cari_pb24_brautigamtangxiachinesegeese-827eec50d0b9f3c3.pdf
Summary
This 2018 policy brief by the SAIS China-Africa Research Initiative analyzes the nature of Chinese manufacturing investments in Ethiopia, Ghana, Nigeria, and Tanzania. Based on fieldwork from 2014 to 2016, the authors identify four distinct types of Chinese firms—categorized as 'geese'—investing in African manufacturing, ranging from large global supply chain actors to small opportunistic clusters. The report examines the impact of these investments on local value addition, technology transfer, labor relations, and the environment.
Key insights
- Chinese manufacturing investment in Africa is categorized into four types of 'geese': large, export-oriented firms integrated into global value chains; large, strategic firms seeking local markets; firms seeking raw materials; and small-scale opportunistic firms that often cluster based on regional origins or family ties.
- A small but significant group of Chinese firms are relocating labor-intensive production, such as garments and shoes, to Ethiopia and Tanzania to utilize lower labor costs and gain duty-free access to US and EU markets via AGOA and EBA.
- Many Chinese manufacturing firms focus on import substitution for local markets, often transitioning from trading Chinese goods to producing them locally. For example, Xin’an acquired a Ghanaian trading company in 2012 and established a filling factory in Kumasi, capturing 36% of the Ghanaian market.
- Chinese investments are contributing to technology transfer and skill diffusion, though often through market-based contracts rather than direct partnerships. In Nigeria, African firms have contracted Chinese suppliers to install machinery and train workers, and some Nigerian firms in Nnewi employed 58 Chinese experts to support 8,297 Nigerian workers.
- Chinese manufacturing firms have faced challenges regarding labor relations, safety compliance, and environmental standards. Examples include labor strikes at Tooku in Tanzania in 2015, safety violations leading to the closure of Hongxing Steel in Nigeria, and the import of outdated, polluting steel plant assets from Shanghai to Nigeria via Baoyao Steel.
- Chinese firms in Africa appear to compete more with imports and other foreign firms than with local African manufacturers. In a survey of 21 firms in Ghana, only eight identified local African firms as their primary competitors.
Cite the original document
- APA
- South African Institute of International Affairs (n.d.). cari_pb24_brautigamtangxiachinesegeese-827eec50d0b9f3c3.pdf. https://saiia.org.za/wp-content/uploads/2022/09/CARI_PB24_BrautigamTangXiaChineseGeese.pdf
- Chicago
- South African Institute of International Affairs. cari_pb24_brautigamtangxiachinesegeese-827eec50d0b9f3c3.pdf. n.d. https://saiia.org.za/wp-content/uploads/2022/09/CARI_PB24_BrautigamTangXiaChineseGeese.pdf.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=cari_pb24_brautigamtangxiachinesegeese-827eec50d0b9f3c3.pdf |url=https://saiia.org.za/wp-content/uploads/2022/09/CARI_PB24_BrautigamTangXiaChineseGeese.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairsndcaripb24brautigamtangxiachinesegeese827eec50d0b9f3c3pdf, author = {{South African Institute of International Affairs}}, title = {{cari\_pb24\_brautigamtangxiachinesegeese-827eec50d0b9f3c3.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2022/09/CARI_PB24_BrautigamTangXiaChineseGeese.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated