China-Liberia Economic Relations

China and Liberia have partnered with each other for decades. It dates back in1977when the People’s Republic of China established diplomatic relations with Liberia. However, the relations were unstable on several occasions as there were breaks of ties and resumptions of the relations intermittently. Nevertheless, there appears to be dawn of a new day in the relations since its resumption in2003. This relationship has been segmented with Liberia legislating’One China Policy’. As a result, China-Liberia relations has been very supportive to Liberia’s economic recovery program; there have been various engagements that tend to buttress the development agendas of both countries. Thus, both political and economic dimensions of the two countries have been impacted.China-Liberia relations is pivotal issue as it is aimed at enlightening our in-depth understanding of how this relation has progressed over the years. The preferment of this topic is predicated upon the fact that the economy serves as an engine for growth of any country. This is because every facet of a nation depends on the economy for survival whether it is health, education, agriculture, security, etc. therefore, in this case the economic relation between China and Liberia, is beneficial to the two countries. This investigation is significant in that it provides a clear picture on how China and Liberia have been forging ahead with their relations economically.The Economic Interdependence theory lays the basis for this investigation involving China and Liberia. Information gathered for this work relied on secondary method of data collection, entailing a scrupulous review of journal articles, published books, and seminar papers.From available information consulted, it was established that China has played much role in Liberia’s recovery process. This has resulted into increased trade flows, investment possibilities, and development assistances due to the cordial bilateral relations subsisting between the two countries. Trade was found to be promoted as imports and exports increase substantively. Additionally, agriculture, education, health and security, etc., which have the ability to strengthen Liberia’s economy have, in a variety of way, benefited from assistances from China of the relations. Some of these benefits have ranged from direct supports to capacity building of individuals in these sectors.Even though there exists tremendous improvement in the relationship economically, some challenges still remain. They include:imbalance trade, lack of manufactured companies, insufficient manpower to ensure the effective running of facilities/technological programs, and low level of focus on job creation and capacity building of ordinary Liberians (low wages). This research, however, provides appropriate recommendations to remedy the situation as well as to improve the bilateral relations between the two countries. Finally, it advanced recommendations for future research.