Scope of Chinese investment in natural resources

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Scope of Chinese investment in natural resources (ore) in Africa and the potentials and profitability that are there
Introduction
China is undertaking various capital-intensive investments in Africa, a factor that has contributed to economic growth in several African countries. In the recent past, china has established bilateral trade agreements with many African countries, in an effort to alleviate the technical inadequacy that characterizes such countries. When a country lacks the proper technological knowhow in the exploitation of natural resources, economic opportunities are not optimally used. As a result, many countries end up being poor and unable to facilitate tangible economic development. However, there are potential development aspects that lie in the trade partnerships between African countries and China (Van Dijik, 20). Foreign investments are associated with high profitability levels, a factor that facilitates various kinds of developments in the host country. Natural resources can provide adequate capital to an economy if proper exploitation is implemented and assessment of the resultant factors is done. This paper explores the scope of Chinese investments on Africa’s natural resources, such as ore.
China is the second biggest importer of Africa’s natural resources, though not a distant second from the U.S. according to 2005 estimates, China’s share as the preferred destination for African commodities has risen to 10 percent in the last two decades (Guerrero & Manji, 95). Oil, iron ore, uranium, copper and gold are some of the natural resources in which china is heavily interested. Africa is largely endowed with these resources, a factor that has contributed to an increase in trade partnerships between the African countries and China (Van Dijik, 20). There are various positive impacts that have resulted from these partnerships, especially on the aspect of mineral ores. For example, the Chinese mineral projects in South African have contributed to a positive economic growth, since unemployment levels have dropped significantly. The mining of nickel, iron and cobalt has increased in this country, due to the involvement of the Chinese technical expertise (Foster, Butterfield & Chen, 44).
The Chinese mineral investments in Zambia have come with desirable economic potentiality (Taylor, 28). For example, the purchase of the Chambishi copper mine in Zambia by the Chinese government has increased the profitability levels of this company (Foster, Butterfield & Chen, 44). This has resulted from the implementation of strong machinery in the mining of this mineral, which has increased the production to approximately 150,000 tons per annum (Foster, Butterfield & Chen, 44). More people in the district of Sinazongwe have been employed in this firm, thereby leading to better living standards in the area. In addition, the Chinese Collum Mine in Nkandabbwe has enhanced coal...