AS China faces a broad range of challenges, the shifting structure of its economy and the development of its "soft power" are stand-out issues for this year. The consequences of how Beijing deals with such challenges will affect companies across the world and executives should be prepared for opportunities that arise.
Though China is still expected to grow at roughly 7.5% this year, many analysts have suggested that such a relative economic slowdown will encourage Beijing to address chronic issues such as social inequality and its economy’s dependence on investment for growth. However, with the global economy still recovering from the financial crisis, these transitions will test Beijing’s credentials. China’s attempt to shift its economy towards a stable, consumption-driven one, with greater social and geographical equality as well as environmental sustainability, could define its long-term political and economic future.
Many countries in Africa are crucial to China’s security of resources. China faces growing pressure to ensure its legacy in Africa remains distinct from traditional colonial powers. As China increases its outward foreign direct investment into oil and minerals and other sectors like agriculture, it must be conscious of the host countries’ calls for an associated improvement in working conditions and greater levels of domestic wealth transfer. READ MORE
Source: BusinessDay Live #IFAMAFRICA
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