China's ‘win-win’ cooperation: Unpacking the impact of infrastructure-for-resources deals in Africa

Abstract

This paper discusses China's use of infrastructure-for-resources loans in Africa as a win–win economic cooperation tool. This formula, offering generous loans for infrastructure in exchange for resource access, came into being largely as a default cooperation tool, inspired by China's own domestic experience, its competitive advantages and Africa's receptivity to this kind of barter deal. Embodying the principle of mutual benefit, China has consistently combined the extension of financial assistance for infrastructure construction in Africa with the expansion of Chinese business interests and the pursuit of resource security goals. The analysis focuses on whether this instrument is actually promoting African development or fuelling instead China's economic growth at the expense of African economies. The author argues that the impact has been mixed. Although there are some meaningful positive signs, many challenges persist, and as such the long-term developmental impact of this particular tool remains uncertain. The responsibility to ensure a positive outcome rests, however, on the African side as much as on China.