The China-South Africa relationship : an economic and political assessment of benefits and costs.

Abstract

China’s massive growth has left her in need of new energy and raw materials sources to fuel her fast developing economy. Consequently, China has turned to the African region to meet such critical needs. To this end, China’s emerging economy appears to be associated with an increasing strengthening of its political and economic relations with sub-Saharan African countries, particularly with South Africa. At the same time, South Africa is also enjoying improved relations be it economic, political and social with China. This research has three tasks: first it will examine the impact of the China- South Africa political and economic relations on the socio-economic fabric of South Africa. Secondly, this project will ascertain the opportunities and challenges presented by China’s relations with South Africa. Finally, this study will investigate whether this relationship is mutually beneficial or one-sided. A combination of the realism, Balance of Power, Heckscher-Ohlin theory, and notions from the Liberalist approach to International Political Economy theories will be used in explaining the China – South Africa relationship. The study will mainly take the form of a qualitative study and will mainly entail the examination, analysis and interpretation of documentary secondary data published in a variety of financial journals, non-profit organisations such as the Trade Law Centre for Southern Africa (TRALAC) and the South African Institute of International Affairs (SAIIA), government departments, reports and articles in the media as well as research conducted by other students.