China’s Resource-oriented Investment In Africa

Since 2000, with the deepening of reform and opening-up, the domestic economy gradually integrated into the world economic tide, the Chinese government put forward the development strategy of "going out". Domestic enterprises, especially state-owned enterprises, under the impetus of the government policy, began looking to the international market. Since the financial crisis, the rapid increase of China’s foreign direct investment, especially the direct investment in the field of mineral resources, draws the attention of the world economy and academia.As China’s traditional political and economic partner, Africa is a main destination of our country’s foreign direct investment under the strategy of "going out". However, with the development of the foreign investment, China’s enterprises met with many problems in their business process, such as labor conflicts, environmental pollution and so on. Even, these problems are accused of "new colonialism" by some international community, and also make some African people and governments more cautious about the Chinese investment. This article selects China Nonferrous Metal Mining Group (CNMMC), one of Chinese state-owned company which invested in Zambia since 1998, as an example, showing the labor troubles China’s s investments are facing in this continent and the direct causes of these conflicts. Political economy study and game theory is used in this article, analyzing economy and politics interaction among the three roles of the Chinese government, CNMMC and Zambia government. Then through comparing to the international experience, some suggestions are provided.