Analysis On China's Direct Investment In Africa Through Cultural Characteristics Of African Countries

Recent years have witnessed the rapid development in Sino-African economic and trade relations, characterized by a swift growth in the investment by Chinese enterprises in Africa. The investment has not only brought great profits to the Chinese investors but also contributed positively to the local employment and the trade balance between China and Africa, thereby improving the local economy and the people's livelihood as well. However, the huge differences between Chinese and African cultures often result in frequent cultural conflicts which hamper the imvestment. If Chinese investors are familiar with African culture, local conditions and customs, some cultural cohesion could then be achieved. It is more likely to have a mental resonance in the investment activities, and easier to agree on investment projects.This thesis mainly deliberates the cultural characteristics of African countries and their impacts on China's direct investment in Africa, with major focus on Egypt, Ethiopia and South Africa. First, the paper expounds the theories of culture. And then it generalizes the current situation of China's investment in Africa and analyzes the characteristics of the direct investment in Africa. The third part of the paper analyzes the environmental factors of African countries, from the viewpoints of politics, economy, law and nature. The forth part of the paper mainly discusses the cultural characteristics of African countries, such as religions, customs, languages, educational levels and their influences on business activities. Finally, based on the current situation of China's investment in Africa and the past experience, the author offers some suggestions to improve China's investment in Africa.In brief, only those who understand the culture of target markets and the cultural differences between China and African countries, respect the cultural difference, enhance cultural adaptability, and combine culture with market strategies, could succeed in tapping the large potential of African market.