The role of China in the portuguese speaking african countries : The case of Mozambique

Due to the Reform and Open Door Policies initiated in 1978, China recorded a fast sustainable economic growth with an estimated average GDP growth rate of 9.7% in the period of 1980-2008, turning China-- in 2009 - into the world's second largest economy, just after USA. With an export oriented economic model, highly supported by FDI, mostly from developed countries, China is, since 2002, the most attractive developing country for FDI flows, both at short and long terms, becoming not only the world's factory, but also its number one exporter, after surpassing Germany in 2009. With the biggest current account surplus balance, China has been able to achieve a foreign exchange reserve of US$ 2.2 trillion -- the world's largest reserve currency. Around 50% of this huge reserve is being applied in American bonds, while the remaining supports Chinese health and social security systems, Chinese banks' solvability, internationalization of the Chinese economy, investment in geostrategic positioning to guarantee energy independence and making foreign aid available to other developing countries. During 2008's global crisis, China was able to resist better than the major world economies even benefitting from this downturn to implement policies to reduce its economic imbalances. One of these imbalances is the gap between Chinese FDI and OFDI which is now progressively narrowing. In fact, in the near future, OFDI is expected even be larger than FDI. Mostly two types of Chinese OFDI can be distinguished: trade-oriented investment and resource-seeking investment. Governmental backing, including official developments assistance (ODA) has been crucial for the resource-seeking investment. Although the Chinese investment is nowadays more oriented to mature economies, its bulk is mainly directed to the other developing countries mainly to Latin American countries and now also to African countries. Following the Beijing Consensus, Chinese planners are pushing partnerships with African countries and within those, the Chinese government identified one strategic group worth to cooperate and invest, the Portuguese Speaking African Countries which are linked through a network of language and culture between themselves and also to other geostrategic economic spaces; to Europe via Portugal, to Latin America via Brazil and to Asia via Macau. These African countries have high expectations on the Chinese cooperation and our research questions are. (a) Should this investment be consider ODA or OFDI; (b) How far can Chinese finance flows contribute to the development of these countries in terms of employment, exports, technology transfer; (c) is this investment seen as an opportunity or a threat by local people, is it fulfilling the created expectations or not? In this paper our empirical case is researching the perception of Mozambique government on the ODA and OFDI Chinese investment there, and the conclusions were reached by analyzing the Mozambique government high officials opinions publically expressed or resulting from their answers to media inquires. We also will try to find secondary data with information on the perception of the population on China presence in Mozambique through secondary data

New silk road : trade and investment. perspectives for eu and new partnerships

China has already given a fundamental contribution to the present globalization process and have also highly benefited from it by integrating becoming the final stage of the Global Chains Production networks in Asia. This process in China was the result of a survival economic strategy that saw in the attraction of Foreign Direct Investment in intensive low cost workmanship oriented to exports, a fundamental condition to overpass it´s millenary delay. This strategy accepted that the add value that remain in China, although very small was very important to give jobs to millions of Chinese and take them out of the absolute poverty line where they were in 1978 when Deng Xiao Ping launch the 4 Modernizations and the Open Door Policies. Other policies token during the first 30 years of the China Economic Reform, like the Grasp the Big Let Go the Small, the Socialist Market Economy, the Go West and the Go Global were equally important transforming Chinese economy in the second world biggest one. This first globalization stage had its big push in 2001 when China joined the WTO we can say that a new world economic order had begun in that date, placing China in the center of the world

The global value chains and the evolution of chinese economic model

According to the Word Bank in the first 38 years of China Economic Reform took 700 million people out poverty line in China at same time benefiting the Global South economy due to the integration of the Transnational Enterprises Global Value Chains with China. Chinese government understood the economic rational of Global Value Chains, Flying Geese Model and Foreign Direct Investment Theories and introduced policies to attract foreign capital, technology, production, and foreign buyers, placing China as the final stage of the production networks in Asia and also transforming China in the biggest buying market of many resources and energy suppliers from less developed countries in Asia, Africa and South America. But a new model of Chinese economic development even more interconnected and interdependent with the world is now on move. Even quite before the world acknowledge the protectionist mindset of the US in Trump era, Chinese President Xi Jinping launched in 2013 a very ambitious initiative under the name of “One Road One Belt the 21st-Century Maritime Silk Road” to enhance a new stage of world globalization, which together with two complimentary initiatives the “International Production Cooperation” and “Third-country Market Cooperation” and in complementarity with the “Made in China 2025” and “Internet Plus” plans will lead China to develop Global Value Chains leaded by Chinese companies and integrating countries of Europe, Africa, Asia, and South America.info:eu-repo/semantics/publishedVersio

Is the logistics sector in China still a constraint to supplying its domestic market?

China is a market ripe with opportunities for those who dare challenge its vastness; its alluring promise of an outstanding growth possibility thanks to its immense and growing internal market presents itself to companies as a place of both enormous challenges but also of potentially great rewards. The logistics sector is considered to be one essential vector of competitiveness for the development of consumer market supply. Logistics plays a tremendously important role in a company’s activity. Poor logistics can lead to lost opportunities and unsatisfied customers, among other things, while having a good logistics system in place might work as a source of competitive advantage. Ilhéu (2006) research concluded that the Chinese logistics and distribution system was one of the myriad problems Portuguese companies encountered when trying to establish a presence in China; poor infrastructure and a generalized lack of value-added services in Chinese logistics companies were some of the widespread problems faced. The highly fragmented nature of the current Chinese market, high road tolls or uneven taxes between provinces, all contribute to the maintenance of an inefficient system that imposes a disproportionately high cost of logistics in the country. A new era for logistics is being ushered in by China since competitiveness and e-commerce requires the modernization of infrastructures as a global mindset management. Some research questions then arise: are Chinese logistics still a burden to the efficiency of Chinese domestic market? How has the Chinese logistical sector progressed in the last eleven years? Is the lack of value-added services still perceived by foreign companies as a constraint to entering the Chinese market?info:eu-repo/semantics/publishedVersio

The role of special economic zones in african countries development and the chinese FDI

The Chinese Government’s policy of “going out” encourages Chinese companies to pay more attention to invest in the new markets, like Latin America, especially Africa. It promotes the establishment of more and more Chinese overseas industrial and trade zones. They not only help increase demand for Chinese-made machinery and equipment, reduce investment entry and operating costs, but also assist China’s efforts to boost industrial restructuring at home and nurture companies to move up the value chain. They also provide a stage for less experienced small and medium-sized enterprises (SMEs) overseas. For the African countries, they can learn from the experience and lessons from the Special Economic Zones (SEZs)established in China. The SEZs have proved to be particularly relevant for Chinese development in the past 35 years, since they were created in 1979, they played a decisive role for development of places like Shenzhen, Zhuhai, Xiamen, Shantou, Hainan and Shanghai. .Apoio da FC

The chinese 'go global' policy and the portuguese kinship

With the objective of promoting trade and investment and implement common projects in various domains between China and Portuguese-Speaking Countries (PSCs), the Forum for Economic and Trade Cooperation was created by the Chinese government in 2003. This Forum based in Macao, follow the theoretical rational that internationalization is largely driven by networks of relationships, very often based in a share culture and language and that the network relationships of a firm is capable of providing the context for its international activities. Being part of the soft power diplomatic approach to the Portuguese Speaking Countries - considering that some of these markets are very important for Chinese economic development, due to the need to expand its foreign markets and, most importantly, to guarantee the supply of critical raw-materials and sources of energy - this charm offensive utilizes as persuasive tools the cooperation for development, humanitarian aid, cultural ties, bilateral and multilateral diplomacy, and the OFDI. In order to be effective, this model of global cooperation requires that every participant perceives it as being mutually beneficial, i.e., a “win-win” situation for all. Therefore to be a positive contributor to the Chinese “Go Global” policy this Portuguese kinship network should have the perception that Macao Forum activities contribute to the development of its business objectives - increase exports, investment growth, and other business with positive economic results - with China, Macao and between themselves. Our research was aimed at Portuguese companies (exporting and/or investing in China, Macao and HK) in order to get a clearer idea of their opinion about their perception of the Forum and its potential. Within this set of conclusions, we can consider that Macao Forum can do better for the perception of positive benefits for the Portuguese companies participating in its activities thus creating the perception of a “win-win” situation, reinforcing its utility in the increase of exports to China, growth of FDI in China, Macao and PSCs, the increase of business networks between companies of these economic spaces and the increase of business economic results in other kind of business rather than exports or investment. In the future we intend to conduct similar research on the perceptions of companies of other PSCs

As perspetivas de cooperação económica entre Portugal e a China

Neste artigo, Fernanda Ilhéu (CEsA/CSG/ISEG/ULisboa) analisa as relações económicas LusoChinesas até ao “Second Belt and Road Forum for International Cooperation”, que se realizou em Pequim de 25 a 27 de abril 2019, comentando sobre as mais-valias para cada país e ambições expectáveis a partir desse mesmo fóruminfo:eu-repo/semantics/publishedVersio