium and authorities workplace, and China recommended SSA to get human rights, good governance and communal justice. Those issues are good concern and suggestions, however, China less stress on the existing situation of SSA, those planning and details could not make SSA become strong for a while, and in the long term the establishment will less become true.

At lastly, there is certainly negative outcome of Chinese language trade on income syndication. There are various dangers and opportunities in the international trade, especially the partnership between China and SSA. The income circulation in SSA is unbalanced, and international trade between China and SSA will make SSA's income distance wider and wider, for example, the establishment of international trade can make SSA poverty more and more poorer, and unemployment rate is increasing and speedy development in trade between SSA and China posed a major policy challenge to SSA economical. Moreover, SSA exported hard commodities, particularly basic steel and oil, which will make SSA resource significantly less and less and it would make negative effects on the Africa's monetary conditions. And China and SSA received the different cultural backgrounds and knowledge, therefore it was difficult for them to speak and cooperate, plan and capability development will be undermined and could be misdirected, for example, China is loaded in resources and populations, it was labor intense and commodities rigorous, however, SSA is the poorer countries in the complete world, it acquired lower income syndication and considerable poverty. Therefore, the challenges and threats existing between China and SSA shouldn't be overlooked.

On the other aspect, it is no doubt that the cooperation between China and SSA prompted the overall degrees of productivity and innovation in the economy. South-South co-operation developed a lot of opportunities between China and SSA. The assistance consisted of three areas; there are political sector, economical sector and complex sector. Therefore, if the China and SSA cooperated with each other, we should take into account the benefits and harms in the three industries. And the cooperation also included the exchange of knowledge, skills and specialized skills between China and SSA, and SSA could get advantages from the foreign aid, because compared to China, SSA is poorer countries, therefore, the aid and financial support urged Africa's capability to deal with the problems of countries, such as poverty, poor infrastructure. And through the cooperation with China, SSA could offer with some problems and issues, such as food, energy, financial and economic crisis.

This menace to manufacturing exports probably has large effect for professional development and competiveness as it has been found that exporting organizations have significantly higher efficiency than non-exporting organizations in Africa (Mengistae and Patillo, 2004). The exporting businesses in the Africa could get benefits from the exporting, because the China received higher demanding of hard goods, such as essential oil and petrol. Therefore, the exporting of olive oil and petrol to China could bring in regards to a great number of benefits to SSA, because the SSA exporting company could gain more and more gains through exporting goods and services.

A lot of views and viewpoints stated that your competition has been so severe that even traditional products that were made in Africa for a number of centuries, are now displaced by China(Idun-Arkust, 2008). However, the view got another side of issue, the competition entered in to the local markets in SSA, which could result in the hazards and obstacles to SSA local marketplaces, but, it could make the local makers and manufacturers got the view that they need to encourage their business development and reconstruction. The neighborhood manufacturers got the pressure from competition; therefore, they acquired the opportunities to think about their marketing strategies and business management, and expanding their business to the international business.

And you have the obvious that upsurge in merchandise trade in Africa, the overall GDP in SSA increased because of increase in the merchandise trade. The local merchandise factories could easily get lots of advantages from the international trade with China, therefore, when the local companies wished to increase their business, they need more and more local staff, and that could offer with SSA unemployment problems, increasingly more unemployment people found the opportunities to obtain the jobs, plus they could support their families, therefore, the whole family could get advantages from the international trade with China.

And the international aid and financial support could result in the help the SSA, SSA is the poorer country in the complete world, they want help and they're less in resources and capital. Based on the trade condition between China and SSA, there held meeting in Beijing, this getting together with helped the China and SSA to stay the good romantic relationship in the international trade. China administration donated goods and services to be able to help SSA, such as China donated money on the training of SSA, which helped the SSA children to really have the good education opportunities. The organization helped the transfer and export to remove tariffs and quotas, which helped both parties, could get the huge benefits from removing the taxes and tariffs. For instance, if the tariff removed, the exporter and importer of SSA could easily get profits.

South-south cooperation could profit the SSA tourism industry; Africa country is famous in the type resource and vast pets. The international trade may help SSA tourism industry get gains and get famous in the complete world. The exchange of knowledge and skills between SSA and China will help Chinese travelers to raised know the type resources in Africa country, which could attract Chinese language travelers to enter into country and spend the money into SSA. Plus the tourism industry in SSA could advantage the complete SSA industry and urged the global monetary conditions.

And exchange and assistance of China and SSA helped SSA government better know the condition of SSA, the federal government will learn some experience and knowledge from China, and in order for them to learn and do some techniques. For example, for the SSA government institutions, the SSA federal rethinks their restrictions and institutions weighed against China, and then SSA tried out to invest money on the household and general population service. And the government prompted the exporting and importing in SSA, that could encourage the SSA financial composition and conditions, and to be remembered as better success in the competitive marketplaces.

In the politics parts, the both countries were good friends in the past, when the China was rebuilt in 1949, China received a lot of support from African countries. We all know the american countries got the union and they cooperated with the other person to build up and encourage with each others. For the producing countries, such as China, Africa and India, they got good romantic relationship as a team, they worked well together to protect themselves from european countries. For instance, if some politics issue occurred in a few time, the Japan and China background issue took place, the America can help Japan to cope with the issue, and then your Africa became the largest support for China to deal with those sensitive issues. And another example is the fact, when the SSA got the destroy in nature; China became the first country to donate money and goods for SSA to endure for the difficulties.

And the co-operation of South and South motivated the exchange of knowledge and China, because the both countries got different cultures, backgrounds and record, therefore that could helped folks in both countries to learn knowledge and skills from each others. And now there are many African studies analyzed in Beijing or ShangHai Colleges, they emerged here and put in profit China, which will make Chinese government gain education money. And on the other hand, the African students researched China, if indeed they found some interesting in China, they might stay static in China, and China provided plenty of job opportunities in Africa and then China also could get foreign workers, and therefore the both get-togethers could take advantage of the exchange of skills and knowledge.

For the investment, nowadays there are lots of Chinese businessmen came Africa to get money and capital in the SSA, for example, some individuals had interested in gold and material in Africa, and then they performed the factories in Africa, and they needed whole lot of staff to work their factories, those assets helped the SSA to deal with unemployment issues and problems. Therefore, the investment motivated the local gold and metal companies as well, the neighborhood producers wished to cooperate with the shareholders, and they could put business alongside one another and manufactured platinum and metal alongside one another, and then they could sell the platinum and metal into the international market segments, and then the both business people could earn the amount of money and get gains.

For the monetary conditions in SSA and China, the assistance would give the both parties opportunities to develop each others. The complete economical in SSA could easily get many benefits, for the exchange of goods and services, the overall GDP in SSA could increase rapidly and fast.

The co-operation not only advantage the tourism industry, but also the co-operation could lead to the benefits to the importing and exporting industry. The household could spend less money to buy the goods and services from China, for example, SSA customers would choose the tea, clothing from the China exporting. Weighed against the neighborhood price, SSA found it cheaper to buy clothing from China, and those types of styles are elegant and beautiful. And on the other hand, SSA exporting essential oil and gas to China, China received the higher demand for essential oil and gasoline, because they got huge population, and then the business got advantages from exporting and importing. Therefore, the both exporting and importing could benefit SSA and China, they two could make gains and money from importing and exporting goods and services, we discovered that the exchange of goods and service is beneficial and fair, and the both gatherings should cooperate with one another.

Conclusion:

The South-South cooperation caused the change in the structure of world economy and condition in China or SSA. It helped bring the challenges and hazards to the both parties, and but and yes it brought about lots of advantages from South-South cooperation. At first, those South-South co-operation helped SSA goods trade to increase. South-South assistance helped to market trade and investment activities in Africa, and China and Africa used their export-import lenders as Channel for providing money and promoting commercial involvement in trade and investment. And in addition, China is the biggest financial support and online backup for Africa in the infrastructure and development industries. And China helped SSA to cope with financial crisis and donated money and goods to Africa. There has been a rise in international investment contracts between China and SSA, the removal of tariff and quotas will helped the exporting and importing industry to get taxes and the exporting and importing business could easily get lots of advantages from the international investment agreements. The exchange and communication between SSA and China's skills and knowledge helped the countries to better know the other person and keep carefully the good relationship with each other. However, the South-South co-operation between SSA and China could make the situation not complementary but competitive, it is obvious that China is abundant in resources and capital, it exported the delicate commodities, such as tea, food and clothing to Africa, which could make Chinese economy remain the successful situation, and importing suppliers could make the huge money from exporting goods and services from SSA, and then China imported petrol, textile and energy from SSA, those energy are of help in China market and situation. However, importing goods and service from China will make the increase of unemployment rate; tons of personnel in Africa won't find the job and lost the nature of jobs. Therefore, from my perspective, South-South Co-operation not only made the SSA get richer and richer, but also it will make the Africa people acquired poorer and poorer, and South-South assistance will bring about the negative impact on Africa.

Referencing:

Idun-Arkhurst I(2008). China's relations with China. China in Africa Article no. 3. South Africa Establishment of International Affairs. Johamesburg, South Africa.

Jenkins, R. , and C. Edwards (2005). "THE RESULT of China and India's Development and Trade Liberalization on Poverty in Africa. " Dept for International Development, DCP 70, London: DFID.

Kaplinsky, R. and A. Santos-Paulino(2006) "A Disaggregated Analysis of European union Imports: The implications for the analysis of Habits of trade and Technology. " Cambridge Journal of Economies 30:589-611.

Kaplinsky, R. and M. Morris (2008, forthcoming), "Do the Asian Individuals Undermine Export-Oriented Industrialization in SSA", World Development Special Concern on Asian Drivers and their Effect on Producing Countries, 36 (2)

McCulloch, N. , L. A. Winters and X. Cirera (2002). Trade Liberalization and Poverty: A Handbook, London: Centre for Economic Insurance policy Research

Muekalia, Domingos JARDO(2004) " Africa and China's proper partnership. " Africa Security Review 13(1):5-11

Mengistate T and Patillo(2004). Export orientation and efficiency in sub-saharan Africa. IMF Staff. Documents 51(2):327-352.

Zafar, Ali (2007) "The Growing Relationship Between China and SSA: Macroeconomic, Trade, Investment and Help Links. " World Standard bank Research Observer 22(1): 103-130.

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