China’s Investment in Africa: What the Data Really Says, and the Implications for Europe (Bruegel, 4 min read)

(You can read the article by clicking here)

Alicia Garcia-Herrero, Senior Fellow at Bruegel and Jianwei Xu, a Senior Economist at Natixis provide an excellent analysis into how bilateral trade has played a pivotal role in building strong ties between China and Africa. With the fasted growing population in the world but also the lowest rates of flows from abroad, Africa is in desperate need of FDI. The failure of China’s double-digit growth ambitions (as analysed in Prospect Magazine’s piece above) and its lack of natural resources have fuelled large amounts of trade with Africa’s commodity exporters. However, the nature of the investment itself is highly focused on lending in sectors like energy and infra, thus absorbing China’s excess capacity of workers and not generating employment for the surging number of Africans. If sustainability is the goal, this must change.

Why does this matter?  European countries with a colonial past in Africa still hold the top ranks in FDI levels, but China has been catching up. A slowdown of China’s economy, however, would likely lead to a fall in demand for African commodities, given their export dependency. Africa needs to relocate their exporting focus to other regions globally as well as expand trade within the continent. Investors should be monitoring commodity prices, especially metals.

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Stimulus Prep or Prelude to Deflationary Crisis: China Tightening Screws on Real Estate (Investing in Chinese stocks, 4 min read)

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Inside China’s vast influence network – how it works, and its reach in Australia (The Conversation, 4 min read)

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Hong Kong protests: history lessons for Beijing from British colonial era uprising (The Conversation, 4 min read)

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China’s AI Talent Base Is Growing, and then Leaving (Macro Polo, 3 min read)

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Chinese Universities Need to Attract More Foreign Students, But Not by Treating Them Differently (SCMP, 3 min read)

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The Messy Truth About Social Credit (Logic Magazine, 10 min read)

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New China Tariffs Increase Costs to U.S. Households (Liberty Street Economics, 4 min read)

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The Real Reason for China’s Rise (Project Syndicate, 3 min read)

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U.S. Breaking Promises is Setting New Obstacles for Trade Talks with China (People’s Daily, 3 min read)

August 9, 2019

To Feed its 1.4 billion, China Bets Big on Genome Editing of Crops (Science Magazine, 7 min read)

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China’s Long View (Project Syndicate, 3 min read)

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How the U.S. Could Lose a War with China (The Atlantic, 3 min read)

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China Makes Concession on US Farm Goods in ‘Frank’ and ‘Constructive’ Talks (SCMP, 4 min read)

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Beijing Axes Individual Travel Visas for Chinese Tourists Visiting Taiwan (Taiwan News, 3 min read)

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)

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