Chinese trade and investment and the forests of the Congo Basin

Chinese trade and investment and the forests of the Congo Basin
Author: Louis Putzel
Publisher: CIFOR
Total Pages: 54
Release: 2011-09-13
Genre: China
ISBN:

Since 2000 and the implementation of China’s ‘going abroad’ policy, mainland Chinese state-owned and private companies have significantly increased their interests in the resources and investment opportunities of the Congo Basin, bringing new opportunities as well as potential social and environmental costs. This report is a synthesis of some main findings of preliminary scoping studies conducted by CIFOR and partners in Cameroon, Democratic Republic of Congo and Gabon. It focuses on how Chinese trade and investment in the forestry, mining and agricultural sectors might relate to effects on forests and forest-dependent communities in the region. All studies were conducted under the CIFOR project ‘Chinese trade and investment in Africa: Assessing and governing trade-offs to national economies, local livelihoods and forest ecosystems’, initiated in 2010. The scoping studies yielded useful results, including an increased understanding of the main trends in natural resources trade between the target countries and China, and the major land-based productive sectors targeted by Chinese investors. The studies also considered the role of national agencies tasked with promoting investment and overseeing corporate adherence to environmental and social requirements, and provided a better understanding of the informal processes surrounding investment and acquisition of land and other resources.

Chinese trade and investment in the Mozambican timber industry

Chinese trade and investment in the Mozambican timber industry
Author: Sigrid-Marianella Stensrud Ekman
Publisher: CIFOR
Total Pages: 45
Release: 2013-11-29
Genre:
ISBN:

China’s demand for timber has increased dramatically over the past 20 years; today more than 90% of Mozambican timber exports are destined for China. Demand for forest products present both opportunities and challenges for Mozambique. As the country’s sixth largest export, timber represents one of the most important industries and sources of income, yet the intensified search for resources puts pressure on the sustainable management of the forests. In an attempt to generate greater domestic value-added and employment through local processing of roundwood an export ban on first-class timber in the form of logs has been put in place. The effect of this ban on processing activity is however debatable. The share of illegal activity in the timber industry is estimated to be large. Integrating these illegal activities into the formal economy could generate significant revenues for the government in the form of taxation, as well as greater control and oversight of logging activities than what is currently possible. Through the research project titled “Chinese Trade and Investment in Africa: Assessing and Governing Trade-Offs to National Economies, Local Livelihoods and Forest Ecosystems” CIFOR wishes to gain a better understanding of the impact increased demand and investment from China have on the Miombo forests. This report forms part of the case study on Mozambique, and is intended to give an overview of the domestic value chain and the companies operating in the timber industry, based on data collected through field research on the timber activities in the province of Cabo Delgado in northern Mozambique.

Chinese Aid, Trade and Investment and the Forests of the Democratic Republic of Congo

Chinese Aid, Trade and Investment and the Forests of the Democratic Republic of Congo
Author: Louis Putzel
Publisher:
Total Pages:
Release: 2011
Genre:
ISBN:

The relationship between the Democratic Republic of Congo/Zaïre (DRC) and the People's Republic of China (China) has evolved significantly during the past 40 years. From a largely strategic alliance favouring a more prominent position for China in Africa and on the world stage and symbolic development assistance in support of Mobutu's regime, it has developed into a business partnership featuring thriving bilateral commerce and increasing private investment by Chinese multinationals. During the past decade, the DRC has become the target of a number of major investments from China, especially in the mining sector, where a planned US$6 billion resources-for-infrastructure swap has sparked a great deal of controversy among global financial institutions and advocacy groups. Most of the costs of developing and rehabilitating the DRC's transportation infrastructure are covered by loans from China, as are around a quarter of the costs of building new energy infrastructure. At least one large Chinese multinational is poised to engage in large-scale development of oil palm plantations, and there is evidence that the volume of timber exports to China has been increasing rapidly. Given the great importance of conserving and sustainably managing the DRC's extensive forest ecosystems, which are vulnerable to development pressures and extractive activities, as well as the continued severe economic disadvantages experienced by most of the Congolese population, research is needed to gauge the impacts of increased trade and investment and to assess the efficacy of existing institutions in overning the related environmental and social impacts. As part of its project 'Chinese trade and investment in Africa', the CIFOR and its partners ...

Analysis of China’s overseas investment policies

Analysis of China’s overseas investment policies
Author: Huang Wenbin
Publisher: CIFOR
Total Pages: 44
Release: 2012-01-02
Genre:
ISBN:

In recent years, in line with China’s Going Out strategy announced in 2000, China’s overseas investment activities have increased greatly and at increasing rates. By the end of 2009, the total value of China’s outward foreign direct investment had reached US$5.6 billion. Policies have played strong supporting roles in bringing about this trend by facilitating and encouraging Chinese companies to make overseas investments. This working paper summarises these policies based on an analysis of policy changes over time and identifies the main drivers of these changes. It also highlights some key research questions of relevance to deepening understanding of the impacts of Chinese trade and investment in Africa. The project ‘Chinese trade and investment in Africa: Assessing and governing trade-offs to national economies, local livelihoods and forest ecosystems’ project, launched in March 2010, aims to advance understanding of the social, economic and environmental impacts of Chinese investment in commodities or sectors affecting forests and livelihoods in Africa (e.g. timber, mining, agriculture), and to strengthen the capacity of decision-makers in government, civil society and the private sector to enact reforms to maximise social and economic benefits while minimising adverse effects.