Chinese M&A abroad: OBOR and Africa, a second belt in this continent

Abstract

Chinese presence in international market and “Made in China” label. This are the main elements which have dominated the international trade and businesses over the last years. In almost every country of the world, Chinese enterprises have made many steps in order to increase China’s power in the international economic environment. Chinese companies have strengthen their presence by investing and acquiring in many countries of the world, from the richest to the poorest ones, aiming at reaching a unique scope: making more money and achieve more power. The final Beijing’s purpose is the realization of one of the biggest and most important plans designated by China over the last years: the “One Belt, One Road” (OBOR) project. The final idea will be the creation of a new Silk Road, which should link China mainly to Europe and part of Africa, in order to make the People’s Republic of China (PRC) closer to these markets and their opportunities, basically in terms of trade and raw materials. Without any doubts, Chinese investors investing abroad have faced many challenges and difficulties, which have led to some changes in Chinese government’s policies, in order to protect Chinese national economy. Furthermore, the African continent will play an important role in the realization of the OBOR project, in fact, Chinese investments in African countries have increased over last years. The main aims of Chinese investors are the fulfillment of raw materials’ needs and the creation of new infrastructures, useful to the realization of the plan.