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SHIFT OF INFLUENCE IN AFRICA

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Since many advanced countries have moved from being in the phase of industrialization to being developed and industrialized. However, since the continent of Africa is very less developed regions of all the habitant continents in the world and less development means very large growth potential. The first step in many countries development is the utilization of natural resource. Most of the African countries have very large reservoirs of natural resources that can be used to kick start the growth, and to avail these natural resources a country requires a certain level of infrastructure. That is one of the reasons China along with some other countries has shifted its focus towards Africa. By investing in farming and mining world superpowers, in this case, China can profit from Africa's growth.

Due to the economic development in China's manufacturing industry since the early 2000's the labor cost has risen and for that china is now looking for low-cost labor across the world. The country of China who was famous for its cheap labor in the world is no longer competitive for low cost development. That is the prime reason most companies of China are setting up their manufacturing firms in Africa. Due to low development and opportunities Africa is the cheapest and lowest skilled labor markets in the world. That is the primary reason China is now the biggest trading partner with Africa. The comparison can be seen in the fact that America traded $48b of goods with Africa in 2016 while China traded $128b. The main reason behind it is that private Chinese industries are taking hold of Africa.

The setting up structure and power in less developed areas is what European colonists did. The motives behind the European countries spreading their power between the 15th and 20th centuries and that of China spreading their power today are very similar. The motive behind china's investment is through these investments is to gain political influence over Africa. The results are obvious in the fact that if a country recognizes Taiwan as an independent country they receive on average 2.7 fewer Chinese infrastructure projects. The outcome is that China is receiving a lot of power on the international stage as in the United Nation each country gets one vote despite their population.

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