China has been Africa’s largest trading partner since 2009, with trade turnover reaching a record $348 billion in 2025. But trade between the two is unbalanced: China generally imports raw materials like crude oil, copper and cobalt from Africa, and exports finished goods. The trade figures reveal the results of this imbalance, with the continent’s trade deficit with China widening by 64.5% to a record $102 billion in 2025. As they do elsewhere, Chinese imports often compete with locally produced products and drive local manufacturers out of business. Like its trade with Africa, Chinese loans and investment there are a double-edged sword. On one hand, Chinese loans and investment have played a crucial role in addressing Africa’s infrastructure deficits through projects like Kenya’s Mombasa-Nairobi Standard Gauge Railway and the Djibouti-Ethiopia Railway, which have enhanced regional connectivity and trade. Chinese loans are often offered to African countries with few other sources of financing due to their low credit ratings. To protect these somewhat risky investments, Beijing secures its loans by leveraging natural resources such as oil, gas and minerals to mitigate the risk of default. For example, China has taken oil from Sudan, gold from Tanzania and copper from Zambia as compensation for unpaid loans. What it has not yet done in Africa is to seize Chinese-built infrastructure, something Western policymakers routinely warn about. Instead, it has acted like other lenders, scaling back its loans to overly debt-burdened clients, extending payment periods, and sometimes lowering interest rates. But debt to China is still a major concern for many African governments. The top ten African debtor countries owe China some $200 billion collectively. Djibouti, despite not being in the top ten in total debt to China, may be the most debt-distressed African state, owing Beijing some 70% of its annual GDP. Finally, China has been criticized for using mostly Chinese labor and for causing environmental damage in Africa. Chinese-operated mines in Africa, for example, have had “detrimental effects on local ecosystems, including deforestation, soil erosion and water pollution.” [55] [50] [51] [52] [53] [54]
// RUSSIA AND CHINA IN AFRICA Delphi Global Research Center
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