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The notion that Chinese economic and diplomatic ties with Africa are motivated by attempts to secure access to natural resources (Klare & Volman, 2006), has raised concerns about African countries being exposed to new forms of colonialism (Clinton, 2011) and a new scramble over their resources (Frynas & Paulo, 2007). Counter-arguments hold that China’s own industrial upgrading frees up jobs in export-oriented light manufacturing, which could help ignite industrialisation (Lin, 2012). Yet, even this type of engagement could be seen as a scramble for African resources, this time labour resources (a ‘scramble for Africans’ Meagher, 2016), within the context of a global race to the bottom in terms of labour standards and remuneration.

This paper provides a detailed quantitative and qualitative overview of Chinese official foreign direct investment (OFDI) to SSA as well as two in-depth case studies, one on Angola and one on Ethiopia. It argues that while flying-geese type relocations of labour-intensive industries from China to Africa are can be observed, Ethiopia being one example, Chinese investments also support other forms manufacturing production. In fact, the majority of Chinese manufacturing investments in SSA come out of, and further support, domestic market formation. Even resource-seeking investments are shown to operate with a long timehorizon. The case of Angola shows that Chinese investments (coupled with Chinese construction projects and export demand) contribute to the diversification of an economy heavily skewed towards mining activities.